<PAGE>
                                                                   Exhibit 10.33

                       FOIA CONFIDENTIAL TREATMENT REQUEST

                                      COPY
                                      WITH
                                 REDACTED AREAS

                        CRUDE OIL PURCHASE/SALE AGREEMENT

                           INDEX OF CONFIDENTIAL TERMS

                        (i)       Page 1, Title Page, Heading
                        (ii)      Page 3, Table of Contents
                        (iii)     Pages 5, 8 and 9, Article 2.1
                        (iv)      Page 11, Articles 3.1 and 3.2
                        (v)       Page 12, Article 4.1
                        (vi)      Page 15, Article 7.2(b)(ii)
                        (vii)     Page 22, Articles 10.2, 10.4 and 10.5
                        (viii)    Page 36, Article 17


                             GIANT INDUSTRIES, INC.

                                    FORM 10-K

                       FISCAL YEAR ENDED DECEMBER 31, 2003


PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
FILED BY THE REGISTRANT WITH THE COMMISSION. THE OMITTED PORTIONS HAVE BEEN
FILED SEPARATELY WITH THE COMMISSION.
<PAGE>
===========================================================================


                                 ***** CRUDE OIL
                            PURCHASE / SALE AGREEMENT
                                   2004 - 2008

                                     between

                      STATOIL MARKETING & TRADING (US) INC.

                                       and

                              GIANT YORKTOWN, INC.

                     Contract Reference Number - CTC 2004/01

*****Confidential treatment requested.  Confidential information redacted.


===========================================================================

<PAGE>

                                TABLE OF CONTENTS

                     ARTICLE                                        PAGE #
          ----------------------------                              ------
1.        CONTRACT PARTIES                                             4
2.        DEFINITIONS AND CONSTRUCTION                                 5
3.        QUALITY                                                     11
4.        VOLUME AND DELIVERY RATE                                    12
5.        TITLE                                                       13
6.        RISK OF LOSS                                                13
7.        SUPPLY AND DELIVERY                                         14
8.        SHIPPING AND DISCHARGE PORT                                 17
9.        NOMINATION                                                  19
10.       PRICE COMPONENTS                                            20
11.       PAYMENT                                                     23
12.       MEASUREMENT AND INSPECTION                                  25
13.       LAYTIME AND DEMURRAGE                                       28
14.       CREDIT CONDITIONS                                           31
15.       TAXES, DUTIES AND CHARGES                                   34
16.       INSURANCE                                                   35
17.       TERM OF AGREEMENT                                           36
18.       REPRESENTATIONS, WARRANTIES AND COVENANTS                   36
19.       AUDIT AND INSPECTION RIGHTS                                 39
20.       SUSPENSION AND TERMINATION                                  39

                                       2
<PAGE>

21.       OBLIGATIONS AT TERMINATION                                  42
22.       INDEMNIFICATION AND CLAIMS                                  44
23.       DAMAGES                                                     46
24.       ASSIGNMENT                                                  46
25.       NOTICES AND ADDRESSES                                       47
26.       WARRANTIES AND WAIVERS                                      48
27.       APPLICABLE LAW, LITIGATION AND ARBITRATION                  49
28.       VOICE RECORDING                                             51
29.       DISPOSAL                                                    51
30.       NOTICE OF NORWEGIAN STATE'S SOURCED CRUDE OIL               51
31.       CONFIDENTIALITY                                             52
32.       MISCELLANEOUS                                               52

APPENDIX I     ADJUSTMENT TO QUALITY DIFFERENTIALS FOR *****
APPENDIX II    THE ***** CRUDE OIL ASSAY
APPENDIX III   BUYER'S PRICING TRIGGER PROCEDURE
APPENDIX IV    CRUDE OPTIMIZATION PROCEDURE
APPENDIX V     INVENTORY AND DELIVERY STATEMENTS
APPENDIX VI    INTERCREDITOR AGREEMENT
APPENDIX VII   TANK OWNER'S AGREEMENT


*****Confidential treatment requested.  Confidential information redacted.

                                       3
<PAGE>

                                    ARTICLE 1
                                CONTRACT PARTIES

THIS CRUDE OIL PURCHASE/SALE AGREEMENT (this "AGREEMENT"), is made and entered
into as of the Effective Date between:

BUYER:
Giant Yorktown, Inc.
23733 North Scottsdale Road
Scottsdale, AZ  85255

SELLER:

Statoil Marketing & Trading (US) Inc.
225 High Ridge Road
Stamford, CT  06905

WHEREAS, the Parties agree that Seller shall sell and Buyer shall purchase Oil
on the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the premises and the respective promises,
conditions and agreements contained herein, and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Parties hereby agree as follows:


                                       4
<PAGE>

                                    ARTICLE 2
                          DEFINITIONS AND CONSTRUCTION

2.1   DEFINITIONS.

For purposes of this Agreement, the following terms shall have the meanings
indicated below:

      "ACIDIC" means that the total acid number ("TAN") of the crude oil
      analyzed is more than 1.3 mgKOH/Kg.

      "AGREEMENT" or "THIS AGREEMENT" means this ***** Crude Oil Purchase/Sale
      Agreement, as it may be amended, modified, supplemented, extended, renewed
      or restated from time to time in accordance with the terms hereof,
      including the Appendices and Exhibits hereto.

      "API" means American Petroleum Institute.

      "ASTM" means American Society for Testing Materials.

      "BANKRUPT" means a Person that (i) dissolved, other than pursuant to a
      consolidation, amalgamation or merger, (ii) becomes insolvent or is unable
      to pay its debts or fails or admits in writing its inability generally to
      pay its debts as they become due, (iii) makes a general assignment or
      arrangement for the benefit of its creditors, (iv) has instituted against
      it a proceeding seeking a judgment of insolvency or bankruptcy or any
      other relief under any similar law affecting creditor's rights, or a
      petition is presented against it for its winding-up or liquidation, (v)
      institutes a proceeding seeking a judgment of insolvency or bankruptcy or
      any other relief under any bankruptcy or insolvency law or for
      reorganization relief under the winding-up or liquidation, (vi) has a
      resolution passed for its winding-up or liquidation, other than pursuant
      to a consolidation, amalgamation or merger, (vii) seeks or becomes subject
      to the appointment of an administrator, provisional liquidator,
      conservator, receiver, trustee, custodian or other similar official for
      all or substantially all of its assets, (viii) has a secured party take
      possession of all or substantially all of its assets, or has a distress,
      execution, attachment, sequestration or other legal process levied,
      enforced or sued on or against all or substantially all of its assets,
      (ix) files an answer or other pleading admitting or failing to contest the
      allegations of a petition filed against it in any proceeding of the
      foregoing nature or (x) takes any other action to authorize any of the
      actions set forth above.

      "BANKRUPTCY CODE" means Chapter 11 of Title 11, U.S. Code, as amended.

      "BARREL" means a volume of forty-two (42) US gallons corrected for
      temperature to sixty (60) degrees Fahrenheit, unless stated otherwise.

      "BFO" means Brent/Forties/Oseberg.


*****Confidential treatment requested.  Confidential information redacted.

                                       5
<PAGE>

      "BUSINESS DAY" means a day on which commercial banks are open for business
      (including dealings in foreign exchange and foreign currency deposits) in
      New York, New York.

      "BUYER'S REFINERY UPGRADING TURNAROUND" means the scheduled upgrade of the
      Refinery, including the installation of metallurgy and desalting
      facilities, that Buyer shall implement and complete during the fourth
      quarter of 2004.

      "BUYER'S SUPPLY WINDOW" has the meaning given such term in Article 9(a).

      "CARGO" means any particular quantity of Oil loaded or to be loaded into
      Vessel as set out in this Agreement and includes part Cargoes.

      "COLLATERAL" has the meaning given such term in Article 14.3.

      "COLLATERAL EVENT" has the meaning given such term in Article 14.3.

      "COMMODITY EXCHANGE ACT" means 7 U.S.C. Section 1, et seq.

      "COMPLETION OF DISCHARGE" means, in respect of a Cargo, the final
      disconnection from a Vessel's discharge manifold following the discharge
      of Oil.

      "CRUDE FIELD" means Buyer's crude oil storage tanks, including VEPCO tanks
      "C", "D", and "E" if agreed to in advance by Seller, but excluding Buyer's
      Daily Charge Tanks.

      "DAILY CHARGE TANKS" means Buyer's crude oil tanks used to charge crude
      oil to Buyer's crude units, excluding Buyer's Crude Field tanks.

      "DEFAULT INTEREST RATE" means the lesser of (i) the applicable LIBOR rate
      plus two (2) percentage points and (ii) the maximum rate of interest
      permitted by Law.

      "DELIVERED" or "DELIVERY" or "DELIVER" means when the Oil passes the title
      transfer point from Seller to Buyer.

      "DISCHARGE PORT" means the customary dockage, anchorage or place where a
      Vessel may lie in connection with discharging a Cargo to the Refinery.

      "DOLLARS" or "USD" or "US DOLLARS" or "$" means dollars of the United
      States of America.

      "EFFECTIVE DATE" means the date on which Buyer obtains all necessary
      amendments to (i) the Credit Agreement referenced in Article 14.1 of this
      Agreement and (ii) the term Loan Agreement dated as of May 14, 2002 (as
      the same has been amended from time to time, the "Term Loan Agreement")
      between Giant Yorktown, Inc., Wells Fargo Bank Nevada,


                                       6
<PAGE>

      National Association, and each of the Lenders named on Schedule IA of the
      Term Loan Agreement, and the Parent Guaranty Agreement related to the Term
      Loan Agreement.

      "ENVIRONMENTAL LAW" means any Law, policy, judicial or administrative
      interpretation thereof or any legally binding requirement that governs or
      purports to govern the protection of persons, natural resources or the
      environment (including the protection of ambient air, surface water,
      groundwater, land surface or subsurface strata, endangered species or
      wetlands), occupational health and safety and the manufacture, processing,
      distribution, use, generation, handling, treatment, storage, disposal,
      transportation, release or management of solid waste, industrial waste or
      hazardous substances or materials, as may be amended or modified from time
      to time.

      "ESTIMATED WEEKLY QUANTITY" or "EWQ" means the approximate quantity of Oil
      Delivered to Buyer during a period of one (1) week (between midnight on a
      Wednesday to midnight on the previous Wednesday), as estimated by Buyer
      and stated on the EWQ statement in the format of Appendix V.

      "E.T." means the applicable, local Eastern Time in New York, New York.


      "EVENT OF DEFAULT" or "DEFAULT" has the meaning given such term in Article
      20.1.

      "FORCE MAJEURE" means any cause or event reasonably beyond the control of
      a Party including perils of navigation, fires, acts of God, wars (declared
      or undeclared), terrorism, or any act, order, directive or necessity of
      any governmental, civil or military authority (de facto or de jure), or
      any regulation or interference (including regulation or interference
      requiring the shutting down of the Refinery or any of its operating units
      or requiring a substantial change in the manner of operating same), labor
      disputes (whether or not involving a Party's employees), or partial
      failure of producing, transportation, utility, loading or delivery
      facilities, inability of Seller or Vessels selected by it to obtain war
      risk insurance from usual commercial markets, closing of or restrictions
      on use of harbors, docks, canals, or other assistance to or adjuncts of
      shipping or navigation, actions by Seller to comply with directives of a
      member government or agency thereof in the implementation of an emergency
      allocation program of the International Energy Agency, or any other cause
      reasonably beyond the control of either Party whether or not similar to
      the foregoing and whether or not foreseeable, all of which by the exercise
      of due diligence such Party is unable to prevent or overcome. For purposes
      hereof, "failure of producing facilities" means a major disruption to the
      Production Facilities and Loading Terminal associated with them.

      "FOUR-DAY SUPPLY WINDOW" has the meaning given such term in Article 9(c).

      "GALLON" means a U.S. standard gallon of 231 cubic inches at 60 degrees
      Fahrenheit.


                                       7
<PAGE>

      "GIANT" means Giant Industries, Inc., a Delaware corporation. Giant is the
      ultimate parent company of Buyer and the Guarantor described in Article
      14.1(c).


      "GOVERNMENTAL AUTHORITY" means any federal, state, regional, local, or
      municipal governmental body, agency, instrumentality, authority or entity
      established or controlled by a governmental or subdivision thereof,
      including any legislative, administrative or judicial body, or any Person
      purporting to act therefore.

      "GPW" means Gross Product Worth as defined in Appendix I.

      "*****" means ***** crude oil of normal export quality.


      "INDEPENDENT INSPECTOR" means a company that is approved by U.S. Customs
      and that is mutually appointed by the Parties for reporting the
      measurement of quality and quantity of Oil.

      "INTERCREDITOR AGREEMENT" means the Intercreditor Agreement substantially
      in the form attached hereto as Appendix VI.

      "INVENTORY" OR "INVENTORIES" means the Oil inventories that Seller owns
      and intends to sell to Buyer under this Agreement, wherever located,
      including at the Refinery, VEPCO tanks `C', `D' or `E', loaded upon
      Vessels and injected into or received from pipelines or other transport.

      "IPE" means International Petroleum Exchange.

      "LAW" means (i) any law, statute, regulation, code, ordinance, license,
      decision, order, writ, injunction, decision, directive, judgment, policy,
      decree and any judicial or administrative interpretations thereof, (ii)
      any agreement, concession or arrangement with any Governmental Authority
      and (iii) any license, permit or compliance requirement, in each case
      applicable to either Party and as amended or modified from time to time.

      "LIABILITIES" means any losses, claims, charges, damages, deficiencies,
      assessments, interests, penalties, costs and expenses of any kind
      (including reasonable attorneys' fees and other fees, court costs and
      other disbursements), including any Liabilities directly or indirectly
      arising out of or related to any suit, proceeding, judgment, settlement or
      judicial or administrative order and any Liabilities with respect to
      Environmental Law.

      "LIBOR" means, as of the date of any determination, the London Interbank
      Offered Rate for One-Month U.S. Dollar deposits appearing on page 3750 of
      the Telerate screen (or any successor page) at approximately 11:00 a.m.
      (London time). If such rate does not appear on page 3750 of the Telerate
      screen (or otherwise on such screen), LIBOR shall be determined by
      reference to such other comparable publicly available service for
      displaying Eurodollar rates as the Parties may mutually select. LIBOR
      shall be established on the first day on which a determination of the
      interest rate is to be made

*****Confidential treatment requested.  Confidential information redacted.


                                       8
<PAGE>

      under this Agreement and shall be adjusted daily based on the LIBOR quotes
      made available through the foregoing sources.

      "LOADING TERMINAL" means the port of loading of the Vessel for the
      applicable Oil being Supplied.

      "MONTH" means a calendar month. Where a specified Month is defined as
      Month "M", Month M-1 shall mean the Month prior to Month M and Month M+1
      shall mean the Month subsequent to Month M.

      "OIL" means crude oil specified in this Agreement.

      "NORMAL REFINERY OPERATIONS" means periods of time when the Refinery is
      operating in a routine manner with all operating units on-line. Normal
      Refinery Operations exclude maintenance turnarounds and shutdown periods.
      For any periods of time other than during Normal Refinery Operations,
      Buyer shall invoke the provisions of Articles 7.2 and/or 7.3.

      "PARTY" or "PARTIES" means each Buyer and Seller defined in Article 1
      "Contract Parties" and collectively, both Buyer and Seller.

      "PERSON" means an individual, corporation, partnership, limited liability
      company, joint venture, trust or unincorporated organization, joint stock
      company or any other private entity or organization or Governmental
      Authority, whether acting in an individual, fiduciary or other capacity.

      "PREPRODUCTION ASSAY" means the ***** Crude Oil Assay, (Report number
      04263/96, dated August 23, 1996) attached as Appendix II.

      "PRODUCTION FACILITIES" means the offshore field production facilities
      used for the production of *****.

      "PROPERTY TAX" means any and all tangible personal property taxes, ad
      valorem property taxes or the like imposed on the value of the Oil held
      for sale by Seller to Buyer under this Agreement.

      "REFINERY" means the petroleum processing and refining facilities located
      in Yorktown, Virginia that are currently owned and operated by Buyer.

      "SAMPLER" means an automatic in-line sampler located in the immediate
      vicinity of the Vessel's discharge manifold and the Refinery's receiving
      pipeline connection.

      "SELLER'S SUPPLY WINDOW" has the meaning given such term in Article 9(b).

*****Confidential treatment requested.  Confidential information redacted.

                                       9
<PAGE>

      "SUPPLIED" or "SUPPLY" or "SUPPLIES" means or refers to when the Oil
      passes the flange connection between Seller's Vessel's permanent discharge
      manifold and the receiving pipeline or hose at the Discharge Port.

      "TANK OWNER'S AGREEMENT" means the Tank Owner's Agreement substantially in
      the form attached hereto as Appendix VII.

      "TAXES" means any and all (i) U.S. federal, state and local taxes, duties,
      fees and charges of every description, including all fuel, excise,
      environmental, spill, gross earnings, gross receipts and sales and use
      taxes, however designated (except for taxes on income), paid or incurred
      with respect to the purchase, storage, exchange, use, transportation,
      resale, importation or handling of the Oil and (ii) Property Taxes.

      "TERMINATION DATE" has the meaning given such term in Article 21.1.

      "UCC" means the Uniform Commercial Code in effect in the relevant state
      jurisdiction.

      "VESSEL" means the ship or barge, whether owned or chartered or otherwise
      obtained by Seller and employed by Seller to transport the Oil to the
      Discharge Port.

2.2   CONSTRUCTION.

(a) All headings herein are intended solely for convenience of reference and
shall not affect the meaning or interpretation of the provisions of this
Agreement.

(b) Unless expressly provided otherwise, the word "including" as used herein
does not limit the preceding words or terms.

(c) Unless expressly provided otherwise, all references to days, weeks, months
and quarters mean calendar days, weeks, Months and quarters, respectively. For
purposes of this Agreement, a calendar day shall begin at 12:00 a.m. E.T. and
end at 11:59 p.m. E.T.

(d) Unless expressly provided otherwise, references herein to "consent" mean the
prior written consent of the Party at issue, which shall not be unreasonably
withheld, delayed or conditioned.

(e) The Parties acknowledge that they and their counsel have reviewed and
revised this Agreement and that no presumption of contract interpretation or
construction shall apply to the advantage or disadvantage of the drafter of this
Agreement.


                                       10
<PAGE>

                                    ARTICLE 3
                                     QUALITY

3.1   NORMAL EXPORT QUALITY. The Oil to be Supplied under this Agreement shall
be ***** crude oil of normal export quality. Other crude oils may be Supplied
under this Agreement to replace part of the ***** should a substitution be
agreed to between the Parties. Any such substitution will be made in accordance
with the procedures set out in Appendix IV.

3.2   VARIATIONS IN QUALITY. Both Parties recognize that the quality of *****
may vary from the quality of ***** defined in the Preproduction Assay and as
included as Appendix II. A significant variation in the quality of ***** from
the Preproduction Assay to subsequent assays will result in an adjustment of the
price as set out in Appendix I. Notwithstanding any quality variation, Seller
shall Supply the ***** and Buyer shall receive of the ***** subject to the
following:

      (a)   In the event the quality of the ***** is substantially different
            from the quality defined in the Preproduction Assay, and this
            directly results in significant technical problems to Buyer's
            Refinery or Buyer is not able to manufacture finished petroleum
            products meeting current specifications for the products in Buyer's
            normal markets except under significant economic hardship, then the
            Parties agree to meet in an expeditious manner to resolve the
            situation in good faith. In order to resolve the technical problems
            associated with the quality of the ***** being substantially
            different from the quality defined in the Preproduction Assay, Buyer
            shall take reasonable measures to receive alternative crude oils or
            crude oil blends (Acidic or non-Acidic crude oils) Supplied by
            Seller in substitution for the *****.

      (b)   In the event that the quality of the ***** is substantially
            different from the quality defined in the Preproduction Assay such
            that ***** is clearly worth substantially more than the Agreement
            price based on market prices obtained by Seller from third parties,
            the Parties agree to meet and discuss in good faith how to reduce
            Seller's economic disadvantage from Supplying ***** to Buyer
            according to the agreed prices. Buyer shall take reasonable measures
            to receive alternative crude oils or crude oil blends (Acidic or
            non-Acidic crude oils) Supplied by Seller in substitution for the
            *****. Seller shall take reasonable measures to Supply crude oils or
            crude oil blends at prices that provide Buyer with comparable
            economics as if Buyer were receiving ***** as defined in the
            Preproduction Assay.

----------

***** Confidential treatment requested. Confidential information redacted.

                                       11
<PAGE>
                                    ARTICLE 4
                            VOLUME AND DELIVERY RATE

4.1   TOTAL VOLUME. Seller shall Deliver, and Buyer shall take Delivery of, a
minimum of ***** Barrels of Oil under this Agreement. Buyer shall take delivery
of all Oil Supplied under this Agreement to the Refinery. The intent of the
Parties is that the first Cargo shall be Supplied during February 2004. The last
Cargo to be Supplied under this Agreement will include the ***** Barrel, so that
it is ensured that the minimum quantity is Supplied. Any quantity in addition to
the minimum that is Supplied in the last Cargo will be considered to be part of
the quantity to be Delivered under the Agreement.

4.2   DELIVERY RATE.

(a) Delivery Prior to Buyer's Refinery Upgrading Turnaround. From March 1st
2004, until the last day prior to Buyer's Refinery Upgrading Turnaround, Buyer
shall take Delivery of the Oil ratably at twenty thousand (20,000) Barrels per
day during periods of Normal Refinery Operations.

(b) Delivery Subsequent to Buyer's Refinery Upgrading Turnaround. From the first
day after the completion of Buyer's Refinery Upgrading Turnaround, Buyer shall
take Delivery of the Oil ratably at forty thousand (40,000) Barrels per day
during periods of Normal Refinery Operations; except that, if Buyer is able to
complete its turnaround prior to the end of September 2004, Seller shall have
the right to Deliver Oil at the rate of twenty thousand (20,000) Barrels per day
until September 30, 2004 and shall increase the rate of delivery of Oil to forty
thousand (40,000) Barrels per day beginning October 1, 2004. Notwithstanding the
foregoing, Buyer and Seller may mutually agree to an increase in the rate of
Deliveries prior to October 1, 2004, should this be acceptable to both Parties.
If Buyer is unable to take delivery at the higher rate as soon as reasonably
practical following Buyer's Refinery Upgrading Turnaround, then Buyer shall
invoke the provisions of Article 7.2 below, citing unscheduled downtime.

(c) Intended Delivery Rate. Buyer shall make best efforts to take Delivery of
the Oil at a rate as close as operationally possible to the agreed rate. For the
avoidance of doubt, this shall not mean that Buyer shall be required to take
Delivery on any day at that exact rate but that, as a maximum deviation from
ratability, should Buyer be taking Deliveries at a higher or lower rate than the
agreed rate for a period of approximately two (2) Months (as first evidenced by
Buyer's EWQ's), then Buyer shall undertake to reduce or increase Deliveries, as
the case may be, in the third Month in order to compensate for the deviation in
the previous two (2) Months. In any case, excluding any reduction in volume as a
result of Articles 7.2 and/or 7.3 being invoked, the maximum deviation from
ratability over any Month shall be plus or minus five percent (5%).


----------

***** Confidential treatment requested. Confidential information redacted.

                                       12
<PAGE>
                                    ARTICLE 5
                                      TITLE

5.1   TRANSFER OF TITLE. Title to the Oil shall pass from Seller to Buyer when
the Oil passes through the outlet flange of Buyer's Daily Charge Tanks. Delivery
shall be considered to be taken by Buyer at the same point as title passes to
Buyer.

5.2   COMMINGLED INVENTORY.

(a) Seller shall not have, or assert any claim to, title over, or any other
interest in, Buyer's segregated inventory or any portion of unsegregated
inventory with which the Oil inventories owned by Seller are commingled in
storage.

(b) Buyer shall not have or assert any claim to, title over, or any other
interest in, or cause or allow any claim to, title over or any other interest
in, Seller's portion of any segregated or commingled Oil with which the crude
oil inventories owned by Buyer are commingled in storage. Nothing in this
Agreement shall be deemed to grant to Buyer or any person claiming by, through
or against Buyer, title to or create a security interest in, any of Seller's
Oil. Buyer authorizes Seller to file in all appropriate jurisdictions one (1) or
more UCC financing statements.

                                    ARTICLE 6
                                  RISK OF LOSS

Risk of loss of the Oil shall pass from Seller to Buyer when the Oil passes the
flange connection between Vessel's permanent discharge manifold and the
receiving pipeline or hose at the Discharge Port.



                      [This space intentionally left blank]



                                       13
<PAGE>
                                    ARTICLE 7
                               SUPPLY AND DELIVERY

7.1   SUPPLY.

(a) All Cargoes Supplied under this Agreement will be nominated in accordance
with Article 9 hereof and shall be subject to draught restrictions at the
Discharge Port as detailed in Article 8. All Oil will be Supplied outside of
U.S. Customs at the Refinery.

(b) The Oil shall be Supplied in Cargoes in a normal range of volume between
five hundred seventy thousand (570,000) Barrels and six hundred twenty thousand
(620,000) Barrels into Buyer's Refinery. Deviations to the normal range of
volume may occur in accordance with the following:

      (i)   Seller has the option at any time prior to the day that Seller
      designates the Four-Day Supply Window to Supply Cargoes of a volume
      between four hundred thousand (400,000) Barrels and seven hundred thousand
      (700,000) Barrels. Seller shall communicate to Buyer its intention to
      nominate such a volume so that Buyer can exercise its right to re-nominate
      subsequent Cargoes in accordance with Article 9.3, and further, Seller
      will ensure that it can comply with any changes to the Supply of
      subsequent Cargoes. Seller may Supply Cargoes of volume less than four
      hundred thousand (400,000) Barrels only with Buyer's prior consent.

      (ii)  Seller has the option, with Buyer's prior consent, to Supply Cargoes
      up to approximately one million (1,000,000) Barrels. Buyer shall be
      granted substantially earlier notice of such Supply and shall be able to
      nominate a narrower Buyer's Supply Window. Buyer agrees to use its best
      efforts to accommodate Seller's option.

(c) Seller may not change any Cargo volume fewer than twenty (20) days prior to
the beginning of the subject Cargo's Four-Day Supply Window without Buyer's
prior consent.

(d) For Oil Supplied pursuant to this Agreement, Buyer represents to Seller that
Buyer shall not use any tanks leased from any third parties, including, but not
limited to, VEPCO, without first notifying Seller and obtaining either a Tank
Owner's Agreement substantially in the form attached hereto as Appendix VII or
providing additional security in the form of a letter of credit or cash deposit
reasonably satisfactory to Seller.

7.2   SCHEDULED AND UNSCHEDULED DISRUPTION TO SUPPLY OR RECEIPT OF OIL. Any
reduction in volume as a result of the provisions of this Article 7.2 shall only
be temporary and the total volume of Oil to be Delivered under this Agreement
shall not be affected. The Parties agree that the provisions of this Article 7.2
shall not be used for commercial gain.

(a) Buyer's Refinery.

      (i)   Scheduled Maintenance. Buyer shall give Seller at least ninety (90)
      days' notice of any scheduled maintenance at the Refinery, which could
      affect the rate at which the


                                       14
<PAGE>
      Oil is Delivered. During such scheduled maintenance, Buyer's obligation to
      take Delivery of Oil from Seller will be reduced, to the extent required,
      for the affected period.

      (ii)  Unscheduled Downtime. Unscheduled downtime at the Refinery due to an
      event of Force Majeure shall be handled in accordance with Article 7.3.
      During any period of unscheduled downtime not caused by an event of Force
      Majeure, Buyer shall make reasonable attempts to take Delivery of Oil
      under this Agreement. Should unscheduled downtime not caused by an event
      of Force Majeure exceed five (5) days, Buyer is entitled to request the
      rescheduling of future Cargoes. However, Seller shall not be required to
      reschedule or delay any Cargo that has been accepted by Buyer for Supply
      within a forty-five (45) day period immediately following the date Buyer
      gives Seller notice of unscheduled downtime.

(b) Seller's Production Facilities and Loading Terminal.

      (i)   Scheduled Maintenance. Seller shall give Buyer at least ninety (90)
      days notice of any scheduled maintenance at the Production Facilities or
      at the Loading Terminal that could affect Supply of Oil under this
      Agreement.

      (ii)  Supply Shortage. If, by reason of any of the causes described in
      this Article 7.2, or by reason of production problems at the offshore
      facility or any problems at the Loading Terminal or reduction of
      production by a Governmental Authority, a shortage of supply occurs such
      that the total of Seller's volumes, SDFI volumes ("State Direct Financial
      Interest" volumes), and other third party volumes under long term
      contracts to Seller, of ***** for any such period of supply shortage is
      lower than the total of Seller's own system requirements (meaning Seller's
      own refining system and its long term processing arrangements) and the
      total nominated deliveries committed to other supply agreements for that
      period, then Seller has the right to freely withhold, reduce or suspend
      Deliveries under this Agreement to a level below the nominated quantity
      for that period as set forth below. Any shortage of supply shall result in
      Seller first canceling any uncommitted spot volumes. If that is not
      sufficient to deal with the supply shortage, then any reduction in
      Deliveries under this Agreement that Seller imposes shall correspond with
      the reduction in volume imposed on other third party long-term buyers of
      ***** from Seller. For the purposes hereof, Buyer shall be considered a
      long-term ***** customer.

      If Seller has to reduce Deliveries under any of the above circumstances,
      the Parties will discuss in good faith a new nomination plan to take into
      account the reduced ***** volume. The Parties also shall discuss the
      option of substituting alternative crude oils for any reduced *****
      volumes. Such alternative crude oils will be considered, where possible,
      on spot terms, based on fair market prices and relative values to *****.
      Should the Parties fail to agree on terms for the supply of alternative
      crude oils, Buyer shall have the option to secure such supplies directly
      from third parties. In this case, Buyer shall propose to Seller for its
      consent an amended nomination schedule for future deliveries of Oil.


----------

***** Confidential treatment requested. Confidential information redacted.

                                       15
<PAGE>
7.3   FORCE MAJEURE. The Parties agree that the provisions of this Article 7.3
shall not be used for commercial gain.

(a) Neither Party shall be liable to the other if it is rendered unable by an
event of Force Majeure to perform in whole or in part any obligation or
condition of this Agreement, for so long as the event of Force Majeure exists
and to the extent that performance is hindered by the event of Force Majeure;
provided, however, that the Party unable to perform shall use any and all
commercially reasonable efforts to avoid or remove the event of Force Majeure.
(Notwithstanding the foregoing, neither Party shall be required to (i) settle
labor disputes by acceding to the demands of the opposing party or parties to
such disputes or (ii) incur a major capital expenditure). During the period that
performance by one (1) of the Parties of a part or whole of its obligations has
been suspended by reason of an event of Force Majeure, the other Party likewise
may suspend the performance of all or a part of its obligations to the extent
that such suspension is commercially reasonable, except for any payment and
indemnification obligations.

(b) The Party rendered unable to perform shall give written notice to the other
Party as soon as reasonably possible after receiving notice of the occurrence of
an event of Force Majeure, including, to the extent feasible, the details and
the expected duration of the event of Force Majeure and the volume of Oil
affected. Such Party also shall promptly notify the other when the event of
Force Majeure is terminated.

(c) Upon the occurrence of an event of Force Majeure involving the Oil, the
Parties may mutually agree to the delivery of other alternative crude oils.

(d) In the event that a Party's performance is suspended due to an event of
Force Majeure in excess of sixty (60) consecutive days from the date that notice
of such event is given, and so long as such event is continuing, either Party,
in its sole discretion, may terminate this Agreement by written notice to the
other, and neither Party shall have any further liability to the other in
respect of this Agreement except for rights and remedies previously accrued
under this Agreement and any payment and indemnification obligations by either
Party under this Agreement.



                      [This space intentionally left blank]


                                       16
<PAGE>
                                    ARTICLE 8
                           SHIPPING AND DISCHARGE PORT

8.1   SELECTION OF VESSEL.

(a) The Oil under this Agreement shall be Supplied on Vessels acceptable to
Buyer. Buyer shall not unreasonably withhold such acceptance. Seller shall
submit to Buyer for its approval a list of Vessels that may be employed by
Seller to Supply the Oil. The list shall be regularly reviewed by both Parties
and shall only include Vessels built within twenty (20) years of the Cargo
nomination date. Seller immediately shall notify Buyer of any change in a
Vessel's status or performance, which could affect a Vessel's approval by Buyer.
Buyer shall have the option to remove a Vessel that is no longer acceptable to
it from the approved list, provided such Vessel has not already been accepted by
Buyer and scheduled to be employed for a specific voyage. Seller shall have the
right, subject to Buyer's acceptance, to nominate a Vessel not included in the
list.

(b) Buyer agrees to accept or reject any Vessel nominated by Seller within two
(2) hours of receipt from Seller of all information requested by Buyer
concerning that Vessel, provided that Buyer receives such information by 4:00
p.m. E.T. on a Business Day.

8.2   INSTRUCTIONS TO VESSEL.

Seller shall instruct all Vessels to comply with Buyer's then current rules and
regulations and all Law at the Discharge Port. Buyer shall provide Seller with
an electronic copy of its rules and regulations and any amendments thereto.

8.3   BERTH AND DISCHARGE PORT CONDITIONS AND COSTS.

Buyer shall provide free of charge, a berth or berths at the Discharge Port
which Vessel can safely reach and leave and at which Vessel can lie and
discharge always afloat. This Agreement is based on Buyer's confirmation that,
at high tide, any Vessel can safely transit to, lie alongside and discharge with
a draught up to and including thirty-six feet and six inches (36'06") salt
water. In the event that the permissible draught is reduced to less than 36'06"
salt water, then any reasonable associated costs, including possible
deadfreight, will be for Buyer's account so long as Seller mitigates its damages
and follows the reasonable recommendations of Buyer. Any reasonable costs
associated with the Supply of the Oil into a port other than the Discharge Port,
or to a berth other than at the Refinery at the Discharge Port, shall, unless
for a reason attributable to the Vessel or Seller, be for the account of the
Buyer.



                      [This space intentionally left blank]


                                       17
<PAGE>
8.4   WAR RISK TO CARGO & VESSEL.

The Seller reserves the right to refuse at any time, without being considered in
breach of this Agreement:

a) to direct any Vessel to undertake or to complete the voyage to the Discharge
Port if such Vessel is required in the performance of this Agreement:

      i)    to transit or to proceed to or to remain in waters so that the
            Vessel concerned would be involved in a breach of any Institute
            Warranties (if applicable) or, in the Seller's reasonable opinion,
            to risk its safety; or

      ii)   to transit or to proceed to or to remain in waters where there is
            war or terrorist activity (de facto or de jure) or threat thereof.

b) prior to the commencement of loading, to direct any Vessel to undertake the
voyage to the intended Discharge Port if such Vessel is required in the
performance of the terms of this Agreement to transit waters which, in the
Seller's reasonably held opinion, would involve abnormal delay; or

c) to undertake any activity in furtherance of the voyage which in the opinion
of the Vessel's master could place the Vessel, its cargo or crew at risk.

However, at Buyer's request, if Seller agrees to direct a Vessel to undertake or
to complete the voyage as referred to in subsections a), b) or c) above, then
Buyer undertakes to reimburse the Seller, in addition to the price payable under
the Agreement, for costs incurred by the Seller in respect of any additional
insurance (cargo or Vessel) premia and any other sums that the Seller may be
required to pay to the Vessel's owner including but not limited to any sums in
respect of any amounts deductible under such owner's insurance and any other
costs and/or expenses incurred by the Seller.



                      [This space intentionally left blank]



                                       18
<PAGE>
                                    ARTICLE 9
                                   NOMINATION

9.1   NOMINATION WINDOWS.

(a) Buyer shall nominate to Seller a ten (10) day supply window ("BUYER'S SUPPLY
WINDOW") for each Cargo no later than the 1st day of any Month M-1. The first
day of such ten (10) day supply window shall fall between the 15th day of Month
M and the 14th day of Month M+1.

(b) No later than the 20th day of Month M-1, Seller shall nominate to Buyer a
ten (10) day supply window ("SELLER'S SUPPLY WINDOW") with the first day of such
ten (10) day supply window no more than three (3) days earlier and no more than
one (1) day later than the first day of Buyer's Supply Window.

(c) Seller shall narrow Seller's Supply Window and nominate to Buyer a four (4)
day supply window ("FOUR-DAY SUPPLY WINDOW"), falling wholly within Seller's
Supply Window, no later than twenty (20) days prior to the first day of the
Four-Day Supply Window.

9.2   REQUIRED INFORMATION. At the time of Seller's nomination of the Four-Day
Supply Window, Seller shall provide to Buyer:

      (a)   the volume of the Cargo, subject to a shipping operational tolerance
            of plus or minus five percent (5%);
      (b)   the name of the Vessel (which must be pre-approved by Buyer);
      (c)   the expected Supply date at Buyer's Refinery; and
      (d)   the Loading Terminal for, and origin of, the Oil.

Seller shall notify Buyer as soon as reasonably possible on a Business Day
should any of the information change, and information that could be considered
time critical will be communicated immediately. In addition, Seller shall update
Buyer on a regular basis of Seller's intended Supply plan. Once the Cargo has
loaded at the Loading Terminal, each Business Day Seller shall provide Buyer
with an updated estimated arrival date and time at the Refinery.

9.3   NOMINATIONS OUTSIDE NORMAL RANGE. Should Seller nominate a Cargo with a
volume outside the range of between five hundred seventy thousand (570,000)
Barrels and six hundred twenty thousand (620,000) Barrels, Buyer shall have the
right to re-nominate a new ten (10) day Supply window for any subsequent Cargo
for which a ten (10) day window has already been nominated, in order to reflect
a change in expected volume on that Cargo. The new window will replace Seller's
Supply Window. Both Parties shall follow the normal nomination procedures
thereafter.

Notwithstanding the above, it is the intent of the Parties (i) to continuously
have sufficient Oil in inventory at Buyer's Refinery to allow Buyer to take
Delivery of the Oil at the rate agreed, (ii) to permit Seller commercially
reasonable flexibility in managing its lifting requirements at the Loading
Terminal, and (iii) that Seller shall not normally Supply two (2) consecutive
Cargoes with fewer than seven (7) days separation.


                                       19
<PAGE>
                                   ARTICLE 10
                                PRICE COMPONENTS

The price per Barrel net of S&W for Oil Delivered under this Agreement shall be
computed as the sum of the components: (10.1) pricing element (10.2) quality
differential (10.3) Trigger Adjustment and (10.4) Gross Product Worth
adjustment.

10.1  PRICING ELEMENT.

(a) Volume

      (i)   Deemed Volumes. The total volume of Oil that will be priced in each
      Month shall be deemed. Because volumes will be deemed significantly
      earlier than the Oil is Delivered, the Parties acknowledge that actual
      Delivered volumes may not exactly match the deemed volumes.
      Notwithstanding the foregoing, it is the intent of the Parties that the
      volume that is deemed to price in each Month shall be approximately equal
      to the volume that is Delivered in each Month, and Buyer agrees to adjust
      (from time to time) the rate at which Delivery is taken, so that the rate
      of pricing matches the rate of Delivery.

      (ii)  First Pricing Period. The first pricing period for the Oil to be
      Delivered will commence on 1st March 2004, and will continue until the
      last day prior to Buyer's Refinery Upgrading Turnaround. Pricing will be
      suspended from (and including) the first day, to (and including) the last
      day of Buyer's Refinery Upgrading Turnaround. The volume deemed to price
      during each Month of this first pricing period will be calculated based on
      a daily rate of twenty thousand (20,000) Barrels for all days in that
      Month, which are included in such first pricing period, subject to any
      adjustments detailed below.

      (iii) Second Pricing Period. On the first day following the completion of
      Buyer's Refinery Upgrading Turnaround, the second pricing period will
      commence and continue until all the Oil to be Delivered under this
      Agreement has been priced. The volume that shall be deemed to be priced
      during each Month of the second pricing period will be calculated based on
      a daily rate of forty-thousand (40,000) Barrels for all day in that Month,
      which are included in such second pricing period, subject to any
      adjustments detailed below. Should Seller exercise the right not to
      increase the rate of Delivery following the turnaround, the volume to be
      priced shall be reduced accordingly.

      (iv)  Changes to Delivery Rate. In cases where Deliveries are suspended as
      a result of a situation covered in Articles 7.2 or 7.3, the Parties shall
      agree to a modification to the pricing structure. Buyer shall advise
      Seller of a reduced Delivery rate resulting from any reduction or
      suspension in Deliveries, and the volume of Oil to be priced during that
      period will be reduced to match the reduced rate of Delivery. The normal
      rate of pricing will be resumed when Buyer's normal rate of Delivery is
      resumed.

      Notwithstanding the foregoing, there shall be no volume reduction in any
      pricing period that has already commenced, unless mutually agreed by the
      Parties. Furthermore, the volume that shall price in any Month cannot be
      any lower than the volume of Oil that has


                                       20
<PAGE>
      already been triggered in that Month unless the Parties agree otherwise.
      Should Buyer request to reduce the volume below the volume that has been
      triggered, then this reduction can only occur with Seller's agreement, and
      should Seller request to reduce the volume below the volume that has been
      triggered, then this reduction can only occur with Buyer's agreement.
      Should a situation covered in Article 7.2 or 7.3 above occur that would
      lead to a volume reduction in any pricing period that cannot be reduced
      for these reasons, then any reduction that cannot occur in the Month for
      which Article 7.2 or 7.3 has been invoked shall lead to that reduction
      occurring in the following Month.

      Should the Parties agree to increase the rate of Delivery of the Oil, they
      shall agree to a concomitant increase in the volume to be priced.

(b)   Pricing Basis.

      All Oil sold under this Agreement shall be priced on one of the following
      pricing bases, or a combination of both, at Buyer's election:

            (i)   ("WTI BASIS") WTI NYMEX Crude Oil First Line Futures
                  Settlements - to be determined as the average of the daily
                  NYMEX settlement prices for WTI Crude Oil First Line Futures
                  for all settlement days in the applicable Month; or

            (ii)  ("DATED BASIS") Dated (BFO) Platts quotation - to be
                  determined as the average of the daily mean of the low and
                  high price quotations for Brent (DTD) assessments for BFO
                  Cargoes as currently published in Platts Crude Oil Marketwire
                  ("Platts") (or other suitable price marker) for all quotation
                  days in the applicable Month.

      Buyer shall have the option to determine the volume in each Month that
      will price on the WTI BASIS and the volume that will price on the DATED
      BASIS.

      If the relevant Platts index ceases to be published or is not published
      for any portion of any period applicable to calculation of a sale price,
      or if the Parties mutually agree to cease using the Platts index for
      purposes of this Agreement, the Parties shall cooperate in good faith to
      select an alternative publication or other reference source that reflects
      as nearly as possible the same information as would have been published in
      the Platts index. In the event that the Dated BFO component ceases to be
      the representative North Sea Benchmark for pricing purposes or ceases to
      be quoted in any agreed publication or reference source, then the Parties
      shall agree on an alternative North Sea grade and formula for pricing
      purposes.

(c)   Calculation of Pricing Element.

      The pricing element shall be determined as the sum of the fraction of the
      total volume deemed to price on the WTI BASIS multiplied by the WTI BASIS
      price, and the fraction of the total volume deemed to price on the DATED
      BASIS multiplied by the DATED BASIS price. The pricing element shall be
      calculated to four (4) decimal places.


                                       21
<PAGE>
10.2  QUALITY DIFFERENTIAL. The quality differential to be applied to all
volumes shall be determined in accordance with the following:

      (a)   For the first ***** Barrels, *****
      (b)   For the next ***** Barrels, ***** *****and
      (c)   For all the remaining Barrels, *****

10.3  TRIGGER ADJUSTMENT. The Trigger Adjustment to be applied for all volume
deemed to price in Month M shall be determined according to the difference in
market value between:

            (i)   Dated BFO for Month M-1, and
            (ii)  the pricing basis for Month M, as defined in Article 10.1(b).

      When Buyer triggers all or part of the volume of the Oil for each Month,
      it shall invoke the procedures described in Appendix III to determine the
      Trigger Adjustment for that volume. The objective of Appendix III is to
      give Buyer a fair and market related mechanism to determine the Trigger
      Adjustment, and to define clear practical procedures to effect the
      conversion and make the necessary price adjustments.

10.4  GPW AND QUALITY ESCALATORS. An adjustment will be made to the price of
***** to reflect the changes in quality from time to time of the ***** that is
being Supplied using the procedures in Appendix I. The adjustment will be
calculated in the form of a per Barrel differential, which shall be applied to
the price of ***** as calculated in this Article 10 and shall apply for all
***** Supplied under this Agreement.

10.5  MARGIN SHARING AGREEMENTS. Buyer and Seller shall make best efforts to
agree in good faith during 2004 on a margin sharing arrangement based on the
following principles:

      (a)   Seller will provide an additional discount of ***** per Barrel for
            any volume on which margin is to be shared.
      (b)   Margin sharing will occur above a benchmark likely based on
            historical average refining margins. The difference between the
            actual margin and that benchmark will be subject to profit sharing
            when the actual margin is higher than the benchmark.
      (c)   The margin to be used will be either Buyer's actual, independently
            audited refinery margin, or a margin constructed from published
            prices to closely simulate Buyer's actual margin.

There shall be no margin sharing arrangements under this Agreement absent the
mutual agreement of the Parties.


----------

***** Confidential treatment requested. Confidential information redacted.

                                       22
<PAGE>
                                   ARTICLE 11
                                     PAYMENT

Payment for Oil Delivered under this Agreement shall be made in full, without
discount, deduction, withholding, set-off or counterclaim upon presentation of
Seller's commercial invoice, on or before the payment due date pursuant to the
provisions in Article 11.1.

11.1  PAYMENT TERMS. Payment shall be made in US Dollars by wire transfer of
immediately available funds (same day funds) into Seller's designated bank
account on the next Business Day after receipt of Seller's invoice and
supporting documentation, delivered by facsimile, electronic mail or U.S. mail.

11.2  INVOICING. Buyer shall provide to Seller an EWQ in the format set forth in
Appendix V, Section (A) no later than 12:00 p.m. ET on the Thursday or the first
Business Day after the EWQ is determined. The EWQ shall include any necessary
volume adjustment for over or under billed volumes from a previous period, as
described in Article 11.3. Seller shall invoice Buyer for the EWQ as soon as
possible after receipt. Seller's invoice also shall include any payment
adjustment resulting from a true-up between provisional prices and actual prices
pursuant to Article 11.4.

11.3  DETERMINATION OF ESTIMATED WEEKLY QUANTITY AND RESULTING INVOICE.

(a) The EWQ will be the approximate quantity Delivered between midnight
Wednesday and midnight on the previous Wednesday, as estimated by Buyer. The
estimate shall be determined using the pumphouse computer automatic tankdip
readings at midnight for each tank in the Crude Field and the Daily Charge
Tanks, and Buyer's estimate of the percentage of Oil in each tank that is owned
by Seller. In addition, Buyer shall establish a part-EWQ for the period between
midnight on the last day of the Month and midnight on the immediately previous
Wednesday.

(b) The sum of all EWQ's for a Month (including any part-EWQ's for shorter
periods at the beginning or end of such Month) shall be compared with the actual
quantity Delivered during such Month as determined pursuant to Article 12.1(c),
and the volume difference will be established.

(c) On the first payment date in Month M+1, the volume to be invoiced will be
adjusted in accordance with any such volume difference. However, if the first
payment due date for Month M+1 occurs within three (3) Business Days of the
beginning of such Month, then the volume adjustment shall be made to the volume
for payment on the second payment due date of such Month.

(d) Should the sum of all EWQ's (including all part-EWQ's) be greater than the
total quantity Delivered, then the volume due for payment on the appropriate
payment due date, shall be reduced by the volume difference as provided in
Article 11.3(c). Should the sum of all EWQ's (including all part-EWQ's) be less
than the total quantity Delivered, the volume due for payment shall be increased
by the volume difference. Buyer shall determine a part-EWQ for the period

                                       23
<PAGE>
between midnight on the last day of the Month and midnight on the first
Wednesday of the subsequent Month.

11.4  PAYMENT ADJUSTMENTS. If the final price per Barrel for any EWQ has not
been determined by four (4) Business Days before the payment due date, Buyer and
Seller shall agree to a provisional price at that time to be paid by Buyer on
the payment due date. On the first payment due date after the final price is
determined for all EWQ's for which that final price applies, a payment
adjustment shall be made. The payment adjustment shall be equal to the
difference between the total of all payments on such EWQ's based on provisional
prices agreed to by the Parties and the total of all payments on such EWQ's
based on the actual prices determined by the Parties. If the total of such
provisional payments is greater than the total payments, then Seller shall net
the difference off the next payment on the next payment due date. If the total
of such provisional payment is less that the total payments, then Buyer shall
pay to Seller the difference on the next payment due date. The adjustment
payable shall be subject to interest chargeable at the one (1) Month LIBOR rate
in effect on the Business Day the provisional payment is due and charged from
(and including) the Business Day the provisional payment is due and ending (but
excluding) the Business Day the payment adjustment is paid.

11.5  LATE PAYMENT. Any amounts not paid when due under this Agreement shall
bear interest from and including the date payment was originally to be made to
but excluding the date payment is actually made at the Default Interest Rate.
Interest shall be computed for the actual number of days elapsed on the basis of
a year consisting of 360 days. Acceptance of late payments shall not constitute
a waiver of rights to interest and shall in no circumstance be considered as an
agreement to provide extended credit. Any sum not paid by Buyer when due for any
reason related to Seller, shall not incur interest.



                      [This space intentionally left blank]


                                       24
<PAGE>
                                   ARTICLE 12
                           MEASUREMENT AND INSPECTION

12.1 MEASUREMENT. At the end of each Month, the Parties shall determine a
reconciliation of the following volumes of Oil:

      (i)   the Oil Supplied by Seller to the Refinery;
      (ii)  the Oil Delivered by Seller to Buyer;
      (iii) the Oil in Seller's Inventory in the Refinery; and
      (iv)  the Oil in Buyer's inventory in the Refinery,

using the following measurements:

(a) The actual volume of Oil in Inventory that is owned by Seller at the
Refinery shall be determined by Buyer and advised to Seller in a table format as
shown in Appendix V, Section (B). Each tank in which Seller owns Oil shall be
measured by an Independent Inspector mutually agreeable to both Parties, and the
costs shall be shared equally between the Parties. The tank measurements shall
be made according to standard industry practice, using a method to determine the
total inventory at the end of each Month. (Buyer's computer calculation for the
percentage of Oil in each tank that is owned by Seller shall be used together
with the Independent Inspector's determination of the total volume of Oil in
each tank to calculate the total volume of Oil owned by Seller at the end of
each Month, and to provide the information for the table in Appendix V.)

(b) The volume of Oil Supplied by Seller to the Refinery on each Vessel will be
determined according to the procedures in Article 12.2.

(c) The actual volume of Oil Delivered equals Seller's Inventory at the
beginning of the Month (as determined in Appendix V), plus the volume of Oil
Supplied to Buyer during that Month (as determined in this Article 12) minus the
volume of Oil in Seller's Inventory at the end of that Month (as determined in
Appendix V).

12.2 INSPECTION. The quality, quantity and volume of line displacement shall be
determined by an Independent Inspector acceptable to both Parties, and the cost
of such Independent Inspector shall be shared equally by the Parties. The
Independent Inspector's determination shall be binding on both Parties, except
for fraud or manifest error, and shall be used for invoicing purposes. Each
Party may have a representative present during all tests and measurements. All
measurements shall be in accordance with the latest API and ASTM standards and
principles then in effect and with generally accepted standards within the
petroleum industry. All quantity determinations shall be corrected to
60(degrees) F in accordance with the latest supplement or amendment to ASTM-IP
petroleum measurement tables (ASTM designated D#1250, table 6(A)).

(a) Inspection for Quantity Supplied. The quantity of Oil Supplied shall be
determined by one of the three following methods, in descending order of
preference:


                                       25
<PAGE>
      1.    The quantity of Oil Supplied shall be determined by proven meters,
            in the immediate vicinity of the berth, at the Refinery.

      2.    If meters are unavailable, or not proven, or not functioning
            correctly, or determined by the Independent Inspector to be
            inaccurate or not to represent the quantity Supplied by the Vessel,
            then the outturn quantity shall be based on static shore tank
            upgauge measurements at the Refinery, with receiving shore tanks in
            conditions recommended in API Chapter 3.1A for determining accurate
            measurement, and meeting the criteria specified below. In the event
            that the outturn quantity is to be based on shore tank measurements,
            then each receiving shore tank shall be static from the opening
            official gauge measurement until the closing official gauge
            measurement and shall have a liquid oil surface at the official
            point of calibration. Additionally, all receiving shore tanks shall
            contain sufficient oil, prior to receipt, to ensure that the
            floating roofs are afloat and clear of the critical zone by a
            minimum of six (6) inches. All receiving shore tanks shall be
            calibrated for critical measurement as set forth by API 2.2 ASTM
            designation 1220.

      3.    If the shore tanks are active or do not meet the criteria above, the
            Independent Inspector cannot verify the shore tank measurements
            prior to or after discharge, the Independent Inspector determines
            that these shore tank measurements are inaccurate or are not
            representative of the volume Supplied by the Vessel, or the
            receiving tanks are located at a location other than the Refinery,
            then the Vessel's arrival figure, less the volume remaining on
            board, adjusted by the Vessel's loading experience factor, as
            calculated by the Independent Inspector, shall be used to determine
            the outturn quantity. (For the purpose of this Agreement, the tanks
            currently designated as VEPCO tanks `C', `D' and `E' shall be deemed
            to be located at the Refinery.)

In the event the Oil is Supplied by Seller to Buyer ex-Seller's lightering
vessel or barge into the Refinery, the quantity Supplied shall be determined by
Articles 12.2(a)1, 2 or 3.

(b) Inspection for Quality Supplied.

The quality determined will reflect full deduction for sediment and water,
measured in accordance with the latest API/ASTM standards and methods in effect
at the time of discharge, as determined from a representative sample drawn by
the Sampler. In the event that the Sampler is not available, malfunctions during
the transfer, or the Independent Inspector determines that the samples drawn by
such Sampler are not representative of the material on board the Vessel on
arrival at the Refinery (including, making a comparison with the total of
Vessel's arrival composite sample analysis results and Vessel's arrival free
water), then sediment and water deduction shall be determined by using the
Vessel's volumetrically correct composite sample and Vessel's free water
Supplied volume.

(c) Line Displacement.

In the event that outturn quantity is to be based on shore tank measurements, or
if meters are to be used, but are not located in the immediate vicinity of the
berth, then, at the commencement of discharge, after opening shore tank gauges
have been established, the Independent Inspector


                                       26
<PAGE>
shall monitor the performance of a line displacement consisting of the
delivering Vessel pumping to the furthest receiving shore tank. The Parties
agree that two (2) line displacements may occur when Supplying from the same
Vessel to both the Crude Field and the VEPCO tanks `C', `D' or `E'. The line
displacement shall be carried out in accordance with API Chapter 17.6.10.3. The
quantity displaced shall be at least 120 percent of the combined capacity of all
designated Vessel and shore transfer lines (API Chapter 17.6.10.3.5). The
Independent Inspector's conclusions regarding the results of the line
displacement shall be binding on all Parties absent manifest error or fraud, and
the final shore outturn quantity shall be credited, as detailed below, as
necessary.

The accepted volume tolerance for the line displacement will be two hundred and
fifty (250) Barrels, which represents the agreed combined measurement precision
limit for the opening and closing gauges for both the receiving shore tank and
the supplying Vessel tank. If, during such line displacement, the difference
between the volume that the shore tank receives and the volume that the Vessel
Supplies is within the accepted tolerance, or if the volume that the shore tank
receives is in excess of the volume that the Vessel Supplies by an amount either
within or in excess of the accepted tolerance, then the shore line is to be
considered full. If, during such line displacement, the volume that the shore
tank receives is less than the volume that the Vessel Supplies by an amount
greater than the accepted tolerance, then the line shall be considered slack. In
cases when the line is found to be slack, the entire difference between the
volume that the shore tank receives and the volume that the Vessel Supplies
shall be credited to the final outturn quantity.

If the shore and Vessel volumes differ by more than the accepted tolerance,
Buyer may exercise the option of carrying out a second line displacement (as
detailed in API Chapter 17.6.10.3.7 Step 4). If a second displacement is carried
out, the same accepted tolerance shall apply. If the Vessel delivery and
Refinery receipt volumes differ for the second displacement and the difference
is within the accepted tolerance, then only the entire difference resulting from
the first displacement shall be credited to the final outturn quantity. If, in
the second displacement, the volume that the shore tank receives is less than
the volume that the Vessel Supplies by an amount greater than the accepted
tolerance, then the total of the entire differences resulting from the first
displacement plus the second displacement shall be credited to the final outturn
quantity.

The Refinery shall confirm the line displacement volumes before the discharge of
the Vessel resumes. Refinery personnel (the pump house supervisor or his
designated representative) present at the discharge are required to have the
necessary authority to agree to all measurements carried out in relation to the
line displacement. Any delays incurred resulting from a line displacement
dispute, including the carrying out of a second line displacement, are for
Buyer's account until the discharge has resumed, provided such delay is the
direct and sole result of the line displacement dispute.

12.3 ADDITIONAL ANALYSIS. The API gravity (by method ASTM D1298) and sulfur (%
wt., by method ASTM D2622) of the Oil on each Cargo shall be analyzed at the
Loading Terminal. Buyer shall be advised of this information no more than three
(3) Business Days after the loading of the Cargo is completed.


                                       27
<PAGE>
                                   ARTICLE 13
                              LAYTIME AND DEMURRAGE

13.1 LAYTIME.

(a) Vessel shall tender notice of readiness to Buyer on arrival at the pilot
station or customary anchorage, or at an area agreed between Buyer and Seller,
whichever is applicable at the Discharge Port.

(b) Allowed laytime at the Discharge Port, including Sundays and holidays, shall
commence as set forth in Article 13.1(c) and be calculated as follows:

      (i)   for Cargo sizes up to and including six hundred twenty thousand
            (620,000) Barrels, thirty-six (36) hours; and

      (ii)  for Cargo sizes above six hundred twenty thousand (620,000) Barrels,
            but less than seven hundred thousand (700,000) Barrels, Buyer shall
            be allowed one (1) additional hour for each twelve thousand (12,000)
            Barrels of Cargo Supplied, or pro-rata, over and above 620,000
            Barrels. Laytime for any Cargo above seven hundred thousand
            (700,000) Barrels shall be negotiated by the Parties prior to
            accepting such Cargo nomination.

Any time incurred in excess of the described above laytime shall be for Buyer's
account, and shall be considered demurrage, except as detailed in Articles 13.2
and 13.3 below.

(c) Time allowed to Buyer shall commence as follows:

      (i) If Vessel tenders notice of readiness within the nominated Four-Day
      Supply Window at the Discharge Port, time allowed to Buyer shall commence
      six (6) hours after notice of readiness or when the Vessel is all fast at
      the Refinery, whichever occurs first.

      (ii) If Vessel tenders notice of readiness after the nominated Four-Day
      Supply Window at the Discharge Port, time allowed to Buyer shall commence
      when Vessel is all fast at the Refinery. Buyer shall make best effort to
      berth Vessel as soon as possible.

      (iii) If Vessel tenders notice of readiness prior to the nominated
      Four-Day Supply Window, then time allowed to Buyer shall commence at 06:00
      hours on the first day of the nominated Four-Day Supply Window, or all
      fast, whichever occurs first.

(d) Laytime shall cease upon Completion of Discharge.

13.2 TIME NOT INCLUDED AS LAYTIME OR DEMURRAGE. The following time shall not
count as laytime or time on demurrage:

(a) time spent by Vessel on inward passage (from arrival, or from anchor aweigh
to all fast), in handling ballast (unless concurrent with discharge), or
discharging slops;


                                       28
<PAGE>
(b) any time resulting from delay caused by strike, lockout, stoppage or
restraint of labor for master, officers or crew of the Vessel;

(c) time delays incurred due to Vessel's condition or breakdown or inability of
the Vessel's facilities to discharge the Cargo within the time allowed;

(d) where time delay is caused to Vessel getting into berth after notice of
readiness for customary regulatory or compliance inspections or where there is a
delay in discharge once Vessel is alongside berth for customary regulatory or
compliance inspections. Delays and costs due to inspections and other
requirements related to the MSA/ISPS Code, may be determined at a later date,
subject to any subsequent legislation. The Parties agree to meet in good faith
to discuss any such costs. Seller shall not solely be responsible for such
delays or costs unless the inspections reflect that the Vessel is not in
compliance with the relevant regulations.

(e) the time incurred awaiting the next published high tide accessible to the
Vessel after Vessel tenders notice of readiness;

(f) the time incurred performing lightering operations prior to berthing; and

(g) for avoidance of doubt, Article 7.3 shall not apply to this Article 13.2.

13.3 TIME INCLUDED AS HALF TIME. The following laytime or time on demurrage
shall only count as one-half time for Buyer's account:

(a) time incurred as a result of fire, explosion, strike, lockout, stoppage or
restraint of labor or by breakdown of machinery or equipment in or about the
Refinery, including power failures;

(b) any time delays incurred in berthing Vessel for discharge which are directly
or indirectly due to weather conditions, always provided that such weather
delays occur before the Vessel is on demurrage (Buyer shall be responsible for
full time for such weather delays while Vessel is on demurrage); and

(c) for avoidance of doubt, Article 7.3 shall not apply to this Article 13.3.

13.4 LIGHTERED CARGOES. In the event that Seller requests and Buyer accepts a
Cargo such that it is necessary for Seller to lighter Seller's Vessel to meet
applicable draught restrictions, then:

a)    time allowed to Buyer to receive that part of the Cargo Supplied by the
      Vessel shall be as determined in this Article 13 unless the lightering
      process causes any delays, which delays shall not constitute laytime; and

b)    time allowed to Buyer to receive that part of the Cargo Supplied by the
      lightering barge or vessel shall be agreed between the Parties prior to
      Buyer's acceptance of the total Cargo.


                                       29
<PAGE>
      Any time used by Buyer in excess of the agreed additional time allowed
      shall be considered demurrage as per this Article 13.

13.5 DISCHARGE RATE. Seller warrants that the Vessel is able to discharge the
entire Cargo within thirty-two (32) hours, (eight (8) hours less if crude oil
washing is not conducted), or maintain an average discharge pressure of one
hundred (100) PSI at Vessel's manifold provided shore facilities permit. Time
lost as a result of Vessel being unable to discharge the Cargo as stated above
shall not count as laytime or time on demurrage. Suspension of discharge for
final draining and stripping purposes for a maximum two (2) hours shall be
allowed provided Vessel maintains an average discharge pressure of one hundred
(100) PSI at Vessel's manifold during bulk discharge or meets such lesser
performance required pursuant to a restriction imposed by the Refinery.

13.6 DEMURRAGE CLAIMS.

(a) Seller shall provide Buyer with a commercial invoice for any demurrage claim
based on Vessel's charter party demurrage rate per day, supported by a copy of
the charter party fixture recap evidencing the demurrage rate, and supporting
documents. In case of a lightering vessel, the demurrage rate used shall be the
contract overtime rate per day, where such rate shall be competitive with
general market conditions at the time of charter, or in the absence thereof, at
Worldscale at the Average Freight Rate Assessment ("AFRA") appropriate to the
size of Vessel as provided by the London Tanker Brokers Panel and current on the
date of commencement of laytime. For avoidance of doubt, laytime calculations
shall be pursuant to the terms and conditions of this Agreement.

(b) Seller shall provide Buyer with an invoice and supporting documents for a
demurrage claim within ninety (90) days from Completion of Discharge at the
Refinery. If Seller is unable to support a demurrage claim within ninety (90)
days of the Completion of Discharge, Buyer agrees to extend the ninety (90) day
demurrage notification period by thirty (30) days upon Buyer's receipt of notice
from Seller of a forthcoming claim. Seller shall provide Buyer with such notice
within the ninety (90) day demurrage notification period.

(c) Undisputed demurrage shall be paid by Buyer to Seller no later than
seventy-five (75) days after Buyer's receipt of Seller's invoice supported by
appropriate documentation. In the event that payment for undisputed demurrage
has not been made by the due date, then interest on overdue payments shall be
paid for the period starting on and including the due date for payment and
ending on but excluding the receipt date of the payment, at the Default Interest
Rate.

(d) In the event that Buyer disputes Seller's demurrage claim, Buyer shall pay
the undisputed portion of the claim by the due date and shall address the amount
in dispute within seventy-five (75) days after receipt of Seller's demurrage
calculations. Furthermore, Buyer and Seller shall make best efforts to reach an
agreement on the issues in dispute in an efficient and timely manner, and
payment for the agreed amount shall be made immediately upon agreement.


                                       30
<PAGE>
                                   ARTICLE 14
                                CREDIT CONDITIONS

14.1 CREDIT SUPPORT.

(a) To protect Seller's ownership interest in the Oil, Buyer shall facilitate
the execution of the Intercreditor Agreement (the "INTERCREDITOR AGREEMENT") by
and among Seller, Buyer, and Bank of America, N.A., as administrative agent
under the Second Amended and Restated Credit Agreement dated May 14, 2002
between Giant Industries, Inc., Bank of America N.A., BNP Paribas, Fleet
National Bank and Banc of America Securities LLC (the "CREDIT AGREEMENT") as may
be renewed, modified, amended, or replaced. Buyer shall operate in compliance
with the Intercreditor Agreement.

(b) Seller shall continuously have and retain title to the Oil in Buyer's tanks
and leased tankage at all times during this Agreement. Buyer shall facilitate
the execution of a Tank Owner's Agreement for each tank not owned by Buyer in
which the tank owner shall acknowledge Seller's unencumbered title to the Oil.
Buyer shall not enter into any agreement that adversely affects Seller's title
to such Oil or its rights and protections under the Intercreditor Agreement or
Tank Owner's Agreement. Oil owned by Seller may be commingled with Buyer's oil
only as provided in this Agreement; provided, however, that Buyer shall make
reasonable efforts to segregate Seller's Oil, where practicable, and shall
provide the necessary reporting as required in this Agreement and the
Intercreditor Agreement.

(c) To further secure the obligations of this Agreement, it is agreed that
Buyer's ultimate parent company, Giant Industries, Inc. (the "GUARANTOR"), shall
provide an irrevocable guaranty (the "GUARANTY") for the term of this Agreement,
in form and substance reasonably acceptable to Seller.

14.2 REPORTING REQUIREMENTS.

(a) Buyer shall provide Seller with:

      (i)   Any and all borrowing base determinations made by Giant for the
            benefit of lenders and banking institutions for which Giant borrows
            money or for letters of credit or other financing arrangements
            entered into by Giant. Giant shall send such borrowing base
            determinations to Seller at or around the same time they are sent to
            the lenders and or banking institutions for which they are currently
            sent on a weekly basis.

      (ii)  Balance sheet information for Giant on a monthly basis including
            assets, liabilities and debt levels for the Months these figures are
            not available in public financial statements. Seller shall treat any
            non-public information on a confidential basis.

      (iii) Publicly available information sufficient to enable Seller to
            ascertain Giant's current financial condition and for Seller to
            assure itself of the security of Oil owned by Seller that is in
            Buyer's custody.


                                       31
<PAGE>
      (iv)  A weekly schedule with detailed inventory records reflecting the
            volume of Oil to which Seller has title, as well as the volumes of
            Buyer's oil in commingled storage, in the format of Appendix V.

(b) Buyer shall notify Seller within twenty-four (24) hours of the time that
Buyer becomes aware of any event that could reasonably be expected to have a
material adverse effect on Buyer's financial condition, operations, business or
prospects taken as a whole, including adverse changes in Buyer's debt to equity
ratio, default under the Credit Agreement, default in the payment when due of
any principal of or interest on any indebtedness aggregating One Million Dollars
($1,000,000) or more, a final judicial or administrative judgment against Giant
that is in excess of One Million Dollars ($1,000,000) in the aggregate, a
downgrading of Giant's credit and debt rating by a national credit agency and
Giant's bank borrowing line availability declines below thirty million US
Dollars ($30,000,000).

(c) Giant shall notify (i) any and all debt holders or lenders under the Credit
Agreement; and (ii) any person who holds a security interest in Buyer's
inventory in Buyer's Crude Field tankage and Daily Charge Tanks of Seller's
ownership of Oil in both segregated tanks and in commingled storage.

(d) Failure to comply with any of the requirements of Articles 14.1 or 14.2
stated above shall first trigger a Collateral Event as described in Article 14.3
and, if not satisfied, an Event of Default as described in Article 20.

14.3 COLLATERAL EVENT.

(a) Seller reserves the right, immediately and without prior notice, to
terminate or suspend any credit facility and any other credit arrangements that
Seller shall make available to Buyer under this Agreement or for any other
business purpose, whenever, in its reasonable judgment, Seller considers Buyer's
financial condition to present an undue risk to the security of Seller's
accounts receivable, margin sharing as in Article 10.5, or Oil in Buyer's
custody or should Seller conclude that it has not or cannot obtain sufficient
information to ascertain the security of such Oil (each, a "COLLATERAL EVENT").
When a Collateral Event occurs, Seller shall immediately notify Buyer and Buyer
shall provide, at its option, any of the following forms of collateral
("COLLATERAL") in an amount determined by Seller in its sole discretion:

(i)   Sellers accounts receivable:     Prepayment or Standby Letter of Credit
(ii)  Margin participation:            Prepayment or Standby Letter of Credit
(iii) Oil in Buyers custody:           Standby Letter of Credit

(b) Collateral in the form of prepayment shall be sent via wire transfer in
immediately available funds within two (2) Business Days from receipt of
Seller's request. Prepayments shall be discounted for the number of days early
payment was effected to the normal payment due date and shall earn interest at
the one (1) Month LIBOR rate basis 360 day year.

(c) In lieu of prepayment or in the case of Oil in Buyer's custody, Buyer may
post a Standby Letter of Credit within two (2) Business Days from receipt of
Seller's request. The Standby


                                       32
<PAGE>
Letter of Credit shall be opened in a form, amount, term and from a bank
acceptable to Seller and shall be deemed received upon receipt by Seller's
advising bank. All bank charges and any additional costs related to the opening
of such Standby Letter of Credit shall be strictly for the account of Buyer.

                      [This space intentionally left blank]


                                       33
<PAGE>
                                   ARTICLE 15
                            TAXES, DUTIES AND CHARGES

15.1 IMPORTER OF RECORD. Buyer shall be the importer of record for U.S. Customs
purposes and shall be responsible for importation documentation and all
associated costs. Buyer shall comply with all Law, procure all necessary
licenses and permissions and shall pay, or cause to be paid, all importation
duties and Taxes. Seller shall provide Buyer with sufficient information and all
necessary documents (including a certificate of origin) to timely facilitate
importation and reporting.

15.2 COMPLIANCE.

(a) Each Party represents that it is in material compliance with all Law
relating to the reporting and payment of applicable Taxes imposed on the Oil.
Buyer and Seller each represents and covenants that it will file appropriate Tax
returns and pay all applicable Taxes arising from or related to this Agreement.
Buyer and Seller agree to cooperate in order to minimize any Tax liability to
the extent legally permissible. Prior to the scheduled delivery date of Oil to
Buyer, Buyer and Seller each shall provide the other with proper exemption
certificates or direct pay permits as may be required under Law.

(b) Buyer shall pay or reimburse Seller the amount of Taxes paid or incurred by
Seller with respect to or in connection with the sales of Oil to Buyer under
this Agreement. Buyer hereby indemnifies and holds Seller harmless for any such
Tax liability, whether determined or determinable during the duration of this
Agreement or on audit after termination; provided, however, that Buyer's
obligation to reimburse Seller for Taxes shall survive termination of this
Agreement for a period which equals the statute of limitations applicable to the
specific Tax in question.

(c) If Seller receives any refund of, or realizes the benefit of any credit with
respect to, Taxes that Buyer previously had paid to Seller, Seller shall pay the
amount of such refund or credit to Buyer, together with any interest thereon
paid to Seller by the Governmental Authority, but otherwise without interest
thereon. If it is later determined that Seller was not entitled to such refund,
credit or interest, then the portion thereof which is repaid, recaptured or
disallowed shall be treated as a Tax for which Buyer shall reimburse and
indemnify Seller pursuant to this Article 15.2.

(d) Any amounts due under this Article 15.2 and not invoiced as part of the
price of the Oil shall be paid within two (2) Business Days after demand for
payment is made.

15.3 PORT FEES. Notwithstanding the foregoing, (i) all customary agency fees,
towage, pilotage and similar port charges, port duties and other Taxes against
the Vessel at the Discharge Port, shall be paid by Seller, and (ii) all import
fees and other port fees and charges normally paid by Buyer and/or importer
shall be borne by Buyer.


                                       34
<PAGE>
                                   ARTICLE 16
                                    INSURANCE

16.1 INSURANCE REQUIRED FOR BUYER. Buyer shall, at its sole expense, carry and
maintain in full force and effect throughout the term of this Agreement
insurance coverages, with insurance companies rated not less than A-, IX by A.M.
Best or otherwise reasonably satisfactory to Seller, of the following types and
amounts:

(a) Workers compensation coverage in compliance with the Law of the states
having jurisdiction over each employee and employer's liability coverage in a
minimum amount of One Million Dollars ($1,000,000) per accident.

(b) Automobile liability coverage in a minimum amount of One Million Dollars
($1,000.000).

(c) Comprehensive or commercial general liability coverage and umbrella or
excess liability coverage, which includes bodily injury, broad form property
damage and contractual liability in a minimum amount of one Million Dollars
($1,000,000) per occurrence and one Hundred Million Dollars ($100,000,000) in
the aggregate.

(d) Pollution liability coverage, which includes Liabilities under any
Environmental Law or for any environmental damages and "sudden and accidental
pollution" liability coverages.

(e) Standard fire and extended coverage (or alternatively, so-called "all risk"
coverage) on the Refinery that shall provide for the full replacement cost of
any Oil owned by Seller and stored by Buyer.

16.2 ADDITIONAL INSURANCE REQUIREMENTS.

(a) Buyer shall cause its insurance carriers to furnish to Seller insurance
certificates, in a form and from a party reasonably satisfactory to Seller,
evidencing the existence of the coverages and endorsements required. The
certificates shall specify that no insurance shall be canceled or materially
changed during the term of this Agreement unless the other is given thirty (30)
days notice prior to cancellation or prior to a material change becoming
effective. Buyer shall promptly provide Seller with renewal certificates.

(b) Seller shall be named as an "additional insured as its interests may appear"
on each of Buyer's insurance policies described in Article 16.1 above.

(c) The foregoing policies of Buyer shall include an endorsement that the
underwriters waive all rights of subrogation against Seller.

(d) Buyer shall notify Seller if any self-insured retentions or deductibles
exist in the foregoing policies, and all self-insured retentions or deductibles
that exist in the foregoing policies of Buyer shall be the sole responsibility
of Buyer.

(e) The mere purchase and existence of insurance does not reduce or release
either Party from any liability incurred or assumed under this Agreement.


                                       35
<PAGE>
                                   ARTICLE 17
                                TERM OF AGREEMENT

This Agreement shall become effective on the Effective Date and shall expire
when title to all of the Oil on the last Cargo containing the ***** Delivered
under this Agreement has passed to Buyer and all other obligations have been
fulfilled.

                                   ARTICLE 18
                    REPRESENTATIONS, WARRANTIES AND COVENANTS

18.1 MUTUAL REPRESENTATIONS AND WARRANTIES. Buyer and Seller each represents and
warrants to the other as of the Effective Date and as of each Delivery that:

(a) There are not suits, proceedings, judgments, ruling or orders by or before
any court or any Governmental Authority that materially and adversely affect its
ability to perform or the rights of the other Party under this Agreement.

(b) It is duly organized, validly existing and in good standing under the laws
of the jurisdiction of its formation, and it has the legal right, power and
authority and is qualified to conduct its business and perform its obligations
hereunder.

(c) The making and performance by it of this Agreement is within its powers and
has been duly authorized by all necessary action on its part.

(d) This Agreement constitutes a legal, valid and binding act and obligation of
it, enforceable in accordance with its terms, subject to bankruptcy, insolvency,
reorganization and other laws affecting creditor's rights generally.

(e) No Event of Default under Article 20.1 with respect to it or event, which
with notice and or a lapse of time would constitute such an Event of Default,
has occurred and is continuing, and no such event or circumstance would occur as
a result of its entering into or performing its obligations under this
Agreement.

(f) It is an "Eligible Contract Participant" as defined in Section 1a(12) of the
Commodity Exchange Act, as amended.

(g) It is a "forward contract merchant" in respect of this Agreement and each
sale of Oil hereunder, and each sale of Oil hereunder is a forward contract for
purposes of the Bankruptcy Code.

(h) Neither it nor any of its affiliates has been contacted by or negotiated
with any finder, broker or other intermediary in connection with the sale of Oil
hereunder who is entitled to any compensation with respect thereto.

----------
**** Confidential treatment requested. Confidential information redacted.


                                       36
<PAGE>
(i) All governmental and other authorizations, approvals, consents, notices and
filings that are required to have been obtained or submitted by it with respect
to this Agreement and its performance hereunder and the consummation by it of
the transactions contemplated hereby have been obtained or submitted and are in
full force and effect, and all conditions of any such authorizations, approvals,
consents, notices and filings have been complied with.

(j) The execution, delivery and performance of this Agreement do not violate or
conflict with (i) any law applicable to it, (ii) any provision of its
constitutional documents, (iii) any order or judgment of any court or
Governmental Authority applicable to it or any of its assets or (iv) any
contractual restriction binding on or affecting it or any of its assets.

(k) It possesses all necessary permits, authorizations, registrations and
licenses required to perform its obligations hereunder and to consummate the
transactions contemplated hereby.

(l) It is not bound by any other agreement that would preclude or hinder its
execution, delivery, or performance of this Agreement.

18.2 MUTUAL COVENANTS.

(a) Each Party shall, in the performance of its duties under this Agreement,
comply in all material respects with Law, including all Environmental Law. Buyer
and Seller each shall maintain the records required to be maintained by
Environmental Law and shall make such records available to the other upon their
request. Buyer and Seller each shall also immediately notify the other of any
violation or alleged violation with respect to the Oil sold or purchased under
this Agreement, and, upon request shall provide the other with all evidence of
environmental inspections or audits by any Governmental Authority with respect
to such Oil.

(b) All reports or documents rendered by Buyer or Seller to the other shall, to
the best of its knowledge and belief, accurately and completely reflect the
facts about the activities and transactions to which they relate. Buyer and
Seller each promptly shall notify the other if at any time it has reason to
believe that the records or documents previously furnished no longer are
accurate or complete.

18.3 ENVIRONMENTAL COVENANTS OF BUYER. Buyer covenants as of the Effective Date
and throughout the term of this Agreement that:

(a) It is in material compliance with Environmental Law applicable to operations
at the Refinery and has not received any formal notification that it is not
presently so in compliance.

(b) The Refinery is structurally sound and safe and it does not know of any
leaks in the storage tanks, pipelines or other equipment or of any other
situation at the Refinery that could cause significant environmental danger,
generate significant environmental Liabilities or have a significant detrimental
impact on the environment or to Seller's interests.

(c) It shall maintain and operate the Refinery in good serviceable condition and
in a manner that materially complies with reasonable and prudent industry
standards adopted and used in


                                       37
<PAGE>
commercial, high quality petroleum refineries and with all Laws, including all
Environmental Law.

(d) It is in material compliance with all Law regarding worker occupational
safety and training.

(e) It is in material compliance, and will maintain such compliance, with all
Law relating to marine oil pollution.

(f) All tanks used for the storage and throughput of Seller's Oil are above
ground.

(g) It promptly will provide Seller with notice of any changes to the
representations and covenants in this Article 18.3.

(h) In the event of any Oil spill or discharge reportable under Law, or other
environmental pollution occurring at the Refinery or in connection with any
transfer, delivery, transportation or receipt of Oil, Buyer shall take all steps
(if any) required under Law, including undertaking measures to prevent or
mitigate resulting pollution damage. Even if not required by Law, Buyer
nevertheless may determine to undertake such measures to prevent or mitigate
pollution damage as it deems appropriate or necessary or is required by any
Governmental Authority. Buyer shall notify Seller immediately of any such
operations, and shall perform such operations in accordance with the National
Contingency Plan and any other Law, or as may be directed by the U.S. Coast
Guard or any other Governmental Authority.

(i) In the event that a Party incurs costs to clean up or contain a spill or
discharge or to prevent or mitigate resulting pollution damage, such Party
reserves any rights provided by law to recover such costs from the other Party,
as well as any third party. In the event a third party is legally liable for
such costs and expenses, each Party shall cooperate with the other Party for the
purpose of obtaining reimbursement. Each Party shall also cooperate with the
other Party for the purpose of obtaining reimbursement from any other applicable
entity or source under Law.

                      [This space intentionally left blank]


                                       38


<PAGE>
                                   ARTICLE 19
                           AUDIT AND INSPECTION RIGHTS

Seller shall have the right, during Buyer's normal business hours and after
reasonable advance notice to Buyer so as not to disrupt Buyer's operations: (i)
to make periodic operational inspections of the storage facilities located at
the Refinery upon one (1) Business Day's notice, (ii) to conduct audits of any
pertinent books and records, including those related to receipts, deliveries and
inventories of Oil upon three (3) Business Days' notice and (iii) to conduct
physical verifications of the amount of Oil stored at the Refinery. Seller shall
have the right to conduct physical inspections of the storage facilities at the
Refinery for a period of ninety (90) days following the Termination Date and to
conduct audits of any pertinent records for a period of one (1) year following
the Termination Date. During any audits or inspections, Seller shall comply with
all applicable rules and regulations of the Refinery, as well as any applicable
Law.

                                   ARTICLE 20
                           SUSPENSION AND TERMINATION

20.1  EVENTS OF DEFAULT. Upon the occurrence of any of the events listed below
(each, an "EVENT OF DEFAULT" or "DEFAULT") with respect to a Party (the
"DEFAULTING PARTY"), the other Party (the "NON-DEFAULTING PARTY") may, in its
sole discretion, and in addition to any other legal remedies it may have, in law
or equity, upon giving notice to the Defaulting Party, (i) suspend its
performance under this Agreement, including, as appropriate, the suspension of
Seller's Supply of Oil and Buyer's taking Delivery of Oil, (ii) terminate this
Agreement, or (iii) if Buyer is the Defaulting Party, Seller may immediately
remove all Oil from the storage facilities at the Refinery:

      (a)   Any Party fails to make payment when due under this Agreement within
            two (2) Business Days of a demand for payment;

      (b)   Any Party fails to perform, breaches or repudiates any obligation to
            the other Party under this Agreement, other than an Event of Default
            described in clause (a) above or breaches any representation,
            covenant or warranty in any material respect under this Agreement,
            that, if capable of being cured, is not cured to the satisfaction of
            the other Parties, within five (5) Business Days from notice to such
            Party that corrective action is needed, or longer than five (5)
            Business Days if the Party that fails to perform, breaches or
            repudiates demonstrates to the other Party within five (5) Business
            Days after receiving notice that corrective action is needed, to the
            reasonable satisfaction of the other Party, that such cure will be
            successful and such Party provides a reasonable estimate of the time
            necessary in order to complete the curative actions;

      (c)   A Party or the Guarantor becomes Bankrupt;

      (d)   There is a change in more than fifty percent (50%) of the direct or
            indirect ownership of a Party or a Party sells all or substantially
            all of its assets;

                                       39
<PAGE>
      (e)   A Party fails to give adequate assurances of its ability to perform
            within two (2) Business Days upon a reasonable request therefore by
            the other Party;

      (f)   A Party ceases, or threatens to cease, to carry on its business or a
            major part thereof, or a distress, execution, or other process is
            levied or enforced upon or against any significant part of the
            property of such Party that has a material adverse effect on a
            Party's business or a major part thereof, or the other Party
            reasonably determines that any of the foregoing events is reasonably
            likely to occur;

      (g)   Buyer, Giant or any other subsidiary of Giant fails to make any
            payment in respect of indebtedness of more than Five Million Dollars
            ($5,000,000) when due (whether by scheduled maturity, required
            prepayment, acceleration, demand, or otherwise) and such failure
            continues and is not discharged within five (5) Business Days;

      (h)   Buyer has a loss of a material permit by any Governmental Authority
            or fails to renew any material license, permit or franchise of the
            Buyer or any material subsidiary of Buyer's parent company directly
            or indirectly or suffers the imposition of any restraining order,
            escrow, suspension or impounding of significant funds in connection
            with any proceeding (judicial or administrative) with respect to any
            material license, permit or franchise which has a material adverse
            impact on Buyer's business or a major part thereof;

      (i)   Giant fails to maintain the Guaranty in a form reasonably acceptable
            to Seller and covering all obligations due under this Agreement, or
            such Guaranty is for any reason partially or wholly revoked or
            invalidated or otherwise ceases to be in full force and effect, or
            Guarantor denies that it has any further liability or obligation
            thereunder;

      (j)   Buyer fails to satisfy the Collateral requirements pursuant to
            Article 14.3;

      (k)   Except as otherwise agreed by the Parties, any event of default or
            automatic early termination event under any other agreement or
            contract that may from time to time be entered into between Buyer
            and Seller, including the Intercreditor Agreement and Tank Owner's
            Agreement; and

      (l)   Any Event of Default or automatic early termination event under
            Buyer's Credit Agreement or the Guaranty.

In the case of an Event of Default described in Article 20.1(c) above,
termination automatically shall be deemed to occur as of the moment immediately
preceding such Event of Default, and no prior notice to the Defaulting Party is
required.

                      [This space intentionally left blank]

                                       40
<PAGE>
20.2  REMEDIES. The Non-Defaulting Party's rights under this Article 20 shall be
in addition to, and not in limitation or exclusion of, any other rights that it
may have (whether by agreement, operation of law or otherwise), including any
rights and remedies under the UCC. The Non-Defaulting Party may enforce any of
its remedies under this Agreement successively or concurrently at its option. No
delay or failure on the part of a Non-Defaulting Party to exercise any right or
remedy to which it may become entitled on account of an Event of Default shall
constitute an abandonment of any such right, and the Non-Defaulting Party shall
be entitled to exercise such right or remedy at any time during the continuance
of an Event of Default. All of the remedies and other provisions of this Article
20 shall be without prejudice and in addition to any right to which any Party is
at any time otherwise entitled (whether by operation of law, in equity, under
contract or otherwise).

20.3  INDEMNIFICATION. The Defaulting Party shall indemnify and hold harmless
the Non-Defaulting Party for all Liabilities incurred as a result of the Event
of Default or in the exercise of any remedies under this Article 20, including
any damages, losses and expenses incurred in obtaining, maintaining or
liquidating commercially reasonable hedges relating to the Oil sold and
purchased hereunder, all as determined in a commercially reasonable manner by
the Non-Defaulting Party.

20.4  GOVERNMENTAL ACTION. Should the enactment and implementation of changes in
U.S. import or export taxes, duties, or other governmental action, in its
effects or consequences, result in materially reduced economic incentives for
Seller, associated with or related to the Oil hereunder (which shall be
documented by Seller), then the Parties shall at Seller's written request meet
in order to agree on adjustment of the Agreement, which will eliminate such
materially reduced incentives. If the Parties fail to agree within thirty (30)
days after the request for a meeting is received, then Seller shall have the
right to terminate this Agreement.

                      [This space intentionally left blank]

                                       41
<PAGE>
                                   ARTICLE 21
                           OBLIGATIONS AT TERMINATION

21.1  ACTION UPON TERMINATION. Upon expiration or termination of this Agreement
for any reason, the Parties agree and shall undertake to do the following:

(a) On the date of expiration of this Agreement or the date of early termination
(the "TERMINATION DATE"), Buyer shall purchase from Seller all Inventories
located at the Refinery (or any such alternate storage facilities previously
agreed to by the Parties for the storage of Seller's Oil pending sale to Buyer),
as well as any Oil nominated for supply to Buyer, subject to the provisions of
Article 21.2. The volume and price of such Oil shall be determined in accordance
with this Agreement. Seller shall prepare and provide Buyer with an invoice for
the sale of such Inventories. In each case, title and risk of loss to the
Inventories shall pass from Seller to Buyer upon receipt of payment into
Seller's designated account.

(b) If this Agreement is terminated due to a Default by Buyer, Seller shall
calculate within ten (10) days of the Termination Date (or within such longer
period as is necessary under the circumstances) all damages, losses and expenses
incurred by Seller in liquidating all Inventories, as determined in a
commercially reasonable manner by Seller and any damages incurred by Seller as
allowed pursuant to Article 23 herein, and Buyer shall be required to compensate
Seller for all such damages, losses and expenses upon demand. Seller shall be
entitled to deduct any such damages from any deposits or other available credit
support or Collateral.

(c) If this Agreement is terminated due to a Default by Seller, Buyer shall
calculate within ten (10) days of the Termination Date (or within such longer
period as is necessary under the circumstances) all damages incurred by Buyer as
allowed pursuant to Article 23 herein, as determined in a commercially
reasonable manner by Buyer, and Seller shall be required to compensate Buyer for
all such damages upon demand.

(d) As soon as practicable after the Termination Date, Seller shall calculate a
final reconciliation of any amounts due between Seller and Buyer under this
Agreement (in addition to the amounts due for repurchase of the Inventories) and
provide a statement to Buyer. The Party owing any amount due shall pay such
amount on the same Business Day of receipt of an invoice by the other Party.

21.2  NOMINATED VOLUMES.

(a) If this Agreement is terminated due to a Default by Buyer, Seller shall have
the option to Deliver to Buyer any volumes of Oil nominated by Buyer but not yet
Delivered at such payment terms as it determines are appropriate in its sole
discretion or to sell such volumes to a third party. Buyer shall compensate
Seller for any resulting additional costs, damages, losses or expenses.

(b) If this Agreement is terminated due to a Default by Seller, Buyer shall have
the option to take Delivery of any or all volumes of Oil nominated by Buyer but
not yet Delivered or to cancel

                                       42
<PAGE>
such volumes. Seller shall compensate Buyer for any resulting additional costs,
damages, losses or expenses.

(c) In either event, if nominated volumes are sold to Buyer, the purchase price
shall be the price that would have applied had the nominated volumes been timely
Delivered prior to the date of termination of this Agreement.

21.3  FAILURE TO REPURCHASE OIL.

(a) If Buyer fails to pay Seller for the Inventories on the Termination Date,
Seller may elect at its sole discretion to sell any or all of the Inventories to
third parties pursuant to such terms and conditions as it deems appropriate in
its sole discretion. Seller shall notify Buyer of this election and the
instructions for delivery of the Oil to Seller's customers or consignees.

(b) If Seller elects to sell the Oil to third parties pursuant to Article 21.3
(a), then Seller shall be entitled to a reasonable period of time from the
Termination Date to remove the Oil from the Refinery or other storage
facilities. Seller shall have reasonable access to such storage facilities for
the purpose of removing its Oil or effectuating any third-party sales.

(c) In no event shall Seller be responsible for tank bottoms, and Buyers shall
compensate Seller for the value of such bottoms remaining in the tanks after the
Termination Date if not purchased from Seller.

(d) Buyer shall indemnify and hold harmless Seller against any Liabilities
incurred in connection with its failure to purchase the Inventories in
accordance with this Article 21, including any losses and expenses incurred in
obtaining, maintaining or liquidating commercially reasonable hedges or related
trading positions, all as determined by Seller in a commercially reasonable
manner.

21.4  RESTRICTED USE OF TANKS. If Seller's use of the tanks is materially
restrained or enjoined by judicial process, terminated by municipal or other
Governmental Authority or by right of eminent domain, Buyer and Seller shall
cooperate to dispose of any Oil related to such tanks. Seller shall use
commercially reasonable efforts to sell such Oil to third parties, and Buyer
shall be liable to Seller for any shortfall between (i) the gross revenues
received by Seller from such third-party sales and (ii) the contract price that
Buyer would have paid Seller hereunder, plus reasonable costs of cover and
documented hedge expenses.

                      [This space intentionally left blank]

                                       43
<PAGE>
                                   ARTICLE 22
                           INDEMNIFICATION AND CLAIMS

22.1  INDEMNIFICATION.

(a) To the fullest extent permitted by Law and except as specified otherwise
elsewhere in this Agreement, Buyer shall defend, indemnify and hold harmless
Seller, its affiliates, and their directors, officers, employees,
representatives, agents and contractors from and against any Liabilities arising
out of injury, disease, or death of any person or damage to or loss of any
property, fine or penalty, as well as any Liabilities arising out of or relating
to violations of Environmental Law, to the extent caused by the Buyer or its
employees, representatives, agents or contractors, in performing its obligations
under this Agreement.

(b) To the fullest extent permitted by Law and except as specified otherwise
elsewhere in this Agreement, Seller shall defend, indemnify and hold harmless
Buyer and its affiliates, and their directors, officers, employees,
representatives, agents and contractors, from and against any Liabilities
arising out of injury, disease, or death of any person or damage to or loss of
any property, fine or penalty, as well as any Liabilities arising out of or
relating to violations of Environmental Law, to the extent caused by Seller or
its employees in performing its obligations under this Agreement.

(c) In addition to the indemnification obligations set forth in this Article 22
and elsewhere in this Agreement, each Party (the "INDEMNIFYING PARTY") shall
indemnify and hold the other Party (the "INDEMNIFIED PARTY"), its affiliates,
and their employees, directors, officers, representatives, agents and
contractors, harmless from and against any and all Liabilities arising from (i)
the Indemnifying Party's breach of this Agreement, (ii) the Indemnifying Party's
failure to comply with Law with respect to the sale, transportation, storage,
handling or consumption of Oil, except to the extent that such liability results
from the Indemnified Party's negligence or willful misconduct or (iii) any
material inaccuracy in or breach of any of the Indemnifying Party's
representations and warranties made herein at the time such representations and
warranties were made.

(d) A Party's obligation to indemnify the other Party pursuant hereto shall not
be nullified or otherwise effected by the allocation of risk of loss pursuant to
Article 6 hereof, or the transfer of title to the Oil pursuant to Article 5
hereof, at the time any such Liabilities arise.

(e) The Parties' obligations to defend, indemnify, and hold each other harmless
under the terms of this Agreement shall not vest any rights in any third party
(whether a Governmental Authority or private entity), nor shall they be
considered an admission of liability or responsibility for any purposes other
than those enumerated in this Agreement.

22.2  CLAIMS. Upon receipt by the Indemnified Party of notice of any claim,
demand, suit or proceeding brought against it that might give rise to an
indemnity claim under this Agreement (such claim, demand, suit or proceeding, a
"THIRD PARTY CLAIM"), the Indemnified Party shall as soon as practicable send to
the Indemnifying Party a notice specifying the nature of such Third Party Claim
and the amount or estimated amount thereof if known (which amount or estimated

                                       44
<PAGE>
amount shall not be conclusive of the final amount, if any, of such claim,
demand or suit); provided, however, that any delay or failure by the Indemnified
Party to give notice to the Indemnifying Party shall not relieve the
Indemnifying Party of its obligations hereunder except to the extent, if at all,
that the Indemnifying Party shall have been materially prejudiced by reason of
such delay or failure. The Indemnifying Party shall have the right to assume the
defense, at its own expense and by its own counsel, of any Third Party Claim;
provided, however, that such counsel is reasonably acceptable to the Indemnified
Party. Notwithstanding an Indemnifying Party's election to appoint counsel to
represent an Indemnified Party in connection with a Third Party Claim, an
Indemnified Party shall have the right to employ separate counsel, and the
Indemnifying Party shall bear the reasonable fees, costs and expenses of such
separate counsel if (i) the use of counsel chosen by the Indemnifying Party to
represent the Indemnified Party would present such counsel with a conflict of
interest or (ii) the Indemnifying Party shall not have employed counsel to
represent the Indemnified Party within a reasonable time after notice of the
institution of such Third Party Claim. If requested by the Indemnifying Party,
the Indemnified Party agrees to reasonably cooperate with the Indemnifying Party
and its counsel in contesting any claim, demand or suit that the Indemnifying
Party defends, or, if appropriate and related to the claim, demand, suit or
proceeding in question, in making any counterclaim against the Person asserting
the Third Party Claim, or any cross-complaint against any Person. All reasonable
costs and expenses incurred in connection with the Indemnified Party's
cooperation shall be borne by the Indemnifying Party. No Third Party Claim may
be settled or compromised (i) by the Indemnified Party without the prior consent
of the Indemnifying Party or (ii) by the Indemnifying Party without the prior
consent of the Indemnified Party. Notwithstanding the foregoing, an Indemnifying
Party shall not be entitled to assume responsibility for and control of any
judicial or administrative proceeding if such proceeding involves an Event of
Default by the Indemnifying Party under this Agreement which shall have occurred
and be continuing.

                      [This space intentionally left blank]

                                       45
<PAGE>
                                   ARTICLE 23
                                     DAMAGES

Except for Third Party Claims for such damages, the Parties' liability for
damages under this Agreement is limited to direct, actual damages only and
neither Party shall be liable for lost profits or other business interruption
damages, or special, consequential, punitive, exemplary damages, in tort,
contract or otherwise, of any kind, arising out of or in any way connected with
the performance, the suspension of performance, the failure to perform, or the
termination of this Agreement. Each Party acknowledges the duty to mitigate
damages hereunder.

                                   ARTICLE 24
                                   ASSIGNMENT

(a) This Agreement shall inure to the benefit of and be binding upon the Parties
hereto, their respective successors and permitted assigns.

(b) Except as specifically provided herein, neither Party shall assign any of
its rights and obligations hereunder, in whole or in part, without the prior
written consent of the other Party, which in the case of an affiliate, shall not
be unreasonably withheld. The assigning Party shall remain liable hereunder for
due and proper performance of all provisions of this Agreement, including any
provisions governing the credit aspects of this Agreement.

(c) Seller may assign to the Norwegian State, or to whom the Norwegian State
nominates, all rights and obligations under this Agreement, whether in whole or
in part, for the Norwegian State sourced volumes without the consent of Buyer.

(d) Any attempted assignment in violation of this Article 24 shall be null and
void ab initio and the non-assigning Party shall have the right, without
prejudice to any other rights or remedies it may have hereunder or otherwise, to
terminate this Agreement effective immediately upon notice to the Party
attempting such assignment.

                      [This space intentionally left blank]

                                       46
<PAGE>
                                   ARTICLE 25
                              NOTICES AND ADDRESSES

Unless otherwise agreed in writing, any notices, statements, invoices, requests
or other communications to be given by either Party pursuant to this Agreement
(each, a "NOTICE") shall be in writing and sent by certified mail, return
receipt requested, overnight U.S. Mail, overnight reputable courier, electronic
mail or by facsimile. A Notice shall be deemed to have been received when
transmitted (if confirmed by the notifying Party's transmission report), or on
the following Business Day if received after 5:00 p.m. ET at the respective
Party's address set forth below and to the attention of the person or department
indicated (except that invoices received after 1:00 p.m. ET shall be treated as
received on the next Business Day). A Party may change its address, electronic
mail address or facsimile number by giving Notice in accordance with this
Article 25, which is effective upon receipt.

      IF TO SELLER:

            Statoil Marketing & Trading (US) Inc.
            225 High Ridge Road
            West Building, 2nd Floor
            Stamford, Connecticut  06905
            Attention:        Crude Oil Operations
            Fax Number:       (203) 978-6952
            Telephone Number: (203) 978-6900
            E-Mail:           USCRUDE@Statoil.com

      IF TO BUYER:

            Giant Industries, Inc.
            23733 North Scottsdale Road
            Scottsdale, Arizona  85255
            Attention:        David Boring, General Manager, Crude Oil Supply
            Fax number:       (480) 585-8892
            Telephone Number: (480) 585-8830
            E-Mail:           DBoring@Giant.com

                                       47
<PAGE>
                                   ARTICLE 26
                             WARRANTIES AND WAIVERS

Seller warrants good title to the Oil sold under this Agreement and warrants it
conforms to the quality specifications set forth in Article 3 and shall be free
from all royalties, taxes, liens, claims and other charges and encumbrances.
HOWEVER, SELLER MAKES NO WARRANTY AGAINST INFRINGEMENT OF ANY PATENT, TRADEMARK
OR COPYRIGHT. FURTHER, EXCEPT AS PROVIDED HEREIN, SELLER MAKES NO OTHER
REPRESENTATION OR WARRANTY, WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING BUT
NOT LIMITED TO, ANY REPRESENTATION OR WARRANTY THAT THE OIL SOLD TO BUYER WILL
BE MERCHANTABLE OR FIT FOR A PARTICULAR PURPOSE, OR WILL CONFORM TO MODELS OR
SAMPLES, OR THAT IT WILL MEET SPECIFICATIONS OTHER THAN THOSE EXPRESSLY PROVIDED
HEREIN.

                      [This space intentionally left blank]

                                       48
<PAGE>
                                   ARTICLE 27
                   APPLICABLE LAW, LITIGATION AND ARBITRATION

(a) Except as otherwise provided for in Article 27 herein, the existence,
validity, interpretation and enforcement of this Agreement, and any controversy,
claim or dispute hereunder, whether in contract, tort, equity or otherwise,
shall be governed by, construed and enforced in accordance with the laws of the
State of New York (without reference to its choice of law doctrine).

(b) The Parties shall make every attempt in good faith and within ten (10) days
following receipt from either Party of a written notice of such controversy,
claim or dispute, to resolve by mutual agreement such controversy, claim or
dispute by direct dialogue between senior management of both Parties. If a
resolution is not achieved within thirty (30) days from the initiation of such
discussions, the matter shall be settled as provided in this Article.

(c) Except as provided for in Article 27(d), (e) and (f), each Party irrevocably
(i) submits to the exclusive jurisdiction of the United States Federal District
Court for the Southern District of New York located in the Borough of Manhattan,
New York, and to service of process by certified mail, delivered to the Party at
the address indicated in this Agreement, and (ii) waives any objection which it
may have at any time to the laying of venue of any proceedings brought in any
such court, waives any claim that such proceedings have been brought in an
inconvenient forum and further waives the right to object, with respect to such
proceedings, that such court does not have jurisdiction over such Party.
Further, each Party waives, to the fullest extent permitted by Law, any right it
may have to a trial by jury in respect of any proceedings relating to this
Agreement. Nothing in the Agreement precludes either Party from bringing
proceedings in any other jurisdiction in order to enforce any judgment obtained
in any proceedings referred to in this Article, nor will the bringing of such
enforcement proceedings in any one or more jurisdictions preclude the bringing
of enforcement proceedings in any other jurisdiction.

(d) Any controversy, claim or dispute (other than a claim or dispute as
described in Article 27(e) and (f)) that may arise in connection with or as a
result of this Agreement, where the amount in dispute does not exceed the sum of
One Hundred Thousand Dollars ($100,000), and which the Parties are unable to
resolve by mutual agreement, shall be settled by arbitration in New York, New
York before three (3) disinterested arbitrators in accordance with the
International Arbitration Rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof, provided, however, that the Parties may elect to
proceed with only one (1) arbitrator. Each Party shall appoint one (1)
arbitrator and the third arbitrator, who shall act as chairman, shall be
appointed by the American Arbitration Association, provided that each arbitrator
shall be knowledgeable of and experienced in the international sale and purchase
of crude oil. The arbitration shall be conducted in English and the arbitration
award shall be final and binding on both Parties without appeal to the courts.
Any controversy, claim or dispute (other than a claim or dispute as described in
Article 27(e) and (f)) that may arise in connection with or as a result of this
Agreement, where the amount in dispute equals or exceeds the sum of One Hundred
Thousand Dollars ($100,000), and which the Parties are unable to resolve by
mutual agreement, shall be settled pursuant to the provisions of Article 27(c)
herein.

                                       49
<PAGE>
(e) Any controversy, claim or dispute that may arise in connection with or as a
result of Articles 12 or 13, where the amount in dispute does not exceed the sum
of One Hundred Thousand Dollars ($100,000), and which the Parties are unable to
resolve by mutual agreement, shall be settled by the "Shortened Arbitration
Procedure" of the Society of Maritime Arbitrators, Inc ("SMA") of New York in
New York, New York pursuant to the "Rules for the Shortened Arbitration
Procedure of the Society of Maritime Arbitrators, Inc." then in force. The
arbitration shall be conducted in English and the arbitration award shall be
final and binding on both Parties without appeal to the courts and judgment upon
the award rendered by the arbitrators may be entered in any court having
jurisdiction thereof. In addition to the requirements of Article 27(a), any
controversy, claim or dispute shall also be governed by, construed and enforced
under the maritime law of the United States without giving effect to its
conflict of laws principles.

(f) Any controversy, claim or dispute that may arise in connection with or as a
result of Articles 12 or 13, where the amount in dispute equals or exceeds the
sum of One Hundred Thousand Dollars ($100,000) but is less than Two Hundred and
Fifty Thousand Dollars ($250,000), and which the Parties are unable to resolve
by mutual agreement, shall be settled by arbitration in New York, New York
pursuant to the "Maritime Arbitration Rules" of the SMA then in force. Each
Party shall appoint one (1) arbitrator and the third arbitrator, who shall act
as chairman, shall be appointed by the SMA; provided, however, that all three
(3) arbitrators shall be knowledgeable of and experienced in the international
sale and purchase of crude oil and SMA members. The arbitration shall be
conducted in English and the arbitration award shall be final and binding on
both Parties without appeal to the courts and judgment upon the award rendered
by the arbitrators may be entered in any court having jurisdiction thereof. In
addition to the requirements of Article 27(a), any such controversy, claim or
dispute shall also be governed by, construed and enforced under the maritime law
of the United States without giving effect to its conflict of laws principles.
For any controversy, claim or dispute that may arise in connection with or as a
result of Articles 12 or 13, where the amount in dispute exceeds the sum of Two
Hundred and Fifty Thousand Dollars ($250,000), and which the Parties are unable
to resolve by mutual agreement, shall be settled pursuant to the provisions of
Article 27(c) herein.

                      [This space intentionally left blank]

                                       50
<PAGE>
                                   ARTICLE 28
                                 VOICE RECORDING

The Parties agree that each may electronically record all telephone
conversations between them, with or without the use of a warning tone, and that
any such recordings may be submitted in evidence to any court or in any
proceeding for the purpose of establishing the formation or existence of a
transaction and the terms thereof. Each Party agrees to obtain the consent of
its employees and agents to such recording to the extent required by New York
law. The Parties agree that the recording of any conversation regarding a
transaction under this Agreement, whether written or oral, shall not be treated
as sufficient evidence of a contract between the Parties unless the material
terms are expressly stated, including at a minimum, those required to (i)
calculate the cash flows payable by the parties, (ii) establish the dates of
payment, and (iii) describe any options held by a Party, if any. Notwithstanding
the foregoing, either Party reserves the right to object to the admissibility of
any recording on the grounds of authenticity, relevance, and/or materiality, and
neither Party waives its rights to such objections.

                                   ARTICLE 29
                                    DISPOSAL

Buyer shall not under any circumstances refine or dispose of the Oil to
countries with which the Norwegian or United States Governments have decided not
to have trade relations. Without diminution of such obligations on Buyer, Seller
undertakes to inform Buyer as soon as practicable of any changes in laws,
regulations, rules or guidelines which become known to Seller. Buyer
acknowledges that at the date hereof it is informed of all such laws,
regulations, rules and guidelines relevant to its undertakings under this
Article 29.

In the event the Oil is disposed of to a third party, Buyer shall ensure that
the end user abides by the restrictions set forth herein and without delay
provide Seller with all relevant information as Seller may require related to
such alternative disposal including name or end user, discharge port and name or
refinery.

                                   ARTICLE 30
                NOTICE OF THE NORWEGIAN STATE'S SOURCED CRUDE OIL

Whereas Seller, following the partial privatization of the company, has been
established as the sole marketer and seller of the Norwegian State's sourced
crude oil in accordance with the instruction established in the shareholders
resolution which presently is effective, and the crude oil sold under this
Agreement may include such Norwegian State sourced crude oil, to which Statoil
ASA originally held title.

                                       51
<PAGE>
                                   ARTICLE 31
                                 CONFIDENTIALITY

The Parties shall treat the contents of this Agreement and all information
furnished by one Party to another as confidential except to the extent that
disclosure of any such information is required solely for the limited purpose of
enabling either of the Parties hereto to fulfill their respective obligations
pursuant to this Agreement; provided that nothing herein shall limit the
disclosure of any such information (i) to the extent required by statute, rule,
regulation or judicial process, (ii) to counsel for either Party, (iii) to
auditors, accountants or other professional advisors or lenders of either Party,
(iv) to the employees, officers or directors of either Party, (v) in connection
with any court proceeding or arbitration to which either Party is a party or
(vi) to a subsidiary or Affiliate of either Party.

                                   ARTICLE 32
                                  MISCELLANEOUS

32.1  RELATIONSHIP OF PARTIES. This Agreement shall not be construed as creating
a partnership, association or joint venture between the Parties. It is
understood that each Party is an independent contractor with complete charge of
its employees and agents in the performance of its duties hereunder, and nothing
herein shall be construed to make either Party, or any employee or agent of
either Party, an agent or employee of the other Party.

32.2  NATURE OF SELLER'S INTEREST IN OIL. Although the Parties intend and expect
that the transactions contemplated hereunder constitute purchases and sales of
Oil between them, if the transactions contemplated hereunder are reconstrued by
any court, bankruptcy trustee or similar authority to constitute a loan from
Seller to Buyer, then Buyer shall be deemed to have pledged the Oil as security
for the performance of Buyer's obligations under this Agreement, and shall be
deemed to have granted to Seller a first priority lien and security interest in
the Oil and all the proceeds thereof. The filing of any UCC financing statements
made pursuant to this Agreement shall in no way be construed as being contrary
to the intent of the Parties that the transactions evidenced by this Agreement
be treated as sales of Oil by Seller to Buyer.

32.3  INVALIDITY. If any Article or provision of this Agreement shall be
determined to be null and void, voidable or invalid by a court of competent
jurisdiction, then for such period that the same is void or invalid, it shall be
deemed to be deleted from this Agreement and the remaining portions of this
Agreement shall remain in full force and effect.

32.4  ENTIRETY. The terms of this Agreement (including the Appendices hereto)
constitute the entire agreement between the Parties with respect to the matters
set forth in this Agreement, and no representations or warranties shall be
implied or provisions added in the absence of a written agreement to such effect
between the Parties. This Agreement shall not be modified or changed except by
written instrument executed by each of the Parties' duly authorized
representatives. No promise, representation or inducement has been made by any
Party that is not embodied in this Agreement, and no Party shall be bound by or
liable for any alleged representation, promise or inducement not so set forth.

                                       52
<PAGE>
32.5  NO THIRD PARTY BENEFICIARY. The Parties do not intend, and nothing in this
Agreement shall be deemed, to give any Person other than the Parties hereto any
right or interest based on this Agreement. The Parties reserve the right to
amend this Agreement by mutual written consent without notice to or consent of
any Person, or to terminate it without notice to or consent of any Person not a
party to this Agreement.

32.6  COOPERATION. Each Party agrees, at any time and from time to time upon the
request of another Party, to execute, deliver and acknowledge, or cause to
execute, deliver and acknowledge, such further documents and instruments and do
such other acts and things as another Party may reasonably request in order to
fully effect the purposes of this Agreement.

32.7  SURVIVAL. Article 19 (Audit and Inspection Rights), Article 15 (Taxes,
Duties and Charges), Article 20 (Suspension and Termination), Article 22
(Indemnification and Claims), Article 23 (Damages) and Article 27 (Applicable
Law, Litigation and Arbitration) shall survive the expiration or termination of
this Agreement.

32.8  COUNTERPARTS. This Agreement may be executed by the Parties in separate
counterparts and initially delivered by facsimile transmission or otherwise,
with original signature pages to follow, and all such counterparts shall
together constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties hereto, by their proper officers thereunto duly
authorized, have executed and delivered this Agreement in duplicate and signed
on the Effective Date.

By:      /s/ LUANN G. SMITH             By:      /s/ MORGAN GUST
   ---------------------------------       ---------------------------

STATOIL MARKETING & TRADING (US) INC.            GIANT YORKTOWN, INC.
Name:    Luann G. Smith                          Name:    Morgan Gust
Title:   President                               Title:   President

                                       53