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. 117 Original Sheet No. 117

 

7. PRIORITY, INTERRUPTION OF SERVICE AND OPERATIONAL FLOW ORDERS

7.1 Priority of Service. Any Shipper executing a Service Agreement with PetroLogistics shall

be entitled to the storage, parking, loaning, wheeling, imbalance trading or balancing of gas in the

following order of declining priority:

(a) Firm Storage Service ("FSS") at primary Point(s) of Receipt, not in excess of MDRQ, or primary

Point(s) of Delivery, not in excess of MDDQ, located on PetroLogistics' system.

(b) FSS at secondary Point(s) of Receipt or Delivery located on PetroLogistics' system, not to exceed

Shipper's MDIQ or MDWQ; FSS at primary Point(s) of Receipt located in PetroLogistics' system, in excess

of MDRQ but less than or equal to MDIQ, and FSS at primary Point(s) of Delivery located on PetroLogistics'

system, in excess of MDDQ but less than or equal to MDWQ.

(c) Make-up volumes to correct prior variances between : (i) Shipper and PetroLogistics under a

balancing agreement, (ii) Shipper and PetroLogistics, and (iii) Shipper and an upstream Transporter if

the variance was due to PetroLogistics' failure to receive or deliver Shipper's scheduled volumes.

(d) Interruptible services, including authorized overrun service, excess injection or excess withdrawal

under Rate Schedules FSS, parking, loaning, wheeling, imbalance trading, and/or balancing service pursuant

to Section 7.2 below.

If a capacity constraint is anticipated or planned (e.g. for system maintenance), PetroLogistics shall

post notice of the anticipated constraint on its Web Site in advance of the start of the constraint period.

7.2 Interruptible Service. Interruptible service obligations and extensions of the service shall

have priority as follows:

(a) The order of priority relating to service requests for Authorized Overrun Service, Excess Injection

Gas and Excess Withdrawal Gas and for service under Rate Schedules IPS, ILS, IWS, IBTS, and IBS shall

be based on the net revenue to PetroLogistics as applicable, agreed to by PetroLogistics and Shipper

under such Rate Schedule, with the transaction generating the highest net revenue to PetroLogistics given

highest priority.

(b) Should two or more Interruptible Shippers have the same priority, capacity will be allocated to each

Shipper on a pro rata basis.

7.3 Interruptions.

(a) If, on any Day, PetroLogistics' capability to receive or deliver quantities of gas is impaired so

that PetroLogistics is unable to receive or deliver all scheduled quantities, then interruption of service

shall be made in the reverse order of priority set forth in Section 7.1. Volumes in each category will

be interrupted on a pro rata basis, except that Interruptible service will be interrupted based on the

charges paid by Shipper, with the transaction with the lowest net revenue to PetroLogistics being

interrupted first. Any ties shall be interrupted on a pro rata basis.

(b) PetroLogistics shall provide Shipper as much advance notice of interruption as is practicable under

the circumstances. Such notice shall be made by telephone, facsimile, e-mail via the