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. 25 Original Sheet No. 25

 

RATE SCHEDULE ILS

INTERRUPTIBLE LOAN SERVICE

1. AVAILABILITY

This Rate Schedule is available to any Shipper for the purchase of interruptible natural gas loan

("ILS") service from PetroLogistics, provided that:

(a) PetroLogistics has determined that it has sufficient operationally available storage capacity,

injection or withdrawal capacity to perform service requested by Shipper;

(b) PetroLogistics has determined that service requested by Shipper will not interfere with

efficient operation of its system or with higher priority services;

(c) Shipper and PetroLogistics have executed a Hub Services Agreement under this Rate Schedule;

(d) Shipper accepts responsibility for arranging any transportation service required for utilization

of the loan service provided under this Rate Schedule; and

(e) Service under this Rate Schedule may not be available to the extent that PetroLogistics would

be required to construct, modify, expand or acquire any facilities to enable PetroLogistics to perform

the requested services.

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 This Rate Schedule shall apply to all ILS service rendered by PetroLogistics to Shipper at

PetroLogistics' facilities located in Iberville Parish, Louisiana pursuant to an executed Hub Services

Agreement.

2.2 ILS service rendered by PetroLogistics to Shipper under this Rate Schedule shall consist of the

advancement to Shipper, upon nomination and subsequent confirmation, of daily quantities of gas in

storage up to Shipper's Maximum Daily Withdrawal Quantity ("MDWQ") stated in Exhibit B of the Hub

Services Agreement with Shipper, provided that all higher priority service nominations for withdrawal

have been satisfied and system needs allow. Shipper agrees to replace the borrowed quantities of gas to

PetroLogistics at a time to be agreed upon as set forth in Exhibit B of the Hub Services Agreement. If

Shipper fails to replace or replenish gas advanced by PetroLogistics to Shipper under this Rate Schedule

at the agreed upon time, PetroLogistics may purchase replacement gas and Shipper shall pay

PetroLogistics the cost of the replacement gas, which includes the actual cost of replacement supplies

and any costs or penalties incurred by PetroLogistics or its Shippers as a result of Shipper's failure

to deliver replacement gas, plus all other costs incurred by PetroLogistics to secure such replacement

gas, including to, third-party marketing fees, transportation by third-party pipeline companies, and all

other costs for securing replacement gas.

2.3 To the extent gas which is advanced to an interruptible Shipper hereunder is needed by PetroLogistics

in order to satisfy PetroLogistics' obligations to higher priority services or to meet system needs,

PetroLogistics may at its sole discretion and upon giving notice to Shipper, interrupt the continuation of

any or all services hereunder and require Shipper to replace or replenish all, or any portion, of the ILS

gas quantities borrowed by Shipper at a time to be agreed upon. Unless PetroLogistics otherwise agrees,

Shipper shall be required to make ratable injections.

If Shipper fails to replace or replenish borrowed gas to PetroLogistics at the agreed upon time,

PetroLogistics may purchase replacement gas and Shipper shall pay PetroLogistics the cost of the

replacement gas, which includes the actual cost of replacement supplies and any costs or penalties incurred

by PetroLogistics or its Shippers as a result of Shipper's failure to deliver replacement gas, plus all

other costs incurred by PetroLogistics to secure such replacement gas, including, but not limited to,

third-party marketing fees, transportation by third-party pipeline companies, and all other costs for

securing replacement gas.

2.4 Shipper shall be permitted to combine the ILS service available under this Rate Schedule with

any service available under any other Rate Schedule set forth in this FERC Gas Tariff; provided, however,

such combined services shall be subject to Section 7 of the General Terms and Conditions of this FERC Gas

Tariff; and, provided,