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. 135 Original Sheet No. 135

 

Shipper shall nevertheless pay when due the amount not in dispute under such invoice. Such payment

shall not be deemed to be a waiver of the right by Shipper to recoup any overpayment, nor shall

acceptance of any payment be deemed to be a waiver by PetroLogistics to recoup any underpayment. In

the event Shipper fails to forward the entire undisputed amount due to PetroLogistics when the same is due,

interest on the unpaid portion shall accrue at the same rate of interest and in the same manner as

prescribed for pipeline refunds as set forth in Section 154.501(d) of the Commission's regulations under

the Natural Gas Act from the date such payment is due until the same is paid. If Shipper's failure to pay

the undisputed portion of any invoice rendered hereunder continues beyond thirty (30) Days after the due

date of such invoice, then PetroLogistics, in addition to all other legal remedies available to it, shall

have the right and option to suspend further deliveries on gas until such default shall have been cured.

If Shipper fails to pay the undisputed portion of any invoice, then PetroLogistics, in addition to all

other legal remedies available to it, shall have the right and option to terminate service hereunder.

13.5 Billing Disputes. If Shipper withholds payment of any disputed amount as authorized herein,

Shipper shall within ten (10) Days after the due date of the disputed invoice submit to PetroLogistics a

written explanation of the dispute and any available supporting documentation. The parties shall then

cooperate in good faith to resolve such dispute as expeditiously as possible, and the portion, if any,

of such disputed amount eventually determined to be due shall bear interest at the rate stated in Section

13.4 above from the original due date until the date actually paid.

13.6 Right to Audit. Both PetroLogistics and Shipper shall have the right at their own expense

to examine and audit at any reasonable time the books, records (including measurement, billing and

payment) and charts of the other to the extent necessary to verify the accuracy of any statements or

charges made under or pursuant to any of the provisions of Shipper's Service Agreement. Upon request,

Shipper shall also make available to PetroLogistics for audit purposes and relevant records of

Transporters to which Shipper has access. A formal audit of accounts shall not be made more often than

once each Contract Year. Any inaccuracy will be promptly corrected when discovered; provided, however,

that neither PetroLogistics nor Shipper shall be required to maintain books, records or charts for a

period of more than two (2) Contract Years following the end of the Contract Year to which they are

applicable. Neither PetroLogistics nor Shipper shall have any right to question or contest any charge

or credit if the matter is not called to the attention of the other in writing within two (2) Contract

Years after the end of the Contract Year in question.

13.7 Taxes. If at any time PetroLogistics is required to remit any taxes assessed on the gas

pursuant to Shipper's Service Agreement, then PetroLogistics shall have the right to collect from

Shipper such taxes, including penalties and interest. Shipper agrees to reimburse PetroLogistics for

the taxes assessed on the gas, including any penalties and interest, within fifteen (15) Days of the

date of invoice from PetroLogistics. Shipper shall furnish PetroLogistics information, satisfactory

to PetroLogistics, to enable PetroLogistics to comply with any reports required by state or federal

government and agencies. Shipper recognizes that PetroLogistics may be required to file federal and

state tax returns, and Shipper agrees to furnish PetroLogistics with adequate information pertaining

to the taxation on the gas. Shipper shall coordinate such filings with PetroLogistics.

14. FUEL REIMBURSEMENT

14.1 Categories of Fuel Usage. The two general categories of fuel usage are: (1) Direct Fuel

Usage, consisting of (a) compression fuel, (b) dehydration fuel, or (c) line heating fuel, if applicable;

and (2) Indirect Fuel Usage, consisting of fuel that is consumed on site to (a) generate electricity,

(b) heat facility (if any), or (c) fuel PetroLogistics vehicles and lost and unaccounted for volumes to

the extent required for the operation and maintenance of PetroLogistics' gas storage facilities.

14.2 Fuel Reimbursement. Fuel Reimbursement shall be calculated separately for storage services,

wheeling, balancing, parking, and loaning under Rate Schedules FSS, ISS, IWS, IPS, ILS, IBTS and IBS.

Each Fuel Reimbursement charge shall be negotiated by PetroLogistics and Shipper such that reimbursement

of fuel may be paid in kind or in dollars per Dth, as set forth in Shipper's Service Agreement(s).

14.3 Electric Power Costs for Compression. Shipper shall reimburse PetroLogistics for its actual

pro rata cost (without markup) of electric power for compression based on Shipper's receipt quantities.