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. 136 Original Sheet No. 136

 

15. FORCE MAJEURE

15.1 Notwithstanding anything herein to the contrary, if either PetroLogistics or Shipper is

prevented, wholly or in part, by Force Majeure from performing its obligations hereunder, it is agreed

that performance of the respective obligations of the Parties hereto, so far as they are affected by

Force Majeure, shall be suspended from the inception of any such inability until it is corrected but

for no longer period. The Party claiming such inability shall give notice thereof to the other Party as

soon as practicable after the occurrence of the Force Majeure. If such notice is first given by

telephone or electronic communication, it shall be confirmed within 30 Days, in writing, which, for

PetroLogistics, may be accomplished through posting on its Informational Postings website, or by fax

giving full particulars. The Party claiming such inability shall promptly correct such inability to the

extent it may be corrected through the exercise of reasonable diligence. Notwithstanding anything herein

to the contrary, the Parties agree that changes in economic or market conditions that make performance

more economically burdensome do not constitute Force Majeure events.

15.2 The term “Force Majeure” as employed herein shall mean acts of God, governmental action,

strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades,

insurrections, riots, epidemics, landslides, lighting, earthquakes, fires, hurricanes, tornadoes, storms,

storm warnings, floods, washouts, freezes, arrests and restraints of governments and people, civil

disturbances, acts of sabotage, explosions, breakage of, accidents to, or mechanical failure of machinery,

equipment, lines of pipe or subsurface storage caverns regardless of how caused, failure of any

transporter(s) to receive or take any volumes of Gas tendered for receipt or delivery at the Point(s)

of Receipt or Delivery hereunder, and any other causes, whether of the kind herein enumerated or

otherwise, not within the control of the Party claiming suspension (including, but not limited to,

acts of negligence or willful misconduct of third parties, whether or not under the control, employ

or supervision of the Party claiming suspension) and which by the exercise of reasonable due diligence

such party is unable to prevent or overcome. Such term shall likewise include: (a) in those instances

where either Party hereto is required to obtain servitudes, rights-of-way grants, permits or licenses

to enable such party to fulfill its obligations hereunder, the inability of such Party to acquire, or

delays on the part of such Party in acquiring, at reasonable cost and after the exercise of reasonable

diligence, such servitudes, rights-of-way grants, permits or licenses; and (b) in those instances where

either Party hereto is required to furnish materials and supplies for the purpose of constructing or

maintaining facilities or is required to secure permits or permissions from any governmental agency to

enable such Party to fulfill its obligations hereunder, the inability of such Party, at reasonable cost

and after the exercise of reasonable diligence, to furnish such materials and supplies or to secure such

permits and permissions.

15.3 The settlement of strikes or lockouts shall be entirely within the discretion of the Party

having the difficulty, and the requirement in Section 15.2 above that any Force Majeure event shall be

remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by acceding

to the demands of any opposing party when such course is inadvisable in the discretion of the party

having the difficulty.

15.4 Neither PetroLogistics nor Shipper shall be liable to the other for any losses or damages,

regardless of the nature thereof and howsoever occurring, whether such losses or damages be direct or

indirect, immediate or remote, by reason of, caused by, arising out of, or in any way attributable to the

suspension of performance of any obligation of either party when such suspension occurs because a party

is rendered unable, wholly or in part, by Force Majeure to perform its obligations.

15.5 In the event that PetroLogistics declares Force Majeure that results in a suspension of

service for 15 consecutive days or more, Shipper shall be relieved of its payment and/or demand charges

for such period of suspension.

16. NORTH AMERICAN ENERGY STANDARDS BOARD ("NAESB") STANDARDS

16.1 PetroLogistics has adopted all of the Business Practices and Electronic Communication

Standards which were required by the Commission in 18 C.F.R. § 284.12(b) in accordance with Order Nos.

587, et al., promulgated by FERC in Docket Nos. RM96-1-000, et al. In addition to the standards which

are reflected in other