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. 35 Original Sheet No. 35
The term for service under this Rate Schedule shall be as set forth in Exhibit B of the Hub
6. AUTHORIZATION, RATES, TERMS AND CHANGES
6.1 The Hub Services Agreement and the respective obligations of the parties hereunder are subject
to all valid and applicable laws, orders, rules and regulations of duly constituted authorities having
jurisdiction, and are conditioned upon the issuance, by the FERC, and any state or local governmental
agency having jurisdiction, of requisite authorization for PetroLogistics to provide the balancing
service contemplated hereby and to construct and operate the gas storage facilities necessary to provide
such balancing service and for any connected pipeline to transport natural gas to/from the Point(s) of
Receipt/Delivery necessary to effect the balancing service provided for herein.
6.2 PetroLogistics shall have the right to propose to the 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 the Hub Services Agreement with Shippers, 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 Inventories.
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.