Puget Sound Energy, Inc.

Original Volume No. 1

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Effective Date: 06/22/2007, Docket: RP07-462-000, Status: Effective

Original Sheet No. 127 Original Sheet No. 127 : Effective

AMENDMENT NO. 8

to

JACKSON PRAIRIE GAS STORAGE PROJECT AGREEMENT

This Amendment is entered into as of the 16th day of May, 2007, by and

between Northwest Pipeline Corporation ("Northwest"), a Delaware corporation,

Puget Sound Energy, Inc. ("Puget"), a Washington corporation and Avista

Corporation ("Avista"), a Washington corporation, collectively "the Owners."

RECITALS:

A. WHEREAS, Northwest, Puget and Avista are parties to that certain

Jackson Prairie Gas Storage Project ("Storage Project") Agreement dated

January 15, 1998, as amended ("Agreement");

B. WHEREAS, a phased expansion of the storage capacity in the Storage

Project has been authorized, as described in a prior notice application

filed with the Federal Energy Regulatory Commission in Docket No. CP02-

384;

C. WHEREAS, the procedures applicable to the development of the

authorized phased storage capacity expansion, as set forth in Exhibit G

to the Agreement, specify that the expansion phases are based on a March

through February water withdrawal/gas injection cycle;

D. WHEREAS, Article 4.6 of the Agreement provides that interim

amendments to Exhibits C, D, E and F (as appropriate) will be made upon

completion of each phase of a phased expansion;

E. WHEREAS, the Owners desire to amend Exhibits C, D and E to reflect

the February 28, 2007 completion of the fifth phase of the authorized

storage capacity expansion;

F. WHEREAS, the Owners also desire to amend Exhibits C, D and E to

reflect the 900,000 Mcf reduction of Project Cushion Gas Requirement and

total Project Gas Capacity resulting from the permanent loss of cushion

gas since the inception of the Storage Project as determined by the

Operator, consistent with the certificate authorization in Docket No.

CP06-465;

G. WHEREAS, the Owners desire to amend Exhibit G to recognize that

the storage capacity expansion authorized in Docket No. CP02-384 is now

anticipated to be completed no later than March 1, 2012, instead of no

later than November 1, 2008; and