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. 134 Original Sheet No. 134

 

warrants for itself, its successors and assigns, that the gas delivered hereunder shall be free and clear

of all liens, encumbrances, or claims whatsoever; and that it will indemnify PetroLogistics and save it

harmless from all claims whatsoever; and that it will indemnify PetroLogistics and save it harmless from

all claims, suits, actions, damages, costs and expenses arising directly or indirectly from or with respect

to the title and/or right to gas tendered to PetroLogistics hereunder.

12.2 As between Shipper and PetroLogistics: Shipper shall be in control and possession of the

gas prior to delivery to PetroLogistics for wheeling, parking, storage or injection at the Point(s) of

Receipt located on PetroLogistics' system and after delivery by PetroLogistics to Shipper at the Point(s)

of Delivery located on PetroLogistics' system and shall indemnify and hold PetroLogistics harmless from any

damage or injury caused thereby. PetroLogistics shall be in control and possession of the gas after the

receipt of the same at the Point(s) of Receipt and until delivery by PetroLogistics to Shipper at the

Point(s) of Delivery and shall indemnify and hold Shipper harmless from any damage or injury caused thereby,

except for damages and injuries caused by the sole negligence of Shipper. The risk of loss for all gas

wheeled, injected into, parked, loaned or stored in and withdrawn from storage shall remain with Shipper,

and PetroLogistics shall not be liable to Shipper for any loss of gas, except as may be occasioned due to

the intentional or negligent acts or omissions by PetroLogistics or failure of PetroLogistics to exercise

reasonable care. Any losses of gas, unless due to the intentional or negligent act or negligent act or

omissions of PetroLogistics or failure of PetroLogistics to exercise reasonable care, shall be shared

proportionally by all Shippers, based on each Shipper's Storage Inventory, Park Balance/Loan Balance,

as applicable.

13. BILLING AND PAYMENTS

13.1 Invoice. PetroLogistics shall render to Shipper (including a Replacement Shipper), on

or before the tenth (10th) Day of each Month, an invoice and any required backup data (which may be

transmitted by facsimile) setting forth (i) the charges due for the current Month; (ii) the total quantity

of gas, stated in Dth, received from and delivered to Shipper hereunder during the preceding Month(s), with

applicable Point(s) of Receipt and Point(s) of Delivery properly identified, and the amount due therefor;

and, if applicable, (iii) the amount of Shipper's gas in storage as of the close of the preceding Month and

information sufficient to explain and support any adjustments made by PetroLogistics in determining the

amount billed. Such invoice shall be submitted, and shall be considered duly delivered, to Shipper by

mailing such invoice to Shipper by regular U.S. mail or other agreed-upon method. If actual quantities

are not available by the tenth (10th) Business Day of the Month, PetroLogistics may invoice based on best

available data subject to adjustment to actuals at a later date. Quantities at points where OBAs exist

shall be invoiced based on scheduled quantities.

13.2 Application of Payments for Released Capacity. Payments to PetroLogistics by a Replacement

Shipper for released capacity shall be applied as follows: (i) PetroLogistics shall retain amounts

equal to the Replacement Shipper's usage charges; (ii) PetroLogistics will credit the balance to

Reservation Charges due from the Replacement Shipper; and (iii) PetroLogistics shall remit the remaining

balance, if any, or shall charge any balance due, to the Replacement Shipper, in accordance with Section

8.10 of the General Terms and Conditions of this FERC Gas Tariff. If any balance due from the Replacement

Shipper remains unpaid, the outstanding balance will then be billed to the Releasing Shipper, provided

that the Releasing Shipper is only liable to the extent of its Reservation Charges.

13.3 Payment. Unless otherwise agreed, Shipper shall pay by wire transfer in immediately available

funds to PetroLogistics the full amount reflected on the invoice within ten (10) days of the date of the

invoice. If the tenth (10th) Day shall fall upon a weekend or legal holiday, then such payment shall be

made on the first regular Business Day following the due date. Party making payment should submit

supporting documentation; party receiving payment should apply payment per supporting documentation

provided by the paying party; and if payment differs from invoiced amount, remittance detail should be

provided with the payment except when payment is made by electronic funds transfer (EFT), in which case,

the remittance detail is due within two Business Days of the payment due date.

13.4 Billing Adjustments. If an error is discovered in any billing, such error shall be adjusted

within 30 Days of the determination thereof. If a dispute arises as to the amount payable in any invoice

rendered hereunder,