Southwest Gas Storage Company

First Revised Volume No. 1

Effective Date: 02/23/2009, Docket: RP09-248-000, Status: Effective

Third Revised Sheet No. 120 Third Revised Sheet No. 120

Superseding: Second Revised Sheet No. 120

GENERAL TERMS AND CONDITIONS

(Continued)

6. CAPACITY RELEASE (Continued)

(5) The period of time or term of the release;

(6) The conditions of Releasing Shipper's right of recall as

well as methods and rights associated with returning the

previously recalled capacity to the Replacement Shipper,

if applicable;

(7) Whether contingent bids will be accepted and when the

contingency must be removed;

(8) The identity of a Pre-arranged Replacement Shipper

(PRS), if applicable;

(9) The minimum rate expressed in dollars and cents or

percentage of Maximum Rate, term, and quantity of

capacity Releasing Shipper shall accept, if any, and

whether bids using a volumetric rate for the collection

of Capacity and Deliverability Charges will be accepted

and whether Releasing Shipper requires a volumetric

commitment. The maximum volumetric rate that may be bid

shall not exceed the one hundred percent (100%) load

factor equivalent of the maximum Capacity and

Deliverability reservation rates. Southwest shall

support volumetric releases with volumetric commitments

by fully accounting for volumetric and reservation

components, consistent with the rules and regulations

enunciated by the Commission. The maximum reservation

rate that may be bid shall not exceed the Maximum Rate

for the applicable service being released as set forth

on the applicable currently effective tariff sheets.

Notwithstanding the above, no rate limitation shall

apply to a capacity release for a period of one year or

less if the release is to take effect on or before one

year from the date on which Southwest is notified of the

release;

(10) The duration of the posting which may not be less than

the minimum bid period specified in Section 6.4(B)

herein;