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. 19 Original Sheet No. 19
6. AUTHORIZATION, RATES, TERMS AND CHANGES
6.1 Shipper's ISS Service Agreement and the respective obligations of the parties hereunder
are subject to all valid and applicable 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 facilities necessary to provide
such service and for any connected pipeline to transport natural gas to/from the Point of Receipt/Delivery
necessary to effect the service provided for herein.
6.2 PetroLogistics shall have the right to propose to the Commission or other governing regulatory body
such changes in its rates and terms of service as it deems necessary and unless otherwise agreed in an
executed ISS Service Agreement, Shipper's ISS 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.
7.1 If, due to an emergency situation or when unexpected capacity loss occurs after scheduling,
PetroLogistics' capability to receive or deliver quantities is impaired so that PetroLogistics is
unable to receive or deliver the quantities provided for in its ISS Service Agreements 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.
7.2 In the event that PetroLogistics determines, in its reasonable judgment, that some or all
Interruptible storage service(s) under this Rate Schedule must be interrupted in order to satisfy
PetroLogistics' obligations to Firm storage service Shippers, or that such interruption is otherwise
necessary or is otherwise appropriate to avoid adverse impact on the operation of PetroLogistics' system,
PetroLogistics will notify any affected Shipper receiving Interruptible storage service that they are
required to reduce their Interruptible Storage Inventory(s) over the period specified in the notice.
Such notice shall be issued to Shippers, via facsimile, on a price basis, where lower price services will
be interrupted before higher price services. At a minimum, Shippers will have one Day in which to comply
with the notice.
7.3 If Shipper fails to comply with the notice given in accordance with the section above, PetroLogistics
shall cash out the balance quantity that Shipper was advised, but failed to reduce or eliminate, at the
"Gas Daily" "Henry Hub" index plus ten percent (10%) for negative Interruptible Storage Inventories or
the "Gas Daily" "Henry Hub" index less ten percent (10%) for positive Interruptible Storage Inventories.
7.4 PetroLogistics may issue a notice requiring any Shipper with an Interruptible Storage Inventory
of less than 50 Dth to eliminate its existing Interruptible Storage Inventory within thirty (30) Days.
Such notice shall be issued by PetroLogistics to Shipper via facsimile. If Shipper fails to comply
with this notice, any positive Interruptible Storage Inventory remaining after thirty (30) days will be
cashed out at 80% of the "Gas Daily" "Henry Hub" index calculated during the thirty (30) Day period, and
any negative Interruptible Storage Inventory remaining after thirty (30) Days will be cashed out at 120%
of highest "Gas Daily" "Henry Hub" index calculated during the thirty (30) Day period.
7.5 In the event that the prices referenced in this Section 7 are no longer available or valid,
PetroLogistics will file to change its tariff and may, at its discretion, select a representative price
in the interim period, subject to refund. In the event that a more representative posting is established,
PetroLogistics will file to change its tariff to incorporate that posting.
8. EXPIRATION OF TERM
8.1 At least thirty (30) Days prior to the expiration of any primary term or renewed term of Shipper's
ISS Service Agreement, PetroLogistics shall notify Shipper to withdraw all Interruptible Storage Inventory
held by PetroLogistics for Shipper's account. PetroLogistics' notice to Shipper may be given verbally
but shall be confirmed in