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. 130 Original Sheet No. 130

 

place of a portion of its Storage Inventory or otherwise as required, that such storage capacity, and

the corresponding ability to inject/withdraw gas up to the MSQ released, in accordance with the terms

and conditions of the Rate Schedule and within the time remaining in the injection and/or withdrawal

period, as applicable, shall be available upon the commencement of the release. A Replacement Shipper

under Rate Schedule FSS shall be responsible for arranging transportation to and from Point(s) of

Receipt and Point(s) of Delivery consistent with its rights and obligations under its Service Agreement

and Rate Schedule FSS. The Replacement Shipper under Rate Schedule FSS must comply with all obligations

imposed under such Rate Schedule and its rights to store, withdraw and/or inject gas will be subject to

the provisions thereof. If the Releasing Shipper proposes to, or requires a transfer-in-place of the

portion of its Storage Inventory in conjunction with its release of storage capacity rights, it shall so

specify in its offer to release and such transfer shall be implemented contemporaneously with the release

subject to compliance with the provisions of Section 17 of these General Terms and Conditions. The

Replacement Shipper must withdraw the portion of its Maximum Storage Quantity by the end of the term of

the release. In lieu of withdrawing the portion of its Storage Inventory, the Replacement Shipper can

also attempt to effect a transfer of the portion of its Storage Inventory to another storage service

Shipper as provided in Section 17 of these General Terms and Conditions. If the Replacement Shipper

fails to withdraw or transfer the portion of its Storage Inventory by the end of the term of its release,

title to the portion of Shipper's remaining Storage Inventory will be vested, at no cost, in the

Releasing Shipper which released its capacity to the Replacement Shipper on a temporary basis.

8.14 PetroLogistics' Rights to Terminate Temporary Capacity Releases.

(a) In the event of a temporary release for which (i) PetroLogistics has given notice of termination

of the Releasing Shipper's contract because the Releasing Shipper no longer satisfies PetroLogistics'

credit requirements as outlined in Section 2.3(d) of these General Terms and Conditions and (ii) the

reservation charge specified in the effective Addendum to the Replacement or Prearranged Shipper's

Capacity Release Umbrella Agreement is less than the level of the reservation charge which the Releasing

Shipper was obligated to pay PetroLogistics, then PetroLogistics shall be entitled to terminate the

Addendum, upon 30 Days' written notice to the Replacement or Prearranged Shipper, unless the Replacement

or Prearranged Shipper agrees prior to the end of said 30-Day notice period to pay for the remainder of

the term of the Addendum either (a) the reservation and commodity charges at levels which the Releasing

Shipper was obligated to pay PetroLogistics, or (b) such rate as mutually agreed to by PetroLogistics

and Replacement or Prearranged Shipper. Shipper may elect to pay the lesser of the two foregoing

options. PetroLogistics' right to terminate the Addendum is subject to PetroLogistics providing written

notice of termination to the Replacement or Prearranged Shipper within 60 Days of the determination by

PetroLogistics that the Releasing Shipper no longer satisfies PetroLogistics' credit requirements.

Termination of the Addendum shall not occur prior to termination of the Releasing Shipper's contract.

(b) In the event that a Shipper has received 30 Days' notice of termination of the Addendum to

Shipper's Capacity Release Umbrella Agreement pursuant to Section 8 above for storage service and there

is gas in storage for Shipper's account at the end of such 30-Day period, the Addendum shall continue in

force and effect for the sole purpose of withdrawal of said gas by Shipper until Shipper's Storage

Inventory is zero. PetroLogistics shall require Shipper to withdraw each day a quantity equal to the

MDWQ, or such other lesser quantity acceptable to PetroLogistics. The