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. 45 Original Sheet No. 45 : Effective

and authorizations have been obtained. The Project Operator

agrees to make the necessary applications and filings promptly and

to obtain such permits and authorizations and to use reasonable

efforts to prosecute same to final disposition. In no event will

the Project Operator be liable for failure to obtain the necessary

permits.

6.4.6.4 During any expansion or addition, the Project Operator

will notify the Committee promptly of unsatisfactory progress or

of any unforeseen occurrences that may cause a higher cost for the

new facility(s) than was estimated.

6.4.6.5 Upon determination by the Committee and the Project

Operator that the new facility is operational, the Project

Operator will commence its duties pursuant to the terms of this

Agreement with respect to the new facilities.

6.5 Contracts Entered Into By Project Operator

The Project Operator, except as provided in Section 6.4.5, must

obtain Committee approval before executing any contract not

identified during the budget process with a contract price

(exclusive of possible change orders) in excess of $25,000 with a

third party to perform the Project Operation's duties and

responsibilities. The Committee shall not unreasonably withhold

its approval of such contract. The Committee may withhold its

approval of such a proposed contract between the Project Operator

and a third party or an Affiliate of the Project Operator solely

on the basis that such third party or Affiliate is to perform all

or substantially all of the Project Operator's duties and

responsibilities hereunder.

6.6 Northwest as Agent to Operate Meter Station(s)

The Project Operator and the Owners hereby authorize Northwest to

serve as agent of the Project Operator for the limited purpose of

operating and maintaining the Storage Project meter station(s)

situated at the Storage Project Delivery Point.