I—WIJentLkX

Lp AGREEMENT GOVERNING

THE ACQUISITION AND OPERATION

OF DELAWARE

CITY REFINERY This Agreement

is entered

into this 31st
day

of May, 2010, between

the State

of Delaware Department

of Natural Resources

and Environmental

Control (“DNREC”)

and Delaware

City Refining Company,

LLC (“DCRC”)

to address

and clarify certain environmental regulatory considerations

relevant

to DCRC’s acquisition

and operation

of the Delaware

City Refinery

in Delaware

City, Delaware

(the “Refinery”). WHEREAS,

The Premcor Refining

Group

Inc.,

a wholly-owned

subsidiary

of Valero Energy Corporation (“Premcor”),

currently

owns

and operates

the Refinery; WHEREAS,

Premcor

has currently discontinued operations

of equipment

at the Refinery, and such equipment

is undergoing preservation

and maintenance

activity; WHEREAS,

DCRC

has executed

an agreement

with Premcor pursuant

to which DCRC would acquire

from Premcor

the assets comprising

the Refinery,

and
the Delaware

City Pipeline Company,

a corporate

entity affiliated

with DCRC (“DCPC”),

has executed

an agreement

with

a Premcor-related

entity pursuant

to which DCPC would acquire

the assets comprising Premcor’s pipeline operations associated

with

the Refinery,

with both agreements

subject

to certain contingencies

specified

in such agreements

(the “Premcor Agreements

of Sale”),

and DCRC

and Premcor

desire

to complete

these asset transfers

upon closing

of such transactions

(the “Closing”); WHEREAS,

DNREC

and DCRC recognize

that DCRC’s

future operation

of the Refmery requires

the transfer

from Premcor

to DCRC

of existing permits, authorizations

and other regulatory approvals

under various environmental

statutes

and regulations,

and
the Parties desire to ensure

the prompt

and lawful transfer

of all such Permits within timeframes necessary

to allow DCRC

to resume operations

of the Refinery following

the current maintenance turnaround;WHEREAS,DCRChasidentifiedopportunitiestooperatetheRefineryinamannerconsistentwithhistoricoperationsandfutureobjectives,whileachievingenvironmentalbenefitsthroughmodificationstocertainexistingPermitsandregulationsapplicabletotheRefinery;WHEREAS,thePartieswishtoclarifythesepermitting,regulatoryandpermittransferissuestotheextentpossibletosupporttheexpeditiousresumptionofoperationsoftheRefinerybyDCRCupontheeventofClosingandfollowingthemaintenanceturnaround.NOWTHEREFORE,DNRECandDCRCexecutethisAgreementtopursuetheseenvironmentalandeconomicobjectives.I.Facility-wideNOxEmissionLimitA.BasisforFacility-wideNOxEmissionLimitations1.InaccordancewiththeFederalCleanAirAct,42U.S.C.§7401etsq.(the“CAA”)andtheDelawareEnvironmentalControlStatute,7Del.C.,Ch.60,theStateofDelaware,throughDNREC,haspromulgatedregulations:(a)governingthepermittingofcertainnewsourcesofairemissionsandcertainmodificationstoexistingsourcesofairemissions,.7Del.CodeRegs§1102(Regulation1102),(b)establishingcomprehensiveairqualityoperatingpermitrequirements,referredtoas“TitleVPermits,”formajorstationarysourcesofairemissions,7Del.CodeRegs§1130(Regulation1130),and(c)establishingspecialpermittingrequirementsforthereviewofproposednewmajorstationarysourcesormajormodificationsatexistingmajorstationarysourcesofemissionsofoxidesofnitrogen(“NOx”)orvolatileorganiccompounds(“VOCs”),identifiedasnonattaimnent“NewSourceReview”requirements,7Del.CodeRegs§1125(Regulation1125).22.

The United States Environmental

Protection
Agency (“EPA”)

has approved Regulation

1102 (December

7, 2006)

and Regulation

1125 (February

7, 2001)

for inclusion

in Delaware’s

State Implementation

Plan (“SIP”). 3. Regulation

1125 establishes

New Source Review requirements

within

the air quality control regions

in Delaware designated

as nonattainment

for the National Ambient

Air Quality Standard (“NAAQS”)

for ground-level

ozone,

in accordance

with

the CAA. 4. Regulation

1125
also includes provisions governing implementation

of the New Source Review program

in those

air quality control regions

for which

the relevant criteria pollutant

is designated

as

in attaimnent

with

the NAAQS,

and thereby provides

for the prevention

of significant deterioration

(“PSD’7

of such

air quality controls consistent

with standards established

under

the CAA. 5. Consistent

with federal

New Source Review regulatory provisions promulgated

by EPA under

the CAA, DNREC

has interpreted Regulation

1125

as affording DNREC

the authority

to establish facility-wide

emission limitations

for specific pollutants

as the permitting mechanism

for ensuring

a facility’s compliance

with New Source Review requirements.

6.

The Parties intend

to establish facility-wide

emission limitations

for NOx emissions

from

the Refmery

(the “NOx Cap”)

as the basis

for evaluating

the applicability

of New Source Review related

to NOx emissions

under Regulation

1125. 7.

The Refinery

is currently
subject

to Title

V air quality operating
permits which impose emission limitations governing numerous parameters, including

NOx,

for specific 3airemissionsourcesattheRefinery.TheNOxemissionlimitsidentifiedintheTitleVpermitsum,intheaggregate,tomorethan5,000tonsperyear.8.ThePartieshaveagreedthattheinitialNOxCapfortheRefineryshallbe2525tonsperyear,evaluatedovereach12consecutivemonthrollingperiod,commencingwiththetwelvemonthrollingperiodcomprisedbyCY2O11.TheNOxCapwillbefurtherreducedto2225tonsperyear,evaluatedovereach12consecutivemonthrollingperiod,commencingwiththe12monthrollingperiodbeginningonDecember31,2013andendingonDecember31,2014.TheNOxCapwillbefurtherreducedto1650tonsperyear,evaluatedovereach12consecutivemonthrollingperiod,commencingwiththe12monthrollingperiodbeginningonDecember31,2014andendingonDecember31,2015.9.ThePartieshavealsoagreedtoestablishaplantwideapplicabilitylimit(“PAL”)fortheattainmentpollutant,nitrogendioxide(“NO2”),inaccordancewithapplicablePSDrequirementsundertheCAAandRegulation1125(the“NO2PAL”).DCRCwillprovideinformationtoDNRECsufficienttoestablishtheNO2PALinaccordancewithapplicablePSDrequirements.10.ThePartiesacknowledgeandagreethatthecomplianceoftheRefmerywithRegulation1125andNewSourceReviewstandardswithrespecttoNOxemissionsshallbebaseduponthefacility’scompliancewiththeapplicableNOxCapandNO2PAL,asmorespecificallyaddressedherein.B.ImplementationoftheNOxCap11.OnorbeforeAugust15,2010,DCRCshallsubmittoDNRECanapplicationtomodifytheexistingTitleVoperatingpermitsfortheRefmerytoestablishaNOx4Cap

of 2525
tons
per year governing

all permitted
sources

at the Refinery
(“Title

V Permit Application”).

12. DCRC

may propose through

the Title

V Permit Application

to eliminate individual

NOx emission limitations

or operatidnal requirements

that relate

to

a NOx limit

for specific sources

at the Refinery consistent

with

the criteria established

below. DNREC

may determine

to retain

an individual

NOx emission limitation

or operational requirement

for

a specific source

to the extent

that: a.

the limitation

or requirement

is specifically
required

for

an emission

source

at the Refinery

by
an applicable

federal

New Source Performance
Standard, promulgated

at 40 CFR Part

60 (“NSPS”),

or Maximum Achievable

Control Technology requirement, promulgated

at 40 CFR Part

61

or Part

63 (“MACT’); b.

the limitation

or requirement

was imposed

upon

the source

as

a requirement

of New Source Review

for NOx emissions, applicable to the source through

a prior permitting determination; c

the limitation

or requirement

was imposed

upon

the source

to avoid applicability

of New Source Review

for NOx emissions, specified

for the source through

a prior permitting determination; 5d.thelimitationorrequirementwasincorporatedintotheDelawareSIPasaregulationexpresslypromulgatedtoachieveNOxemissionreductionsrequiredunderTitleIoftheCAA;ore.relaxationofthelimitationorrequirementwouldresultinamodeledexceedancebythatsourceofanambientairqualitystandard(“AAQS”)oranincrementviolation.13.TheTitleVPermitApplicationshallalsoincludethefollowinginformation:a.DesignationoftheexistingconditionsoftheTitleVPermitsforwhichDCRCrequestsrevisionsthroughtheapplicationforpermitmodification,aswellasDCRC’sproposedrevisionstosuchprovisions.b.ProposedmethodsforevaluatingNOxemissionsfromindividualsources,inaccordancewithSectionI.C.,below.c.RequesttoestablishaninitialNOxCapof2525tonsperyearcommencingwiththerollingtwelveconsecutivemonthperiodcomprisedbyCY2O11,applicabletoallsourcesofNOxemissionsidentifiedintheTitleVpermit,andtofurtherreducesuchNOxCapfortheRefineryto2225tonsperyear,commencingwiththetwelvemonthrollingperiodendingDecember2014,andto16506tons
per year, commencing

with

the twelve month rolling period ending December

2015. d.

A proposal

to establish

a NOx emission

cap
for

all NOx emission sources

at the Refinery, applicable

to emissions

from such sources during

the period

of May

1 through September

30 of each calendar year
(the “Ozone Season Cap”). DCRC

shall propose

the quantity of NOx emissions reflected

by the Ozone Season

Cap based

on consideration

of the quantity

of NOx emissions

for the applicable NOx Cap,

the variability

of production

rates

at the Refinery,

and the higher production

rates anticipated

during

the May

1 through September

30 time period.V

14. DCRC

shall submit

to DNREC

a non-binding

plan

for achieving

NOx emission reductions consistent

with

the emission

limits reflected

by each NOx

Cap

for theV Refmery, according

to the following schedule: a.

On

or before January

1, 2011, DCRC

shall submit

to DNREC

a non-binding

plan reflecting DCRC’s then-current intentions

to limit aggregate

NOx emissions

from permitted
sources

at the Refinery

to 2225
tons
per year, commencing

with

the twelve month rolling period ending

in December

2014;

and b.

On

or before January

1, 2013, DCRC

shall submit

to DNREC

a non-binding

plan reflecting DCRC’s then-current intentions

to limit aggregate

NOx emissions

from permitted
sources

at the 7Refineryto1650tonsperyear,commencingwiththetwelvemonthrollingperiodendinginDecember2015.c.TheseplansshallidentifyDCRC’sthen-currentexpectationofNOxemissionreductionstobeachievedatspecificindividualsources,alongwithastatementoftheanticipatedcontrolmeasurestobeutilizedandtimelinesforachievingsuchemissionreductions.ThePartiesexpresslyrecognizethatthenon-bindingplansVsubmittedbyDCRCunderthisprovisionareintendedonlytoVVreflectDCRC’sevaluationofavailablemethodsforlimitingNOxVVVemissionsfrompermittedsourcesattheRefinerytothelevelVapprovedbytherelevantNOxCap,andthatsuchplansareneitherV-bindingnorenforceable.Instead,DCRCmaydeterminetoachievecompliancewithintheNOxCapsspecifiedbymeansthatareVVinconsistentVwithorcontrarytomethodsidentifiedinplanssubmittedtoDNRECbyDCRCunderthisparagraph,byalllegalVmeans.15.DCRCmayelecttoimplementanylawfulmeanstolimitNOxemissionsfrompermittedsourcesattheRefmerytoasufficientextenttosatisfytheNOxCapsandNO2PALestablishedinaccordancewiththisAgreement;providedhoweverthatDCRCshallnotremoveanyNOxemissioncontroldevice,noreliminatepracticesthataredesignedtoreduceNOxemissions,existingasoftheEffectiveDate,exceptintheeventthatDCRCinstallsareplacementNOxemissioncontroldeviceorpracticesdesignedtoreduceNOxemissionsforthesource(afterundertakinganyappropriatepermitprocessforanymodificationofthesource),or8the source

no longer
emits NOx

at

a rate

for which emission controls

can

be justified.

This provision

shall

not restrict DCRC

from adjusting

the manner

in which

it utilizes

any existing NOx emission
control device, including

by reducing

the degree

or extent

of NOx emission control achieved

by such device while maintaining compliance

with

all other applicable requirements.

16.

To the extent

that DCRC determines

to implement

any activity relevant

to its compliance

with

any NOx Cap,

and such activity requires

prior authorization (“Approval”) from DNREC

or any other federal,

state

or local agency, authority,

board

or other governmental instrumentality (“Government Authority”),

then DCRC

will timely apply

for and make

all reasonable

efforts

to obtain

in

a timely manner

all appropriate Approvals

(or determinations

that no such Approvals

are necessary

or will

be waived)

for the construction

or implementation

of the activity relevant

to DCRC’s compliance

with

the NOx Cap. Following submittal

of its application

for the necessary Approval(s),

DCRC

shall cooperate

with

the appropriate Government Authority

by promptly submitting

any additional information reasonably
required by such Government Authority

to process

the pending application. 17.

In the event
that, notwithstanding

DCRC’s compliance

with paragraph

16, a relevant Government Authority

does

not issue

to DCRC,

in

a final form,

any Approval determined

by DCRC

or such Government Authority

to be necessary

for DCRC’s

lawful construction

andlor operation

of the relevant activity,

then DCRC’s obligation

to comply

with the relevant

NOx

Cap shall

be extended

to the extent

of the delay

in securing

the relevant Approval.

For purposes

of this paragraph,

DCRC

shall

not

be relieved

of the compliance

dates otherwise established

for NOx Caps addressed

herein

by objecting

to an Approval

except

to the extent

that DCRC

files

a timely challenge

or appeal,

as applicable (“Appeal”),

to such Approval, 9

# that DCRC

files such Appeal

in good faith,

and
the specific challenges

raised

by DCRC through the Appeal materially

bear upon

and jeopardize DCRC’s

ability

to comply

with

the NOx

Cap

set forth

in this Agreement.

Further, DCRC commits

to pursue

an expeditious resolution

of such Appeal,

to the extent

that procedures

for expedited resolution

are available

for the subject Appeal.

18. Following

its review

of the Title

V Permit Application,

DNREC

will provide

to DCRC

a proposed

draft modified

Title

V permit consistent

with

the provisions

of this Agreement.

The Parties commit

to work cooperatively

to secure

the expeditious
issuance

of the final revised

Title

V Permit

(the “Modified

Title

V Permit”). 19.

In the event

that DCRC proposes

to construct

a new source

of NOx emissions

or modify

an existing source,

as such terms

are defined
under Regulation

1102,
then DCRC

shall submit

to DNREC

an application

to construct

or modify

an air emission
source,

to the extent otherwise required

by RegulatIon

1102. C. Source-Specific

NOx Emission Determinations 20.

In order

to demonstrate compliance

with

the NOx Caps, DCRC

shall determine,

on

a monthly

basis,
NOx emission

rates

for each NOx emission

source

at the Refinery

with emissions

above relevant thresholds identified

in Regulation

1102,

in accordance with

the provisions

of this subpart. 21.

To the extent

that

an applicable

federal regulatory standard specifies

that NOx emissions

from specific sources

at the Refinery

must

be measured

by continuous emission monitoring

systems (“CEMS”),

DCRC

shall utilize CEMS

in accordance

with

the applicable federal regulatory standards

to measure

the quantity

of NOx emissions

from such sources

for 10purposes

of demonstrating compliance

with

the NOx Cap. Notwithstanding

the foregoing,

to the extent

that any applicable

federal regulatory standard governing

the operation

of

a NOx CEMS

at the Refinery requires

data substitution
methods relevant

to compliance demonstrations

under such applicable

federal regulatory standard,
DCRC

need

not utilize

such data substitution procedures

to determine

NOx emission

rates from

the relevant
source

at the Refinery

during

any period

of CEMS outage

or out-of-control

periods,

if DCRC

can identify

an alternative

basis

for estimating

NOx emissions

from such source during

such period

of CEMS outage

or out-ofcontrol.

22.

To the extent

that

a NOx emission

source

at the Refinery

is currently equipped

with

a CEMS

to monitor

NOx emissions,

then DCRC

shall continue

to operate

such CEMS

in accordance

with applicable standards

to measure

the quantity

of NOx emissions

from such source

for purposes

of demonstrating compliance

with

the NOx Cap.

For purposes

of demonstrating compliance

with

the NOx Caps,

the Parties

do not currently anticipate

that any additional

CEMS

shall

be required

for any existing

NOx emission

source

at the Refinery,

absent a new requirement

for NOx CEMS imposed through

a change

in regulation

or

a modification

to an existing

NOx source

at the Refinery. 23.

For each emissions

unit

at the Refinery currently equipped

with

a CEMS for NOx

and required

to operate

such CEMS pursuant

to paragraph

21

or 22, within

150 days

of re-starting

such emission

unit, DCRC

shall take such action

as may

be necessary

and appropriate to ensure

the continued accuracy

of the NOx emissions monitored

and recorded

by the relevant CEMS

data acquisition

and handling
system (“DAHS”). Thereafter,

DCRC

shall satisfy

the QA/QC requirements

specified

for CEMS

in the Refinery’s

Title

V permit. 1124.TotheextentthatanyapplicableregulatorystandardrequiresDCRCtoconductperformancetestingforNOxemissionsforaspecificsourceattheRefinery,DCRCshalldeterminetheNOxemissionrateforsuchsourcebasedupontheNOxemissionfactorderivedfromthemostrecentperformancetestconductedinaccordancewiththeapplicableregulatorystandard;providedhoweverthatDCRCmay,atitselection,conductperformancetestinginadditiontothatrequiredbyapplicablestandardstoestablishalowerNOxemissionfactorforsuchsourcetobeusedindemonstratingcompliancewiththeNOxCaps,providedhoweverthatDCRCmustsecureadvancedapprovalfromDNRECofanyproposedadjustedNOxemissionfactor.DNRECshallapproveordisapproveanyrequestmadebyDCRCforanadjustedemissionfactorwithin90daysofreceivinginformationfromDCRCsufficienttoallowDNRECtodeterminetheacceptabilityofsuchadjustedemissionfactor.25.ForanypermittedNOxemissionsourceattheRefinerythatisnotrequiredtodetermineNOxemissionratesbyoperationsofaCEMSorbyconductingperformancetestingpursuanttoparagraphs21,22or24,DCRCshalldetermineNOxemissionsforsuchsourceinaccordancewiththeModifiedTitleVPennit,forpurposesofdemonstratingcompliancewiththeNOxCaps.DCRCshallproposethroughitsTitleVApplicationoneofthefollowingcompliancedemonstrationmethods:a.InstallationandoperationofCEMS;b.DeterminationanduseofNOxemissionfactorbasedupontheresultsofthemostrecentperformancetestingconductedinaccordancewithaprotocolapprovedbyDNREC,orperformedinaccordancewith12applicable performance

testing methods established

and published

by EPA and appropriate

for measuring

NOx emissions

from

the relevant source; c. Published

NOx emission
factors

for such source

or category

of sources; d. Any other method approvable

by DNREC. 26.

For purposes

of demonstrating compliance

with

the NOx Caps, DCRC shall account

for NOx emissions

from permitted
sources during

all periods

of startup, shutdown or malfunction

of such equipment.

To the extent

that such emission

rates

are not measured

by CEMS during

such periods

of startup, shutdown

or malfunction,

and

to the further extent

that performance

testing

for such source

did not establish emission
factors

for such equipment reflective

of operations

during periods

of startup, shutdown

or malfunction,

then DCRC

shall estimate

suqh emission

rates from such source during

any periods

of startup, shutdown

or malfunction

in accordance

with best engineering judgment, provided however

that DCRC

must report

to DNREC

the basis

for DCRC’s emission projections

in such instance,

and DNREC

may object

to DCRC’s emission estimation methodology.

In such event,

the Parties

shall work cooperatively

to resolve

any such dispute concerning

the propriety

of such emission calculation method. Nothing

in this paragraph

shall

be construed

to waive,

limit

or otherwise
restrict DNRFC’s

ability

to bring

an enforcement

action against DCRC

for compliance

with

the NOx Cap should DCRC operate

prior

to resolving

any dispute

with DNREC regarding

the propriety

of any emission calculation
method,

but subsequent

to DNREC’s notification

to DCRC

of DNREC’s objection

to DCRC’s emission calculation
method,
where DCRC would

not have complied

with

the applicable

NOx

Cap
but for

its reliance

on such emission calculation
method. 13D.RecordkeepingandReporting27.OnorbeforeJuly1,2011,DCRCshallsubmittoDNRECareportoftheannualNOxemissionsforNOxemissionsourcesattheRefinery,forthetwelve(12)monthperiodendingwithMay31,2011.28.OnorbeforeJanuary31,2012,andeverysixmonthsthereafter,orinaccordancewithasimilarscheduleestablishedinthemodifiedTitleVpermit,DCRCshallsubmittoDNRECareportoftheannualNOxemissionsforNOxemissionsourcesattheRefinery,determinedinaccordancewiththemethodsidentifiedinSectionI.C.,aboveforeachrollingtwelve(12)monthperiodconcludingduringthepriorsemiannualperiod.29.DCRCshallmaintain,foraperiodoffive(5)yearsfromthedateofthecompliancedemonstrationforeachNOxCap,recordsnecessarytodemonstratecompliancewiththeNOxCapsestablishedinaccordancewiththisAgreement.TotheextentthatDCRCdeterminesNOxemissionratesbyuseofCEMS,thensuchrecordsshallconsistofthedatageneratedbytheDAHSassociatedwiththeCEMS.WhereNOxemissionsaredeterminedinaccordancewithemissionfactorsderivedfromperfonnancetesting,DCRCshallmaintaincopiesofallperformancetests,aswellasthehoursofoperationandthroughputrateforrelevantsources,totheextentapplicabletodeterminingNOxemissionsforsuchsources.TotheextentthatDCRCdeterminesNOxemissionsforaspecificsourcebaseduponpublishedemissionfactors,thenDCRCshallmaintaincopiesoftheinformationconstitutingthesourceofsuchemissionfactors,aswellasrecordsoftheoperatinghoursand/orthroughputrateforsuchequipment,totheextentapplicabletothedeterminationofNOxemissionratesforsuchsource.DCRCshallmaintainrecordsofallperiodsofstartup,shutdownandmalfunctionofpermittedNOxemissionsourcesattheRefinery,inadditiontosuchotherinformationconcerningsuch14startup, shutdown

or malfunction

event necessary

to determine emissions

from such source

in accordance

with Section

I.C.

of this Agreement. E. Compliance Evaluations

Under

NOx Caps 30.

The Parties intend

that
the Modified

Title

V Permit issued under

this Agreement

shall establish

the compliance obligations applicable

to the Refinery relative

to NOx emissions

from permitted emission

units

at the Refinery. However,

no NOx

Cap

or NO 2 PAL shall become applicable

to the Refinery

prior

to issuance

of the Modified

Title

V Permit. DCRC’s compliance

with

the NOx Caps established

under

this Agreement

and
the Modified Title

V Permit

shall ensure DCRC’s compliance

with nonattainment-New

Source Review,

PSD requirements

and Regulation

1125 relative

to NOx emissions.

For purposes

of implementing the NOx Caps,

the Parties
agree

that

no change

to Delaware regulations

other
than Regulation 1142 will

be required. 31. DCRC’s compliance

with each NOx

Cap shall

be determined

based upon the aggregate

NOx emission

rates reported

by DCRC

for relevant sources during

each twelve month rolling period, determined

in accordance

with Section

I.C.

of this Agreement. 32.

To the extent Premcor

has generated

and/or preserved

at the Refinery

net emission reductions

for any regulated pollutant

other than NOx,

and such

net emission reductions

have either
been established

as creditable emission reductions,

or otherwise

meet

the criteria

to be established

as creditable emission reductions, pursuant

to Regulation

1125, then such

net emission reductions

are preserved

and transferred

to DCRC

for use

in accordance

with Regulation

1125, including

in the context

of any permitting

and/or

new source review[PSD 15applicabilitydeterminationrelativetotheconstruction,modificationorreconstructionofanyemissionunitattheRefinery.F.RelationshiptoOtherReu1ations33.PriortothecreationofanyNOxCapfortheRefinery,DNREChadpromulgatedSpecificEmissionControlRequirementsforNOxemissionsfromidentifiedsourcesattheRefmery,atTitle7,RegulationNo.1142(“Regulation1142”).ConsistentwiththeobjectiveofestablishingaNOxCapfortheRefinery,thePartiesagreethatRegulation1142shouldberevisedtoreflectthattheowneroroperatorofarefmerysourceofNOxemissionslistedinRegulation1142mayelecttocomplywithanNOxCapestablishedbyDNRECforsuchRefinery,inlieuofcomplyingwithcertainspecificNOxemissionlimitationsotherwiseestablishedthroughRegulation,1142.34.DNRECthereforeagreestoproposeandpromulgateinaccordancewithDelawarelawrevisionstoRegulationNo.1142consistentwiththeprovisionsofthisAgreement.OnorbeforeSeptember1,2010,DNRECwillinitiateanyapplicableproceduralrequirementstopromulgaterevisionstoRegulationNo.1142consistentwiththeprovisionsofthisAgreement.35.DNRECwillsubmittoEPAarequesttomodifytheDelawareSIPtoreflecttherevisedversionofRegulationNo.1142identifiedinparagraph34,andtakeallactionsnecessarytosupportandsecuretherequestedSIPrevision.DCRCagreesthatitwillnotfileanylegalobjectionorchallengetoDNREC’sproposedrevisedversionofRegulationNo.1142orcorrespondingproposedSIPrevision,ifsuchproposedrevisionsareconsistentwiththeprovisionsofthisAgreement.1636. DNREC acknowledges

that

it does

not currently contemplate

the promulgation

of any regulation requiring,

or other legal standard having

the effect

of requiring, NOx emission reductions

from

the Refinery,

except

as otherwise provided

by this Agreement. II. Additional

Air Quality Considerations A.
Coke Storage 37. DCRC’s

future operation

of the Refinery

in substantially

the same manner as operated

by Premcor

would result

in the production

of petroleum

coke from

the Fluidized Coking

Unit (“FCU”).

DCRC

will undertake

to construct

and/or modify

a coke management control system

with

the objectives

of minimizing

the generation

of fugitive

coke dust
and preventing migration

of any airborne fugitive

coke dust beyond

the property boundary

of the Refinery

in

a quantity

and form
that would otherwise

cause

air pollution,

as defined

at

7 Del. Code Regs §1101,

or cause

or contribute

to monitored exceedances

of the State’s AAQS

for total suspended particulates
(“TSP”). 38.

As and

to the extent required

by applicable regulatory standards,

DCRC will submit

to DNREC

an application

for
air quality construction

and/or operating

permit authorizing

the construction

and modification

of equipment

to effectuate

the purposes

of paragraph

37. DNREC

will thereafter undertake

all actions necessary

to issue

the fmal

air quality permit authorizing

DCRC

to proceed

with

the actions contemplated

for implementation of enhanced

coke management

at the Refinery

(the “Coke Storage Permit”)

in accordance

with Delaware

law.

39. DCRC

will
not operate

the FCU

in

a production

mode

in

a manner

that produces material quantities

of petroleum

coke prior

to receiving

the Coke Storage Permit

from 17DNRECandconstructingandcommencingoperationoftheequipmentauthorizedbysuchpermittosupporttheeffectivemanagementofpetroleumcokeinaccordancewithparagraph37.40.PremcorhasoperatedexistingambientairqualitymonitoringstationsatandaroundtheRefineryinordertomeasureambientconcentrationsofTSP.DuringthecurrentmaintenanceturnaroundoftheRefinery,DCRCshallnotberequiredtocontinuetooperateormaintainsuchambientairqualitymonitors.Inaddition,DCRCmaypropose,forDNRECreviewandapproval,anewlocationforanyexistingambientairqualitymonitor.FollowingresumptionofoperationoftheFCUandassociatedproductionofpetroleumcoke,DCRC.willresumeoperationoftheambientTSPmonitors.DCRCwillcontinuetooperatetheexistingambientTSPmonitorsuntilthedateonwhichDCRChascollecteddatathatdemonstratesattainmentforoneyearattheambientTSPmonitorswiththeDelawareAAQSforTSP.B.PropaneStorage41.DCRCwillnotintroduceanypropanegasproducedattheRefineryintotheexistingundergroundFrozenEarthStorage(“FES”)unitattheRefmeiy,whichiscurrentlyundergoingclosureactivitiesundertakenbyPremcor.ThecompletionofclosureoftheFESunitwillremaintheresponsibilityofPremcor.DCRCwillensureadequatecapacityforpropanestorage,exclusiveoftheFESunit,forthequantityofpropanegasthatDCRCintendstoproduceandstoreattheRefinery.C.CompletionofRepairofLDARComponents42.Certainpumps,valvesandflangesingaseousorlightliquidserviceattheRefineryaresubjecttofederaland/orstateregulatorystandardsgoverningleakdetectionandrepair(“LDAR”).InthecourseofimplementingitsLDARprogramforregulatedcomponentsat18the Refinery, Premcor identified

certain components

which exhibited

leak rates above action levels,

but
for which Premcor determined

it necessary

and appropriate

to place
such components on the “delay

of repair”

list. Prior

to resuming full-scale production operations

of the Refinery, DCRC

shall perform repairs

of all regulated
LDAR components

at the Refinery

which

had remained

on the delay

of repair

list developed

by Premcor,

to the extent

that Premcor identified to DCRC

that such component remained

on the delay

of repair

list

as of Closing,

and

to the further extent

that DCRC would resume

the use

of such component

in

a manner

that would subject

it to federal

or state regulatory standards

under applicable

LDAR regulations. III. Water Quality

and Discharge
Matters A. Discharge

Permit 43. DNREC previously

issued

to the Refmery National Pollutant Discharge Elimination

System (“NPDES”)

permits designated

by permit numbers DE005061

and DE0000256, authorizing

the operation

of water intake structures

and
the discharge

of process and non-process wastewater

from

the Refmery

(the “Discharge Permits”). 44.
More
than

six months

prior

to the expiration

date identified

for the NPDES permit applicable

to primary Refinery operations,

the then-current

owner

of the Refinery,
Motiva Enterprises

LLC (“Motiva”),

had submitted

to DNREC

an application

for renewal

of the discharge
permit.

More
than

six months

prior

to the expiration

date identified

for the NPDES permit applicable

to operations

of the power plant

at the Refinery, Premcor

had submitted

to DNREC

an application

for renewal

of the discharge
permit.

The Refinery’s applications

for reissuance

of the Discharge
Permits remain pending
before DNREC. 1945.Inaccordancewithapplicablefederalandstatelaw,theDischargePermitsareadministrativelyextendedandcontinuetoauthorizetheoperationofintakestructuresanddischargesofbothprocessandnon-processwastewaterfromtheRefinerytonavigablewatersinaccordancewiththetermsoftheDischargePermits.ThroughthepermittransferprovisionsotherwiseaddressedinthisAgreement,thePartiesintendthattheseadministratively-extendedDischargePermitswillbetransferredtoDCRC,andcontinuetoauthorizetheoperationofintakestructuresat,andthedischargeofprocessandnon-processwastewaterfrom,theRefmeryinaccordancewiththetermsoftheDischargePermits,untilsuchtimeasDNRECreissuestheDischargePermitsfortheRefmeryinaccordancewiththeprocessdescribedinthefollowingparagraphs.46.FivemonthsbeforethedatethatDCRCintendstoresumenormaloperationsoftheRefinery,DCRCwillendeavortosubmit,andinanyeventonorbeforeDecember31,2010,DCRCwillsubmit,toDNRFCanupdatetothependingapplicationsfortherenewaloftheDischargePermits,totheextentrequiredbyapplicablelawandnecessitatedbyDCRC’sintendedchangestooperationoftheRefinery,relativetothatreflectedinthependingapplicationforrenewaloftheDischargePermits(the“UpdatedApplication”).47.PriortoissuinganynewDischargePermits,DNRECshallprovidetoDCRCaproposeddraftpermit(the“DraftNewDischargePermit”).TheDraftNewDischargePermitwillbebaseduponinformationintheexistingapplicationsforrenewaloftheDischargepermits,informationprovidedbyDCRCthroughtheUpdatedApplication,relevantinformationprovidedtoDNRECandapplicablefederalandstateguidanceandlaw.2048.

The Draft New Discharge

Permit

will include

a best technology available determination

(“BTA determination”)

reflecting DNREC’s

best professional judgment

to address section

31 6b of the federal Clean Water

Act related

to the design

and operation

of the cooling water intake structure.

In making

the BTA determination,

DNREC

will consider federal

and state law, including applicable

federal

case law, regulations

and guidance,

and specifically address

cost considerations

when making

the determination.

The Draft New Discharge

Permit will include

a compliance
schedule

for implementation

of the BTA determination

which

will require DCRC

to take such actions

as necessary

to construct

the BTA during

the five year period following

the first five years

of the New Discharge

Permit

term,

as defined below.

The Draft New Discharge

Permit compliance
schedule

will also authorize

DCRC

to undertake

a study/evaluation,

during

the five year term

of the New Discharge

Permit,

to analyze site-specific, environmental

and technology-based

factors relevant

to the benefits

of alternatives

to the BTA determination
(“DCRC’s

BTA Evaluation”).

To the extent

that DCRC determines

that

an alternative

BTA standard

is supported

by DCRC’s

BTA Evaluation, conducted

during

the first five years

of the New Discharge

Permit,

then DCRC

may submit

to DNREC,

as an attachment

to its application

for renewal

of the New Discharge

Permit,

its proposal

for, and
the basis

of,

an alternative

BTA determination.

DCRC

shall

not

be required

to construct

the BTA

as determined in the New Discharge

Permit,

until DNREC notifies DCRC

of the conclusions

of DNREC’s reevaluation

of the BTA determination,

given consideration

of DCRC’s alternative

BTA standard.

49. Within

30 calendar

days

of receiving

the Draft New Discharge

Permit from DNREC,

DCRC

will provide

to DNREC

any comments, corrections, questions

or proposed revisions concerning

the Draft New Discharge

Permit.

The Parties

will address

such comments, 21questionsandproposedrevisionsconsistentwiththetermsofthisAgreement.Followingcompletionofsuchprocess,DNRECwilltakeallnecessaryproceduralstepstoformallyissuetheDraftNewDischargePermitasafinalrenewaloftheDischargePermits.Thefinalnewdischargepermit(the“NewDischargePermit”)mayvaryfromtheDraftNewDischargePermitbasedonconsiderationofrelevantandapplicablecommentsgarneredfromthepublicnoticeprocesssuchascommentsfromEPA,thepublicorDCRC,asrequiredbylaw.50.DCRCshallcomplywithrequirementsoftheDelawareRiverBasinCommissionDocketNo.D-93-4-6fortakinganysuchactionsnecessarytoreduce,byDecember31,2013,thequantityofsurfacewaterdrawnfromtheDelawareRiverattheprimarycoolingwaterintakestructurefrom452milliongallonsperday(“mgd”)to303mgd,measuredasa12monthrollingaverage.51.Totheextentotherwiseenforceableunderapplicablestateandfederallawsandregulations,DCRCshallcomplywithallobligationsoftheDelawareRiverBasinCommission(“DRBC”)andtheDelawareRiverEstuaryPCBTotalMaximumDailyLoads(“TMDLs”).Theserequirementsinclude,butarenotlimitedto,implementingandannuallyupdatingthePCBPollutantMinimizationPlanandPCBCongenerMonitoringwiththeobjectiveofidentifyinganysourcesofPCBdischarge,inaccordancewiththe“ImplementationPlanforPolychlorinatedBiphenyls(“PCBs”)ForZones2-6oftheDelawareEstuary.”B.DredgingActivity52.DNRECpreviouslyissuedtoPremcorapermit(the“DredgingPermit”)authorizingthemaintenancedredgingofsedimentbothintheberthingareaandthenavigationchannellocatedwithintheDelawareRiveradjacenttotheRefmery(the“BerthingAreaand22Navigation Channel”),

and
the maintenance

dredging

of

a tidal channel
which conveys

water

to the primary cooling

water intake

for the Refmery

(the “Cooling

Water Intake Channel”). 53.

Prior

to the expiration

of the Dredging
Permit, Premcor submitted

to DNREC

an application

to renew

the Dredging
Permit.

Such application

remains pending
before DNREC.

54. Within

five days

of the Effective

Date, DCRC

shall submit

to DNREC information confirming

that DCRC requests issuance

of the dredging
permit

in

a form materially consistent

with

the terms

of the pending application submitted

by Premcor, including

a request for

a 10 year permit.

In accordance

with

this Agreement,

the Refinery’s
pending application

to conduct maintenance

dredging

in the Berthing

Area

and Navigation

Channel

and associated

with the Cooling
Water Intake Channel

shall then

be transferred

to DCRC. 55.

On

or before

June

15, 2010, DNREC

will conclude

its administrative process

and take action

on the permit application referenced

in the foregoing paragraphs

for the dredging activity

in the Berthing

Area

and Navigation
Channel

and
the area associated

with

the Cooling
Water Intake Channel

(the “DCRC Dredging Permit”). 56. DNREC anticipates

that

the DCRC Dredging

Permit

will authorize requested dredging activity

for

a period often years,

and require

the payment

by DCRC

of fees or compensation,

as follOws: a.

To the extent

that dredging

during

any event authorized

under

this DCRC Dredging

Permit exceeds

the depths previously authorized

under Subaqueous

Lands Permit SP-320/04

and Water Quality Certification 23WQ-320/04,thenDCRCshallpaytotheStateofDelawareafeeof$1.50/cubicyardfortheamountofmaterialdredgedinexcessoftheamountthatwouldhavebeendredgedatthedepthspreviouslyauthorizedunderSubaqueousLandsPermitSP-320/04andWaterQualityCertificationWQ-320/04;andb.DCRCshallpayaone-timeamountof$247,500(forthecreationandrestorationofwetlandhabitat),bySeptember1,2012,ascompensationbasedonDNREC’sdeterminationofadverseenvironmentalimpactstobenthicorganismsandhabitatthatDNRECbelievescouldresultfromtheproposeddredgingactivityintheBerthingAreaandNavigationChannelduringthetenyeartermoftheDCRCDredgingPermit;andc.DuringeachyearinwhichdredgingisconductedintheCoolingWaterIntakeChannel,DCRCshallbeobligatedtopay$135,000peryear,ascompensation,basedonDNREC’sdeterminationofsecondaryadverseimpactstoaquaticresourcesthatDNRECbelievescouldresultfromtheproposeddredgingactivityintheCoolingWaterIntakeChannelthe(“AquaticResourcesMitigationCompensation”).DCRCmayremittheAquaticResourcesMitigationCompensationtoDNRECfollowingtheendofthefirstfiveyearsoftheDCRCDredgingPermit(i.e.,yearssixthroughtenofthetermoftheDCRCDredgingPermit)inincrementsof$270,000annually.Withoutlimitationtoitsoptiontoremitpaymentsduringyearssixthroughtenratherthanyearsonethroughten,DCRCmayelecttoremititspaymentstoadedicatedaccountcontrolledby24DCRC, rather

than

to DNREC

(the “Mitigation Compensation Account”).

All funds placed

by DCRC

in the Mitigation Compensation Account

must

be expended

toward construction

of BTA, determined

for the cooling
water intake structure

in accordance

with Section

JI.A, above,

or directed

to DNREC

by the expiration

date

of the DCRC Dredging

Permit

or the transfer

of the controlling

interest

in the Refinery from DCRC

to any independent

third party, whichever

occurs

first;

and d.

By execution

of this Agreement,

DCRC

does

not thereby concur

that
the proposed dredging activity would cause adverse environmental

impacts, that any adverse environmental

impacts resulting

from such dredging warrant

or require compensation

under applicable

law, that any dredging activity would cause indirect adverse environmental

impact

or that any such indirect adverse environmental

impact implicates

the need

for

or requirement

of mitigation

under applicable

law. 57.

On

or before

June

15, 2010, DNREC

will conclude

its administrative process

and take action

on the Federal Consistency Certification concerning

the dredging activity authorized

by the DCRC Dredging
Permit. IV. Regulatory

Status

of Refinery During Maintenance
Activities 58. Premcor

had stated

its intention

to permanently

cease operations

of primary refinery operations

at the Refinery.

Prior

to reaching agreement

with DCRC

for the sale of the assets comprising

the Refinery, Premcor initiated

the temporary cessation

of operations

at the Refinery, pending implementation

of

a program

to permanently

cease operations.

In the 25contextofitseffortstoensurethesafetyandenvironmentallyprotectivere-startofRefineryoperations,DCRCintendstoperpetuatethemaintenanceturnaroundofequipmentattheRefinerytoensurethatthere-startofsuchequipmentcanbeperformedinasafeandenvironmentallyprotectivemanner.59.DNRECinterpretstheexistingTitleVPermitsfortheFacility,andwillinterprettheModifiedTitleVPermitfortheRefinery,nottorequirecompliancewithmonitoring,reporting,recordkeepingoroperationalstandardsidentifiedforemissionsourcesattheRefineryduringtheperiodsthatsuchsourcesarenotoperating,onthebasisthatsuchrequirementsareintendedtoapplyduringoperationoftherelevantemissionunits.60.DNRECcharacterizestheon-goingactivityattheRefmeryinitiatedbyPremcorandtobecontinuedbyDCRCasnotinconsistentwithhistoricpracticesattheRefmery.61.Inthiscontext,rawmaterials,product,feedstockandothermaterialsassociatedwithproductionoperationsattheRefmery(collectively,“Materials”)shallnotbedeemedtoconstitutewastematerial,pendingadeterminationbyDCRC(tobemadewithin3monthsofClosing)thatanysuchMaterialsdonotconstituteusableproductorrawmaterials.Uponanysuchdetermination,regulatorystandardsapplicabletothepropercharacterizationofthewastematerialwouldbeinitiallytriggered,includingthecommencementofwasteaccumulationperiodsunderapplicablestandards.62.Similarly,materialtransfersamongtanksandtanksystemsattheRefinerywillbedeemedtocontinueduringthemaintenanceturnaroundoperationsforpurposesoffederalandstatestoragetankregulatorystandards.Accordingly,exceptasaddressedinseparatenotificationsorregistrationssubmittedtoDNRECbyPremcorsincePremcor’sinitiationofthe26current maintenance turnaround

activity

at the Refinery,

the regulated
storage

tanks

and tank systems

at the Refinery

shall

not

be deemed

to have experienced

a change

in use, nor

to have been temporarily

or permanently

closed, during

the ongoing maintenance

activity

at the Refinery,

for

a period

not

to exceed

June

1, 2011 (unless extended

by DNREC

upon request

by DCRC).

63.

Based
upon

the State’s characterization

of the status

of activities

at the Refmery, Premcor’s temporary cessation

of operations

shall

not constitute

an abandonment

of the pre-existing industrial operation,

and
the equipment

and operations

at the Refinery

will

be deemed

as

a pre-existing

use
for purposes

of the Delaware
Coastal

Zone
Act,

7 Del.

C., Ch.

70. Therefore, assuming

that DCRC restarts refming operations

prior

to March

1, 2012,

the re-start of such operations

by DCRC following

the maintenance turnaiound

shall

not constitute

a new activity

in the Delaware
Coastal

Zone requiring

the need

for any Coas1a1

Zone

Act approvals

or status decisions. V. Resolution

of Outstanding Compliance

Orders

and Agreements
Relevant

to the Refmery

64.

The Parties recognize

that DNREC

has initiated certain enforcement actions alleging non-compliance

at the Refinery

under various

state

and federal environmental statutes and/or regulations,

and otherwise identified conditions

of potential non-compliance based upon activities

of owners and/or operators

of the Refinery

other than DCRC. DNREC acknowledges

that any such enforcement

activity, whether

or not formally initiated,

does

not relate

to any operations

or activities

by

or on behalfofDCRC.

This provision

does

not relieve DCRC

of liability

for any alleged noncompliance

that may result
from DCRC’s operations

at the refinery

after Closing.

2765.DNRECherebyconfirmsthatanypriorenforcementactioninitiatedbyitagainstanyowneroroperatoroftheRefinery,otherthanDCRC,includingintheformofanycitations,notices,orders,complaints,investigations,enforcementagreements,oranyotherformofallegationsofnoncompliance,whetheradministrative,civil,criminal,judicialorotherwise(collectively,“EnforcementActions”),concerningtheRefmerydoesnotapplytoDCRC’soperationsattheRefinery,isnottransferredinanymannertoDCRC,anddoesnotimposeanycontinuingobligationsapplicabletoDCRC,exceptasexpresslyidentifiedbelow:a.ConciliationOrderinthematterofthePremcorRefmingGroupInc.—FrozenEarthStorage,Secretary’sOrderNo.2008-A-0051(September25,2008);b.ConsentOrderinNicholasA.DiPasqualev.MotivaEnterprises,LLC;CivilActionNo.18750NCintheCourtofChanceryoftheStateofDelawareinandforNewCastleCounty(3/26/01)(the“18750Order”).Withrespecttothe18750Order,thePartiesacknowledgethatthesubstantiveobligationsundersuchConsentOrderhavebeensatisfied,andDNRECwillfileamotionrequestingtheCourttoterminatethe18750Orderwithinapproximately30daysoftheEffectiveDate.66.Consistentwiththeforegoing,DNRECacknowledgesthat,totheextentallowablebylaw,anyallegednon-complianceattheRefmerypriortoClosingwouldnotbearupontheevaluationofthestatusofDCRCrelativetothe“chronicviolator”designationidentifiedin7Del.C.,Cli.79.2867.ThePartiesacknowledgethatStateofDelawarehasexecutedconsentdecreesbyandamongtheState,theUnitedStatesandMotiva,towhichPremcorhasbecomeaparty,andthatsuchconsentdecreeshavebeenenteredbytheFederalDistrictCourtsfortheSouthernDistrictofTexas’andtheDistrictofDelaware2(collectively,the“FederalConsentDecrees”).ThePartiesfurtheracknowledgethatDNRECcannotunilaterallyterminatetheFederalConsentDecreesand,pursuanttotheexpresstermsoftheFederalConsentDecrees,DCRCmaybecomeapartythroughaddendatotheFederalConsentDecrees,andtherebybeboundbyanyresidualobligationsimposedthereby.68.ThePartiesbelievethatanyobligationsotherwiseapplicabletotheRefmeryundertheFederalConsentDecreeshavebeensubstantivelysatisfied.Therefore,shortlyfollowingtheClosing,DCRCintendstoworkwithPremcorand,asappropriate,Motiva,,topetitiontheCourtforterminationoftheFederalConsentDecrees.DNRECwilluseitsbesteffortstosupportDCRC’seffortsinthiscontext.VI.TransfersofApplicablePermitsandAuthorizations69.OperationoftheRefineryisgovernedbynumerouspermits,licensesandotherauthorizationsrelevanttospecificequipment,mediaandregulatoryprograms.70.ThePartiesintendtoaccomplishtheprompttransferfromPremcortoDCRCofallexistingpermits,authorizations,approval,licenses,andothersourcesorgrantsofauthorityrelevanttotheoperationorstatusoftheRefinery(collectively,the“Authorizations”).InordertoaccomplishthisprompttransferofallrelevantAuthorizations,thePartieshave‘UnitedStatesv.MotivaEnterprises.LLC,CivilActionNo.H-01-0978,S.D.Tx.(ConsentDecreeoriginallyenteredAugust20,2001),asamended.-29compiledatableofAuthorizationssubjecttoandrequiringtransfer,whichisincludedasAttachment“A”tothisAgreement.ThetableincludedwithAttachmentAalsoidentifiesthespecificprocedurethatshallbeutilizedtoaccomplishthetransferoftheAuthorizations.3AlthoughthePartieshaveattemptedtoensuretheaccuracyandcompletenessoftherelevanttableofAuthorizationsidentifiedinAttachmentA,duetotheextentofsuchAuthorizations,thePartiesacknowledgethatsuchlistmaynotbefuliycompleteandaccurate.Totheextentnecessaryforcompletenessandaccuracy,DNRECwillamendthetableofAuthorizationsincludedwithinAttachmentAwithin30daysofClosing.71.BasedonitsknowledgeoftheoperationsattheRefineryconductedbyPremcor,DNREChasnotidentifiedanyadditionalpermit,authorization,approval,license,statusdecisionorothersourcesorgrantsofauthority,otherthantheAuthorizations,requiredbyDCRCtoownoroperatetheRefineryinamannersubstantiallysimilartotheoperationsconductedbyPremcor.TotheextentthateitherPartyidentifiesanyadditionalrequisitelicense,authorization,permit,approval,statusdecision,orothersourceorgrantofauthority,(collectively,“OtherNecessaryApproval”),thenthePartiesshallworkcàoperativelytosecureissuanceortransferofsuchOtherNecessaryApprovalaspromptlyaspossible.72.ForpurposesofsatisfyinganyrequirementsastotheEnvironmentalPermitApplicationBackgroundStatementunder7Del.C.,Ch.79(“Chapter79”)relevantorapplicabletothetransfertoDCRCorDCPCofAuthorizationsorOtherNecessaryApprovals,2UnitedStatesv.MotivaEnterprises.LLC,CivilActionNo.02-l292-SLR,andDepartmentofNaturalResourcesandEnvironmentalControlv.MotivaEnterprises.LLC.CivilActionNo.02-1293-SLR,D.Del.(ConsentDecreeenteredJanuary12,2006.)ThetableincludedwithinAttachmentAidentifiescertainsubaqueouslandleases.AsoftheEffectiveDate,Premcorcontinuestopursuecertainmodificationsandclarificationsofthesesubaqueouslandleases.FollowingPremcor’sappropriatemodification,clarificationorreinstatementofsuchsubaqueouslandleases,Premcorwill30DNREChasdeterminedthattheappropriatepermitapplicantshallinitiallybeidentifiedastheDelawareCityRefiningCompany,LLC,orDelawareCityPipelineCompany,asapplicable,andallinformationtobesuppliedtoDNRECunderChapter79shallbelimitedtoDCRCorDCPC,asapplicable,itsofficers,directorsandsubsidiaries,andnotextendtoanyindividualpartners,shareholdersorotherrelatedcorporateentities.73.TotheextentthatthetransferfromPremcortoDCRCofanyAuthorizationrequiresnotificationtotheState,orDNREC,suchnoticeshallbedeemedtohavebeencompletedasofthedatethatDCRCprovidednoticetoDNRECofthePremcorAgreementofSale.74.Totheextentthatanyappeal,hearingrequestorchallengefiledbyPremcorofanyAuthorizationremainspendingasoftheEffectiveDate,thePartiesagreetothetransfertoDCRCfromPremcorofsuchappeal,andthepreservationofanychallengesraisedbyPremcorthroughsuchAppeals.Thisprovisionisnotintendednorshallhavetheeffectofexpandingthescopeofanysuchappeal.VII.GeneralProvisions75.ThisAgreementshallbegovernedby,andinterpretedunder,thelawsoftheStateofDelaware.76.ThePartiesagreetocooperateandmakeallreasonableeffortstosecureissuanceinatimelymaimerofallappropriateAuthorizationsorOtherNecessaryApprovalsrequiredbyDCRCtoimplementtheobjectivesofthisAgreement.ConsistentwiththisworkwiththeStateandDCRCtoaccomplishtheprompttransferfromPremcortoDCRCofsuchsubaqueousland31commitment,DCRCshallpromptlyrespondtoanywrittennoticebyDNRECrequestingadditionalinformationoridentifyingdeficienciesinanypermitapplicationsubmittedunderthisAgreement.Priortoissuinganyfmalpermit,DNRECshallprovideDCRCwithadraftpermitreflectingthetermsandconditionsthatDNRECproposestoincludewithinthepermit.DCRCandDNRECshallworkcooperativelyinanattempttopromptlyresolveanydisagreementsconcerningspecifictermsandconditionsforinclusioninanypermit.77.NothinginthisAgreementshalllimitoraffecttherightsofDCRCtocontest,appealorotherwisechallengeanypermit,andJoranyotherAuthorizationorSecretary’sOrderissuedbytheSecretary,relatedtoanypermitidentifiedbythisAgreement.IntheeventthatDCRCcontests,appealsorotherwisechallengesanypermitand/oranyotherOrderorAuthorizationissuedbytheSecretaryrelatedtoanypermitcontemplatedbythisAgreement,thenthePartiesagreetoattempttocooperativelyresolveanydifferencesconcerningthepermitand/orrequestexpeditedreviewofsuchappealorchallengebeforetheDelawareEnvironmentalAppealsBoard.78.ThisAgreementidentifiesthemethodsandprocessesbywhichDCRCshallensurethecomplianceofRefineryOperationswithcertainapplicableenvironmental,regulatoryandstatutorystandardsbysatisfyingstandardsoroperatingpracticesidentifiedinthisAgreementand,whereappropriate,AuthorizationsgrantedtoDCRC.NothinginthisAgreementshallrelieveDCRCofitsobligationtocomplywithallapplicablefederal,stateandlocallawsandregulations.leases.3279.

No provision

of this Agreement

shall have

the effect

of limiting

the applicability

of any regulations promulgated

after

the Effective

Date,

to the extent otherwise applicable

to operations

at the Refinery. 80. Except

as otherwise addressed

in this Agreement,

neither DNREC

nor DCRC waives

or otherwise

limits,

in any way,

its rights, claims, positions

or available defenses concerning applicability

or interpretation

of any specific regulatory

or statutory provision potentially
relevant

to the compliance

of DCRC’s operations

at the Refmery. 81.

By execution

of this Agreement,

DCRC

does

not waive

or limit

in any way

its rights

to contest

any action

by the State, including DNREC, including without limitation relative

to DCRC’s

rights

to defend against,

and available
claims, positions

and defenses

in responding

to, any compliance

action initiated

by the State, including DNREC. 82. Upon issuance

to DCRC

of any Authorization

or Other Necessary Approval, including without limitation

the Modified

Title

V Permit, which incorporates

or applies

any obligation

of the Parties under

this Agreement,

the obligation

will

no longer

be separately enforceable

under

this Agreement. 83. Third Parties.

This Agreement

does

not limit

or affect

the rights

of DCRC

or DNREC against

any person

or entity

not party

to this Agreement,

nor does

it create

or expand

any rights

of any person

or entity

not party

to this Agreement concerning

or against DCRC

or DNREC.

In addition,

this Agreement

shall

not

be considered

to create rights

in,

or grant

any cause

of action

to, any third party

not party

to this Agreement. 3384.Notice.Unlessotherwiseprovidedherein,notificationstoorcommunicationswithDNRECorDCRCshallbesenteitherbyovernightreceiptmailserviceorbycertifiedorregisteredmail,returnreceiptrequested,orhanddelivered.Exceptasotherwiseprovidedherein,writtennotificationorcommunicationshallbeaddressedasfollows:AstoDCRC:JamesFedenaDelawareCityRefiningCompany,LLCDelawareCityRefinery2000WrangleHillRoadDelawareCity,DE19706andJeffreyDill,EsquireGeneralCounselPBFInvestmentsLLCOneSoundShoreDrive,Suite303•Greenwich,CT06830•AstoDNREC:DavidSmall,DeputySecretaryDNREC89KingsHighwayDover,DE19901KathyBunting-HowarthDirectorofWaterResourcesDNREC89KingsHighwayDover,DE19901andValerieSatterfieldDeputyAttorneyGeneralDepartmentofJustice3rdFloor102W.WaterStreetDover,DE190013485.Eitherpartymaychangeeitherthenoticerecipientortheaddressforprovidingnoticestoitbyservingtheotherpartywithawrittennoticesettingforthsuchnewnoticerecipientoraddress.86.BindingAgreement.ThisAgreementshallbebindingupontheParties.DCRCshallnotassignorotherwisetransferthisAgreementwithoutthepriorwrittenconsentoftheSecretaryofDNREC.TheundersignedrepresentativeofeachPartytothisAgreementrepresentsthatheorsheisauthorizedbythePartywhomheorsherepresentstoenterintothetermsofthisAgreementandbindthatPartytothem.87.EffectiveDate.ThisAgreementshallbeeffectiveuponthelaterdateofexecutionbytheauthorizedrepresentativesofbothParties(the“EffectiveDate”).88.ClosingasPrerequisitetoObligationsUndertheAgreement.ThisAgreement,andthecommitments,obligationsandunderstandingsreflectedherein,aredependentuponthesuccessfulcompletionofClosingbetweenDCRCandPremcorregardingthetransferofassetscomprisingtheRefinery.NoobligationundertakenbyDCRCorDNREChereundershallbebindingintheeventthattheclosingdoesnotoccur.89.Modification.ThisAgreementmaybemodifiedonlybythewrittenconsentofDNRECandDCRC.90.SeverabilityofTerms.IfanypartofthisAgreementisforanyreasonfoundtobeunenforceable,allotherportionsshallneverthelessremainenforceable.91.ThisAgreementconstitutestheentireagreementbetweentheParties.35FORTHESTATEOFDELAWAREDEPARTMENTOFNATURALRESOURCESANDENVIRONMENTALCONTROLBy:(.Date:May31,2010CollinO’Mara,SecretaryDepartmentofNaturalResourcesandEnvironmentalControl36FORDELAWARECITYREFININGCOMPANY,L.L.C.By:______________________________Date:____ThomasJ.NimblyExecutiveVicePresidentandChiefOperatingOfficer37