Eastern Shore Natural Gas Company

First Revised Volume No. 1

Effective Date: 07/01/1993, Docket: RP92-227-002, Status: Effective

Original Sheet No. 254E Original Sheet No. 254E : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

23. Transportation Cost Adjustment Clause (Continued)

23.4 Termination Provision

At such time as the provisions of this Section are

terminated, (i) any net credit balance in the Account

186 subaccount, Unrecovered Transportation Cost, shall

be refunded to Buyers or, (ii) any net debit balance

shall be due and payable from Buyers.

Such distribution of a net credit balance or recovery

of net debit balance of the Unrecovered Transportation

Cost Account shall be based upon that proportion that

each Buyer's individual demand and commodity billing

determinants bear to the toal demand and commodity

billing determinants for the twelve month period

immediately preceding the termination of the

provisions of this Section 23.

A net credit balance shall be distributed by crediting

affected Buyer's monthly invoice for the month follow-

ing the expiration of this Section 23. Recovery of a

net debit balance by Seller shall be accomplished by

appropriately surcharging Buyer's monthly invoice for

the month following the expiration of this Section 23.

Such surcharge amount may be paid in full with such

invoice or, at Buyer's option, paid in three equal

monthly installments.

If after the expiration of this Section 23, Seller

receives from transporter(s) refunds related to the

transportation costs previously tracked through the

provisions of this Section then Seller shall disburse

such amounts based on Buyer's Actual demand and

commodity billing determinants during the overcharge

period reflecting the basis on which Seller received

the refund.