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. 118 Original Sheet No. 118

 

Internet Web Site, or other agreed-upon method, as appropriate, and shall state the reduced quantities of

gas that PetroLogistics estimates it will be able to park, loan, wheel, store, inject, withdraw, receive

or deliver, as applicable, and the estimated duration of the interruption.

(c) If the interruption is required, PetroLogistics and Shipper shall cooperate to the extent possible in

making adjustments to receipt, deliveries, injections or withdrawals to minimize injury to any property or

facilities.

(d) PetroLogistics shall not be liable for any loss or damage to any person or property caused,

in whole or in part, by any interruption of service.

7.4 Operational Flow Orders

(a) PetroLogistics shall have the right to issue Operational Flow Orders ("OFO") that require actions by

Shippers in order to (i) alleviate conditions that threaten to impair reliable service; (ii) maintain

operations at the pressure required to provide efficient and reliable services; (iii) have adequate gas

supplies in the system to deliver on demand; (iv) maintain service to all firm Shippers and for all firm

services; and (v) maintain the system in balance for the foregoing purposes. PetroLogistics shall lift any

effective OFO, promptly upon the cessation of operating conditions that caused the relevant system problem.

(b) To the extent reasonably practical, PetroLogistics shall take all reasonable actions necessary to

avoid issuing an OFO. Such actions shall include, in order of priority, (i) working with point operators

to temporarily adjust receipts and/or deliveries at relevant Point(s) of Receipt or Delivery, (ii) working

with Shippers and point operators to adjust scheduled flows on the system, or (iii) taking any other

reasonable action designed to mitigate the system problem. After taking all reasonable actions to avoid

issuing an OFO, PetroLogistics shall have the right to issue an OFO, if necessary, in the circumstances

described in Section 7.4(a).

(c) Preliminary Notice. PetroLogistics shall provide, via posting on its Web Site or other agreed-upon

method and directly to affected parties, prior notice to all Shippers and point operators of upcoming

system events, such as anticipated weather patterns and operational problems that may necessitate the

issuance of an OFO and provide actions that Shippers may take to avoid issuance of an OFO.

(d) Applicability of OFO. PetroLogistics shall make an OFO as localized as is reasonably practicable

based on PetroLogistics' good faith and reasonable judgment concerning the situations requiring

remediation, such that an OFO will be directed first to Shippers and point operators causing the problem

requiring an OFO and second, if necessary, to all other Shippers and point operators. PetroLogistics

will tailor the OFO to match the severity of the known or anticipated operation problem requiring

remediation as more fully set forth in Section 7.4(f). The declaration to the affected parties of OFO

shall describe the conditions and the specific responses required from the affected parties.

(e) Notice. OFOs will be issued via telephone to be followed by facsimile to the affected Shipper(s)

or point operator(s), with subsequent posting on the Web Site, and notice to affected parties, as

established in their Service Agreements. PetroLogistics shall also provide such notification via e-mail

communication to those Shippers and point operators that have provided e-mail address information for at

least one contact person and have requested, via PetroLogistics' Web Site, e-mail notification of critical

notices issued by PetroLogistics. The OFO will set forth (i) the time and date of issuance; (ii)

the actions Shipper or point operator is required to take; (iii) the time by which Shipper or point

operator must be in compliance