Southwest Gas Storage Company

First Revised Volume No. 1

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

Fifth Revised Sheet No. 122 Fifth Revised Sheet No. 122

Superseding: Fourth Revised Sheet No. 122

GENERAL TERMS AND CONDITIONS

(Continued)

6. CAPACITY RELEASE (Continued)

(D) The terms Releasing Shipper imposes may not conflict with any

provision of the Storage Service Agreement, Rate Schedule or

General Terms and Conditions. In the event of such conflict,

Southwest may withdraw the Shipper Notice from posting.

6.3 Exceptions to Bidding

(A) The following capacity releases are exempt from the bidding

process set forth in Section 6.4 herein:

(1) A capacity release for any period of thirty-one (31) days

or less. A firm Shipper shall not roll over, extend or

in any way continue such capacity release to the sam

posted for bidding or that qualifies for any of the other

exemptions from bidding set forth in Sections 6.3(A)(2),

(3) or (4) below.

(2) A capacity release for more than one year at the maximum

tariff rate.

(3) A capacity release to an asset manager as defined in

Section 284.8(h)(3) of the Commission’s Regulations.

(4) A capacity release to a marketer participating in a

state-regulated retail access program as defined in

Section 284.8(h)(4) of the Commission’s Regulations.

(B) In the event a capacity release is exempt from bidding in

accordance with Section 6.3(A) herein, the Releasing Shipper

presents a PRS that is on the approved bidders list, and such

PRS agrees to all conditions of the release prior to the

submission of the Shipper Notice to Southwest, the released

capacity will be assigned to the PRS and such Shipper Notice

shall be exempt from the bidding process in accordance with

Section 6.4 herein. The PRS will be posted as the winning

bidder in accordance with Section 6.4(I) herein.