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. 104 Original Sheet No. 104 : Effective

Exhibit F

(revised February 28, 2003, pursuant to Amendment No. 3)

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

such Storage Cycle; or

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

after August 31st and 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.

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

the Gas Day is less than 60% but greater than 15% of the Firm

Working Gas Capacity of such Owner, the Firm Withdrawal

Deliverability of such Owner shall be reduced by 2.0% of the

maximum Firm Withdrawal Deliverability set forth for that Owner on

Exhibit E for every 1% that the Available Working Gas Inventory

for the account of that Owner is below 60% of the Firm Working Gas

Capacity of such Owner.

c) When the Owner's Available Working Gas Inventory at the

start of the Gas Day is equal to or less than 15% of the

Owner's Firm Working Gas Capacity, the Firm Withdrawal

Deliverability shall be reduced to 10% of the maximum

Firm Withdrawal Deliverability set forth for that Owner

on Exhibit E; provided that when the Available Working

Gas Inventory of such Owner is zero, the Firm Withdrawal

Deliverability of such Owner shall be zero.

* In addition to this specifically defined quantity, Seasonal

Working Gas Quantity includes any expanded Working Gas

Inventory developed, month to month, during the current water

withdrawal/gas injection cycle of the 2002-2008 Expansion

Project detailed in Exhibit G.