Puget Sound Energy, Inc.

Original Volume No. 1

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

Original Sheet No. 65 Original Sheet No. 65 : Effective

11.6 Relationship of Parties

Unless otherwise provided for in this Agreement, nothing contained

in this Agreement shall be construed to create an agency,

association, joint venture, trust or partnership, or impose an

agency, trust or partnership covenant, obligation or liability on

or with regard to any Owner. Each Owner shall be individually

responsible for its own covenants, obligations and liabilities

under this Agreement. All rights and obligations of the Owners

are several not joint. No Owner shall be deemed to control, to be

under control of, or to be the agent of, any other Owner.

11.7 No Third Party Beneficiaries

This Agreement shall not be construed to create rights in, or to

grant remedies to, any third party as a beneficiary of this

Agreement or of any duty, obligation or undertaking established

herein.

11.8 Public Utility Holding Company Act

If any Owner ("first Owner") or Affiliate of the first Owner

becomes subject to the provisions of the Public Utility Holding

Company Act as heretofore or hereafter amended ("PUHCA"), as a

result of the applicability of PUHCA to the other Owner ("second

Owner") or an Affiliate of the second Owner, the second Owner

shall take such actions, and shall cause its Affiliates to take

such actions, as are necessary to eliminate such applicability of

PUHCA to the first Owner and the Affiliates of the first Owner.

11.9 Regulatory Authorizations

The obligations of the Owners and the Project Operator under this

Agreement shall be subject to receipt of all required regulatory

authorizations.

11.9.1 PSE in its capacity as Project Operator and the other

Owners shall, from time to time, promptly apply to the FERC for

such authorizations as may be required to (i) implement their

respective