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. 108 Original Sheet No. 108
(3) Potential Shipper/Shipper may prepay for service via cleared check or wire transfer. For
service that is not originally subscribed in connection with construction, the amount of the prepayment
shall at all times be no less than the value of three (3) Months' worth of applicable transportation
charges for the requested MSQ at the maximum applicable unit rate for Potential Shipper/Shipper's service
at 100% load factor. For service that is originally subscribed in connection with construction, the amount
of the prepayment shall at all times be no less than the amount set forth in Potential Shipper/Shipper's
precedent agreement. Prepayment amounts shall be deposited in an interest-bearing escrow account if
such an account has been established by Potential Shipper/Shipper and PetroLogistics reasonably
determines that such account is satisfactory. The costs of establishing and maintaining the escrow
account shall be borne by PetroLogistics. The escrow bank must be acceptable to PetroLogistics in its
reasonable judgment. The escrow agreement shall provide for prepayment amounts to be applied against
Potential Shipper/Shipper's obligation under its service agreement(s) with PetroLogistics and shall
grant PetroLogistics a security interest in such amounts as an assurance of future performance.
The escrow agreement shall specify the permitted investments of escrowed funds so as to protect
principal, and shall include only such investment options as corporations typically use for short-term
deposit of their funds. If PetroLogistics is required to draw down the funds in escrow, Potential
Shipper/Shipper shall replenish such funds no later than five (5) Business Days.
(4) Potential Shipper/Shipper may provide such other form of security as mutually acceptable to
Potential Shipper/Shipper and PetroLogistics.
(5) All of PetroLogistics' creditworthiness review standards and requirements shall be imposed
on a non-discriminatory basis. Security shall no longer be required pursuant to this Section 2.3(c)
when Potential Shipper/Shipper achieves the minimum acceptable credit standard set forth in Section
2.3(b)(1) or when the Potential Shipper/Shipper is no longer receiving Services from the
PetroLogistics, and has not guaranteed and is not otherwise liable for the performance of any assignee
of Shipper, and has paid in full for all Services received from PetroLogistics in the past. Upon Potential
Shipper/Shipper's request, which may be made at any time, PetroLogistics shall determine whether Potential
Shipper/Shipper has achieved the minimum acceptable credit standard as described in Section 2.3(b)(1).
In the event PetroLogistics determines that Potential Shipper/Shipper achieves the minimum acceptable
credit standard, PetroLogistics shall terminate any alternative forms of security that Potential
Shipper/Shipper may have been required to provide to PetroLogistics. If Potential Shipper/Shipper
has provided such security in the form of a prepayment, PetroLogistics shall refund any unused
prepayment within five (5) Business Days, plus interest due to Potential Shipper/Shipper, less
costs incurred by PetroLogistics.
(d) Termination Based on Non-Creditworthiness.
(1) If at any time PetroLogistics reasonably determines that Shipper does not meet the minimum
acceptable credit standard set forth in Section 2.3(b)(1) of these General Terms and Conditions and
Shipper has not already provided an alternative form of security as provided for in Section 2.3(c)
of these General Terms and Conditions, PetroLogistics may notify Shipper in writing that it must
provide one of the alternative form of security specified in Section 2.3(c) of these General Terms
and Conditions. If: (a) within five (5) Business Days of such notice, Shipper has not provided a
guaranty as described in Section 2.3(c)(2) of these General Terms and Conditions, or prepayment or
a letter of credit (in either case an amount sufficient to