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. 34 Original Sheet No. 34

 

shall require Shipper to withdraw or repay all, or any portion of, the IBS gas quantities held

or loaned by PetroLogistics for the account of Shipper as specified by PetroLogistics. Unless

PetroLogistics otherwise agrees, Shipper shall be required to make ratable injections or withdrawals. If

Shipper fails to inject or withdraw such IBS storage gas, then PetroLogistics may take, free and clear of

any adverse claims, title to such IBS Storage Inventory as Shipper was instructed to withdraw. If Shipper

fails to inject such IBS storage gas, then 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. PetroLogistics' notice to Shipper may be given verbally,

but shall be confirmed in writing via e-mail or facsimile to the Shipper. In the event that PetroLogistics

retains and takes title to any of Shipper's gas pursuant to this section, PetroLogistics shall dispose

of such gas by auction and shall credit the 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.

2.4 Shipper shall be permitted to combine the interruptible injection, storage, or withdrawal and

delivery of gas 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, further, that priority for each

service shall be determined by the respective priority of that service as set forth in Section 7 of the

General Terms and Conditions of this FERC Gas Tariff.

3. RATES AND CHARGES

The charges to be paid by Shipper shall be mutually agreed to by PetroLogistics and Shipper. The

rates and charges paid by Shipper for interruptible balancing service under this Rate Schedule shall

include the applicable interruptible balancing rate components set forth in the Rate Statement IBS and

as described below:

(a) Interruptible Balancing Charge. A charge for each Dth of gas stored in PetroLogistics' facilities

under this Rate Schedule.

(b) Interruptible Balancing Injection Charge. A charge for each Dth of gas injected into PetroLogistics'

facilities pursuant to Section 2(a) of this Rate Schedule during a given invoice period.

(c) Interruptible Balancing Withdrawal Charge. A charge for each Dth of gas withdrawn from

PetroLogistics' facilities pursuant to Section 2(c) of this Rate Schedule during a given invoice period.

(d) Fuel Reimbursement. The amount of gas for fuel and losses determined in accordance with Section 14

of the General Terms and Conditions of this FERC Gas Tariff and set forth in Exhibit B of Shipper's Hub

Services Agreement.

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

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

Rate Schedule, as set forth in Shipper's Hub Services Agreement.

(f) Taxes. Shipper shall reimburse PetroLogistics for all applicable taxes as may be assessed

PetroLogistics, as set forth in Exhibit B of Shipper's Hub Services Agreement.

(g) 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. INVOICE

The invoice for interruptible balancing service shall reflect the applicable charges set forth

under Section 3 of this Rate Schedule at rates and terms set forth in Exhibit B of Shipper's Hub

Services Agreement.