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