PetroLogistics Natural Gas Storage LLC

Original Volume No. 1

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Effective Date: 06/03/2009, Docket: RP09-577-000, Status: Effective

Original Sheet No. 14 Original Sheet No. 14

 

(g) Fuel Reimbursement. The amount of Shipper's gas which is reimbursed by Shipper in kind or in

dollars per Dth for fuel used and losses incurred per Month in the provision of service provided in

conjunction with the Agreement as set forth in Exhibit A of Shipper's FSS Service Agreement

(h) Regulatory Fees and Charges. Shipper shall reimburse PetroLogistics for all fees and charges,

as required by the FERC or any other regulatory body, that are related to service provided under

this Rate Schedule, as set forth in Shipper's FSS Service Agreement.

(i) Taxes. Shipper shall reimburse PetroLogistics for all property or other taxes associated with

the quantities held for Shipper in storage under this Rate Schedule. PetroLogistics shall invoice

Shipper periodically for all taxes, if any, attributable to the injection, storage or withdrawal

of gas, including Base Gas.

(j) Electric Power Costs for Compression. Shipper shall reimburse PetroLogistics for its actual

pro rata cost (without markup) of electric power for compression based on Shipper's receipt

quantities.

4.2 The charges and surcharges described in this Rate Schedule are subject to adjustment in

accordance with the procedures set forth in the General Terms and Conditions.

5. AUTHORIZATION, RATES, TERMS AND CHANGES

5.1 Shipper's FSS Service Agreement and the respective obligations of PetroLogistics and Shipper

under this FERC Gas Tariff are subject to all valid laws, orders, rules and regulations of duly

constituted authorities having jurisdiction, and are conditioned upon the issuance, by FERC, and

any state or local governmental agency having jurisdiction, of requisite authorization for

PetroLogistics to provide the storage service contemplated herein and to construct and operate the

gas storage facilities necessary to provide such storage service and for any connected pipeline

to transport natural gas to/from the Point(s) of Receipt/Point(s) of Delivery necessary to effect

the storage service provided herein.

5.2 PetroLogistics shall have the right to propose to FERC or other governing regulatory body such

changes in its rates and terms of service as it deems necessary, and Shipper's FSS Service Agreement

shall be deemed to include any changes which are made effective pursuant to order or regulation or

provisions of law, without prejudice to Shipper's right to protest the same; provided, however, that

any negotiated rates between PetroLogistics and its Shipper(s) shall remain in effect during the

term of Shipper's FSS Service Agreement(s).

6. CURTAILMENT

If, due to an emergency situation or when unexpected capacity loss occurs after scheduling,

PetroLogistics is unable to receive or deliver the quantities provided for in its FSS Service

Agreement with Shippers, then capacity, withdrawals and/or injections, will be allocated according

to the priority of service as set forth in Section 7 of the General Terms and Conditions of this

FERC Gas Tariff.

7. RIGHT OF FIRST REFUSAL

7.1 PetroLogistics possesses pregranted abandonment authority and may discontinue service to Shipper

at the end of any FSS Service Agreement's primary term, or any roll-over of Shipper's FSS Service

Agreement, unless PetroLogistics and Shipper mutually agree to include a right of first refusal ("ROFR")

in the FSS Service Agreement and Shipper exercises its ROFR for the storage capacity covered by that

agreement by matching the best bid offered to PetroLogistics during an open season, conducted pursuant

to Section 2.6 of the General Terms and Conditions, by any Potential Shipper. A Potential Shipper is

"qualified," within the meaning of this Section, if that Shipper meets the creditworthiness criteria

set forth in Section 2.3 of the General Terms and Conditions.