Southwest Gas Storage Company

First Revised Volume No. 1

Effective Date: 07/01/2003, Docket: RP03-451-000, Status: Effective

Second Revised Sheet No. 126 Second Revised Sheet No. 126 : Effective

Superseding: 2nd Rev Original Sheet No. 126

GENERAL TERMS AND CONDITIONS

(Continued)

6. CAPACITY RELEASE (Continued)

(B) When capacity is awarded to Replacement Shipper, Releasing

Shipper must adjust or reconfirm its nominations to reflect

the capacity released. Southwest will automatically change

Releasing Shipper's nominations to zero for the Service

Agreement under which capacity was released unless such

nominations are adjusted or reconfirmed by the Releasing

Shipper.

with respect to the released capacity, unless such release is

a permanent release.

(D) In the event of termination of a Replacement Shipper's

Addendum pursuant to Section 6.6(C) herein, the released

capacity related to such Addendum will revert to the

Releasing Shipper.

(E) Releasing Shippers may, to the extent permitted as a

condition of the capacity release, recall released capacity.

The recall notification to Southwest shall specify the

Quantity in terms of total released capacity entitlements.

6.6 Rights and Obligations of Replacement Shipper

(A) Any bid submitted will bind Replacement Shipper or PRS to the

terms of the bid if Southwest selects such bid as the best

bid. If all the information provided by the Releasing

Shipper and the bidder/PRS is valid, the Replacement Shipper

is creditworthy, and there are no special terms and

conditions, Southwest will issue and execute the Addendum to

the Capacity Release Service Agreement within one hour of

awarding the winning bid. The capacity release addendum

number also will be issued within one hour of the award

posting.

(B) Replacement Shipper may submit nominations pursuant to

Section 3 herein beginning at the next available nomination

cycle for the effective date of the capacity release

addendum; however, in no event will Gas flow on Replacement

Shipper's Service Agreement prior to the effective date of

the release as posted in the Shipper Notice.