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. 133 Original Sheet No. 133 : Effective

 

EXHIBIT G

(revised May 16, 2007 pursuant to Amendment No. 8)

to the

JACKSON PRAIRIE

GAS STORAGE PROJECT AGREEMENT

(Page 2 of 2)

 

discharge, prevent the Owners from completing the full targeted Expansion

capacity, then, subject to FERC approval, the developed expansion capacity

and the associated cushion gas volumes along with the costs of such cushion

gas, shall be reallocated among the Owners at the transferring Owner's net

book value for such cushion gas volumes.

 

7. Each Owner shall use its best efforts to inject its full one-third share of

expansion cushion and working gas no later than March 1, 2012. However, if

the Owners are prevented from so doing due to events of force majeure,

failure to receive and accept necessary regulatory approvals, or issues

pertaining to mechanical integrity or water discharge, the Owners agree to

extend or modify this Agreement to allow later injection, and to not

unreasonably withhold such approval, subject to receipt and acceptance of

necessary regulatory approvals.

 

8. Once an Owner has developed its total one-third share of the complete

Capacity Expansion Project, any Deferring Party shall have the opportunity

to make up all or a portion of its deferred share. However, in the event a

Deferring Party elects at that time not to participate and not to inject

its one-third share of the applicable cushion and working gas under the

Capacity Expansion Project, then the remaining Owners shall have the right

to develop for their accounts the Deferring Party's deferred share and the

Owners' Shares of Storage Service Rights and Ownership Percentages shall be

adjusted accordingly.

 

9. During each water withdrawal/gas injection cycle, the expanded cushion and

working gas capacities developed month to month will be specified as

follows:

 

(a) by the fifth business day of each month, the Project Operator will

confirm the total volume of expansion capacity developed by water

withdrawal during the preceding month, of which 40% will be designated

cushion gas capacity and the remainder working gas capacity; and

(b) by the tenth business day of each month, Northwest (as agent for

administering Storage Project nominations) will confirm to each Owner the

portion of its previous month's scheduled gas injections that were deemed

expansion cushion gas and the portion of its expansion working gas capacity

that was filled. If an Owner's previous month's scheduled gas injections

are less than Owner's added expansion cushion gas requirement, the

difference will be made up by transfer from Owner's existing working gas

inventory.