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.