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                                                                  Execution Copy

                                                                    EXHIBIT 10.8

                               TRANSITION SERVICES

                                    AGREEMENT

                                 BY AND BETWEEN

                          THE WILLIAMS COMPANIES, INC.,
                             A DELAWARE CORPORATION

                                       AND

                             WEG ACQUISITIONS, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP

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                          TRANSITION SERVICES AGREEMENT

                  This TRANSITION SERVICES AGREEMENT (this "Agreement") is
entered into as of June 17, 2003, by and between THE WILLIAMS COMPANIES, INC., a
Delaware corporation ("Williams"), and WEG ACQUISITIONS, L.P., a Delaware
limited partnership ("Buyer").

                                    Recitals

                  WHEREAS, Buyer, Williams Energy Services, LLC ("WES"),
Williams Natural Gas Liquids, Inc. ("WNGL") and Williams GP LLC (the "Old GP,"
and together with WES and WNGL, the "Selling Parties") have entered into that
certain Purchase Agreement, dated April 18, 2003, as amended by Amendment No. 1
thereto dated as of May 5, 2003 (as amended, the "Purchase Agreement"), for the
purchase and sale of all of the membership interests of WEG GP LLC (the "General
Partner"), the general partner of the Williams Energy Partners L.P. (the "MLP"),
all of the common units and subordinated units representing limited partner
interests in the MLP owned by WES and WNGL, and all of the class B common units
representing limited partner interests in the MLP owned by the Old GP (as
contemplated in the Purchase Agreement, the "Transaction");

                  WHEREAS, the Partnership Entities (as defined herein) are
engaged in the business of the storage, transportation and distribution of
refined petroleum products and ammonia (the "Business"); and

                  WHEREAS, Williams and certain of its affiliates and
subsidiaries currently provide certain services to the Partnership Entities with
respect to the operation of its Business pursuant to the Services Agreement,
dated September 30, 2002 (the "Services Agreement"), among WES, Williams
Petroleum Services, L.L.C. ("WPS"), the General Partner and the MLP; and it is a
closing condition for the parties to the Purchase Agreement that Williams and
Buyer enter into this Agreement pursuant to which Williams shall provide, or
cause the Williams Service Providers (as defined herein) to provide, and make
available to the Buyer Entities (as defined herein) for their benefit, the
Transition Services (as defined herein) during the term of this Agreement.

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

         1. Definitions. Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to them in the Purchase Agreement.

         "Accounting Referee" has the meaning set forth in Section 5(b).

         "Additional Services" has the meaning set forth in Section 2(j).

         "Business" shall have the meaning set forth in the recitals.

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         "Buyer Entities" shall mean, collectively, Buyer and its subsidiaries,
including the Partnership Entities.

         "Buyer Indemnified Parties" shall have the meaning set forth in Section
9(a).

         "Claim" shall have the meaning set forth in Section 9(a).

         "Closing" shall have the meanings set forth in Section 1.1 of the
Purchase Agreement.

         "Closing Date" shall have the meaning set forth in Section 1.1 of the
Purchase Agreement.

         "Determination Amount" shall have the meaning set forth in Section
5(b).

         "Employee Lease Payment" shall have the meaning set forth in Section
2(f).

         "Force Majeure Event" shall mean an act of God; unusual fire, flood,
earthquake, storm, lightning; an act of Governmental Authority, or necessity for
compliance with any court order, law, statute, ordinance or regulation
promulgated by a Governmental Authority having jurisdiction with respect to the
applicable subject matter; a strike, lockout or other industrial disturbance; an
act of the public enemy, sabotage, war, act of terrorism, insurrection or
blockade; riot or other civil disturbance; epidemic; explosions; and any other
similar event that, in each such case, prevents, in whole or in part, the
performance of a party's obligations under this Agreement, is not reasonably
within the control of the affected party and which by the exercise of
commercially reasonable efforts the affected party is unable to overcome or
prevent.

         "G&A Employees" shall have the meaning set forth in Section 1A.

         "G&A Services" shall mean all general and administrative services of
the same or similar nature which the Williams Service Providers furnished to the
Partnership Entities pursuant to the Services Agreement during the one-month
period ending on the Closing Date, the categories with respect to which are set
forth on Schedule "A" attached hereto.

         "G&A Service Fee" shall have the meaning set forth in Section 5(a)(ii).

         "Governmental Approval" shall mean any material consent, authorization,
certificate, permit, right of way grant or approval of any Governmental
Authority that is necessary for the construction, ownership and operation of the
Business in accordance with applicable Laws.

         "Governmental Authority" shall mean any court or tribunal in any
jurisdiction or any federal, state, tribal, municipal or local government or
other governmental body, agency, authority, department, commission, board,
bureau, instrumentality, arbitrator or arbitral body or any quasi-governmental
or private body lawfully exercising any regulatory or taxing authority.

         "Interest Rate" shall have the meaning set forth in Section 5(b).

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         "Laws" shall mean any applicable statute, Environmental Law (as defined
in the Purchase Agreement), common law, rule, regulation, judgment, order,
ordinance, writ, injunction or decree issued or promulgated by any Governmental
Authority.

         "Leased Employee" shall have the meaning set forth in Section 2(f).

         "Leasing Period" shall have the meaning set forth in Section 2(f).

         "MLP" shall have the meaning set forth in the recitals.

         "Monthly Invoice" shall have the meaning set forth in Section
5(a)(iii).

         "New Omnibus Agreement" shall mean the New Omnibus Agreement, dated the
date hereof, among the Buyer, Williams and the Williams Service Providers named
therein.

         "O&M Employees" shall have the meaning set forth in Section 1A.

         "O&M Services" shall mean all operating and maintenance services of the
same or similar nature which the Williams Service Providers furnished, during
the one-month period ending on the Closing Date, to the Partnership Entities
pursuant to the Services Agreement.

         "Organizational Documents" shall mean certificates of incorporation,
by-laws, certificates of formation, limited liability company operating
agreements, partnership or limited partnership agreements or other formation or
governing documents of a particular entity.

         "Partnership Assets" shall mean the assets and properties of the
Partnership Entities.

         "Partnership Entities" shall mean the General Partner, the MLP and all
of the subsidiaries of the MLP.

         "Partnership Group" shall mean the Partnership Entities, with the
exclusion of the General Partner.

         "Person" shall mean an individual, corporation, partnership, joint
venture, trust, limited liability company, unincorporated organization or any
other entity.

         "Section 4.3(a) Notice" shall mean the notice provided by Buyer to the
Selling Parties pursuant to Section 4.3(a) of the Purchase Agreement which lists
the Business Employees and Additional Employees that have accepted employment
offers with Buyer.

         "Services Agreement" shall have the meaning set forth in the recitals
to this Agreement.

         "Transition Services" shall mean the G&A Services and the O&M Services.

         "Williams Indemnified Parties" shall have the meaning set forth in
Section 9(b).

         "Williams Service Providers" shall mean any subsidiary or affiliate of
Williams that, during the one-month period ending on the Closing Date, was
providing to the Partnership Entities any services pursuant to the Services
Agreement.

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         1A. Covered Employees.

         Promptly upon delivery of the Section 4.3(a) Notice to the Selling
Parties by Buyer as required under the Purchase Agreement, and no more than five
(5) days after such delivery, Williams and Buyer shall determine (i) which of
such Business Employees and Additional Employees, as of the Closing Date,
provided O&M Services to the Partnership Entities under the Services Agreement
(the "O&M Employees") and (ii) which of such Business Employees and Additional
Employees, as of the Closing Date, provided G&A Services to the Partnership
Entities under the Services Agreement (the "G&A Employees"), and among the G&A
Employees, which single category of G&A Services (of those categories listed on
Schedule A hereto) they are responsible for providing. Immediately, upon such
determination, Williams and Buyer shall attach such information to this
Agreement as Schedule "C" hereto.

         2. Services.

                  (a) Existing Services Agreement. Williams and the Williams
         Service Providers currently provide certain services to the Partnership
         Entities pursuant to the Services Agreement. Williams shall continue,
         and shall cause the Williams Service Providers to continue, to provide
         such services to the Partnership Entities pursuant to the Services
         Agreement, as further provided in this Agreement; provided, however, in
         the event of the termination of the Services Agreement during the term
         of this Agreement, Williams shall continue, and shall cause the
         Williams Service Providers to continue, to provide, or cause to be
         provided, such services under this Agreement. At any time during the
         term of this Agreement, upon the written request of Williams, Buyer
         shall use its reasonable best efforts to cause the Partnership Entities
         to terminate the Services Agreement as promptly as possible.

                  (b) O&M Services. Until the date that all of the O&M Employees
         are transferred to one or more of the Buyer Entities as provided in
         Section 2(e) below, the Williams Service Providers shall continue to
         provide the O&M Services to the Partnership Entities at a cost
         consistent with the historical cost of providing such services under
         the Services Agreement.

                  (c) G&A Services. The Williams Service Providers shall
         provide, or subject to Section 2(h) below shall cause a third-party to
         provide, to the Buyer (or the Partnership Entity designated by Buyer)
         each category of G&A Services pursuant to the terms of the Services
         Agreement; provided, the obligation to provide any category of G&A
         Services hereunder shall terminate when the group of G&A Employees who
         provides such category of G&A Services is transferred to Buyer or a
         Partnership Entity designated by Buyer as provided in Section 2(e)
         below.

                  (d) Standard for Provision of Transition Services. Williams
         hereby covenants and agrees that the Transition Services will be
         performed (i) in accordance with applicable material Governmental
         Approvals and Laws, (ii) with at least the same level, standard of care
         and timeliness that services were provided to the Partnership Entities
         under the Service Agreement prior to the Closing and (iii) with at
         least the same level, standard of care and timeliness that the Williams
         Service Providers operate assets similar to the

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         Partnership Assets. EXCEPT AS SET FORTH IN THIS SECTION AND SECTION
         8(b) HEREOF, WILLIAMS AND THE WILLIAMS SERVICE PROVIDERS MAKE NO
         REPRESENTATION, WARRANTY OR GUARANTY, EXPRESS OR IMPLIED, OF ANY KIND
         CONCERNING THE TRANSITION SERVICES AND ANY RESULTS OR WORK PRODUCT AND
         SPECIFICALLY MAKE NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
         PARTICULAR PURPOSE, AND NONE SHALL BE IMPLIED. ALL OTHER
         REPRESENTATIONS, WARRANTIES OR GUARANTEES, WRITTEN OR ORAL, EXPRESS OR
         IMPLIED IN FACT OR IN LAW, AND WHETHER OR NOT BASED ON STATUTE ARE
         EXCLUDED.

                  (e) Transfer of Employees.

                           (i)      To effect the transfer of the O&M Employees,
                  Buyer shall deliver written notice to Williams requesting that
                  all (and not less than all) of the O&M Employees be
                  transferred to Buyer, or one or more of the Partnership
                  Entities designated by Buyer. The O&M Employees shall be
                  transferred within twenty (20) days of the receipt by Williams
                  of such notice, or as soon as practicable thereafter, in
                  either case, as of a date mutually agreed upon by the parties
                  (which shall be the last day of the any month during the term
                  of this Agreement). Upon the transfer of the O&M Employees,
                  the obligation of the Williams Service Providers to continue
                  providing the O&M Services hereunder shall terminate;

                           (ii)     To effect the transfer of one or more groups
                  of G&A Employees that provide a category of G&A Services,
                  Buyer shall deliver written notice to Williams requesting that
                  all (and not less than all) of the G&A Employees comprising
                  each such group be transferred to Buyer, or one or more of the
                  Partnership Entities designated by Buyer. Each such group of
                  G&A Employees shall be transferred within twenty (20) days of
                  the receipt by Williams of such notice, or as soon as
                  practicable thereafter, in either case, as of a date mutually
                  agreed upon by the parties (which shall be the last day of the
                  any month during the term of this Agreement). Upon the
                  transfer of any such group of G&A Employees, the obligation of
                  the Williams Service Providers to continue providing the
                  corresponding category of G&A Services hereunder shall
                  terminate; and

                           (iii)    The transfer of O&M Employees and G&A
                  Employees under this Section 2(e) is subject to Section 2(f)
                  below.

                  (f) Leased Employees. Notwithstanding the provisions of
         Section 2(e) above, Buyer shall lease from Williams the services of
         each of the employees listed on Schedule "B" hereto (each, a "Leased
         Employee") for the period beginning on the date that such employee
         would otherwise be transferred to Buyer (or a Partnership Entity
         designated by Buyer) and ending, with respect to each such employee, on
         the date such employee reaches the age of fifty-five (55) years (the
         "Leasing Period"), for the amount per month previously provided by
         Williams to Buyer in writing, which amount shall include salary and an
         allocation equal to 34% of salary which represents the cost of payroll,
         taxes, benefits and target bonus accruals for such employee (in
         aggregate the "Employee Lease

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         Payment"). Buyer shall, or shall cause the Partnership Entities to,
         reimburse Williams for any amounts paid in respect of a Leased Employee
         that are in excess of the target bonus amount with respect to such
         employee. During the Leasing Period, Williams shall have the sole
         responsibility for the payment of salary and providing benefits to the
         Leased Employees. The provisions of this Section 2(f) shall not apply
         in the case of any employee listed on Schedule "B" who reaches the age
         of fifty-five (55) years prior to the date such employee would
         otherwise be transferred to Buyer (or a Partnership Entity designated
         by Buyer) pursuant to Section 2(e) above.

                  (g) Service Changes. Williams and/or the Williams Service
         Providers may at any time, in their sole discretion, change or replace
         any of its (or their) internal or external services, functions or
         features that may affect such Transition Services; provided, that such
         change or replacement does not materially change Williams or the
         Williams Services Providers' performance of the Transition Services.

                  (h) Subcontractors. Williams and the Williams Service
         Providers shall have the right, in their sole discretion, to
         subcontract the performance of services under this Agreement to one or
         more third-parties; provided, that such subcontracting arrangement does
         not materially change Williams or the Williams Services Providers'
         performance of the Transition Services.

                  (i) Transfer upon Termination. Notwithstanding anything else
         in this Agreement, except as provided in Section 2(f), upon the
         termination of this Agreement, any O&M Employees or G&A Employees that
         have not been transferred to Buyer, or a Partnership Entity designated
         by Buyer, shall immediately be transferred to Buyer.

                  (j) Additional Services. Buyer may from time to time during
         the term of this Agreement request that Williams or a Williams Service
         Provider to provide additional services in accordance with the
         provisions of this Agreement that are not included in the definition of
         Transition Services. Upon receipt of any such request, Williams shall
         consider in good faith as to whether to provide such additional
         services and notify Buyer as to whether Williams is willing to provide
         or perform such service, and if so, shall submit to Buyer an estimate
         of the cost of such services; provided, Williams shall not unreasonably
         refuse to provide such additional services to Buyer. Buyer shall then
         promptly review such estimate and notify Williams in writing as to
         Buyer's concurrence or non-concurrence with such estimated costs. If
         Buyer concurs with such estimated costs, Buyer may notify Williams to
         proceed to provide or cause such services to be provided to Buyer, or
         the Partnership Entity designated by Buyer. Williams shall not be
         obligated to provide any such services to Buyer or the Partnership
         Entities other than pursuant to this Section 2(j). Any such services
         provided pursuant to this Section 2(j) shall be referred to as
         "Additional Services."

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         3. [Reserved].

         4. Term and Termination.

                  (a) Term. The term of this Agreement shall commence on the
         Closing Date and shall continue until the earlier of (i) the date on
         which all of the O&M Employees and G&A Employees have been transferred
         to Buyer, or one or more of the Partnership Entities designated by
         Buyer, or (ii) the last day of the ninth (9th) full calendar month
         following the calendar month in which the Closing Date occurs;
         provided, however, Buyer may, upon written notice delivered to and
         received by Williams not less than ten (10 days) prior to the date
         referred to in clause (ii) above, extend the term of this agreement
         until the last day of the twelfth (12th) full calendar month following
         the calendar month in which the Closing Date occurs; provided, further,
         that upon any such extension by Buyer, the aggregate amount payable by
         Buyer set forth on each Monthly Invoice following such extension shall
         be increased by five percent (5%).

                  (b) Termination of Transition Services. Except as provided in
         Section 4(c) or as otherwise provided in this Section 4(b), the
         provision of Transition Services by Williams and/or the Williams
         Service Providers will terminate upon the transfer of the employees
         associated with such service as provided under Section 2(e) above. With
         respect to any category of G&A Services, with respect to which there
         are no G&A Employees associated with such category, Buyer may elect, by
         giving not less ten (10) days advance written notice to Williams to
         terminate the provision by Williams or any Williams Service Provider of
         such category(ies) of Transition Services; provided, such categories of
         G&A Services shall only be terminated as of the last day of the month.
         The Buyer Entities shall have the right to immediately commence,
         whether directly or indirectly through third parties, the performance
         of any of the Transition Services, without advance notice to Williams,
         in the event of any event or occurrence of an emergency nature, in the
         event that Williams or any Williams Service Provider is unable to
         perform any such service because of the occurrence of a Force Majeure
         Event or in the event of any bankruptcy, insolvency or similar
         proceeding affecting Williams or any Williams Service Provider, without
         any obligation to Williams other than for Transition Services
         previously performed.

                  (c) Williams' Right to Suspend Performance or Terminate the
         Agreement. Williams shall have the right to suspend the performance of
         its obligations under this Agreement in the event of the Buyer
         Entities' failure to make payments due, owing and not disputed in good
         faith pursuant to Section 5(b) hereof or properly set off pursuant to
         Section 9.5 of the Purchase Agreement, to Williams under this
         Agreement, and such failure has not been cured within thirty (30) days
         after written notice of such failure to Buyer. In the event a Buyer
         Entity cures such payment default within sixty (60) days, Williams
         shall resume the performance of its obligations hereunder. Williams
         shall have the right to terminate this Agreement in the event such
         failure to make payment has not been cured within sixty (60) days after
         written notice of such failure to the Buyer.

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                  (d) Effect of Termination. Upon termination of this Agreement
         or any category of Transition Services, Williams and Williams Service
         Providers shall have no further obligation to provide such Transition
         Services to any of the Buyer Entities hereunder.

         5. Billing and Payment.

                  (a) Fees. Subject to Buyer's off-set rights contained in
         Section 9.5 of the Purchase Agreement, Buyer shall, or shall cause a
         Partnership Entity to, reimburse Williams for the Transition Services
         in accordance with this Section 5.

                           (i)      O&M Services Fee. Buyer shall, or shall
                  cause a Partnership Entity to, reimburse the Williams Service
                  Providers each month an amount equal to the cost of providing
                  the O&M Services, as set forth in the Monthly Invoice, except
                  that payment shall be made as provided in Section 5(a)(iii)
                  below.

                           (ii)     G&A Services Fee. Beginning on the Closing
                  Date, the Buyer Entities shall, or shall cause a Partnership
                  Entity to, pay Williams each month for G&A Services (the "G&A
                  Service Fee") an amount equal to $2,898,913 (which amount
                  represents the sum of the monthly service fees for each of the
                  separate categories of G&A Services set forth on Schedule "A"
                  hereto), subject to Article VII of the New Omnibus Agreement.
                  Upon receipt of notice from Buyer pursuant to Section 4(b)
                  requesting the termination of one or more categories of G&A
                  Services, the G&A Service fee shall be reduced by the amount
                  of the monthly service fee set forth on Schedule "A" for each
                  such category of G&A Services to be terminated, effective as
                  of the beginning of the month immediately following the month
                  in which each such category of G&A Services has been
                  terminated pursuant to Section 4 hereof.

                           (iii)    Billing. On or before the twentieth (20th)
                  day of each month, Williams shall provide to the Buyer one or
                  more written invoices (collectively, the "Monthly Invoice"),
                  setting out the total amount due Williams for (A) G&A Service
                  Fee, (B) the cost of O&M Expenses provided in the immediately
                  preceding month, (C) the Employee Lease Payment and (D) the
                  cost of any Additional Services provided in the immediately
                  preceding month, subject, if applicable, to the final proviso
                  of Section 4(a) above. Items properly invoiced and not
                  disputed in good faith by the Buyer are due and payable within
                  fifteen (15) days following the date of such invoice;
                  provided, that the Buyer shall give written notice on or
                  before the due date of any Williams invoice of any good faith
                  dispute of all or any portion of such Monthly Invoice, with
                  the particulars of such dispute, which dispute shall be
                  resolved in the manner provided in Section 5(b) below.

                  (b) Disputes. If there is a dispute between a Buyer Entity, on
         the one hand, and Williams or a Williams Service Provider, on the other
         hand, regarding the amounts shown as billed to the Buyer on any Monthly
         Invoice, (i) Williams shall, where applicable and practicable, furnish
         or cause to be furnished to the Buyer additional supporting
         documentation to reasonably substantiate the amounts billed including
         listings

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         of the dates, times and amounts of the Transition Services in question,
         and (ii) the Buyer Entities may withhold payment with respect to all or
         any portion of such invoiced amounts that such Buyer Entity believes in
         good faith are inaccurate or are otherwise not in accordance with the
         terms of this Agreement until resolution in accordance with the
         procedures set forth below in this Section 5(b); provided that the
         Buyer Entities shall pay any undisputed portion of such amount in
         accordance with Section 5(a).

                  Upon delivery of such additional documentation, Williams and
         the Buyer Entities shall cooperate and use their reasonable efforts to
         resolve such dispute. If they are unable to resolve their dispute
         within twenty (20) business days of the delivery of such additional
         supporting documentation by Williams, then the dispute shall be
         referred for resolution by a firm of independent accountants of
         nationally recognized standing (the "Accounting Referee") to be
         selected in the following manner: Williams will select three (3)
         candidates and deliver a written notice containing the names of such
         candidates to Buyer, and within five (5) days of receiving such notice,
         Buyer will select one of such three candidates to serve as the
         Accounting Referee. The Accounting Referee may not be otherwise engaged
         by Williams or Buyer, or their respective Affiliates, in connection
         with the transactions contemplated under this Agreement or the
         Transaction Documents and may not have performed any material services
         on behalf of Williams or Buyer, or their respective Affiliates, during
         the five (5) years immediately preceding the date of this Agreement.
         The Accounting Referee shall determine the validity of the disputed
         amounts within thirty (30) days of the referral of such dispute to such
         Accounting Referee. The determination of the Accounting Referee shall
         not require the Buyer Entities to pay more than the amount in dispute
         nor require any Williams Service Provider to return any amount
         previously paid by the Buyer Entities. The determination of the
         Accounting Referee shall be finally binding. The fees and expenses of
         the Accounting Referee shall be borne (i) by the Buyer if the
         difference between the amount set forth in such determination by the
         Accounting Referee (the "Determination Amount") and the Buyer's
         estimation of what the invoice amount should have been (which the Buyer
         shall provide to the Accounting Referee at such time the dispute is
         referred to such Accounting Referee) is greater than the difference
         between the Determination Amount and the amount set forth on the
         Monthly Invoice, (ii) by Williams if the first such difference is less
         than the second such difference and (iii) otherwise equally by Williams
         and the Buyer; provided, if any invoice dispute is resolved in favor of
         the Buyer Entities and Buyer has paid such amount, Williams shall
         offset the amount of any overpayment against future invoices to Buyer;
         or, if there are no additional invoices to be paid, Williams shall
         refund any amount owed within fifteen (15) days of resolution of the
         dispute. Such offset or refund shall be credited or paid to Buyer
         together with interest at the Interest Rate from the date of
         overpayment to Williams until the date of such offset or refund. If a
         dispute is resolved in favor of Williams, Buyer shall, or shall cause
         the Buyer Entities to, pay interest on the undisputed amount of an
         invoice from the due date thereof up to and including the date when
         such amount and interest thereon are paid in full, at the rate per
         annum equal to the rate published as the "prime rate" in The Wall
         Street Journal for the first business day of the month in which such
         invoice is paid, plus 2%, but in no event at any rate that is greater
         than the maximum interest rate allowed by applicable Laws (such rate,
         the "Interest Rate").

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                  (c) Buyer's Audit Rights. Buyer shall have the right, at any
         time within three (3) months after the date of any Williams invoice for
         reimbursement of costs of Transition Services to audit those books and
         records of Williams and any Williams Service Provider that provided
         Transition Services or which books and records relate to the Transition
         Services covered by such invoice, to verify the items reflected on such
         invoice. Any such audit shall be conducted during normal business hours
         by Buyer or its designated auditor after ten (10) days prior written
         notice to Williams, at Buyer's sole cost and expense, in the offices of
         Williams and the relevant Williams Service Provider or such other
         location as may be mutually agreed. Williams shall cooperate and shall
         cause any relevant Williams Service Provider to cooperate with and
         provide reasonable assistance to Buyer and/or its auditor in connection
         with the performance of any such audit. Buyer shall assert any claim
         for refund of costs of Transition Services reimbursed to Williams under
         the audited invoice within thirty (30) days after the completion of the
         audit. Williams shall have thirty (30) days from receipt of Buyer's
         claim for refund to respond. If Williams does not dispute Buyer's
         refund claim, Williams shall offset the overpayment against future
         invoices; or, if there are no additional invoices to be paid, Williams
         shall pay such refund within such 30-day period; such offset or refund
         shall be credited or paid together with interest at the Interest Rate
         from the date of Buyer's overpayment to Williams until the date of such
         offset or refund of such overpayment is credited or paid. Should
         Williams dispute the claim and refuse to pay any refund claim by Buyer
         resulting from the exercise of Buyer's audit rights, the parties will
         refer the dispute to an Accounting Referee in the manner described in
         Section 5(b) above.

         6. Confidentiality of Information.

                  (a) General. During the term of this Agreement and for a
         period of one (1) year following the termination of this Agreement,
         neither Party (as defined below in this Section 6(a)) shall, directly
         or indirectly, disclose to any Person any information received,
         obtained or created that is not in the public domain or generally known
         in the industry, in any form, whether acquired prior to or after the
         Closing Date, relating to the business and operations of the other
         Party. Notwithstanding the foregoing, either Party may disclose any
         information relating to the business and operations of the other Party
         (i) if required by Law or applicable stock exchange rule, and (ii) to
         such other Persons if, at the time such information is provided, such
         Person is already in the possession of such information. For purposes
         of this Section 6, each of Buyer and its affiliates, on the one hand,
         and Williams and its affiliates, on the other hand, shall be a "Party."

                  (b) Obligations upon Termination. Upon termination of this
         Agreement, except as otherwise provided in this Agreement or in the
         Purchase Agreement, each Party agrees to turn over to the other Party
         or destroy such confidential information in its possession, but only in
         accordance with the instructions of the other Party; provided, however,
         that each Party may maintain one archive copy of all of such
         confidential information that was generated during the term of this
         Agreement in a secure data storage facility.

         7. Relationships Among the Parties. It is the intent of the parties
that with respect to the provision of Transition Services pursuant to this
Agreement, Williams and the Williams Service Providers are independent
contractors, with authority to control, direct and oversee their

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performance of the Transition Services, subject to the overall direction and
control of the representatives of the Buyer Entities. Nothing in this Agreement
shall cause the relationship between Williams and the Williams Service Providers
on the one hand, and Buyer and the Partnership Entities on the other hand, to be
deemed to constitute an agency, partnership or joint venture. The terms of this
Agreement are not intended to constitute a joint employer for any purpose
between any of the parties and their affiliates. Neither Williams nor the
Williams Service Providers shall have or hold itself out as having, any
authority to enter into any contract or create any obligation or liability on
behalf of, in the name of, or binding upon the Buyer Entities except as
specifically provided in this Agreement.

         8. Representations and Warranties.

                  (a) Representations and Warranties of Buyer. As of the date of
         this Agreement, Buyer represents and warrants as follows:

                           (i)      Organization. Buyer is a limited partnership
                  duly organized, validly existing and in good standing under
                  the laws of the state of Delaware and has all requisite power
                  and authority to own its properties and assets and to conduct
                  its business as now conducted.

                           (ii)     Validity of Agreement. Buyer has the power
                  to enter into this Agreement and to carry out its obligations
                  hereunder. The execution and delivery of this Agreement and
                  the performance of the Buyer's obligations hereunder have been
                  duly authorized by its general partner, and no other
                  proceedings on the part of Buyer are necessary to authorize
                  such execution, delivery and performance. This Agreement has
                  been duly executed by Buyer and constitutes the valid and
                  binding obligation of Buyer enforceable against Buyer in
                  accordance with its terms (except to the extent that its
                  enforceability may be limited by applicable bankruptcy,
                  insolvency, reorganization or other similar law affecting the
                  enforcement of creditors' rights generally or by general
                  equitable principles).

                           (iii)    No Conflict or Violation; No Defaults. The
                  execution, delivery and performance by Buyer of this Agreement
                  does not and will not violate or conflict with any provision
                  of its organizational documents and does not and will not
                  violate any applicable provision of law, or any order,
                  judgment or decree of any Governmental Authority, nor violate
                  or result in a breach of or constitute (with due notice or
                  lapse of time or both) a default under any contract, lease,
                  loan agreement, mortgage, security agreement, trust indenture
                  or other agreement or instrument to which Buyer is a party or
                  by which it is bound or to which its properties or assets is
                  subject, nor result in the creation or imposition of any
                  encumbrance upon any of its properties or assets where such
                  violations, breaches or defaults in the aggregate would have a
                  material adverse effect on the transactions contemplated
                  hereby or on the assets, properties, business, operations, net
                  income or financial condition of Buyer.

                  (b) Representations and Warranties of Williams. As of the date
         of this Agreement, Williams represents and warrants as follows:

                                       11

<PAGE>

                           (i)      Corporate Organization. Williams is a
                  corporation duly organized, validly existing and in good
                  standing under the laws of the state of Delaware and has all
                  requisite power and authority to own its properties and assets
                  and to conduct its business as now conducted.

                           (ii)     Validity of Agreement. Williams has the
                  power to enter into this Agreement and to carry out its
                  obligations hereunder. The execution and delivery of this
                  Agreement and the performance of Williams' obligations
                  hereunder have been duly authorized by its Boards of Directors
                  and no other proceedings on the part of Williams are necessary
                  to authorize such execution, delivery and performance. This
                  Agreement has been duly executed by Williams and constitutes
                  the valid and binding obligation of Williams enforceable in
                  accordance with its terms against Williams (except to the
                  extent that its enforceability may be limited by applicable
                  bankruptcy, insolvency, reorganization or other similar law
                  affecting the enforcement of creditors' rights generally or by
                  general equitable principles).

                           (iii)    No Conflict or Violation; No Defaults. The
                  execution, delivery and performance by Williams of this
                  Agreement does not and will not violate or conflict with any
                  provision of its organizational documents and does not and
                  will not violate any applicable provision of law, or any
                  order, judgment or decree of any Governmental Authority, nor
                  violate or result in a breach of or constitute (with due
                  notice or lapse of time or both) a default under any contract,
                  lease, loan agreement, mortgage, security agreement, trust
                  indenture or other agreement or instrument to which Williams
                  is a party or by which it is bound or to which any of its
                  properties or assets is subject, nor result in the creation or
                  imposition of any encumbrance upon any of its properties or
                  assets where such violations, breaches or defaults in the
                  aggregate would have a material adverse effect on the
                  transactions contemplated hereby or on the assets, properties,
                  business, operations, net income or financial condition of
                  Williams.

         9. Indemnification; Release; Limit on Liability.

                  (a) Williams and the Williams Service Providers shall, jointly
         and severally, indemnify and hold harmless the Buyer Entities and each
         of their respective officers, directors, employees, agents and
         affiliates (and the officers, directors, employees and agents of such
         affiliates) (the "Buyer Indemnified Parties") from and against any and
         all losses, claims, demands, damages, fines, penalties, injuries,
         liabilities, suits, obligations to indemnify others, judgments,
         expenses or costs (including reasonable attorneys', consultants' and
         experts' fees and other expenses incurred in the defense of any claim
         or lawsuit in the enforcement of this indemnity obligation) (each, a
         "Claim") arising out of, relating to or resulting from the Williams
         Service Providers' performance of the services specified under this
         Agreement to the extent such Claim results from Williams or the
         Williams Service Providers' negligence or willful failure to perform
         their obligations hereunder.

                                       12

<PAGE>

                  (b) The Buyer Entities shall, jointly and severally, indemnify
         and hold harmless Williams and the Williams Service Providers, and each
         of their respective officers, directors, employees, agents and
         affiliates (and the officers, directors, employees and agents of such
         affiliates) ("Williams Indemnified Parties") if any of the Williams
         Indemnified Parties shall at any time or from time to time be subject
         to any Claims arising out of, relating to or resulting from the
         performance of the services specified under this Agreement by either
         party except to the extent such Claim results from the Williams
         Indemnified Parties' negligence or willful failure to perform their
         obligations hereunder.

                  (c) Notwithstanding anything to the contrary in this
         Agreement, the Buyer Entities shall not be liable to any of the
         Williams Indemnified Parties, nor shall Williams or the Williams
         Service Providers be liable to any of the Buyer Indemnified Parties,
         for any exemplary, punitive, special, indirect, consequential, remote,
         or speculative damages (including, without limitation, any damages on
         account of lost profits or opportunities) resulting from or arising out
         of this Agreement or the transactions contemplated hereby.

                  (d) The obligations of the Parties in this Section 9 shall not
         limit their respective indemnification obligations, or those of their
         affiliates, under the Purchase Agreement.

         10. Schedules. The Schedules to this Agreement that are specifically
referred to herein are a part of this Agreement as if fully set forth herein.
All references herein to Articles, Sections, subsections, paragraphs,
subparagraphs, clauses and Schedules shall be deemed references to such parts of
this Agreement, unless the context shall otherwise require.

         11. Force Majeure. If by reason of a Force Majeure Event either party
is rendered unable, in whole or in part, to perform its obligations under this
Agreement, other than the obligation to make payments of money then due, such
party shall be excused from such performance to the extent it is prevented by,
and during the continuance of, such Force Majeure Event. The party whose
performance is affected by an Force Majeure Event shall (i) give the other party
notice of the occurrence of such Force Majeure Event as soon as practicable and
(ii) use all commercially reasonable efforts to remedy the cause(s) and
effect(s) of such Force Majeure Event with all reasonable dispatch; provided,
however, that the affected party shall not be obligated to undertake
commercially unreasonable costs or burdens in order to overcome the effects of
the Force Majeure Event and reinstate full performance of its obligations under
this Agreement.

         12. Notices. Any notice or other communication required or permitted
hereunder shall be in writing and shall be deemed given if delivered personally,
by facsimile (which is confirmed) or sent by overnight courier (providing proof
of delivery), to the parties at the following address:

         (a)      If to Williams:

         The Williams Companies, Inc.
         One Williams Center
         Tulsa, Oklahoma 74172

                                       13

<PAGE>

         Facsimile: (918) 573-4503
         Attention: Mr. Tony Gehres

         (b)      If to the Buyer Entities:

         WEG Acquisitions, L.P.
         c/o WEG GP LLC
         One Williams Center
         Tulsa, Oklahoma 74172
         Facsimile: (918) 573-6928
         Attention:  Mr. Lonny Townsend

         with a copy to:

         Vinson & Elkins L.L.P.
         666 Fifth Avenue
         26th Floor
         New York, New York 10103
         Facsimile: (917) 206-8100
         Attention: Mr. Mike Rosenwasser

Any party may, by notice given in accordance with this Section 12 to the other
parties, designate another address or person for receipt of notices hereunder
provided that notice of such a change shall be effective upon receipt.

         13. Successors and Assigns. This Agreement shall inure to the benefit
of, and be binding upon, Williams and Buyer and their respective successors and
permitted assigns. No party may assign or otherwise transfer all or any of its
rights, benefits or obligations hereunder without the prior written consent of
the other party, and any assignment without such consent shall be void; provided
however, that, upon written notice to the other party but without the prior
written consent of such other party, a party may assign or otherwise transfer
its rights, benefits and obligations hereunder to another person or entity in
connection with an acquisition, merger, consolidation, sale of assets or other
transaction involving such other person or entity and constituting a change of
control of such party hereto.

         14. Headings. The headings in this Agreement are for reference only,
and shall not affect the interpretation of this Agreement.

         15. Signatures Counterparts. Facsimile transmission of any signed
original document and/or retransmission of any signed facsimile transmission
shall be the same as delivery of an original. At the request of Buyer or
Williams, the parties will confirm facsimile transmission by signing a duplicate
original document. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original and all of which together shall be
considered one and the same agreement.

                                       14

<PAGE>

         16. Amendments. This Agreement may be amended, modified or supplemented
only by a written instrument executed by Williams and Buyer. The execution of
such instrument by any Partnership Entity shall not be required.

         17. Governing Law. This Agreement shall be governed and construed in
accordance with the internal and substantive laws of New York and without regard
to any conflicts of laws concepts that would apply the substantive law of some
other jurisdiction.

         18. Entire Agreement. This Agreement, together with the Schedules
attached hereto, and the provisions of the Purchase Agreement relating hereto,
represent the entire agreement and understanding of the parties hereto and
thereto with reference to the transactions set forth herein. This Agreement,
together with the Schedules attached hereto, and the provisions of the Purchase
Agreement relating hereto, supercede all prior negotiations, discussions,
correspondence, communications, understandings and agreements between the
parties relating to the transactions set forth herein and all prior drafts
hereof (including Exhibit 1.2(a)(iv)(2) to the Purchase Agreement). No prior
drafts hereof and no words or phrases from any such prior drafts shall be
admissible into evidence in any action or suit involving this Agreement.

         19. Negotiated Agreement. This Agreement has been negotiated by the
parties and the fact that the initial and final draft will have been prepared by
either party will not give rise to any presumption for or against any party to
this Agreement or be used in any respect or forum in the construction or
interpretation of this Agreement or any of its provisions.

         20. Waiver. No consent or waiver, express or implied, by any party to
or of any breach or default by any other party in the performance by such other
party of its obligations hereunder shall be deemed or construed to be a consent
or waiver to or of any other breach or default in the performance of obligations
hereunder by such other party hereunder. Failure on the part of any party to
complain of any act or failure to act of any other party or to declare any other
party in default, irrespective of how long such failure continues, shall not
constitute a waiver by such first party of any of its rights hereunder.

         21. Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, each of Williams and Buyer directs that such court interpret
and apply the remainder of this Agreement in the manner that it determines most
closely effectuates their intent in entering into this Agreement, and in doing
so particularly take into account the relative importance of the term,
provision, covenant or restriction being held invalid, void or unenforceable.

         22. Interpretation. Whenever the words "include," "includes," or
"including," are used in this Agreement, they shall be deemed to be followed by
the words "without limitation."

         23. Third Party Beneficiaries. Except for the Buyer Entities other than
the Buyer (including the Partnership Entities) and Williams Service Providers,
which are intended third party beneficiaries, and except as set forth in
Sections 9 and 13, nothing in this Agreement is intended or shall be construed
to give any person, other than the parties hereto, their successors and
permitted assigns, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein.

                                       15

<PAGE>

         24. Agreement Binding on Entities Other Than Parties. Buyer shall use
commercially reasonable efforts to cause the Partnership Entities to be bound by
the terms and conditions of this Agreement, and Buyer shall be responsible for
any breaches thereof by any such Partnership Entity. The Buyer Entities are
jointly and severally liable hereunder.

         25. Press Release. Except as required by Laws or applicable stock
exchange rules, neither party shall issue any press releases relating to or
arising out of the performance of this Agreement without the prior written
consent and approval of the content of such statement by the other party (which
consent shall not be unreasonably withheld).

         26. Reasonable Cooperation. During the term of this Agreement, each of
the parties shall reasonably cooperate with each other to perform its
obligations under this Agreement, including without limitation, agreeing to
negotiate in good faith to enter into an amendment to this Agreement upon the
written request of either party.

                                       16

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered by their duly authorized officers as of the date first
above written.

                                      THE WILLIAMS COMPANIES, INC.
                                      A DELAWARE CORPORATION

                                      By: /s/ Phillip D. Wright
                                          -------------------------------
                                      Name: Phillip D. Wright
                                      Title: Authorized Signatory

                                      WEG ACQUISITIONS, L.P.
                                      A DELAWARE LIMITED PARTNERSHIP

                                      By: WEG Acquisition Management, LLC
                                          its General Partner

                                      By: /s/ Justin S. Huscher
                                          --------------------------------
                                      Name: Justin S. Huscher
                                      Title: Authorized Signatory

                                      By: /s/ Pierre F. Lapeyre, Jr.
                                          ---------------------------------
                                      Name: Pierre F. Lapeyre, Jr.
                                      Title: Authorized Signatory

                                       17

<PAGE>

                                  SCHEDULE "A"

                                  G&A SERVICES

<TABLE>
<CAPTION>
                                                                                                  Monthly
                        Category of G&A Services                                              G&A Services Fee
                        ------------------------                                              ----------------
<S>                                                                                           <C>
1.  Technical services, including engineering, project management,
    corrosion control, environmental, health and safety services (excludes
    $30,583 estimated monthly bonus accrual and $22,702 benefits)                                 $746,715

2.  Pipeline commercial services, including commercial, business
    development, tariffs, and operations management for the Pipeline
    Group (excludes $31,417 in estimated monthly bonus accrual and
    $12,231 benefits)                                                                             $423,019

3.  Terminals commercial services, including commercial, business
    development and operations management for the Terminals Group
    (excludes $22,833 in estimated monthly bonus accrual and $7,508
    benefits)                                                                                     $286,325

4.  Services of CEO, CFO and their staffs, including investor relations
    and planning (excludes $16,750 in estimated monthly bonus accrual
    and $2,976 benefits)                                                                          $113,607

5.  Information technology services, including business, financial and
    HR applications and network, hardware and website support
    (excludes $12,500 in estimated monthly bonus accrual and $10,518
    benefits),* subdivided as follows:                                                            $710,000
    a.  ATLAS                                                                                     $193,000
    b.  Terminals Application (TAS)                                                               $ 49,000
    c.  Pipeline Applications (SCADA, Magic, Squire)                                              $ 54,000
    d.  Environmental Management                                                                  $  9,000
    e.  GIS                                                                                       $  1,000
    f.  Livelink                                                                                  $  6,000
    g.  Financial applications, including accounts payable/receivable,
           general ledger, financial reporting, purchasing)                                       $ 13,000
    h.  HR/Payroll applications                                                                   $ 46,000
    i.  Personal computing infrastructure (PC procurement, helpdesk,
           email, security)                                                                       $174,000
    j.  Hardware Leases                                                                           $ 27,000
    k.  Network support, including LAN and WAN routers                                            $138,000

6.  Accounting services, including business, general, accounts payable,
    property and management accounting and accounting services for                                $192,673
</TABLE>

                                      A-1

<PAGE>

<TABLE>
<S>                                                                                             <C>
    SEC reporting (excludes $9,083 in estimated monthly bonus accrual and $6,577 benefits),
    subdivided as follows:
    a.  Financial Reporting                                                                     $   27,365
    b.  General Accounting                                                                      $   33,522
    c.  Accounts Payable                                                                        $   24,068
    d.  Revenue Accounting                                                                      $   82,049
    e.  Property Accounting                                                                     $   25,669

7.  Human resources and benefits administration, including HR
    generalists, compensation benefits analysts and benefits
    administration and employee communications (excludes $5,250 in
    estimated monthly bonus accrual and $2,710 benefits)                                        $  167,040

8.  Legal services of internal and external attorneys for legal services
    including contract negotiation, business advice, corporate secretary,
    general business advice, and services of general counsel (excludes
    $10,583 in estimated monthly bonus accrual and $2,102 benefits)                             $  120,648

9.  Governmental Affairs and regulatory representation (excludes $3,250
    in estimated monthly bonus accrual and $446 benefits)                                       $   37,971

10. Tax services, including state and local taxes, ad valorem tax,
    transactional taxes, and federal K-1 reporting assistance (excludes
    $2,167 in estimated monthly bonus accrual and $1,209 benefits)                              $   38,291

11. Internal audit and compliance services (excludes $2,167 in estimated
    monthly bonus accrual and $676 benefits)                                                    $   22,157

12. Risk management and insurance services                                                      $    8,333

13. Treasury services, including cash management and wire/ACH
    processing (excludes  $167 in estimated monthly bonus accrual and
    $143 benefits)                                                                              $    8,024

14. Administrative services, including mail services, fax and copier
    leases, records management, office services, and parking subsidy
    (excludes $500 in estimated monthly bonus accrual and $390
    benefits)                                                                                   $   24,110
                                                                                                ----------
        TOTAL                                                                                   $2,898,913
</TABLE>

*    Notes to Item 5 above:

     -    Individual PC leases will be reduced following transfer of payment
          responsibilities.

     -    Network circuit charges (Williams' billed amount) will be reduced
          following circuit transfers.

     -    Computing (subcategory "i .") shall remain for the duration of the
          Agreement.

     -    Subcategories "a." through "j." shall not be subdivided; Buyer shall
          assume cost until the entire service represented by any such
          subcategory is removed.

                                      A-2

<PAGE>

                                  SCHEDULE "B"

                           POTENTIAL LEASED EMPLOYEES*

<TABLE>
<CAPTION>
----------------------------------------------------------------------------
  Employee Name                    Date of Birth              Lease End Date
----------------------------------------------------------------------------
<S>                                <C>                        <C>
Kent Pribil                           7/4/1948                   7/11/2003
--------------------------------------------------------------------------
Elsie Harmon                         8/14/1948                   8/22/2003
--------------------------------------------------------------------------
Shirley Maxon                        8/18/1948                   8/22/2003
--------------------------------------------------------------------------
Patricia L. Jones                    9/21/1948                   10/3/2003
--------------------------------------------------------------------------
Jimmie D. Hamilton                  10/28/1948                  10/31/2003
--------------------------------------------------------------------------
Karl A. Erickson                     11/8/1948                  11/14/2003
--------------------------------------------------------------------------
</TABLE>

* Each potential Leased Employees listed above shall become a Leased Employee in
accordance with Section 2(f) of this Agreement.

                                      B-1

<PAGE>

                                  SCHEDULE "C"

                   POTENTIAL O&M EMPLOYEES AND G&A EMPLOYEES*

                               [See Attached List]

* This Schedule shall be finalized no more than five (5) days after delivery of
the Section 4.3(a) Notice to the Selling Parties.

                                       C-1