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. 78 Original Sheet No. 78 : Effective






2. Applicability and Character of Service (Continued)


(d) Each Month, Seller will release to Buyer, pursuant to the

General Terms and Conditions of Columbia's FERC Gas

Tariff, on a prearranged basis and at the maximum rate

the total quantity of Columbia's SST transportation

capacity retained by Seller for Buyer pursuant to a

conversion, at the effective date of restructuring,

reduced by the quantity of the Columbia capacity that

Buyer states is required for Swing Supply Scheduling and

is therefore to be retained by Seller. Once Seller has

released a quantity of SST transportation under Seller's

SST Rate Schedule Service Agreement with Columbia, Buyer

will not have the ability to make injections per Section

4, or withdrawals per Section 5, of Rate Schedule CFSS

with that released capacity. The released quantity will

revert back to Seller at the end of the Month.


3. Rates and Charges


(a) Charges for Storage Service provided under this Rate

Schedule are referenced to the rates charged Seller by

its upstream service provider, Columbia. As Seller's

rates are referenced to Columbia's rates they will change

concurrently with any change in Columbia's rates.


(b) For Storage Service provided for Buyer each Month under

this Rate Schedule, Buyer shall pay to Seller the sum of

the following charges:


(1) Storage Demand Charge: A charge per Dt of Storage

Demand comprised of the sum of Columbia's FSS

Demand Charges and SST Demand Charges.


(2) Storage Capacity Quantity Charge: A charge per Dt

of Storage Capacity Quantity utilizing Columbia's

FSS Storage Capacity Charge.


(3) Storage Injection Charge: A charge per Dt for gas

delivered into storage for Buyer's account comprised

of the sum of Columbia's FSS Injection Charges and

SST Commodity Charges.