Puget Sound Energy, Inc.

Original Volume No. 1

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

Original Sheet No. 59 Original Sheet No. 59 : Effective

8.3 Allocation of Fuel Use

The monthly fuel use for the Storage Project will be allocated pro

rata to each Owner based on each Owner's Monthly Activity in the

Storage Project.

8.3.1 The total monthly fuel use shall include all compressor

(whether for withdrawal or injection), dehydration or other use

physically related to the operation of the Storage Project,

including the incidental on-site uses by the Storage Operator, for

the Month.

8.3.2 The fuel use allocated to an Owner shall be the total

monthly fuel use multiplied by the Monthly Activity for such Owner

divided by the absolute sum (i.e., not offset) of the Monthly

Activity of all Owners.

8.3.3 Each Owner's monthly allocation of fuel use will be replaced

in-kind on the fifteenth (15th) day of the next succeeding Month

by deduction from such Owner's account, and transferring the same

to Northwest's account.

ARTICLE 9. ARBITRATION

9.1 Resolution of Disputes

Any dispute arising under or related to this Agreement that can

not be reasonably resolved by the mutual efforts of the Owners as

parties to a business agreement shall be resolved by arbitration

in accordance with the Commercial Arbitration Rules of the

American Arbitration Association, in Seattle, Washington. The

arbitration hearing shall be conducted by a single neutral

arbitrator appointed in accordance with said rules, who shall be

knowledgeable in the industry but not affiliated with any Owner,

and who shall be an active Washington State Bar member in good

standing. In addition to all other powers, the arbitrator shall

have the right to determine all issues of arbitrability and shall

have the authority to issue subpoenas. The Owner(s) demanding

arbitration must give the other Owner(s) a written notice of such

demand. The written notice must contain, in addition to the