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. 133 Original Sheet No. 133

 

excess of the MAOP of PetroLogistics' facilities at the Point(s) of Receipt. PetroLogistics shall be

responsible for maintaining facilities at such Point(s) of Receipt to permit Shipper to deliver gas

to PetroLogistics at such allowed pressures.

10.2 Receipt and Delivery Rates. PetroLogistics has designed the facilities required to

wheel, store, inject and withdraw gas based on "normal" operating pressures maintained by the

Transporter(s) at the Point(s) of Receipt/Delivery located on PetroLogistics' system with allowances

for reasonable fluctuations. In the event that conditions on the Transporter's system vary

substantially from this "normal" design condition coincident with high levels of Shipper receipt or

delivery activity, PetroLogistics' capability to receive or deliver the quantities set forth in its

Service Agreements may be impaired, resulting in an interruption in service. If this happens,

capacity will be allocated pursuant to Section 7 of the General Terms and Conditions of this FERC

Gas Tariff. Shipper agrees to indemnify and hold PetroLogistics harmless for any loss caused by any

such interruption in service.

11. MEASUREMENT

11.1 The unit of measurement for the purpose of all quantities of gas wheeled or stored or

delivered to and received from storage hereunder shall be one (1) Dth. The unit of volume for the

purpose of measurement shall be one (1) cubic foot of gas at the base temperature of sixty degrees

Fahrenheit (60 degrees F) and at an absolute pressure of fourteen and seventy-three hundredths

(14.73) pounds per square inch and dry. All fundamental constants, observations, records, and

procedures involved in determining and/or verifying the quantity and other characteristics of gas

delivered hereunder shall, unless otherwise specified herein, be in accordance with the standards

prescribed in Report No. 3 of the American Gas Association, as now and from time to time amended or

supplemented. All measurements of gas shall be determined by calculation into terms of such unit.

All quantities given herein, unless expressly stated otherwise, are terms of such unit. Notwithstanding

the foregoing, it is agreed that, for all purposes, the Btu content of the gas received and delivered

by PetroLogistics hereunder shall be measured on "dry" basis rather than a fully saturated or "wet"

basis. For gas volumes reported in cubic meters, the standard conditions are 101.325 kPa, fifteen

degrees Celsius (15 degrees C), and dry.

11.2 PetroLogistics shall install, maintain and operate, or cause to be installed, maintained

and operated, the measurement facilities required hereunder. Said measurement facilities shall be so

equipped with orifice meters, recording gauges, or other types of meters of standard make and design

commonly acceptable in the industry, as to accomplish the accurate measurement of gas delivered hereunder.

The retrieval of data, calibrating and adjustment of meters shall be done by PetroLogistics or its agent.

11.3 Reservoir Pressure. PetroLogistics and Shipper acknowledge that the pressure that exists in

the underground reservoir ("Reservoir Pressure") that comprises a part of the Facility will vary as a

function of the total volume of gas that resides therein from time to time. The Reservoir Pressure, in turn,

will affect the total volume of gas that can be injected into or withdrawn from the Facility at any given

point in time. Accordingly, PetroLogistics reserves the right at all times to adjust the MDIQ and/or MDWQ

(and, if applicable, the MHIQ and/or MHWQ) specified in the Service Agreement to reflect varying Reservoir

Pressures, which adjustments ("Contract Quantity Adjustment") may have the effect of increasing or

decreasing from time to time the otherwise applicable MDIQ and/or MDWQ (and, if applicable, the MHIQ

and/or MHWQ); provided however that (i) no such Contract Quantity Adjustment shall become effective until

the later of (A) three (3) Business Days after the receipt by Shipper of written notice from PetroLogistics

advising Shipper of such Contract Quantity Adjustment or (B) the date upon which such Contract Quantity

Adjustment is to become effective, as specified by PetroLogistics in such notice and (ii) for any given

consecutive 12-Month period of the term of the Service Agreement (or the entire term of the Service

Agreement, if such term is for a period of less than 12 Months), the aggregate of all Contract Quantity

Adjustments occurring during such 12-Month period shall not have the effect of reducing the average MDIQ

and MDWQ (and, if applicable, the MHIQ and MHWQ) in effect during such 12-Month period below the otherwise

applicable MDIQ and MDWQ (and, if applicable, the MHIQ and MHWQ).

12. TITLE AND RISK OF LOSS

12.1 Shipper warrants for itself, its successors and assigns, that it will have at the time of

delivery of gas for wheeling, storage or injection hereunder either good title or the right to have gas

transported or stored. Shipper