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. 126 Original Sheet No. 126

 

maximum usage charges (plus all applicable surcharges, Fuel Reimbursement, taxes, penalties,

etc.) applicable under the relevant Rate Schedule attributable to its usage of the released capacity

and for any reservation charges ) plus all applicable surcharges applicable thereto) agreed upon

under the terms of the release. PetroLogistics shall continue to bill the Releasing Shipper all

applicable charges under its existing Service Agreement, excluding usage charges (plus all applicable

surcharges, Fuel Reimbursement, taxes, penalties, etc.) billed to the Replacement Shipper and

attributable to its usage of the released capacity. Invoices sent to the Releasing Shipper shall

reflect a credit equal to any reservation charges (plus all surcharges applicable thereto) being

billed to the Replacement Shipper for the released capacity rights, or as otherwise agreed. If the

Replacement Shipper fails to pay when due all or part of the amounts credited to the Releasing Shipper,

PetroLogistics shall pursue payment from the Replacement Shipper by notifying such Shipper by registered

letter, return receipt requested, that it has five (5) Days from receipt of such letter to pay the amount

due including any applicable interest. If the Replacement Shipper fails to pay such amount by the end

of the fifth Day, PetroLogistics shall reverse the credit and bill the Releasing Shipper for such past

due amounts, plus applicable interest.

8.11 Rights and Obligations of the Parties.

(a) The Service Agreement between the Releasing Shipper and PetroLogistics shall remain in full force

and effect with the Releasing Shipper to receive a credit to its invoice as described in Section 8.10

above. If the Replacement Shipper fails to pay all or part of the amounts credited to the Releasing

Shipper after the five day notification period specified in Section 8.10, PetroLogistics shall reverse

the credit and bill the Releasing Shipper for such past due amounts, plus applicable interest. The

Service Agreement executed by the Replacement Shipper shall be fully effective and enforceable by

and against the Replacement Shipper. The Replacement Shipper may also release capacity pursuant to

this Section, and in such event and for such purposes, shall be considered the Releasing Shipper.

(b) PetroLogistics shall accept nominations, schedule service, afford priority of service and

interrupt service based on instructions and communications from the Releasing Shipper and the

Replacement Shipper which are consistent with one another and with the terms and conditions of

PetroLogistics' FERC Gas Tariff and their respective Service Agreements. In the event that

instructions or nominations from the Releasing Shipper and Replacement Shipper are, in PetroLogistics'

opinion, inconsistent or conflicting, PetroLogistics shall comply with the instructions of the

Releasing Shipper; provided, however, that such instructions must not be inconsistent with

PetroLogistics' FERC Gas Tariff or the terms of either the Releasing Shipper's or Replacement

Shipper's service agreement. The Releasing Shipper will indemnify PetroLogistics against any

claim or suit by the Replacement Shipper, its successors or assigns, arising from any action taken by

PetroLogistics in reliance upon the Releasing Shipper's nominations and instructions and will hold

PetroLogistics harmless for any action taken by PetroLogistics in reliance upon the nominations and

scheduling instructions of the Replacement Shipper; provided, however, that the Releasing Shipper shall

not be liable for the Replacement Shipper's failure to pay the usage charges (plus all applicable

surcharges, Fuel Reimbursement, taxes, penalties, etc.) billed to the Replacement Shipper and attributable

to its usage of the released capacity. The Replacement Shipper will indemnify PetroLogistics against any

claim or suit by the Releasing Shipper, its successors or assigns, arising from any action taken by

PetroLogistics in reliance upon the nominations and scheduling instructions of the Replacement Shipper

and will hold PetroLogistics harmless for any actions taken by PetroLogistics in reliance upon the

instructions of the Releasing Shipper.

8.12 Marketing Fee. If PetroLogistics and the Releasing Shipper so agree, PetroLogistics may

receive a negotiated fee for its marketing efforts.

8.13 Limitations.