Eastern Shore Natural Gas Company

First Revised Volume No. 1

Effective Date: 11/01/1993, Docket: TQ94-1-23-000, Status: Effective

Third Revised Sheet No. 261 Third Revised Sheet No. 261 : Superseded

Superseding: Second Revised Sheet No. 261

GENERAL TERMS AND CONDITIONS

(Continued)

24. Changes in Rates for Storage Service Rate Schedules to

Reflect Changes by Pipeline(s) Providing Storage Service

and Peaking Service To Seller (Continued)

24.7 Rate Schedule CWS

(a) Rate Change - The charges under Rates Schedule

CWS shown on effective Sheet No. 14/14A of First

Revised Volume No. 1 of this Tariff reflect

amounts payable by Seller to Columbia for service

under Columbia's Rate Schedules FSS and SST

respectively, as of November 1, 1993. Such

services provided by Columbia are utilized by

Seller to render service to customers under

Seller's CWS Rate Schedule. A change by Columbia

in the charges payable by Seller shall be

reflected in the CWS Rate Schedule by the

following procedure:

(i) Demand Charge - The Demand Charge shown on

such Sheet No. 14/14A is based on Columbia's

Rate Schedule FSS and SST Reservation

Charges. Seller will reduce and may increase

the Demand Charge shown on Sheet No. 14/14A

by an amount equal to the change in

Columbia's Reservation Charges. Any such

changes shall be tracked concurrently with

Columbia's changes.

(ii) Winter Contract Quantity Charge - The Winter

Contract Quantity charge is based on

Columbia's Rate Schedule FSS Capacity

Charge. Seller will reduce and may increase

such charge shown on Sheet No. 14/14A by an

amount equal to the change in Columbia's

respective charge. Any such changes shall

be tracked concurrently with Columbia's

change.

(iii) Injection Charge - The Injection Charge is

based on Columbia's Rate Schedule FSS

Injection Charge. Seller shall reduce and

may increase such charge shown on Sheet No.

14/14A by an amount equal to the change in