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. 35 Original Sheet No. 35

 

5. TERM

The term for service under this Rate Schedule shall be as set forth in Exhibit B of the Hub

Services Agreement.

6. AUTHORIZATION, RATES, TERMS AND CHANGES

6.1 The Hub Services 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 the FERC, and any state or local governmental

agency having jurisdiction, of requisite authorization for PetroLogistics to provide the balancing

service contemplated hereby and to construct and operate the gas storage facilities necessary to provide

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

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

6.2 PetroLogistics shall have the right to propose to the 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 the Hub Services Agreement 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 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.