Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 11/01/2002, Docket: RP00-393-002, Status: Effective

First Revised Sheet No. 81 First Revised Sheet No. 81 : Effective

Superseding: Original Sheet No. 81





5. Withdrawals from Storage


(a) Buyer shall nominate quantities for withdrawal from

storage with Seller in accordance with Section 21 of the

General Terms and Conditions of Seller's FERC Gas Tariff.


(b) Seller shall make all necessary arrangements with

Columbia to have gas withdrawn from storage and

transported to Seller's system.


(c) Buyer shall be responsible for making all arrangements

for the transportation of such gas from Buyer's

Point(s) of Receipt on Seller's system to Buyer's

Delivery Point Area(s).


(d) Seller shall be obligated to withdraw from storage

on behalf of Buyer, at Buyer's request, natural gas

quantities up to but, not in excess of, the quantities

determined in accordance with the provisions

specified in Columbia FSS Rate Schedule.


(e) Buyer's storage inventory balance shall not exceed the

maximum inventory balances specified in Columbia FSS

Rate Schedule.


(f) Buyer shall achieve the minimum inventory turnover

specified in Columbia FSS Rate Schedule. Failure

to comply with the minimum inventory turnover

requirements shall result in Seller deducting the

applicable quantity from Buyer's Storage Gas Balance.

Such quantity shall be forfeited by Buyer to Seller,

free and clear of all liens and encumbrances. Seller

shall post such forfeited quantities on its EBB as gas

available for sale to the highest bidder within a 24

hour notice period. Such posting may provide as a

condition of sale that such gas be withdrawn from

storage within a specific period of time. Upon receipt

of payment, Seller shall credit to the account of the

Buyer whose gas was forfeited 90 percent of the