Puget Sound Energy, Inc.
Original Volume No. 1
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Effective Date: 01/03/2004, Docket: RP04-100-000, Status: Effective
Original Sheet No. 97 Original Sheet No. 97 : Effective
GAS STORAGE PROJECT AGREEMENT
1. The Owners intend to have a single project, phased-in over up to seven
water withdrawal/gas injection cycles, beginning in 2002 and finishing
in 2008, which is intended to expand the Jackson Prairie cushion and
working gas capacity by a total of approximately 10.5 Bcf. This project
shall be known as the "2002 - 2008 Expansion Project."
2. During the expansion phases of the 2002 - 2008 Expansion Project, the
Owners' respective Shares of Storage Service Rights, but not their
respective Ownership Percentages, may vary. Although at this time, it
is the Owners' intent that the 2002 - 2008 Expansion Project shall go
forward on an equal ownership basis among the Owners, upon completion of
the 2002 - 2008 Expansion Project, it is possible that the Owners'
Storage Service Rights and their Ownership Percentages may not be equal,
as discussed further in paragraph 8 hereof.
3. Commencing in 2002, on or before July 15th of each year, the Project
Operator will provide written notice to each of the Owners as to the
expected amount of water withdrawal and as to each Owner's expected 1/3
share of cushion and working gas additions required for the next water
withdrawal and injection period (March through October of the next
calendar year). By July 31st of each year, each Owner will notify, in
writing, the Project Operator of its intent either to participate in the
next expansion phase or not to participate. If any Owner elects not to
participate or fails to notify the Project Operator, such Owner will be
deemed to be a Deferring Party.
4. If any Owner elects not to participate and not to inject its one-third
share of the applicable cushion and working gas for that water
withdrawal and injection period, then the remaining Owners have the
right to develop for their account(s) the Deferring Party's deferred