Tathra have slipped to just an eight point lead over Merimbula following a loss to South Euro over the weekend.
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The Sea Eagles travelled to Dalmeny oval to take on the South Eurobodalla Pirates in the first division competition, but came away empty-handed, falling 23 runs short against the home squad.
The Pirates opened the batting and took control of the crease with a steady run rate that helped the hosts to an innings result of 5/160.
In reply the Sea Eagles struggled to gain any real traction, finishing all-out for 137.
Despite their first loss this season, the Sea Eagles are still out in front of the pack with Merimbula trailing by eight competition points.
Pambula have been stringing together some strong results and sit only 10 competition points further back with Eden holding down fourth a further 10 points behind.
Bega had the bye and remain in fifth with the competition now breaking for the Christmas period with play returning on January 11.
