Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 11/01/1997, Docket: CP96-128-004, Status: Effective

Original Sheet No. 34 Original Sheet No. 34 : Effective






3. Rates and Charges (Continued)


(b) The maximum and minimum Reservation and Commodity Rates

for firm transportation service on Seller's system under

Rate Schedule ST are shown on the currently effective

Sheet No. 4 and Sheet No. 5, as applicable, of this

Tariff. Buyer shall pay such maximum rates for service

under this Rate Schedule unless Seller agrees to discount

one or more of its rates to Buyer. If Seller agrees to

discount one or more of such rates, it shall, upon forty-

eight (48) hours written notice, advise Buyer of the

effective date of such rates and the quantity of gas so

affected. Such discount shall not be unduly

discriminatory and the rates for service under

this Rate Schedule shall not be discounted below the

minimum rate(s).


Buyer and Seller may mutually agree to a negotiated rate,

which rate shall be less than, equal to, or greater than

Seller's maximum rate, shall not be less than the minimum

rate, and may be based upon a rate design other than

straight fixed variable (SFV). Such negotiated rate

shall be set forth in the executed Service Agreement.


(c) Buyer shall reimburse Seller for any fuel and line losses

associated with rendering service pursuant to this Rate

Schedule. Such reimbursement shall be accomplished by

adjusting the quantity of gas delivered for the account

of Buyer under this Rate Schedule at the Delivery Point

Area(s) by a quantity calculated by multiplying the

applicable fuel retention percentage specified on the

effective Sheet No. 4 or Sheet No. 5 of Seller's FERC Gas

Tariff by the quantity received for the account of Buyer

at the Point(s) of Receipt.


(d) Buyer shall reimburse Seller for the costs of any

facilities installed by Seller with Buyer's consent which

are necessary to receive, measure and deliver gas to or

for the account of Buyer within Buyer's firm entitlement,

unless Seller waives this requirement in writing pursuant

to Section 12 of the General Terms and Conditions of

Seller's FERC Gas Tariff.