PetroLogistics Natural Gas Storage LLC

Original Volume No. 1

Effective Date: 06/03/2009, Docket: RP09-577-000, Status: Effective

Original Sheet No. 138 Original Sheet No. 138

(a) Transfers of title between Shippers and/or Service Agreements under which gas is wheeled on

PetroLogistics' system may be permitted by PetroLogistics at Point(s) of Receipt and Point(s) of Delivery

located on PetroLogistics' system on an interruptible basis.

(b) Requests for such transfers shall be made in accordance with the nomination procedures set forth in

Section 6, Nominations and Scheduling, of the General Terms and Conditions herein. PetroLogistics shall

not unreasonably withhold approval of such transfers.

transfer rate set forth in Shipper's Service Agreement.

18. PENALTIES

18.1 A Shipper shall be liable for and shall be required to reimburse PetroLogistics for all

penalties, charges and fees which PetroLogistics is required to pay to Transporter(s) as a consequence of

Shipper's actions. The recovery of such penalty amounts shall be on an as-billed basis.

18.2 In addition to the payment of the penalties set forth in Section 18 herein, the responsible

Shipper shall also be liable for, and shall reimburse PetroLogistics for all costs incurred by

PetroLogistics as a consequence of such Shipper's actions.

18.3 PetroLogistics shall credit the actual penalty revenues, net of PetroLogistics’ costs related

to the penalty event, received by PetroLogistics from Shippers in any calendar year, by invoice credit to

all Shippers who did not incur penalty charges in the month for which such revenues were received. Such

credits shall be made on a pro rata basis based on a Shipper’s total reservation and usage charges paid

each month. Such credit shall not be made later than the February accounting statement sent subsequent to

the calendar year-end by PetroLogistics. Any revenue collected and retained by PetroLogistics pursuant to

this section shall accrue interest calculated pursuant to Section 154.501 of the Commission’s regulations.

19. NOTICES

19.1 Any notice, request, demand, or statement, provided for in Shipper's Service Agreement,

except as otherwise provided herein, shall be given in writing, shall be delivered in person or sent by

registered letter via the United States Mail or sent via e-mail or facsimile to the Parties at the

addresses shown in the executed Service Agreement or at such other addresses as may hereafter be furnished

to the other Party in writing. Each Party shall have the right to change the place to which notice shall

be sent or delivered by similar notice or like manner to the other Party.

19.2 The effective date of notice issued pursuant to this Agreement shall be the earlier of the

date of addressee's receipt of notice or the third (3rd) Business Day following the date on which the same

is mailed by registered or certified mail, prepaid postage. Any notice initially delivered by facsimile

shall be confirmed by regular mail within one (1) week after transmission of the facsimile.

20. JOINT OBLIGATIONS

20.1 When Shipper under a Service Agreement consists of two or more persons, the obligations of

such persons under such agreement shall be joint and several and, except as otherwise provided, any action

provided to be taken by Shipper shall be taken by such persons jointly.

21. NON-DISCRIMINATORY WAIVER OF TARIFF PROVISIONS AND NON-WAIVER OF FUTURE DEFAULTS

21.1 PetroLogistics may waive any of its rights hereunder or any obligations of Shipper on

a basis which is not unduly discriminatory; provided that no waiver by either Shipper or PetroLogistics of

any one or more defaults by