exv10w6



 





***Indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission. A complete copy of this agreement will be filed separately with the Securities and Exchange Commission.





Exhibit 10.6



FORM OF STORAGE LEASE

(Enterprise Fractionation Plant)




     This is a Storage Lease (the “Lease”) between MONT BELVIEU CAVERNS, LLC with an address
at P.O. Box 4324, Houston, Texas 77210-4324 (“Lessor”) and ENTERPRISE PRODUCTS OPERATING, L.P.,
(“Joint Owner”), with an address at P.O. Box 4324, Houston, Texas 77210-4324.



1. Term; Quantity; Product.



For an initial term commencing January 1, 2007 and ending December 31, 2016 (the “Initial Term”),
Lessor leases to Joint Owner storage space of up to *** barrels of Raw Mix, and *** barrels of
purity ethane, propane, commercial ethane, isom grade butane (“Isom Grade”), isobutane, natural
gasoline, and petrochemical grade natural gasoline (collectively referred to as “Product” in this
Lease) at Lessor’s underground storage wells, located near Interstate 10 and State Highway 146 at
Mont Belvieu, Texas, subject to the terms, provisions, and conditions contained herein. For
purposes of this Lease, a “barrel” of Product is equal to 42 U.S. gallons of equivalent liquid
volume at 60° Fahrenheit.



Each twelve (12) month period between January 1 and the following December 31 shall be referred to
herein as a “Lease Year”. This Lease shall continue from year to year following the expiration of
the Initial Term, unless either party terminates this Lease by giving written notice to the other
party at least ninety (90) days prior to the beginning of any ensuing Lease Year.




2. Lessor’s Facilities.



Lessor operates storage wells in which various types of products are stored other than the types of
Product covered by this Lease. Lessor’s storage wells are connected to centrally located pipeline
header facilities operated by Lessor on its property in the vicinity of said storage wells. All
Product delivered by Joint Owner into or by Lessor out of storage must be delivered by pipeline to
such header facilities, and all such deliveries shall be deemed a delivery into or out of storage
for the purposes of computing all applicable charges under this Lease. As between Lessor and Joint
Owner, control of Lessor’s facilities will rest exclusively with Lessor.




3. Product Specifications.




Each Product delivered by Joint Owner into storage or by Lessor from storage must meet the
respective specifications set out in Exhibit “A” attached hereto and made a part hereof. Lessor
reserves the right to modify, add to, or revise such specifications at any time and from time-to
time upon giving not less than thirty (30) days prior written notice.



(Form 1506-Multiple Product)




1









 








4. Isom Grade Butane; Analysis and Certification.



Prior to each delivery of Isom Grade by or on behalf of Joint Owner into storage hereunder, Joint
Owner agrees to certify to Lessor the quality of the butane to be delivered and to furnish to
Lessor a laboratory analysis of the butane to be delivered to Lessor for storage at least
forty-eight (48) hours prior to delivery. The laboratory analysis shall be in form satisfactory to
Lessor, shall employ the test methods specified on Exhibit “A”, and shall show the levels, if any,
of the components listed on Exhibit “A”. If (i) a laboratory analysis required under this
paragraph is not timely received by Lessor; (ii) the laboratory analysis received is not in a form
acceptable to Lessor; or (iii) the laboratory analysis shows the butane to be delivered does not
meet the specifications for Isom Grade, Lessor has the right to refuse receipt of the butane.
Also, if, at any time during Joint Owner’s delivery of Isom Grade, the butane being tendered ceases
to conform to the specifications for Isom Grade, Lessor will stop receiving the butane tendered for
storage, until such time as the tendered product can be shown to again meet the Isom Grade
specification.




5. Product Deliveries and Receipts.



It shall be Joint Owner’s responsibility to make all arrangements necessary to deliver Product for
storage and to receive Product from storage at Lessor’s header facilities, and to pay any charges
imposed by any party for the collection, transfer, and injection of Joint Owner’s Product to such
header facilities for delivery into storage or from such header facilities for delivery out of
storage under this Lease. The flow rates into and out of storage are subject to Lessor’s
scheduling and operational restrictions.




6. Delivery Restrictions; Allocation.



If Lessor’s scheduling or operational restrictions will not permit all of the parties (including
Lessor) storing any types of products in any of Lessor’s storage wells to deliver or receive the
volumes of Product requested, then Lessor may allocate among such parties Lessor’s available flow
rates in a fair and equitable manner as determined by Lessor.




7. Commingling; Sampling.



Lessor shall have the privilege of commingling Joint Owner’s Product with Product of other parties
and is not obligated to redeliver to Joint Owner the identical Product received from Joint Owner.
Lessor shall have the right to sample all Product to be delivered for storage and may refuse to
accept delivery of any Product if the Product does not meet the required specifications or, if in
Lessor’s opinion, satisfactory control of Product specifications will not be maintained during
delivery. At Lessor’s request, Joint Owner shall provide Lessor access to the Product to be
delivered for the purpose of sampling and provide Lessor representative samples of such Product.



At Lessor’s sole discretion, Lessor shall have the option to blend Joint Owner’s Product that fails
to meet the Product specifications with Product within Lessor’s facilities to get Joint Owner’s




(Form 1506-Multiple Product)




2









 







Product back on specification, or to deliver Joint Owner’s off specification Product to Lessor’s
off specification Product storage well (the “Slop Well”) where the Product will reside until such
time as Lessor arranges for the Product in the Slop Well to be sent to one of the Mont Belvieu
fractionators for fractionation.



Lessor will continue to blend the off specification Product, or to make deliveries to the Slop
Well, only until the Product once again meets the specifications in the attached Exhibit “A”, or
until such time as Lessor is notified by Joint Owner that other delivery arrangements have been
made for the Product and the delivery of off specification Product to Lessor’s facilities stops.



The fee for receiving off specification Product into Lessor’s facilities will be *** per barrel on
each barrel received. Joint Owner will share in any losses of Product from the Slop Well in
proportion to the amount of the off-specification Product that was delivered into the Slop Well
since the last time the Slop Well was emptied for Joint Owner’s account hereunder.



If Joint Owner elects to have the Products redelivered to Lessor’s facilities following
fractionation, all such receipts shall be done under the terms of this Lease.



If it is necessary for Lessor to pay any charges, including but not limited to, fractionation fees,
when the off specification Product is delivered from the Slop Well and fractionated, Joint Owner
will immediately upon receipt of an invoice reimburse Lessor for any such charges.




8. Product Measurement.




     (a) Ethane


Measurement of commercial ethane and purity ethane into and out of storage shall be made in
accordance with the procedures and methods set out in Exhibit “B”. All Product gains and losses
incurred while the Product is under Lessor’s control shall be for the account of Joint Owner except
as noted in Section 12. For the purpose of this subparagraph 8 (a), ethylene and up to 1.5%
methane shall be considered ethane. Any methane in excess of 1.5% will not be balanced. Lessor
shall return to Joint Owner a volume of commercial ethane containing a quantity of ethane equal to
the quantity of ethane contained in the commercial ethane delivered by Joint Owner for storage
hereunder. If Lessor returns commercial ethane to Joint Owner containing more or less propane than
was contained in the commercial ethane delivered by Joint Owner for storage hereunder, Lessor and
Joint Owner shall quarterly balance any overages or underages of propane by the party having the
overage delivering to the other party a volume of propane equal to the overage, which propane shall
meet the specifications set out in Exhibit “A”. Lessor shall submit to Joint Owner monthly stock
reports supported with appropriate receiving and shipping information showing movements of
commercial ethane and purity ethane into and out of storage and the amount of commercial ethane and
purity ethane remaining in storage. All propane required to be delivered to Lessor shall be
delivered at the expense of Joint Owner to Lessor’s pipeline header facilities at Mont Belvieu,
Texas, via one of the pipelines connected to such facilities. All propane required to be delivered
to Joint Owner shall be delivered at the expense of Lessor to its pipeline header facilities at
Mont Belvieu, Texas. Propane may be delivered at




(Form 1506-Multiple Product)





3









 







any other delivery point mutually acceptable to the parties. For the purpose of this subparagraph 8
(a) propylene and butane shall be considered propane.




     (b) Other Products.


Measurement of propane, Isom Grade, natural gasoline, and isobutane into and out of storage shall
also be made in accordance with the procedures and methods set out in Exhibit “B”. All Product
gains and losses incurred while the Product is under Lessor’s control shall be for the account of
Joint Owner except as noted in Section 15. Lessor shall submit to Joint Owner monthly stock
reports supported with appropriate receiving and shipping information showing movements of propane,
Isom Grade, natural gasoline, and isobutane into and out of storage and the amount of propane, Isom
Grade, natural gasoline, and isobutane remaining in storage.




     (c) Carbon Dioxide.


Joint Owner will not be credited for any volume of carbon dioxide held in storage for Joint Owner
by Lessor.




     (d) Percentages.


Any references to percentages herein shall mean liquid volume percent.




9. Title; Risk of Loss.



Title to Joint Owner’s Product shall remain at all times in Joint Owner. Notwithstanding the
return guarantee set out in subparagraphs 8 (a) and 8 (b) above, Lessor shall be responsible for
the loss of or damage to such Product only when and to the extent such loss or damage is caused by
the negligence of Lessor, its employees and agents.




10. Storage Fees.




Joint Owner agrees to pay Lessor for the storage, handling, and services of Lessor an annual rental
as set forth in the attached Schedule 1. All minimum rentals are payable in full regardless of
whether or not Joint Owner actually uses the amount of storage made available hereunder. All of
Joint Owner’s Product must be removed from storage no later than the last day of the term of this
Lease, subject to the payment of accrued rental and other charges and the other terms, provisions,
and conditions of this Lease. The rate for storage of any Product remaining in storage past the
last day of the term of this Lease shall be *** per barrel per month or any portion thereof,
payable in advance on the first day of each month in the same manner and at the same place as set
forth in Section 14.



11. Overstorage Fees



An overstorage charge of *** per barrel shall be charged for the total number of barrels stored by
Joint Owner at the end of any month that exceeds the amount of storage space leased for each




(Form 1506-Multiple Product)




4









 







specific Product hereunder. Any excess storage acquired in this manner shall be understood to be
temporary only, and shall not constitute a waiver of Lessor’s right to restrict storage to the
amount leased hereunder at any time thereafter, and Joint Owner shall promptly remove any such
excess Product upon Lessor’s written request.




12. Taxes.



Joint Owner shall pay all taxes, if any, levied or assessed on the Product stored hereunder. In
the event it becomes necessary for Lessor to pay any such tax, Joint Owner shall immediately
reimburse Lessor for such amount upon receipt of notice of payment.




13. Payment Terms.



The total minimum annual rental for storage is payable in equal monthly installments during the
term hereof, each of which installments is due and payable in advance by Joint Owner at Lessor’s
address set forth on the face of each invoice on or before the first day of each month. Lessor
will also invoice Joint Owner each month for all applicable throughput fees, overstorage fees and
other fees or charges during the term of this Lease.




14. Warehouseman’s Lien.



Lessor shall have a lien on all Product of Joint Owner stored hereunder to cover any accrued and
unpaid amounts payable hereunder and may withhold delivery of any such Product until such accrued
and unpaid amounts are paid. If any such amounts remain unpaid for more than thirty (30) days
after they accrue, Lessor may sell said Product at a public auction at the offices of Lessor in
Houston, Harris County, Texas, on any day not a legal holiday and not less than forty-eight (48)
hours after publication of notice in a daily newspaper of general circulation published in Baytown,
Texas, said notice giving the time and place of the sale and the quantity and Product to be sold.
Lessor may be a bidder and a purchaser at such sale. From the proceeds of such sale, Lessor may
pay itself all charges lawfully accruing and all expenses of such sale, and the net balance may be
held for whomsoever may be lawfully entitled thereto.




15. Product Losses.



Any loss of Product from Lessor’s storage wells for which Lessor is not responsible shall be
apportioned among all of the parties storing such Product in such storage wells on the date of loss
in proportion to the amount of Product each such party has in storage on such date. Product is not
insured by Lessor against loss or damage however caused, and any insurance thereon must be provided
and paid for by Lessee. Lessor’s liability, if any, for loss or damages to the stored Product
shall be limited to a maximum of the monthly average NON TEPPCO price on the Texas Gulf Coast for
such Product on the date of such loss or damage as reported or published by Oil Price Information
Service (“OPIS”) (the “Published Price”), or at Lessor’s option, replacement of such lost or
damaged Product in kind within forty-five (45) days of such loss. If the Published Price is not
reported or published by OPIS for the date in question, the parties will endeavor to promptly agree
upon a fair market value.




(Form 1506-Multiple Product)




5









 








16. Force Majeure.



Lessor shall not be responsible to Joint Owner for any loss of Joint Owner’s Product, for any loss
to Joint Owner resulting from delays in returning Joint Owner’s Product when requested, or for
failure of Lessor to perform its obligations hereunder, due, directly or indirectly, to acts of God
or other causes beyond the reasonable control of Lessor including, without limitation, storm;
earthquake; accidents; acts of the public enemy; emergency or unplanned scheduling and operational
restrictions; rebellion; insurrections; sabotage; invasion; epidemic; strikes; lockouts or other
industrial disturbances; war; riot; hurricane; fire; flood; explosion; compliance with acts, rules,
regulations, or orders of federal, state, or local government, any agency thereof or other
authority having or purporting to have jurisdiction; mechanical failures or similar causes not due
to Lessor’s fault or negligence. The term of this Lease shall not be extended by the duration of
any force majeure, nor shall Joint Owner be excused from making any payment due under this Lease.
When claiming force majeure, Lessor shall notify Joint Owner immediately by telephone, and confirm
same in writing, giving reasonable detail regarding the type of force majeure and its estimated
duration. The settlement of differences with workers shall be entirely within the Lessor’s
discretion.




17. Indemnity.



REGARDLESS OF THE LEGAL THEORY OR THEORIES ALLEGED INCLUDING, WITHOUT LIMITATION, THE NEGLIGENCE
(WHETHER SOLE, JOINT, OR CONCURRENT) OF ANY THIRD PARTY, JOINT OWNER HEREBY AGREES TO INDEMNIFY,
DEFEND, AND SAVE HARMLESS LESSOR, ITS PARENT COMPANY, PARTNERS (GENERAL OR LIMITED), MEMBERS,
SUBSIDIARIES, AFFILIATES, SUCCESSORS, AND ASSIGNS, INCLUDING ANY OFFICER, DIRECTOR, EMPLOYEE, OR
AGENT OF ANY SUCH ENTITY (HEREINAFTER COLLECTIVELY CALLED “INDEMNITEE”) FROM AND AGAINST ANY CLAIM,
DEMAND, CAUSE OF ACTION, DAMAGE, FINE, PENALTY, LOSS, JUDGMENT, OR EXPENSE OF ANY KIND OF ANY PARTY
(HEREINAFTER COLLECTIVELY CALLED “LIABILITY”), INCLUDING ANY EXPENSES OF LITIGATION, COURT COSTS,
AND REASONABLE ATTORNEY’S FEES, RESULTING FROM, ARISING OUT OF, OR CAUSED BY THE DELIVERY OF ANY
PRODUCT BY JOINT OWNER OR JOINT OWNER’S AGENT, CONTRACTOR, OR CARRIER WHICH IS CONTAMINATED OR
OTHERWISE FAILS TO MEET THE SPECIFICATIONS SET FORTH HEREIN, EXCEPT TO THE EXTENT SUCH LIABILITY IS
DIRECTLY CAUSED BY THE NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNITEE.




18. Claims; Limitations.



Notice of claims by Joint Owner for any liability, loss, damage, or expense arising out of this
Lease must be made to Lessor in writing within ninety-one (91) days after the same shall have
accrued. Such claims, fully amplified, must be filed with Lessor within said ninety-one (91) days
and unless so made and filed, Lessor shall be wholly released and discharged therefrom and shall




(Form 1506-Multiple Product)




6









 







not be liable therefor in any court of justice. No suit at law or in equity shall be maintained
upon any claim unless instituted within two (2) years and one (1) day after the cause of action
accrued.



In no event shall Lessor be liable to Joint Owner for any prospective or speculative profits, or
special, indirect, incidental, exemplary, punitive, or consequential damages, whether based upon
contract, tort, strict liability, or negligence, or in any other manner arising out of this Lease,
and Joint Owner hereby releases Lessor from any claim therefor.




19. Notice.



All notices, demands, requests, and other communications necessary to be given hereunder shall be
in writing and deemed given if personally delivered, forwarded by facsimile (with proof of
transmission and answer-back capability), or mailed by either certified mail, return receipt
requested, or sent by recognized overnight carrier to the respective party at its address below:



If to Lessor:

Mont Belvieu Caverns, LLC

P.O. Box 4324

Houston, Texas 77210-4324

Attn: Director — Hydrocarbon Storage

Telephone: (713) 381-6554

Fax: (713) 381-6960



If to Joint Owner:

Enterprise Products Operating

P.O. Box 4324

Houston, TX. 77210-4324

Attn: Mr. Rob Schaefer

Telephone: (713) 381-6588

Fax: (713) 381-381-7962




20. Assignment.



Neither party shall assign any portion of its rights or obligations under this Lease without the
prior written consent of the other, which consent shall not be unreasonably withheld; provided,
however, either party may assign this Lease to its parent corporation, a wholly-owned subsidiary,
to an affiliate, to a successor who acquires all, or substantially all, of the assets of the
assigning party, or, if a party hereto is a limited partnership, to one or its limited partners or
the members of its general partner, without the consent of the other party, provided that it
remains primarily obligated hereunder. This Lease shall be binding upon and inure to the benefit
of the parties hereto, their successors and assigns.




(Form 1506-Multiple Product)




7









 








21. Rules and Regulations.



This Lease and the provisions hereof shall be subject to all applicable state and federal laws and
to all applicable rules, regulations, orders, and directives of any governmental authority, agency,
commission, or regulatory body in connection with any and all matters or things under or incident
to this Lease.




22. Entire Agreement.



This Lease embodies the entire agreement between Lessor and Joint Owner and there are no promises,
assurances, terms, conditions, or obligations, whether by precedent or otherwise, other than those
contained herein. No variation, modification, or reformation hereof shall be deemed valid until
reduced to writing and signed by the parties hereto.




23. Governing Law.



THIS LEASE AND THE RIGHTS AND DUTIES OF THE PARTIES ARISING OUT OF THIS LEASE SHALL BE GOVERNED BY
AND CONSTRUED, ENFORCED, AND PERFORMED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, AS THE
SAME MAY BE AMENDED FROM TIME TO TIME, WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW
PROVISION OR RULE THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE
STATE OF TEXAS.



WITH RESPECT TO ANY SUIT, ACTION, OR PROCEEDING ARISING OUT OF OR RELATING TO THIS LEASE, EACH
PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE FEDERAL AND STATE COURTS (AS
APPLICABLE) LOCATED IN HARRIS COUNTY, TEXAS, AND TO ALL COURTS COMPETENT TO HEAR AND DETERMINE
APPEALS THEREFROM, AND WAIVES ANY OBJECTIONS THAT A SUIT, ACTION OR PROCEEDING SHOULD BE BROUGHT IN
ANOTHER COURT AND ANY OBJECTIONS TO INCONVENIENT FORUM.



THE PARTIES FURTHER AGREE THAT, IN THE EVENT OF A LAWSUIT ARISING OUT OF THE PERFORMANCE OF THIS
LEASE, THE PREVAILING PARTY SHALL BE ENTITLED TO RECOVER ITS REASONABLE ATTORNEYS’ FEES AND COURT
COSTS, INCLUDING FEES FOR EXPERT WITNESSES, FOR PROSECUTING OR DEFENDING ANY SUCH LAWSUIT FROM THE
PARTY NOT PREVAILING.




24. Other Provisions.



This Lease may be executed in counterparts, each of which shall be deemed to be an original and all
of which, taken together shall constitute the same agreement.



This Lease shall be construed as jointly drafted by the parties according to the language as a
whole and not for or against any party.




(Form 1506-Multiple Product)




8









 







In the event one or more of the provisions contained in this Lease shall be held to be invalid or
legally unenforceable in any respect under applicable law, the validity, legality or enforceability
of the remaining provisions hereof shall not be affected or impaired thereby. Each of the
provisions of this Agreement is hereby declared to be separate and distinct.



Nothing contained in this Lease shall be construed to create an association, trust, partnership, or
joint venture or impose a trust, fiduciary or partnership duty, obligation, or liability on or with
regard to any party.



This Lease is for the sole benefit of the parties and their respective successors and permitted
assigns, and shall not inure to the benefit of any other person whomsoever, it being the intention
of the parties that no third person shall be deemed a third party beneficiary of this Lease.




25. Default.



A party will be in default if it: (a) breaches this Lease, and the breach is not cured within
thirty (30) days after receiving written notice of such default (or alleged default) from the other
party specifying the nature of the breach; (b) becomes insolvent; or (c) files or has filed against
it a petition in bankruptcy, for reorganization, or for appointment of a receiver or trustee. In
the event of default, the non-defaulting party may terminate this Lease upon notice to the
defaulting party. For the avoidance of doubt, Lessor’s failure to perform any of the services for
any reason other than force majeure will be deemed a breach of this Lease to which subsection (a)
of this Section 25 applies.




26. Early Termination.



This Lease may be terminated and canceled by Lessor if not accepted and returned to Lessor by Joint
Owner within fifteen (15) days from the date hereof.




(Form 1506-Multiple Product)




9









 








DATED this                                          day of                           
                                  , 2007.




	 	 	 	 	 	 	 
	 	 	LESSOR	 	 
	 
	 	 	 	 	 	 
	 	 	MONT BELVIEU CAVERNS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	NAME:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JOINT OWNER	 	 
	 
	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Enterprise Products OLPGP, Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	NAME:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:	 	 	 	 
	 

	 	 	 	 	 	 





(Form 1506-Multiple Product)




10









 








Other Joint Owners:




	 	 	 	 	 	 	 
	 	 	DUKE ENERGY NGL SERVICES L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 





	 	 	 	 	 	 	 
	 	 	Printed Name:	 	 
	 

	 	 	 	 	 	 





	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 
	 

	 	 	 	 	 	 





	 	 	 	 	 	 	 
	 	 	BURLINGTON RESOURCES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 





	 	 	 	 	 	 	 
	 	 	Printed Name:	 	 
	 

	 	 	 	 	 	 





	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 
	 

	 	 	 	 	 	 





(Form 1506-Multiple Product)





1









 








SCHEDULE 1

STORAGE LEASE

(ENTERPRISE FRACTIONATION PLANT)




STORAGE FEES.



(A) For the first Lease Year, Lessee shall pay Lessor annual rent at the rate of *** (the “Base
Storage Rental Rate”) for the volume leased under this Lease.



Commencing with the first day of the second Lease Year, and on the first day of each subsequent
Lease Year, the annual rent shall be adjusted as follows: one-half of the Base Storage Rental Rate
shall remain fixed, and one-half shall be revised annually based on a seasonally adjusted implicit
price deflator in order to determine a new rental rate known as the “Adjusted Rental Rate.” The
Adjusted Rental Rate shall be determined in accordance with the following formula:




*** per barrel + [*** per barrel X Annual Index / Base Index] = Adjusted Rental Rate




	 	 	 	 	 
	 

	 	Where:
	 	“Base Index” is the final seasonally adjusted implicit price deflator figure for the
calendar year 2005 under the Gross Domestic Product column of the “Implicit Price
Deflators for Gross Domestic Product” table (2000=100); and
	 
	 	 	 	 
	 

	 	 	 	“Annual Index” is the
final seasonally adjusted implicit price deflator figure for the calendar year ending immediately before the Lease Year for
which the adjustment is being determined, said figure being in the same
column, table and survey as the Base Index.





The Adjusted Rental Rate shall be rounded off to the fourth decimal place and shall become
effective on the first day of each Lease Year. In no event will the Adjusted Rental Rate ever be
less than the Base Storage Rental Rate.



For example, in calculating the Adjusted Rental Rate, which shall apply under this Lease, assume in
the second Lease Year the Base Index is 113.2, and the Annual Index is 115.2. Under these facts
the Adjusted Rental Rate would be as follows:



*** per barrel + [*** per barrel X 115.2 / 113.2] =

*** per barrel + [*** per barrel X 1.0177] =

*** per barrel + *** per barrel = *** per barrel




     The Adjusted Rental Rate of *** would become effective on the first day of the second Lease Year
and would continue until the last day of the second Lease Year, with a new
Adjusted Rental Rate to apply starting on the first day of the third Lease Year, and so on.



Schedule 1 (Enterprise Frac Plant)




 









 







The “Implicit Price Deflators for Gross Domestic Product” are available in the Survey of Current
Business as published monthly by the Bureau of Economic Analysis of the U.S. Department of
Commerce. Subscriptions to the Survey of Current Business are maintained by the Government
Printing Office, an agency of the U.S. Congress. If said Survey fails to publish a necessary price
deflator figure or ceases to be published, any replacement index published by or on behalf of the
United States government shall be substituted, and if there is no such substitute index, the
parties shall promptly agree on a replacement survey or index or, if they cannot agree, either
party shall be entitled to submit the matter of a replacement index to arbitration under the
commercial arbitration rules of the American Arbitration Association.




Schedule 1 (Enterprise Frac Plant)





 









 








EXHIBIT A




Reissue Date: 1-20-99




	 	 	 
	

	 	ENTERPRISE PRODUCTS OPERATING L.P.






SPECIFICATIONS FOR RAW MIX




	 	 	 	 	 
	COMPONENT	 	TEST METHODS	 	SPECIFICATIONS
	Composition:
	 	GPA 2186	 	 
	Carbon Dioxide
	 	 	 	0.35  Liq. Vol% max. (1)
	Methane
	 	 	 	1.5  Liq. Vol%, max. (1)
	Olefins
	 	 	 	1.0  Liq. Vol%, max. (2)
	Aromatics
	 	 	 	1.0  wt.% max. (3) 
	Oxygenates
	 	UOP-845	 	10   ppm wt. max. (4)
	Fluorides
	 	UOP-619	 	1.0   ppm wt. max. (5)
	Vapor Pressure at 100°F
	 	ASTM D-1267	 	600 psig max.
	Corrosion, Copper Strip
	 	ASTM D-1838	 	No.1
	Volatile Sulfur
	 	ASTM D-4045	 	150 ppm wt.  max. (6)
	Hydrogen Sulfide
	 	ASTM D-2420	 	Pass
	Carbonyl Sulfide
	 	ASTM D-5623	 	15  ppm wt. max. (7)
	Distillation:
	 	 	 	 
	End Point
	 	ASTM D-86	 	375 °F  max.
	Water Content
	 	VISUAL	 	No Free Water
	Color, Saybolt Number
	 	ASTM D-156	 	Plus 25  min.





NOTES ON TEST METHODS: Method number listed above, beginning with the letter “D,” are American
Society for Testing and Materials (ASTM), Standard Test Procedures. The most recent year revision
for the procedures will be used.





	1.	 	Of the Ethane content.
	 
	2.	 	Propylene limited to 5.0 L.V.% max. of contained propane.

Butylene limited to 0.35 L.V.% max. of contained butanes.

Butadiene limited to 0.01 L.V.% max. of contained butanes.
	 
	3.	 	Or 10% max. in contained gasoline.





Storage Lease (ENTERPRISE FRACTIONATION PLANT)





 









 









	4.	 	Of the Normal Butane content.
	 
	5.	 	Specification applies to all halides although test method is specific to fluorides. The test
method variance will allow acceptance of levels up to 1.4 ppm wt.
	 
	6.	 	ASTM D-3246 paragraph 4.2. On LPG total volatile sulfur is measured on an injected gas
sample; for LPG’s a liquid sample must be used to measure total sulfur, ASTM D-2784.
	 
	7.	 	In contained propane.





NOTE: Processor reserves the right to reject any Raw Mix having other product characteristics not
defined above that
may render a purity product potentially unacceptable.
 



	 	 	 	 	 	 	 
	Specification Committee	 	 	 	 
	Approval:

	 	Wayne Mullins
	 	Bob Sanders
	 	James Gernentz
	 

	 	 
	 	 
	 	 
	 

	 	Quality Control
	 	Business Management
	 	Operations






Storage Lease (ENTERPRISE FRACTIONATION PLANT)





 









 








Reissue Date: 5/1/02




EXHIBIT A




	 	 	 
	

	 	ENTERPRISE PRODUCTS OPERATING L.P.






E/P MIX (COMMERCIAL ETHANE)

(Ethane/Propane)




	 	 	 	 	 
	COMPONENT	 	TEST METHODS	 	SPECIFICATIONS
	Methane
	 	ASTM D-2163	 	1.5   Liq. Vol.% max.
	Carbon Dioxide
	 	ASTM D-2504	 	1000 ppm  wt. max.
	Ethane
	 	ASTM D-2163	 	75.0 - 82.0 Liq. Vol.%
	Propane
	 	ASTM D-2163	 	25.0 Liq. Vol.% max. 
	Ethylene
	 	ASTM D-2163	 	4.0 Liq. Vol.% max.
	Butanes & Heavier
	 	ASTM D-2163	 	0.8 max. (1)
	Total Sulfur
	 	ASTM D-4045	 	30 ppm wt. max.
	Corrosion, Copper Strip
	 	ASTM D-1838	 	No. 1





NOTE ON TEST METHODS: Method numbers listed above, beginning with the letter “D,” are
American Society for Testing and Materials (ASTM), Standard Test Procedures. The most recent year
revision for the procedures will be used.



Contaminants -The specification defines only a basic purity for this product. This product is to
be free of any contamination that might render the product unusable for its commonly used
applications. Specific contaminants include (but are not limited to) dirt, rust, scale, and all
other types of solid contaminants, caustics, chlorides, heavy metals, and oxygenates.





	1.	 	Anything heavier than C3 will be valued as Propane.





	 	 	 	 	 	 	 
	Specification Committee	 	 	 	 
	Approval:

	 	Wayne Mullins
	 	Phil Winter
	 	James Gernentz
	 

	 	 
	 	 
	 	 
	 

	 	Quality Control
	 	Business Management
	 	Operations






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Reissue Date: 5/1/02




EXHIBIT A




	 	 	 
	

	 	ENTERPRISE PRODUCTS OPERATING L.P.






STANDARD GRADE ISOBUTANE




	 	 	 	 	 
	COMPONENT	 	TEST METHODS	 	SPECIFICATIONS
	Propane & Lighter
	 	ASTM D-2163	 	3.0 Liq. Vol. % max.
	Isobutane
	 	ASTM D-2163	 	96.0 Liq. Vol. % min.
	Normal Butane & Heavier
	 	ASTM D-2163	 	4.0 Liq. Vol. % max.
	Total Sulfur
	 	ASTM D-4045	 	140 ppm wt. max.
	Water Content
	 	VISUAL	 	No Free Water
	Vapor Pressure at 100° F
	 	ASTM D-1267	 	70 psig max.
	Corrosion, Copper Strip
	 	ASTM D-1838	 	No.1





NOTES ON TEST METHODS: Method numbers listed above, beginning with the letter “D,” are
American Society for Testing and Materials (ASTM), Standard Test Procedures. The most recent year
revision for the procedures will be used.




Contaminants -The specification defines only a basic purity for this product. This product is to
be free of any contamination that might render the product unusable for its commonly used
applications. Specific contaminants include (but are not limited to) dirt, rust, scale, and all
other types of solid contaminants, caustics, chlorides, heavy metals, and oxygenates.



	 	 	 	 	 	 	 
	Specification Committee	 	 	 	 
	Approval:

	 	Wayne Mullins
	 	Bob Sanders
	 	James Gernentz
	 

	 	 
	 	 
	 	 
	 

	 	Quality Control
	 	Business Management
	 	Operations






Storage Lease (ENTERPRISE FRACTIONATION PLANT)





 









 








Reissue Date: 5/1/02




EXHIBIT A




	 	 	 
	

	 	ENTERPRISE PRODUCTS OPERATING L.P.






ISOM GRADE NORMAL BUTANE

RECEIPT SPECIFICATIONS ANALYSIS




	 	 	 	 	 
	COMPONENT	 	TEST METHODS	 	SPECIFICATIONS
	Propane & Lighter
	 	ASTM D-2163	 	0.35  Liq. Vol.% max.
	Isobutane
	 	ASTM D-2163	 	6.0  Liq. Vol.% max.
	Normal Butane
	 	ASTM D-2163	 	94.0  Liq. Vol.% min.
	Pentanes & Heavier
	 	ASTM D-2163	 	1.5  Liq. Vol. % max.
	Hexanes & Heavier
	 	ASTM D-2163	 	0.050  Liq. Vol. % max.
	Total Olefins
	 	ASTM D-2163	 	0.35  Liq. Vol. % max.
	Butadiene
	 	ASTM D-2163	 	0.01  Liq. Vol. % max.
	Total Oxygenates
	 	UOP-845	 	50.0 ppm wt. max.
	Methanol
	 	UOP-845	 	50.0 ppm wt. max.
	IPA & Heavier Alcohols
	 	UOP-845	 	5.0 ppm wt. max.
	MTBE & Other Ethers
	 	UOP-845	 	2.0 ppm wt. max.
	Other Oxygenates
	 	UOP-845	 	5.0 ppm wt. max.
	Total Sulfur
	 	ASTM D-4045	 	140 ppm wt. max.
	Water Content
	 	VISUAL	 	No  Free  Water
	Fluoride
	 	UOP-619	 	1.0 ppm wt. max.
	Vapor Pressure at 100°F
	 	ASTM D-1267	 	50 psig max.
	Volatile Residue:
	 	 	 	 
	Temperature @ 95% evaporation
	 	ASTM D-1837	 	+36°F max.
	Corrosion, Copper Strip
	 	ASTM D-1838	 	No.1






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NOTE ON TEST METHODS: Method numbers listed above, beginning with the letter “D,” are
American Society for Testing and Materials (ASTM), Standard Test Procedures. The most recent year
revision for the procedures will be used.



Contaminants -The specification defines only a basic purity for this product. This product is to
be free of any contamination that might render the product unusable for its commonly used
applications. Specific contaminants include (but are not limited to) dirt, rust, scale, and all
other types of solid contaminants, caustics, chlorides, heavy metals, and oxygenates.




	 	 	 	 	 	 	 
	Specification Committee	 	 	 	 
	Approval:

	 	Wayne Mullins
	 	Phil Winter
	 	James Gernentz
	 

	 	 
	 	 
	 	 
	 

	 	Quality Control
	 	Business Management
	 	Operations






Storage Lease (ENTERPRISE FRACTIONATION PLANT)




 









 








Reissue Date: 7-10-02




EXHIBIT A




	 	 	 
	

	 	ENTERPRISE PRODUCTS OPERATING L.P.






PETROCHEMICAL GRADE GASOLINE PRODUCT




	 	 	 	 	 	 	 	 	 
	COMPONENT	 	TEST METHODS	 	SPECIFICATIONS	 	 	 	 
	Normal Butane & Lighter
	 	ASTM D-2177	 	6.0 Liq. Vol.% max.
	Total Sulfur
	 	ASTM D-3120	 	1000 ppm wt. max.
	Water Content
	 	VISUAL	 	No  Free  Water
	Vapor Pressure at 100°F
	 	ASTM D-323	 	14.0 RVP max.
	End Point
	 	ASTM D-86	 	375°F max.
	Color, Saybolt Number
	 	ASTM D-156	 	+25  min.





NOTE ON TEST METHODS: Method numbers listed above, beginning with the letter “D,” are
American Society for Testing and Materials (ASTM), Standard Test Procedures. The most recent year
revision for the procedures will be used.



Contaminants -The specification defines only a basic purity for this product. This product is to
be free of any contamination that might render the product unusable for its commonly used
applications. Specific contaminants include (but are not limited to) dirt, rust, scale, and all
other types of solid contaminants, caustics, chlorides, heavy metals, and oxygenates.




	 	 	 	 	 	 	 
	Specification Committee	 	 	 	 
	Approval:

	 	Wayne Mullins
	 	Phil Winter
	 	James Gernentz
	 

	 	 
	 	 
	 	 
	 

	 	Quality Control
	 	Business Management
	 	Operations






Storage Lease (ENTERPRISE FRACTIONATION PLANT)




 









 








Reissue Date: 5/1/02




EXHIBIT A




	 	 	 
	

	 	ENTERPRISE PRODUCTS OPERATING L.P.






PROPANE




	 	 	 	 	 
	COMPONENT	 	TEST METHODS	 	SPECIFICATIONS
	Vapor Pressure, PSIG @ 100°F
	 	ASTM D-1267	 	208 max.
	Volatile Residue:
	 	 	 	 
	Temperature @ 95% evaporation
	 	ASTM D-1837	 	-37°F max.
	Corrosion, Copper Strip
	 	ASTM D-1838	 	No. 1
	Total Sulfur
	 	ASTM D-4045	 	123 ppm wt. max.
	Propylene
	 	ASTM D-2163	 	5.0 Liq. Vol.% max.
	Propane
	 	ASTM D-2163	 	90.0 Liq.  Vol.% min.
	Butanes & Heavier
	 	ASTM D-2163	 	2.5 Liq.  Vol.% max.
	Water Content
	 	VISUAL	 	No Free Water
	Residual Matter
	 	 	 	 
	Residue on evaporation
	 	 	 	 
	of 100 ml. max.
	 	ASTM D-2158	 	0.05 ml.
	Oil Stain Observation
	 	 	 	Pass





NOTES ON TEST METHODS: Method numbers listed above, beginning with the letter “D,” are
American Society for Testing and Materials (ASTM), Standard Test Procedures. The most recent year
revision for the procedures will be used.



Contaminants -The specification defines only a basic purity for this product. This product is to
be free of any contamination that might render the product unusable for its commonly used
applications. Specific contaminants include (but are not limited to) dirt, rust, scale, and all
other types of solid contaminants, caustics, chlorides, heavy metals, and oxygenates.




Storage Lease (ENTERPRISE FRACTIONATION PLANT)






 









 








	 	 	 	 	 	 	 
	Specification Committee	 	 	 	 
	Approval:

	 	Wayne Mullins
	 	Bob Sanders
	 	James Gernentz
	 

	 	 
	 	 
	 	 
	 

	 	Quality Control
	 	Business Management
	 	Operations






Storage Lease (ENTERPRISE FRACTIONATION PLANT)






 









 








Reissue Date: 5/01/02




EXHIBIT A




	 	 	 
	

	 	ENTERPRISE PRODUCTS OPERATING L.P.






PURITY ETHANE




	 	 	 	 	 
	COMPONENT	 	TEST METHODS	 	SPECIFICATIONS
	Methane
	 	ASTM D-2163	 	3.0 Liq. Vol.% max.
	Ethane & Ethylene
	 	ASTM D-2163	 	95.0 Liq. Vol.% min.
	Propane & Heavier
	 	ASTM D-2163	 	3.5 Liq. Vol.% max.
	Corrosion, Copper Strip
	 	ASTM D-1838	 	No.  1
	Total Sulfur
	 	ASTM D-4045	 	30 ppm wt. max.
	Water Content
	 	VISUAL	 	No Free Water
	Carbon Dioxide
	 	ASTM D-2504	 	1000 ppm wt. in Liq. max.





NOTES ON TEST METHODS: Method number listed above, beginning with the letter “D,” are
American Society for Testing and Materials (ASTM), Standard Test Procedures. The most recent year
revision for the procedures will be used.



Contaminants -The specification defines only a basic purity for this product. This product is to
be free of any contamination that might render the product unusable for its commonly used
applications. Specific contaminants include (but are not limited to) dirt, rust, scale, and all
other types of solid contaminants, caustics, chlorides, heavy metals, and oxygenates.




	 	 	 	 	 	 	 
	Specification Committee	 	 	 	 
	Approval:

	 	Wayne Mullins
	 	Bob Sanders
	 	James Gernentz
	 

	 	 
	 	 
	 	 
	 

	 	Quality Control
	 	Business Management
	 	Operations






Storage Lease (ENTERPRISE FRACTIONATION PLANT)





 









 








Reissue Date: 5/1/02




EXHIBIT A




	 	 	 
	

	 	ENTERPRISE PRODUCTS OPERATING L.P.






NATURAL GASOLINE




	 	 	 	 	 
	COMPONENT	 	TEST METHODS	 	SPECIFICATIONS
	Normal Butane & Lighter
	 	GPA-2177	 	6.0 Liq. Vol.% max.
	Total Sulfur
	 	ASTM D-3120	 	1000 ppm wt. max.
	Water Content
	 	VISUAL	 	No  Free  Water
	Vapor Pressure at 100°F
	 	ASTM D-323	 	14.0 RVP max.
	End Point
	 	ASTM D-86	 	375°F max.
	Corrosion,
	 	 	 	 
	Copper Strip
	 	ASTM D-130	 	No.  1
	Doctor Test
	 	ASTM D-4952	 	Negative
	 
	 	or   GPA 1138	 	 
	Color, Saybolt Number
	 	ASTM D-156	 	+25  min.





NOTE ON TEST METHODS: Method numbers listed above, beginning with the letter “D,” are
American Society for Testing and Materials (ASTM), Standard Test Procedures. The most recent year
revision for the procedures will be used.



Contaminants -The specification defines only a basic purity for this product. This product is to
be free of any contamination that might render the product unusable for its commonly used
applications. Specific contaminants include (but are not limited to) dirt, rust, scale, and all
other types of solid contaminants, caustics, chlorides, heavy metals, and oxygenates.




	 	 	 	 	 	 	 
	Specification Committee	 	 	 	 
	Approval:

	 	Wayne Mullins
	 	Bob Sanders
	 	James Gernentz
	 

	 	 
	 	 
	 	 
	 

	 	Quality Control
	 	Business Management
	 	Operations






Storage Lease (ENTERPRISE FRACTIONATION PLANT)





 









 








8/3/05 revision




EXHIBIT “B”




EPOLP MEASUREMENT PROCEDURES



ARTICLE I

METERING EQUIPMENT




Section 1.1 General.





	A.	 	Natural gas liquids or other products delivered or received by EPOLP shall be measured by
either volumetric or mass measurement procedures using a turbine or Coriolis meter.
	 
	B.	 	Chemical grade propylene, refinery grade propylene, propane, isobutane, normal butane,
commercial butane and natural gasoline shall be measured by mass or volumetric measurement
procedures.
	 
	C.	 	Raw mix, ethane, ethane propane mix, and butane gasoline mix shall be measured by mass
measurement procedures.
	 
	D.	 	Polymer grade propylene shall be measured utilizing volumetric or mass measurement procedures
and API Manual of Petroleum Measurement Standards, (API MPMS) Chapter 1.3.3.2
to determine calculated density and report mass.
	 
	E.	 	The measuring station shall be installed in such a manner that a minimum back-pressure of 50
psig above the product vapor pressure at maximum operating temperature is maintained at all
times. Measurement accuracy shall not be impeded by the effects of pulsation created by pumps
or other sources.
	 
	F.	 	All equipment employed in metering and sampling shall be approved as to the type, materials
of construction, method of installation, and maintenance by all parties involved in the
custody transfer of products. Due consideration shall be given to the operating pressure,
temperature, and characteristics of the product being measured.
	 
	G.	 	Reference to any API, ASTM, GPA or similar publication shall be deemed to encompass the
latest edition, revision or amendments thereof.





Section 1.2 Meters.





	A.	 	Turbine meters shall be installed and operated in accordance with the API MPMS,
Chapter 5, Sections 3 and 4. Each meter shall be proven when initially placed into service
using a ball or piston-type or small volume prover in accordance with the API MPMS,
Chapter 4, and Chapter 12 Section 2.
	 
	B.	 	Coriolis meters shall be installed and operated in accordance with the API MPMS,
Chapter 5, Section 6. Each meter shall be proven when initially placed into service using





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	 	 	a ball or piston-type or small volume prover in accordance with the API MPMS, Chapter 4,
and Chapter 12, Section 2. The prover will be additionally equipped with a densitometer
installed and proved in accordance with the API MPMS, Chapter 14, Section 6. The meter
proving shall be an Inferred Mass Proving in accordance with API MPMS, Chapter 5,
Section 6.9.1.7.2.






	C.	 	Meter proving frequency shall be in accordance with Section 2.3.C below. The meter shall be
proven immediately prior to and after any meter maintenance is performed.





Section 1.3 Densitometers.





	A.	 	Densitometers with frequency output shall be installed and proved in accordance with the
API MPMS, Chapter 14, Section 6. The frequency output may be driven directly into a
flow computer capable of internally converting frequency to corrected flowing density in
gm/cc, or to a separate frequency converter and into the flow computer as a 4-20 ma signal.
Proving is to be by entrapping a sample of the flowing stream at
system conditions in a
double-walled high-pressure vessel known as a pycnometer. The connections for the pycnometer
shall be installed in the same manner as those of the densitometer. Thermowells shall be
installed to allow monitoring of the inlet and outlet temperatures. Accuracy of the
densitometer shall be verified at the time of the meter proving or when accuracy is in
question. The accuracy of the densitometer shall be within +/- 0.001 gm/cc over its entire
range and repeatable to +/- 0.0005 gm/cc.
	 
	B.	 	For chemical grade propylene measurement utilizing a turbine meter, a calculated density may
be used in lieu of a densitometer by using the API MPMS, Chapter 11.3.3.2 method for
pure propylene and correcting it for 92 to 96 percent purity by applying a correction factor
of 0.9987 to the prover mass volume at each proving.




Section 1.4 Temperature and Pressure Transmitters. Temperature and pressure transmitters
shall be verified at the time of the meter proving using a certified thermometer and reference gage
respectively to ensure current readings are within +/-0.2 °F and +/- 1.0 psi. A calibration shall
be performed every 6 months. All verification and calibration data shall be supplied to the
customer. Accuracy of these transmitters shall be +/- 0.05 % of scale.



Section 1.5 Flow Computers. Flow computers shall be capable of accepting turbine pulses
from a turbine meter transmitter or mass pulses from a Coriolis meter transmitter and signals from
the pressure, temperature and density transmitters. The computer shall convert, as required, and
totalize these signals into gross volume, mass, and net volume. For net volume determinations, the
computer shall utilize the latest ASTM, API and GPA tables for temperature, pressure and specific
gravity corrections that are applicable to the product being measured. The weight of water shall be
as provided in the latest version of GPA 2145.



Section 1.6 Composite Sampling Systems. Composite sampling systems shall be installed and
operated in accordance with GPA Standard 2174. The composite sampler shall be operated to collect
flow-proportional samples only when there is flow through the meter. These samples shall be
accumulated in and removed from single-piston cylinders with mixing capability.




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ARTICLE II

ACCOUNTING AND MEASUREMENT PROCEDURES




Section 2.1 Custody Transfer Tickets.





	A.	 	EPOLP shall furnish to the customer daily (0700 to 0700) custody transfer tickets unless
otherwise provided for by separate agreement, for products measured on a volumetric basis.
The ticket shall identify the product and state the net volume in barrels of product measured.
	 
	B.	 	For streams that are measured on a mass basis, custody transfer tickets shall be furnished
stating the total mass measured in pounds. Total pounds mass shall then be converted to pounds
of each component (if required) based on its weight fraction of the analysis of the product
removed from the composite sampler for the same time period in which the mass was totalized.
The component pounds shall then be converted to equivalent gallons of each component (if
required) utilizing the calculation procedure outlined in GPA Standard 8173. The component
density in a vacuum shall be in accordance to GPA Standard 2145. Component gallons shall be
further reduced to barrels. Unless otherwise provided for by separate agreement, custody
transfer tickets for mass-measured products shall be generated on a weekly or batch basis. An
unfinished batch shall be closed out at 0700 hours on the first day of the calendar month,
unless otherwise provided for by separate agreement.





Section 2.2 Measurement Basis.





	A.	 	Mass Measurement.






	 	1.	 	Inferred mass measurement shall be accomplished utilizing a flow-proportional
composite sampler, turbine meter, densitometer and flow computer to convert gross
volumetrically measured barrels using density in gm/cc at flowing conditions to total
pounds mass according to the following formula:






	 	 	 	TotalPounds = GrossBBLS x MeterFactor x FlowingDensity(gm /cc) x 350.506987
	 
	 	 	 	350.506987 is a conversion factor to convert density in gm/cc to pounds /bbl.






For polymer grade propylene the composite sampler and densitometer are not required.




	 	2.	 	Direct mass measurement shall be accomplished by utilizing a flow-proportional
composite sampler, a Coriolis meter, Coriolis transmitter, and a flow computer to
convert mass pulses from the Coriolis transmitter into pounds. Measured pounds mass is
calculated according to the following formula:





Storage Lease (ENTERPRISE FRACTIONATION PLANT)




 









 







	 	 	 	 	 	 	 	 	 	 
	 

	 	MeasuredMass = 
	MeterPulses

	  x  MeterFactor
	 
	 

	 	 	 	 
	 

	 	KFactor	 	 







For polymer grade propylene the composite sampler is not required.




	B.	 	Volumetric Measurement.






	 	1.	 	Volumetric measurement shall be accomplished utilizing a flow computer, turbine
meter, and temperature and pressure transmitters. A “fixed” specific gravity at 60
oF and vapor pressure at 100 oF may be entered into the flow
computer in the case of “purity” products, if agreed by both parties. Temperature and
pressure shall be referenced to the proper API, ASTM and GPA Tables to calculate and
totalize net barrels. An optional densitometer and flow-proportional composite sampler
may be installed. If a densitometer is installed, the flow computer shall convert the
density signal at flowing conditions in gm/cc to specific gravity at 60 oF
and use GPA TP-15 to determine EVP (Equilibrium Vapor Pressure).
	 
	 	2.	 	On the basis of laboratory analysis, components of mixed streams may be
determined by multiplying the totalized net volume by the liquid volume percent of each
component, if so stipulated by contract.






The following shall be utilized by the flow computer to reduce gross barrels to net barrels.




For Temperature Reduction. API/ASTM/GPA Technical Publication TP-25 Table 24E shall
be used when measuring propane, isobutane, normal butane, natural gasoline and mixes of the
above.




For Pressure Reduction (Compressibility).




	 	a.	 	API MPMS, 11.2.2 (GPA 8286) shall be used for measuring propane,
isobutane, normal butane, and mixes of the above.
	 
	 	b.	 	API MPMS, 11.2.1 shall be used when measuring natural gasoline.






Temperature and Pressure Correction. API MPMS, 11.3.3.2 Subroutine “PROPYL”
shall be used for temperature and pressure correction when measuring propylene and as a
ratioed factor based upon propylene content in propane/propylene mix.



Section 2.3 Provings and Tolerances.





	A.	 	Principles. During the proving cycle, turbine pulses (volumetric) from the turbine
meter transmitter or mass pulses from the Coriolis transmitter are accumulated. Dividing the
accumulated pulses by the prover volume or prover mass generates a “K Factor” in terms of
volume or mass, respectively. After the initial proving, this “K Factor” is entered into the
flow computer along with a meter correction factor of 1.0000. After subsequent provings, one
can choose to adjust the “K Factor” or the meter correction factor. If the





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	 	 	choice is made to adjust the “K Factor,” then the meter correction factor remains at 1.0000.
If the adjustment is made at the meter correction factor, then the established “K Factor”
remains the same. The densitometer factor is entered into the flow computer to correct
flowing density in gm/cc as determined by results of a pycnometer test. The pycnometer
shall be installed so that flow through the vessel shall assure proper purging thus allowing
temperature and pressure equalization with the densitometer being proved. Maximum allowable
temperature differential between the contents in the pycnometer and the densitometer shall
be no greater than +/- 0.2 oF. The pressure shall be equal to that of the
densitometer at time of removal.






	B.	 	General.






	 	1.	 	Meter provings, calibration of instruments, and maintenance of measurement
equipment shall normally be performed by EPOLP personnel, but these functions may be
delegated to responsible third-party contractors under the direction of an EPOLP
representative.
	 
	 	2.	 	A customer’s witness signature does not constitute the approval of the use of
out-of-tolerance equipment, but said signature does attest to the validity of the
proving report.






	C.	 	Proving Intervals. Each meter shall be proven when initially placed into service.
Subsequent provings shall be made every thirty (30) days, unless in accordance with the
API MPMS, Chapter 5.3.9.5.2 the consistency of the meter factor, as evidenced in meter
factor control charts, may allow the proving interval to be extended to a maximum of 60 days.
	 
	D.	 	Meter Factor.






	 	1.	 	Volumetric meter proving calculations shall be in accordance with API
MPMS, Chapter 12.2. The average of five (5) consecutive prover runs shall be taken
to establish an initial or new meter factor, provided that the five (5) proving runs
are within 0.0005 (0.05 %) of each other and the meter factor is within 0.0025 of the
previous meter factor under like operating conditions.
	 
	 	2.	 	The new meter factor shall be used after each successful proving if it meets
the above proving criteria.
	 
	 	3.	 	If the new meter factor deviates from the previous meter factor under like
operating conditions by more than plus or minus 0.0025, then one half (1/2) of the
volume measured since the previous proving shall be corrected using the new meter
factor. If the time of malfunction can be determined by historical data, then the
volume measured since that point in time shall be corrected using the new
meter factor. The new meter factor shall not be used to correct volumes measured
more than thirty-one (31) days prior to the new proving.





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	 	4.	 	No work shall be performed on the measuring element of a turbine meter without
first proving the meter. If any work is performed, a new meter factor shall be
established.
	 
	 	5.	 	If the new meter factor deviates more than 0.0025 but less than 0.0050 from the
previous meter factor, the field representatives of EPOLP and the customer shall
determine the corrective action, if any, to be taken.
	 
	 	6.	 	If the new meter factor deviates 0.0050 or more, the element shall be removed
and inspected. If there is build-up on the internals, then the element shall be
cleaned and the meter re-proved. If excessive wear is found, then the element shall be
repaired or replaced and the meter re-proved to establish a new initial meter factor.
After a 24-hour wear-in period, the meter shall be re-proved and if the meter factor
changes more than +/- 0.0025 from the new initial meter factor, then one-half (1/2) of
the volume measured shall be corrected using the latest meter factor.
	 
	 	7.	 	The measurement technician shall record all required corrections to measured
volumes and shall describe the findings, method of repair, and calculations used in
making the correction on the meter proving report. A correction ticket for the amount
of the correction shall be issued.






	E.	 	Density Factor. The proving intervals, tolerances, repairs and methods of correction
are the same as those provided for in Section 2.3.D above, except that the average of two (2)
successive pycnometer provings shall establish product flowing density, provided the two (2)
successive provings agree within 0.0005 (0.05%).





Section 2.4 Custody Measurement Station Failure.





	A.	 	If a failure occurs on a custody measurement station or the station is out of service while
product is being delivered, then the volume shall be determined or estimated by one of the
following methods in the order stated:






	 	1.	 	By using data recorded by any check measuring equipment that was accurately
registering; or
	 
	 	2.	 	By correcting the error if the percentage error can be ascertained by
calibrations, tests, or mathematical calculations; or
	 
	 	3.	 	By comparison with deliveries made under similar conditions when the
measurement station was registering accurately; or
	 
	 	4.	 	By using historical pipeline gain/loss.





Section 2.5 Sampling Procedures.




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	A.	 	Flow proportional composite samples shall be removed from the composite sampler at the same
time the meter is read and a custody ticket issued. Samples of finished LPG products streams
shall be analyzed in accordance with ASTM D-2163 and raw mix stream shall be analyzed by GPA
2186 extended analysis for C6+ streams.
	 
	B.	 	Three samples shall be taken from the composite sampler. One sample shall be retained by
EPOLP for analysis, the second sample shall be retained by the customer for analysis, and the
third shall be held as a referee. If EPOLP has taken custody, its sample shall be analyzed
and the analysis used to account for transfer. If the customer has taken custody, its sample
shall be analyzed and the analysis used to account for transfer. If the customer and EPOLP
are in disagreement, then the referee sample shall be taken to a mutually agreed upon
laboratory which shall analyze the sample in accordance with the proper GPA Standard. This
analysis shall be accepted by the customer and EPOLP as final and conclusive for proportions
and components contained in the stream. Charges for such referee sample shall be borne by the
customer and EPOLP equally.
	 
	C.	 	Referee samples shall be held for a period of thirty (30) days from the date of sampling.
	 
	D.	 	If a malfunction of the sampling occurs resulting in no sample being taken or in an
unrepresentative sample being obtained, the following procedure shall be utilized in the order
stated.






	 	1.	 	The sample collected by any on-stream back-up sampling device that has
extracted a sample in proportion to the volume delivered shall be used.
	 
	 	2.	 	An average of the composite samples taken over a mutually agreed time frame
{not to exceed the last three (3) months of properly sampled deliveries} shall be used.
	 
	 	3.	 	Daily grab samples shall to be used for the time in question.





Section 2.6 Definitions.





	A.	 	“Day” shall mean a period of twenty-four (24) consecutive hours commencing at a local time
agreed on by all parties involved.
	 
	B.	 	“Gallon” shall mean a United States Gallon of 231 cubic inches of liquid at sixty degrees
Fahrenheit (60 oF) and at the equilibrium vapor pressure of the liquid.
	 
	C.	 	“Barrel” shall mean forty-two (42) United States Gallons.
	 
	D.	 	“EPOLP” shall mean Enterprise Products Operating L.P.





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Section 2.7 Technical Publications.





	A.	 	Manual of Petroleum Measurement Standards, American Petroleum Institute, Washington,
D.C.:






	 	1.	 	API Chapter 1, “Definitions.”
	 
	 	2.	 	API Chapter 4, “Proving Systems.”
	 
	 	3.	 	API Chapter 5.3, “Measurement of Liquid Hydrocarbons by Turbine Meters.”
	 
	 	4.	 	API Chapter 5.4, “Accessory Equipment for Liquid Meters.”
	 
	 	5.	 	API Chapter 5.6, “Measurement of Liquid Hydrocarbons by Coriolis Meters.”
	 
	 	6.	 	API Chapter 9.2, “Pressure Hydrometer Test Method for Density or Relative
Density.”
	 
	 	7.	 	API Chapter 11.2.2, “Compressibility Factors for Hydrocarbons: 0.350 — 0.637
Relative Density (60 oF/60 oF) and –50 oF to 140 oF Metering Temperature.”
	 
	 	8.	 	API 11.2.1, “Compressibility Factors for Hydrocarbons: 0-90o API Gravity
Range.”
	 
	 	9.	 	API Chapter 11.3.3.2, “Propylene Compressibility.”
	 
	 	10.	 	API Chapter 12.2, “Calculation of Liquid Petroleum Quantities.”
	 
	 	11.	 	API Chapter 14.6, “Continuous Density Measurement.”
	 
	 	12.	 	API Chapter 14.7, “Standard for Mass Measurement of Natural Gas Liquids.”
	 
	 	13.	 	API Chapter 14.8, “Liquefied Petroleum Gas Measurement.”
	 
	 	14.	 	API Chapter 21.2, “Flow Measurement — Electronic Liquid Measurement.”






	B.	 	API/ASTM/GPA Technical Publication TP-25 Table 24E, “Correction of Volume to 60 °F Against
Relative Density 60 °F/60 °F.”
	 
	C.	 	ASTM-D-1250 (Table 24), “Volume Corrected to 60 oF and equilibrium vapor
pressure.”
	 
	D.	 	ASTM-D-2163 “Standard Test Method for Analysis of Liquid Petroleum (LP) Gases and Propene
Concentrates by Gas Chromatography.”





E. GPA Standard 2140, “Liquefied Petroleum Gas Specifications and Test Methods.”




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	F.	 	GPA Standard 2145, “Table of Physical Constants of Paraffin Hydrocarbons and Other Components
of Natural Gas.”
	 
	G.	 	GPA Standard 2174, “Method of Obtaining Hydrocarbon Fluid Samples Using a Floating Piston
Cylinder.”
	 
	H.	 	GPA Standard 2177, “Method for the Analysis of Demethanized Hydrocarbon Mixtures Containing
Nitrogen and Carbon Dioxide by Gas Chromatography.”
	 
	I.	 	GPA Standard 2186, “Method for the Extended Analysis of Hydrocarbon Mixtures Containing
Nitrogen and Carbon Dioxide by Temperature Programmed Gas Chromatography.”
	 
	J.	 	GPA Standard 8173, “Method for Converting Natural Gas Liquids and Vapors to Equivalent Liquid
Volumes.”
	 
	K.	 	GPA Standard 8182, “Tentative Standard for the Mass Measurement of Natural Gas Liquids.”
	 
	L.	 	References to any API, GPA, ASTM or similar publications shall be deemed to encompass the
latest edition, revision or amendment thereof.





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