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. 23 Original Sheet No. 23

 

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, or requisite authorization for PetroLogistics to provide the parking service

contemplated herein and to construct and operate the gas storage facilities necessary to provide such

parking service and for any connected pipeline to transport natural gas to/from the Point(s) of

Receipt/Delivery necessary to effect the parking service provided for herein.

6.2 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 the Hub Services 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 Exhibit B of

the Hub Services Agreement(s).

7. CURTAILMENT

7.1 If, due to any cause whatsoever, PetroLogistics' capability to receive or deliver quantities is

impaired so that PetroLogistics is unable to receive or deliver the quantities provided for in Exhibit B

of its Hub Services Agreement with Shipper, 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 sole discretion, that some or all

Interruptible storage service(s) 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 noticed 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 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 ten (10) Business Days prior to the expiration of the term as specified in Exhibit

B of Shipper's Hub Services Agreement, PetroLogistics shall notify Shipper to withdraw all of the

IPS gas quantities held by PetroLogistics for Shipper's account; provided, however, any Exhibit B

of Shipper's Hub Services Agreement that has a term of ten (10) Business Days or less shall not

require such foregoing notice but notice shall be deemed to have been given on the first Day of

the primary term or the renewed term of such Agreement. PetroLogistics' notice to Shipper may be

given verbally but shall be confirmed in writing via e-mail or facsimile to Shipper.

 

Within two (2) Business Days of such notice, PetroLogistics and Shipper shall either agree on mutually

acceptable terms by which PetroLogistics shall agree to cash out the IPS gas quantities or Shipper

must physically withdraw the IPS gas quantities