Puget Sound Energy, Inc.

Original Volume No. 1

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Effective Date: 11/01/1998, Docket: CP98-250-002, Status: Effective

Original Sheet No. 6 Original Sheet No. 6 : Effective

ARTICLE 5. MANAGEMENT COMMITTEE 35

5.1 Authorization 35

5.2 Designation of Representatives 35

5.3 Meetings 36

5.4 Voting Rights 36

5.5 Minutes 36

5.6 Interpretation of Agreement 36

5.7 Specific Duties 37

5.8 Insurance 37

ARTICLE 6. PROJECT OPERATOR 38

6.1 Qualifications 38

6.2 Appointment 38

6.3 Removal or Resignation 38

6.4 Duties of the Project Operator 39

6.5 Contracts Entered Into By Project Operator 45

6.6 Northwest as Agent to Operate Meter Station(s) 45

6.7 Indemnification 46

6.8 Performance of Obligations 48

6.9 Audit of Project Operator 48

6.10 Personnel 49

6.11 Monthly Expense Reimbursement 49

6.12 Payment to Project Operator 50

6.13 Records of the Project 52

6.14 Project Operator's Office 52

ARTICLE 7. STORAGE OPERATIONS 52

7.1 Injections or Withdrawals of Project Cushion

Gas Requirement 52

7.2 Injections of Working Gas Inventory 52

7.3 Withdrawals 52

7.4 Force Majeure Use By Northwest 53

7.5 Nominations 53

7.6 Northwest as Agent to Receive Nominations 54

7.7 Scheduling Priorities 55

7.8 Northwest System Balancing Account 56

7.9 Curtailment 56

7.10 Cycling of Working Gas 57

7.11 Gas Quality Specifications 57

7.12 Interruptible Working Gas Inventory 57

7.13 In Field Transfer 58

ARTICLE 8. GAS GAINS, LOSSES AND FUEL USE 58

8.1 Risk of Gas Loss 58