Tom,
There is great info on Chipping and Pitching on the right of this screen under the FAQs:
Chip and Pitch Tips
Written by WGTIcon (when he was known as Iconian) it is the Bible of WGT short game.
For your example above, be careful using Chip when more than 1 or 2 yards off the green in the rough the ball doesn't carry very far, especially when choked down (i.e. 70% in your example.)
Use a Pitch or Flop shot, depending on the green speed and slope, in that position.