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. 11 Original Sheet No. 11 : Effective

1.8 Cushion Gas Inventory

"Cushion Gas Inventory" of an Owner means the lesser of the Gas

Inventory of such Owner and the Cushion Gas Requirement of such

Owner. Cushion Gas Inventory for Northwest means the lesser of

Northwest's (i) Cushion Gas Requirement or; (ii) Gas Inventory

plus the absolute value of the quantity in the Northwest System

Balancing Account.- Cushion Gas Inventory may temporarily deviate

from Cushion Gas Requirement in the event of (i) Northwest's force

majeure use under Section 7.4; or (ii) a FERC authorized reduction

or increase in Cushion Gas Requirement, but only for such time

necessary to comply with such FERC authorization.

1.9 Cushion Gas Requirement

"Cushion Gas Requirement" of an Owner means an amount equal to the

product of such Owner's Share of the Project Cushion Gas

Requirement multiplied by the Project Cushion Gas Requirement, as

set forth in Part 2 of Exhibit E as such part may be revised in

accordance with this Agreement.

1.10 Daily Activity

"Daily Activity" of an Owner, other than Northwest, for any Day,

means the net total of (i) such Owner's Confirmed Nominations for

injection; and (ii) such Owner's Confirmed Nominations for

withdrawal on any Day at the Storage Project Delivery Points.

Daily Activity for Northwest means the difference, on any Day,

between (i) the net total of actual metered injection and

withdrawal volumes at the Storage Project Delivery Points; and

(ii) the Daily Activity of all Owners other than Northwest.

1.11 Day

"Day" means each 24-hour period for which gas transportation is

normally scheduled on Northwest's Natural Gas Transmission System,

under its FERC gas tariff in effect from time to time.