Puget Sound Energy, Inc.

Original Volume No. 1

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

Original Sheet No. 41 Original Sheet No. 41 : Effective

6.4.2.4 Establish (subject to the approval of the Committee)

special short-term operational rules or limitations on the use of

the Storage Project in order to accommodate special construction

or maintenance procedures. Such rules or limits shall be

established with due consideration to the needs of the Owners and

shall require sixty (60) days' notice to the Committee, unless

established in response to an Emergency as set forth in Section

6.4.5.

6.4.2.5 Enter into contracts identified during the budget process

and for those contracts not identified in the budget process, to

enter into such contracts within the budget limitations fixed by

the Committee as provided in Section 5.7.1.

6.4.2.6 Maintain records and accounts in conformity with

applicable provisions of the Uniform System and render statements

each Month for Storage Project costs and expenses incurred during

the prior Month.

6.4.2.7 Provide communications, surveillance, flow control,

corrosion control, monitoring, data acquisition, measurement, and

daily operating procedures set forth in this Agreement.

6.4.2.8 Provide periodic testing, adjustment, calibration of

meters, evaluation of cathodic protection, external inspection of

above-ground portion of the Storage Project, and maintenance of

all valves, piping, meters, and instruments and major overhaul and

replacement.

6.4.2.9 Submit reports, to the extent possible, to governmental

agencies applicable to routine services to the Storage Project

with copies of all such reports to all the Owners and advising

Owners of those reports which the Project Operator cannot submit.

6.4.2.10 By August 15 of each year prepare for Committee approval

an annual budget for the operation and maintenance of the Storage

Project which reflects the costs that the Project Operator