Puget Sound Energy, Inc.

Original Volume No. 1

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Effective Date: 11/01/1998, Docket: CP98-250-002, Status: Effective

Original Sheet No. 10 Original Sheet No. 10 : Effective



in Part 1 of Exhibit E as such part may be revised in accordance

with this Agreement.


1.4 Capital Costs


"Capital Costs" for the Storage Project means the capital costs of

the Storage Project calculated in accordance with the Uniform

System and generally accepted accounting principles for gas



1.5 Chehalis Farm Tap


The "Chehalis Farm Tap" is a transportation delivery point from

Northwest to PSE located within the Storage Project.


1.6 Committee


"Committee" means the management committee created pursuant to



1.7 Confirmed Nomination


"Confirmed Nomination" means any and all volumes of natural gas

nominated for injection into or withdrawal from the Storage

Project provided that (i) such nominating Owner has such

quantities available for delivery; (ii) such nominations do not

exceed the applicable Storage Service Rights of the nominating

Owner; (iii) such nomination does not exceed the capability of the

Storage Project for such Day; and (iv) Northwest has confirmed any

necessary corresponding nominations for related transportation

services on Northwest's Natural Gas Transmission System. Any

differences between aggregate Confirmed Nominations for all other

Owners other than Northwest and the actual aggregate metered

injections or withdrawals for a given Day will be deemed to be

Confirmed Nominations for Northwest's use of the Storage Project.