Southwest Gas Storage Company

First Revised Volume No. 1

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

Second Revised Sheet No. 128 Second Revised Sheet No. 128

Superseding: First Revised Sheet No. 128

GENERAL TERMS AND CONDITIONS

(Continued)

6. CAPACITY RELEASE (Continued)

Releasing Shipper, Replacement Shipper, bidder or any other party

as a result of Southwest's performance of its obligations under

its capacity release program, and such Shippers, Releasing

Shippers, Replacement Shippers, and bidders shall indemnify

Southwest from and against any and all losses, damages, expenses,

claims, suits, actions and proceedings whatsoever threatened,

incurred or initiated as a result of Southwest's performance

hereunder, except to the extent such loss, damage, expense, claim,

suit, action or proceeding is the result of Southwest's

negligence, bad faith or willful misconduct.

6.8 Term

(A) Any release under this Section 6 shall be for a minimum term

of at least one Day.

(B) Any release under this Section 6 shall be for a maximum term

expiring on the earlier of:

(1) The last date this Tariff provision shall be effective;

(2) The expiration date of Releasing Shipper's Service

Agreement when the release is for the full term of such

agreement; or

(3) The expiration date specified by the Releasing Shipper

in the Shipper Notice.

6.9 Billing Adjustments to Releasing Shipper

(A) Southwest shall credit Releasing Shipper's monthly bill to

reflect the Capacity and Deliverability Charges (including

surcharges, if any) invoiced to Replacement Shipper. In the

event of a release with a volumetric rate, the volumetric

rate shall be no greater than the 100% load factor equivalent

of the Maximum Rate currently applicable to the service

released and shall be credited to the Releasing Shipper's

monthly bill. Replacement Shipper's payment of the Volume

Injection Charge and Volume Withdrawal Charge and applicable

usage surcharges, if any, shall be retained by Southwest.

Notwithstanding the above, no 100% load factor equivalent

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.