Puget Sound Energy, Inc.

Original Volume No. 1

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

Original Sheet No. 66 Original Sheet No. 66 : Effective

obligations under this Agreement and (ii) revise, from time to

time, portions of Section 2.2 and Exhibits A, B, C, D, E and F.

The Owners shall cooperate in the preparation of all such required

applications.

11.10 Notice of Proposal To Seek FERC Authorization

Each Owner shall provide to the others ninety (90) days' prior

written notice of its intent to seek FERC authorization to provide

FERC jurisdictional services from its Storage Service Rights in

the Storage Project. Such notice shall set forth the type of

proposed authorization to be sought and the quantity of Firm

Injection Capability, Firm Withdrawal Deliverability and Firm

Working Gas Capacity in the Storage Project proposed to be

included in such FERC authorization.

11.11 Right to Terminate

Either Water Power or PSE shall have the right to terminate this

Agreement, by written notice so given, if either of them is,

through performance of this Agreement and participation in the

Storage Project as provided herein, found to be a "natural-gas

company" under the Natural Gas Act, other than such finding as to

(i) PSE's capacity as Project Operator hereunder or to (ii) PSE's

or Water Power's provision of storage service to third parties

pursuant to FERC authorization.

11.12 Governing Law

This Agreement shall be construed in accordance with the laws of

the State of Washington, without giving effect to the choice of

laws principles of the State of Washington that would result in

the application of the laws of any other jurisdiction.

11.13 Governmental Regulations

This Agreement is subject to all present and future orders, rules,

and regulations of any federal or state regulatory or governmental

body of competent jurisdiction. In this regard, the Owners agree

to proceed with reasonable diligence to cause the filing and

prosecution of appropriate