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. 132 Original Sheet No. 132 : Effective




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

to the



(Page 1 of 2)


1. The Owners intend to have a single project, phased-in over water

withdrawal/gas injection cycles beginning in 2002 and finishing no later

than March 1, 2012, which is intended to expand the Jackson Prairie cushion

and working gas capacity by a total of approximately 10.5 Bcf. This

project shall be known as the "Capacity Expansion Project."


2. During the expansion phases of the Capacity Expansion Project, the Owners'

respective Shares of Storage Service Rights, but not their respective

Ownership Percentages, may vary. Although at this time, it is the Owners'

intent that the Capacity Expansion Project shall go forward on an equal

ownership basis among the Owners, upon completion of the Capacity Expansion

Project, it is possible that the Owners' Storage Service Rights and their

Ownership Percentages may not be equal, as discussed further in paragraph 8



3. Commencing in 2002, on or before July 15th of each year, the Project

Operator will provide written notice to each of the Owners as to the

expected amount of water withdrawal and as to each Owner's expected 1/3

share of cushion and working gas additions required for the next water

withdrawal and injection period (March through February of the next

calendar year, with expansion development during the November through

February portion of the cycle available only to the extent mutually agreed

upon by the Owners and Project Operator). By July 31st of each year, each

Owner will notify, in writing, the Project Operator of its intent either to

participate in the next expansion phase or not to participate. If any

Owner elects not to participate or fails to notify the Project Operator,

such Owner will be deemed to be a Deferring Party.


4. If any Owner elects not to participate and not to inject its one-third

share of the applicable cushion and working gas for that water withdrawal

and injection period, then the remaining Owners have the right to develop

for their account(s) the Deferring Party's deferred share.


5. During the progress of the Capacity Expansion Project, an Owner's share of

the expansion project storage capacity will be based upon its proportion of

the expansion cushion gas capacity.


6. Consistent with the equal ownership principle set forth above, if events of

force majeure, failure to receive and accept necessary regulatory

approvals, or issues pertaining to mechanical integrity or water