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. 23 Original Sheet No. 23
valid and applicable laws, orders, rules and regulations of duly constituted authorities having
jurisdiction, and are conditioned upon the issuance, by FERC, and any state or local governmental
agency having jurisdiction, or requisite authorization for PetroLogistics to provide the parking service
contemplated herein and to construct and operate the gas storage facilities necessary to provide such
parking service and for any connected pipeline to transport natural gas to/from the Point(s) of
Receipt/Delivery necessary to effect the parking service provided for herein.
6.2 PetroLogistics shall have the right to propose to FERC or other governing regulatory body such
changes in its rates and terms of service as it deems necessary, and the Hub Services Agreement shall
be deemed to include any changes which are made effective pursuant to order or regulation or provisions
of law, without prejudice to Shipper's right to protest the same; provided, however, that any negotiated
rates between PetroLogistics and its Shipper(s) shall remain in effect during the term of Exhibit B of
the Hub Services Agreement(s).
7.1 If, due to any cause whatsoever, PetroLogistics' capability to receive or deliver quantities is
impaired so that PetroLogistics is unable to receive or deliver the quantities provided for in Exhibit B
of its Hub Services Agreement with Shipper, then capacity, withdrawals, and/or injections will be
allocated according to the priority of service as set forth in Section 7 of the General Terms and
Conditions of this FERC Gas Tariff.
7.2 In the event that PetroLogistics determines, in its sole discretion, that some or all
Interruptible storage service(s) must be interrupted in order to satisfy PetroLogistics' obligations to
Firm storage service Shippers, or that such interruption is otherwise necessary or is otherwise appropriate
to avoid adverse impact on the operation of PetroLogistics' system, PetroLogistics will notify any
affected Shipper receiving Interruptible storage service that they are required to reduce their
Interruptible Storage Inventory(s) over the period specified in the notice. Such notice shall be issued
to Shippers, via facsimile, on a price basis, where lower price services will be noticed before higher
price services. At a minimum, Shippers will have one Day in which to comply with the notice.
7.3 If Shipper fails to comply with the notice given in accordance with section above, PetroLogistics
shall cash out the balance quantity that Shipper was advised, but failed to reduce or eliminate, at the
"Gas Daily" "Henry Hub" index plus ten percent (10%) for negative Interruptible Storage Inventories
or the "Gas Daily" "Henry Hub" index less ten percent (10%) for positive Interruptible Storage
7.4 PetroLogistics may issue a notice requiring any Shipper with an Interruptible Storage Inventory of
less than 50 Dth to eliminate its existing Interruptible Storage Inventory within thirty (30) Days.
Such notice shall be issued by PetroLogistics to Shipper via facsimile. If Shipper fails to comply
with this notice, any positive Interruptible Storage Inventory remaining after thirty (30) days will be
cashed out at 80% of the "Gas Daily" "Henry Hub" index calculated during the thirty (30) Day period,
and any negative Interruptible Storage Inventory remaining after thirty (30) Days will be cashed out
at 120% of highest "Gas Daily" "Henry Hub" index calculated during the thirty (30) Day period.
7.5 In the event that the prices referenced in this Section 7 are no longer available or valid,
PetroLogistics will file to change its tariff and may, at its discretion, select a representative
price in the interim period, subject to refund. In the event that a more representative posting is
established, PetroLogistics will file to change its tariff to incorporate that posting.
8. EXPIRATION OF TERM
8.1 At least ten (10) Business Days prior to the expiration of the term as specified in Exhibit
B of Shipper's Hub Services Agreement, PetroLogistics shall notify Shipper to withdraw all of the
IPS gas quantities held by PetroLogistics for Shipper's account; provided, however, any Exhibit B
of Shipper's Hub Services Agreement that has a term of ten (10) Business Days or less shall not
require such foregoing notice but notice shall be deemed to have been given on the first Day of
the primary term or the renewed term of such Agreement. PetroLogistics' notice to Shipper may be
given verbally but shall be confirmed in writing via e-mail or facsimile to Shipper.
Within two (2) Business Days of such notice, PetroLogistics and Shipper shall either agree on mutually
acceptable terms by which PetroLogistics shall agree to cash out the IPS gas quantities or Shipper
must physically withdraw the IPS gas quantities