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. 87 Original Sheet No. 87 : Effective

Exhibit F

(dated January 15, 1998)

to the

Jackson Prairie

Gas Storage Project Agreement

Operating Rules

Part 1: The Seasonal Working Gas Quantity for an Owner during any

Storage Cycle is the least of:

a) The quantity of Owner's Working Gas Inventory at the beginning

of the Storage Cycle; or

b) The least quantity of Owner's Working Gas Inventory at any

time after August 31st before October 1st of the preceding Storage

Cycle divided by 0.80; or

c) The least quantity of Owner's Working Gas Inventory at any

time after June 30th and before October 1st of the preceding

Storage Cycle divided by 0.35, or

d) The Owner's Firm Working Gas Capacity.

Part 2: The Firm Withdrawal Deliverability of an Owner on any day

is as follows:

a) When the Owner's Available Working Gas Inventory at the start

of the Gas Day equals or exceeds 60% of the Owner's Firm Working

Gas Capacity, the Firm Withdrawal Deliverability of such Owner

shall be 100% of the maximum Firm Withdrawal Deliverability set

forth for that Owner on Exhibit E; or

b) When the Owner's Available Working Gas Inventory at the start

of the Gas Day is less than 60% of the Owner's Firm Working Gas

Capacity, the Firm Withdrawal Deliverability shall be reduced by

1.3% of the maximum Firm Withdrawal Deliverability set forth for

that Owner on Exhibit E for every 1% that the Available Working

Gas Inventory of that Owner is below 60% of that Owner's Firm

Working Gas Capacity.

BA983510.066

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