AMENDMENT NO. 1 TO THE PETROLEUM FEEDSTOCK AGREEMENT

THIS AMENDMENT NO. 1 is made as of October 24, 2007 (“Amendment”) to the
Petroleum Feedstock Agreement, dated as of October 31, 1997 (“Agreement”), by
and between Tesoro Hawaii Corporation fka BHP Petroleum Americas Refining Inc.
(“Tesoro”) and The Gas Company, LLC fka Citizens Utilities Company dba The Gas
Company (“TGC”).

RECITALS

Whereas, BHP Petroleum Americas Refining Inc. and Citizens Utilities Company nka
Citizens Communications Company (“Citizens”), entered into the Agreement; and

Whereas, on or about June 1, 1998, Tesoro Petroleum Corporation purchased the
stock of BHP Petroleum Americas Refining Inc., and thereafter changed the name
of BHP Petroleum Americas Refining Inc. to Tesoro Hawaii Corporation; and

Whereas, on or about August 8, 2003, Citizens sold substantially all of its
assets, including but not limited to it's rights and obligations under the
Agreement, used in the The Gas Company division of Citizens, to TGC; and

Whereas, on July 27, 2007, Tesoro provided written notice to TGC of the
cancellation of the automatic extension of the Agreement for another ten-year
term after October 31, 2007; and

Whereas, Tesoro and TGC now desire to amend the Agreement in order to extend the
initial term through January 31, 2008, and, unless notified otherwise, to
automatically continue thereafter for two additional three month periods through
July 31, 2008, in order to have adequate time and opportunity to negotiate new
and mutually acceptable contract terms for the supply of feedstock for TGC's
synthetic natural gas plant;

THEREFORE, in consideration of the covenants and agreements contained herein,
and other good and valuable consideration, the parties agree to amend the
Agreement as set forth below:

AMENDMENT

1.
Section 1. Term is hereby amended to read as follows:

“The term of this Agreement shall commence on October 31, 1997 (the “Closing
Date”) and shall terminate on January 31, 2008 (the “Initial Term”). Upon the
expiration of the Initial Term, this Agreement shall renew automatically for two
successive three (3) month periods (“Renewal Period”), with the first Renewal
Period ending on April 30, 2008, and with the second Renewal Period ending on
July 31, 2008, unless either party gives written notice to the other party of
its intent to terminate this Agreement at least thirty (30) days prior to the
expiration of any Renewal Period. The parties shall be subject to all of the
terms and conditions during each Renewal Period that are set forth in the
Agreement.”
 
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Except as expressly amended in this Amendment No. 1, the provisions of the
Agreement shall remain in full force and effect, and exactly as written.

This Amendment No. 1 may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument.
 
TESORO HAWAII CORPORATION
   
THE GAS COMPANY, LLC
       
By daniel logo [daniel.jpg]
   
By thomas logo [thomas.jpg]

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Its: Daniel J. Porter
   Senior Vice President, Supply
  and Optimization
   

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Name: Thomas A. Wellman
Title: Interim President & CEO

 
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