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. 15 Original Sheet No. 15

 

7.2 Not less than twelve (12) Months prior to the expiration of an FSS Service Agreement that includes

a ROFR, Shipper must provide written notice to PetroLogistics of its intent to exercise any ROFR

provisions under the FSS Service Agreement. Failure by Shipper to give PetroLogistics the notice

specified in this section will result in the automatic abandonment of the service and the Shipper's right

to storage capacity will cease at the end of the primary term.

7.3 In the event Shipper notifies PetroLogistics in accordance with the terms of this Rate Schedule,

not less than six (6) Months prior to the termination or expiration of an FSS Service Agreement that

contains a ROFR, an open season will be held for the capacity under the expiring Service Agreement.

This open season will be conducted pursuant to the terms and conditions set forth in Section 2.6 of

the General Terms and Conditions.

7.4 Bids from qualified Potential Shippers who desire, in whole or in part, the capacity to be made

available upon the expiration or termination of a FSS Agreement that includes a ROFR must be received by

PetroLogistics within the timeframe set forth in the open season notice. Upon expiration of the open

season, PetroLogistics will select the best bid received from a qualified Potential Shipper and

communicate the terms of that bid to Shipper, who may elect, within fifteen (15) Days, or such greater

time as PetroLogistics may specify, to execute a renewed FSS Service Agreement upon the same terms.

In determining which bid for the capacity is the best, PetroLogistics will use an objective, not unduly

discriminatory methodology as set forth in Section 2.6 of the General Terms and Conditions.

7.5 If Shipper does not elect to match the terms of the best bid, its FSS Service Agreement will expire

at the conclusion of its term and PetroLogistics will be deemed to have all necessary abandonment

authorization with respect to such Service. PetroLogistics may enter into a new FSS Service Agreement

with the qualified Potential Shipper who submitted the best bid.

7.6 Regardless of any bids received, PetroLogistics shall retain the right to require a minimum rate

or term of Service, which shall be market-based, for bids during any such open season.

7.7 If during the open season, PetroLogistics receives no bids or rejects all bids, Shipper and

PetroLogistics may negotiate for continuation of service under mutually satisfactory rates, terms, and

conditions. In no event, however, will such continued service be provided at a rate lower than the best

bid by a qualified Potential Shipper during the open season.

8. EXPIRATION OF TERM

8.1 At least ninety (90) Days prior to the expiration of any primary term or renewed term of

Shipper's FSS Service Agreement, PetroLogistics and Shipper shall either agree on mutually acceptable

terms by which PetroLogistics shall agree to cash out the Storage Inventory and Base Gas or Shipper

must physically withdraw the Storage Inventory and Base Gas before the end of the contract term.

If, by midnight on the last Day of the contract term, Shipper has failed to withdraw such Storage

Inventory and Base Gas, then PetroLogistics may take, free and clear of any adverse claims or obligation

to Shipper, title to such Storage Inventory and Base Gas; provided, however, that if Shipper was unable

to withdraw its Storage Inventory and Base Gas quantities due to an interruption of Shipper's withdrawal

service during the last sixty (60) days before termination, Shipper shall be allowed an additional

number of days, corresponding to the period of interruption of its withdrawal service to withdraw its

Storage Inventory and Base Gas quantities following the end of the contract term.

8.2 In the event that PetroLogistics retains and takes title to any of Shipper's Storage

Inventory and Base Gas pursuant to this Section 8, PetroLogistics shall dispose of such Storage Inventory

and Base Gas by auction and shall credit net proceeds received from such auction in accordance with

the provisions of Section 27 of the General Terms and Conditions of this FERC Gas Tariff.