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. 131 Original Sheet No. 131

 

requirement to withdraw storage quantities shall be suspended on any day to the extent that

PetroLogistics cannot accommodate a nomination to withdraw such storage quantities on such day.

Shipper may also transfer title of gas remaining in Shipper's Storage Inventory to another Shipper

pursuant to Section 17 of PetroLogistics' General Terms and Conditions. In the event Shipper

fails to withdraw its entire Storage Inventory within the time required by this Section,

PetroLogistics shall auction any remaining Storage Inventory and credit the proceeds of such sale

to Shipper, net of withdrawal charges and fuel, if applicable. Shipper shall indemnify PetroLogistics

and hold it harmless from all costs, damages, and liabilities arising out of the failure of Shipper

to remove such Storage Inventory and the disposal of such Storage Inventory by sale by

PetroLogistics. When the gas is purchased at auction, Shipper purchasing the gas must provide

identification of the existing storage service agreement with PetroLogistics under which Shipper shall

store all such gas purchased. Shipper purchasing the gas agrees to pay the applicable storage rate on

the gas purchased beginning on the date the bid was accepted at auction.

8.15 Notices to Releasing Shippers. PetroLogistics shall provide the original Releasing

Shipper with e-mail notification reasonably proximate in time with any of the following formal notices

given by PetroLogistics to the Releasing Shipper's Replacement Shipper(s), of the following:

(1) Notice to the Replacement Shipper regarding the Replacement Shipper's past due, deficiency, or

default status pursuant to PetroLogistics' tariff;

(2) Notice to the Replacement Shipper regarding the Replacement Shipper's suspension of service

notice;

(3) Notice to the Replacement Shipper regarding the Replacement Shipper's contract termination notice

due to default or credit-related issues; and

(4) Notice to the Replacement Shipper that the Replacement Shipper(s) is no longer creditworthy and

has not provided credit alternative(s) pursuant to PetroLogistics' tariff.

8.16 Permanent Capacity Releases. To the extent that any Shipper desires to release all

or any part of its firm rights under an open-access Rate Schedule on a permanent basis, the procedures

specified in this Section 8.16 shall apply. In addition, the Replacement Shipper that will acquire the

capacity from Shipper must provide the credit information required by Section 2.3 herein. For any

permanent capacity release, the minimum bid acceptable to PetroLogistics shall be a bid for the

remainder of the term of Shipper's Service Agreement at the rate(s) Shipper is obligated to pay

PetroLogistics for the capacity to be permanently released. In the event there is a request for a

permanent release of Shipper's capacity, PetroLogistics will agree to discharge the Releasing Shipper

of liability, on a prospective basis, in whole or in part, provided, the Replacement Shipper meets the

minimum acceptable credit standard set forth in Section 2.3(b)(1) of these General Terms and Conditions.

PetroLogistics may refuse to allow a permanent capacity release if it has a reasonable basis to conclude

that it will not be financially indifferent to the release. If Shipper's request to permanently release

capacity is denied by PetroLogistics, PetroLogistics shall notify Shipper via e-mail and shall include

in the notification the reasons for such denial.