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. 328 Original Sheet No. 328 : Effective




Firm Storage Service

(For Use Under Seller's Rate Schedule LSS)






Payment and Rights of Termination



3.2 In the event Buyer fails to pay for the service provided

under this Agreement or otherwise fails to meet Seller's standards

for creditworthiness, Seller shall have the right to terminate this

Agreement pursuant to the conditions set forth in Section 11,

Section 18 and Section 19 of the General Terms and Conditions of

Seller's FERC Gas Tariff.




Rights to Amend Rates and Terms and Conditions of Service


4.1 This Agreement in all respects shall be and remain

subject to the provisions of said Rate Schedule LSS and the

provisions of the General Terms and Conditions of Seller's FERC Gas

Tariff (as the same may hereafter be legally amended or

superseded), all of which are made a part hereof by this reference.


4.2 Seller shall have the unilateral right to file with the

appropriate regulatory authority and seek to make changes in: (a)

the rates and charges applicable to its Rate Schedule LSS, (b) Rate

Schedule LSS including the Form of Service Agreement and the

existing Service Agreement pursuant to which this service is

rendered; and/or (c) any provisions of the General Terms and

Conditions of Seller's FERC Gas Tariff applicable to Rate Schedule

LSS; provided, however, Seller shall not have the right, without

the consent of Buyer, unless required to do so pursuant to

applicable laws or regulations, to make any filing pursuant to

Section 4 of the Natural Gas Act to reduce the firm nature of the

service provided under said Rate Schedule or the provisions of

Exhibits "A" and "B". Seller agrees that Buyer may protest or

contest the aforementioned filings, or seek authorization from duly

constituted regulatory authorities for such adjustment of Seller's

existing FERC Gas Tariff as may be found necessary in order to

assure that the provisions in (a), (b) or (c) above are just and