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. 113 Original Sheet No. 113

 

for any charges, penalties, costs and expenses incurred or payable by either Party as a result of the

Transportation Imbalance except to the extent that the Transportation Imbalance was caused by an event

of Force Majeure. Shipper agrees to use its best efforts to prevent or diminish any occurrences of

imbalances.

3.5 Measurement. Shipper and PetroLogistics agree that the quantity of gas delivered

hereunder shall be measured by PetroLogistics in accordance with Transporter's pipeline tariff, and, as

such, may be allowed to fluctuate within the applicable measurement or flow tolerances on a daily and

monthly basis.

3.6 Costs and Penalties. Shipper shall hold PetroLogistics harmless for all costs and penalties

which may be assessed by Transporter under Shipper's transportation agreement with Transporter, unless

the costs and penalties are due to the negligence of PetroLogistics. Shipper and PetroLogistics shall

cooperate with each other and with Transporter to verify delivery and receipt of the volumes of gas

delivered hereunder on a timely basis.

3.7 Downstream and Upstream Transportation. Shipper shall be responsible for transportation from

the Point(s) of Delivery located on PetroLogistics' system and payment of all transportation charges

relating thereto. Shipper shall be responsible for transportation to the Point(s) of Receipt located

on PetroLogistics' system and payment of all transportation charges relating thereto.

4. STORAGE OPERATIONS

4.1 Shipper shall tender or cause to be tendered to PetroLogistics at the Point(s) of Receipt

located on its system any gas which Shipper desires to have injected into storage plus applicable

Fuel Reimbursement volumes. Shipper shall also receive or cause to be received gas requested to be

withdrawn from storage at the Point(s) of Delivery located on PetroLogistics' system.

4.2 Subject to the operating conditions of the delivering or receiving pipelines, PetroLogistics

shall receive gas for injection from Shipper at the Point(s) of Receipt located on its system and

deliver gas to Shipper at the Point(s) of Delivery located on its system as scheduled by Shipper

from time to time; provided that PetroLogistics shall not be obligated to receive for injection any

quantity of gas if the injection of the same would cause the quantity of gas stored for Shipper's

account to exceed Shipper's MSQ; nor shall PetroLogistics be obligated at any time to deliver more

gas to Shipper than Shipper has stored in its Storage Inventory, Park Balance and/or Loan Balance,

as applicable.

4.3 Due to certain limitations of PetroLogistics' Facilities, PetroLogistics shall not be

obligated to receive, at any Point of Receipt for injection, or deliver, at any Point of Delivery,

any quantity of gas when the quantity of gas tendered for delivery to PetroLogistics or requested by

Shipper to be delivered, together with all other quantities of gas tendered for delivery to

PetroLogistics at any such Point of Receipt or requested for delivery at such Point of Delivery,

results in a net metered flow which is less than or equal to 5,000 Dth per Day.

4.4 In the event that batch flowing nominated volumes of less than 5,000 Dth per Day is deemed

operationally impractical by Transporter or PetroLogistics, and should PetroLogistics receive

nominations for the injection or withdrawal of gas, which after aggregation with other nominations

commencing at the same time and same meter, results in a net metered volume less than or equal to 5,000

Dth per Day, PetroLogistics will attempt, but shall not be required, to schedule such nominations.

However, if any single or combination of nominations is scheduled such that the aggregated nominated

volumes result in a net metered volume less than or equal to 5,000 Dth per Day, all nominations may

be curtailed on a pro rata basis such that the net metered volume will be zero. PetroLogistics will

verbally notify the affected Shipper(s) within four (4) hours of being notified of changes to

nominations which would result in curtailment as provided herein.

5. WHEELING OPERATIONS

5.1 Shipper shall tender or cause to be tendered to PetroLogistics at the Point(s) of Receipt

located on its system any gas which Shipper desires to have wheeled plus applicable Fuel

Reimbursement volumes. Shipper shall also receive or cause to be received gas requested to be wheeled

at the Point(s) of Delivery located on PetroLogistics' system.