**Exhibit 10.29**

 

Contract No. 11009

 

**SPECIFICTERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FORTHOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPERATELY FILEDWITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED ATTHE APPROPRIATE PLACE WITH TWO ASTERISKS (**).**

 

GAS PROCESSING AGREEMENT

 

BY AND BETWEEN

 

MARKWEST JAVELINA COMPANY

 

AND

 

CITGO REFINING AND CHEMICALS COMPANY, L.P.

 

EAST and WEST REFINERIES

 

DATED NOVEMBER 1, 2007

 

----

 

TABLE OF CONTENTS

 
| ** **   | ** ** | ** **                                                  | ** ** | **Page** |
|--------------|------------|-------------------------------------------------------------|------------|----------|
|         |       |                                                        |       |     |
| ARTICLE I    |       | DEFINITIONS                                                 |       | 3        |
|         |       |                                                        |       |     |
| ARTICLE II   |       | EXHIBIT(S)                                                  |       | 6        |
|         |       |                                                        |       |     |
| ARTICLE III  |       | DEDICATION OF  SUPPLY                                       |       | 6        |
|         |       |                                                        |       |     |
| ARTICLE IV   |       | CURTAILMENTS                                                |       | 8        |
|         |       |                                                        |       |     |
| ARTICLE V    |       | DELIVERY AND  QUALITY OF SUPPLIER’S OFF-GAS            |       | 9        |
|         |       |                                                        |       |     |
| ARTICLE VI   |       | OFF-GAS PROCESSING                                          |       | 11       |
|         |       |                                                        |       |     |
| ARTICLE VII  |       | GAS MEASUREMENT  AND TRANSMISSION                           |       | 11       |
|         |       |                                                        |       |     |
| ARTICLE VIII |       | DETERMINATION OF  PROCEEDS                                  |       | 13       |
|         |       |                                                        |       |     |
| ARTICLE IX   |       | RESIDUE GAS PIPELINE                                        |       | 15       |
|         |       |                                                        |       |     |
| ARTICLE X    |       | TERM                                                        |       | 17       |
|         |       |                                                        |       |     |
| ARTICLE XI   |       | WARRANTY                                                    |       | 18       |
|         |       |                                                        |       |     |
| ARTICLE XII  |       | FORCE MAJEURE                                               |       | 19       |
|         |       |                                                        |       |     |
| ARTICLE XIII |       | NOTICES                                                     |       | 19       |
|         |       |                                                        |       |     |
| ARTICLE XIV  |       | MISCELLANEOUS                                               |       | 21       |
|         |       |                                                        |       |     |
| EXHIBIT A    |       | RESIDUE AND  EXCESS GAS SPECIFICATIONS                      |       |     |
|         |       |                                                        |       |     |
| EXHIBIT B    |       | ALLOCATION  STATEMENT EXAMPLE                               |       |     |
|         |       |                                                        |       |     |
| EXHIBIT C    |       | EXAMPLE  CALCULATION OF WEIGHTED AVERAGE SALES PRICE        |       |     |
|         |       |                                                        |       |     |
| EXHIBIT D    |       | METHODS OF GAS  MEASUREMENT, SAMPLING, TESTING AND ANALYSIS |       |     |

 

2

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**GAS PROCESSING AGREEMENT**

 

**THIS GASPROCESSING AGREEMENT (“Agreement”)** is made and entered****into effective November 1, 2007 by and betweenMarkWest Javelina Company (“Processor”), a Texas general partnership with itscorporate office in Denver, CO and local office at 5438 Union Street, CorpusChristi, TX 78407 and CITGO Refining and Chemicals Company, L.P. (“Supplier”),a Delaware limited partnership with offices at 1802 Nueces Bay Boulevard,Corpus Christi, TX 78469.

 

W I T N E S S E T H:

 

**WHEREAS,**Processorowns and operates the MarkWest Javelina Gas Processing and Fractionation Plant****(the “Plant”), located at 5438 Union Street, CorpusChristi, Texas, 78407, for the purpose of extracting Liquefiable Hydrocarbons,hydrogen and impurities from Inlet Gas****delivered tothe Plant from certain refineries and other sources; and

 

**WHEREAS,**Supplierdesires to deliver, subject to the provisions of this Agreement, Off-Gas fromits Refineries to the Plant for the extraction of Liquefiable Hydrocarbons,hydrogen and impurities; and

 

**WHEREAS,**Processor desires to receive, subject to the provisions of this Agreement,Supplier’s Off-Gas at the Plant.

 

**NOW,THEREFORE,**in consideration of the premises and mutualcovenants set forth herein, the mutual benefits to be derived and other goodand valuable consideration the receipt and sufficiency of which is herebyacknowledged Supplier and Processor agree as follows:

 

ARTICLEI

DEFINITIONS

 

The definitions in this Article shallapply for all purposes to this Agreement:

 
| 1.1    |   | “Btu” means a  British Thermal Unit, and “MMBtu” means one million (1,000,000) Btus.                                                                                                                                                                                       |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                           |
| 1.2    |   | “Component”  means an identifiable constituent of Off-Gas which may be extracted by  Processing at the Plant, including, without limitation, incidental methane,  ethane, ethylene, propane, propylene, butanes, pentanes-plus, hydrogen, and  incidental non-hydrocarbon materials. |

 

3

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| 1.3    |   | “Delivery Point”****means Processor’s meter at which Supplier’s Off-Gas is  initially measured upon delivery into Processor’s, or Processor’s affiliates,  delivery pipeline(s).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.4    |   | “East Refinery”  means Supplier’s East Refinery located at 1802 Nueces Boulevard, Corpus  Christi, Texas 78469.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.5    |   | “Energy  Expenses” means all fuel, power and other utility and energy related expenses  necessary to operate the Plant including, but not limited to, electricity and  Plant Fuel.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.6    |   | “Energy Expense  Charge” or “EEC” means the proportionate share of the Energy Expenses  allocated each Month to Supplier as set forth in Section 8.5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.7    |   | “Excess Gas”  means the residue gas attributable to refiners and other sources other than  Supplier delivering Inlet Gas to the Plant and Gas purchased by Processor for  use at the Plant but not consumed at the Plant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.8    |   | “Gas” means any  fluid, either combustible or non-combustible, including Off-Gas, which  maintains a gaseous or rarefied state at a temperature of 60 degrees  Fahrenheit and at a pressure of 14.65 psia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.9    |   | “Inlet Gas”  means Off-Gas and other Gas that is Processed at the Plant for the extraction  of Plant Products and certain incidental non-hydrocarbon materials.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.10   |   | “Liquefiable  Hydrocarbons” means all Components except hydrogen, incidental methane and  non-hydrocarbon materials.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.11   |   | “Mscf” means  1,000 standard cubic feet of Gas and “MMscf” means 1,000,000 standard cubic  feet of Gas. A standard cubic foot of gas is one cubic foot of gas at a  temperature of 60 degrees Fahrenheit and at a pressure of 14.65 psia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.12   |   | “Month”  means the period of time beginning at 7:00 a.m. Central Clock Time in  Corpus Christi, Texas, on the first day of each calendar month and ending at  such time on the first day of the next calendar month.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 1.13   |   | “Nonaffiliated  Third Parties” means any corporation, limited liability company, partnership  (including a limited partnership) or other entity other than an affiliate of  Processor. For the purposes of this definition, “affiliate of Processor”  shall mean any person, corporation, limited liability company, partnership  (including a limited partnership) or other entity which (i) controls,  (ii) is controlled by, or (iii) is under common control with  Processor. “Control”, as used in this definition, means the ownership  directly or indirectly of more than fifty (50) percent of the voting rights  in a company or other legal entity, or the right, directly or indirectly  through its ownership position or |

 

4

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|   |   | through  contract, to direct the management and policies of a company or other legal  entity.                                                                                                                                                                                                                                                                                                                                                     |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.14   |   | “Off-Gas” means  Gas produced as a by-product of refining crude oil and other refinery  feedstocks.                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.15   |   | “Party” means  either Processor or Supplier and “Parties” means both Processor and Supplier.                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.16   |   | “Plant Fuel”  means the quantity of Gas or other hydrocarbons purchased by Processor to  operate the Plant.                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.17   |   | “Plant Net  Proceeds Attributable to Supplier’s Off-Gas” means for all Components of  Plant Products, the sum of the total quantity of each Component of Plant  Products attributable to Supplier’s Off-Gas multiplied by the Weighted  Average Sales Price for each such Component of Plant Products. Exhibit B  includes an example of the calculation of Plant Net Proceeds Attributable to  Supplier’s Off-Gas. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.18   |   | “Plant Products”  means each and all of the Components extracted from the Off-Gas by Processing  at the Plant.                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.19   |   | “Plant Thermal  Reduction” or “PTR” means the decrease in the quantity of Supplier’s Off-Gas  measured in Btus as a result of Processing Supplier’s Off-Gas as further  defined in Section 6.2.                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.20   |   | “Process”,  “Processed” or “Processing” means the extraction of Plant Products and  certain incidental non-hydrocarbon materials from Off-Gas at the Plant.                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.21   |   | “Redelivery  Point” means Processor’s meter at which Supplier’s Residue Gas will be  measured following the construction by Processor of the Residue Gas Pipeline,  and which location shall be immediately prior to Processor’s delivery thereof  to Supplier.                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.22   |   | “Refineries”  means the East Refinery and the West Refinery collectively.                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.23   |   | “Residue Gas”  means the quantity of Gas, measured in Btus, remaining after the Processing  of Supplier’s Off-Gas as further defined in Section 8.4.                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.24   |   | “Supplier’s  Percentage” shall be ****** of Plant  Net Proceeds Attributable to Supplier’s Off-Gas.                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 1.25   |   | “Supplier’s  Proceeds” means (a) the sum for all Components of (i) the Plant Net  Proceeds Attributable to Supplier’s Off-Gas for each Component multiplied by  (ii) Supplier’s Percentage for each such Component; less (b) the  applicable Energy Expense Charge. Exhibit B includes an example of the calculation  of Supplier’s Proceeds.                                              |

 

5

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| 1.26   |   | “Weighted  Average Sales Price” for a Month means the average sales value for each  Component of Plant Products and shall be equal to the sum of the proceeds the  Plant receives for each Component of Plant Products during such Month less  all transportation, storage, marketing and exchange fees paid to  Nonaffiliated Third Parties for such Component of Plant Products divided by  the volume of such Component of Plant Products that was sold during such  Month. Exhibit C includes an example of the calculation of the Weighted  Average Sales Price for each Component of Plant Products. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 1.27   |   | West Refinery”  means the Supplier’s West Refinery located at 17350 Highway 37 West, Corpus  Christi, Texas 78408.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

 

ARTICLE II

EXHIBIT(S)

 

The following Exhibit(s) areattached to and made a part of this Agreement by reference:

 
| 2.1    |   | Exhibit A  sets forth the specifications for Residue Gas and Excess Gas.                                      |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                               |
| 2.2    |   | Exhibit B  illustrates the allocation statements to be provided monthly to Supplier.                          |
|   |   |                                                                                                               |
| 2.3    |   | Exhibit C  illustrates the method used to calculate Weighted Average Sales Price for  each Plant Product.     |
|   |   |                                                                                                               |
| 2.4    |   | Exhibit D  sets forth the methods of measurement, sampling, testing and analysis of  Supplier’s Off-Gas. |

 

ARTICLE III

DEDICATION OF SUPPLY

 
| 3.1 |   | Subject to the  terms and conditions of this Agreement, (i) Supplier shall dedicate  certain streams of Off-Gas from Supplier’s East Refinery and a specified  volume of Off-Gas from Supplier’s West Refinery to Processor for Processing  and extraction of Plant Products for the term of this Agreement; and shall  deliver to the Delivery Point, one hundred percent (100%) of its dedicated  Off-Gas and the Liquefiable Hydrocarbons and hydrogen contained therein that  is produced from Supplier’s Refineries, under normal operations, up to the  Processor’s ability to receive (ii) subject to Section 3.2 below,  Supplier shall commit to******;  (iii) Processor shall******; and  (iv) Supplier shall******Processor  shall******. Supplier’s Off-Gas dedicated to  this Agreement shall include but not be limited to the******.  Processor understands Supplier’s West Refinery Off-Gas is******.  Processor |
|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

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|   |   | understands and  agrees that Supplier is not obligated under this Agreement****to change or modify the operations of its Refineries to  increase or change the quantity or quality of the Off-Gas produced at its  Refineries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.2    |   | Supplier may  reduce volumes from its East or West Refinery due to ** (referred to herein  as a “Temporary Reduction”). In this context, **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.3    |   | Supplier shall  not strip Liquefiable Hydrocarbons or hydrogen from Supplier’s Off-Gas prior  to delivery at the Delivery Point(s) other than by separation methods in  operation at Supplier’s Refineries as of the effective date of this  Agreement. Additional separation methods designed to recover Liquefiable  Hydrocarbons or hydrogen from Supplier’s Off-Gas, including but not limited  to, solid bed absorption, lean oil absorption, turbo-expansion, membranes,  mechanical or refrigeration principles shall not be installed by Supplier at  the Refineries after effective date hereof.                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.4    |   | Subject to  Sections 3.3 and 3.5, Supplier shall have the right to (i) reduce the  volume of, or modify the slate of, crude oil and/or other feedstocks refined  at Supplier’s Refineries; (ii) change the equipment and/or operation of  Supplier’s Refineries for the purpose of expanding, reducing or improving the  refining of oil and other hydrocarbon feedstocks; or (iii) fully or  partially curtail operation of Supplier’s Refineries at any time for routine  or non-routine maintenance or repairs. Supplier shall be required to provide  prior written notice to Processor if such changes described above results in a  reduction or interruption of the volume of Supplier’s Off-Gas, or  significantly alters the composition of Supplier’s Off-Gas. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.5    |   | If any  non-temporary changes made to the Supplier’s refineries materially affect the  quantity or composition of Supplier’s Off-Gas, the Parties will negotiate in  good faith a fair and equitable adjustment to Supplier’s Proceeds or other  appropriate adjustments. For purposes of this Section 3.5, the quantity  and composition of Supplier’s prior twelve months Off-Gas excluding  Supplier’s planned outages and Processor’s outages and curtailments shall be  used as the expected volume of Off-Gas when determining any reduction in the  volume or change in the composition of Supplier’s Off-Gas.                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.6    |   | If Supplier,  during the term of this Agreement, installs additional equipment resulting in  the production of additional Off-Gas from Supplier’s Refineries, such  additional Off-Gas shall be subject to this Agreement, upon the mutual  agreement of both Parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

 

# ARTICLEIV

# CURTAILMENTS

 
| 4.1 |   | Processor shall have the right at  any time to curtail all or a portion of Supplier’s |
|-----|--------|--------------------------------------------------------------------------------------------|

 

7

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|   |   | Off-Gas Processed at the Plant,  to the extent reasonably necessary for routine or non-routine maintenance or  repair of the Plant. In any instance of curtailment, Processor agrees to  curtail Off-Gas received at the Plant ******. Further  curtailment shall be ******                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | If Supplier requests that  Processor not curtail Off-Gas from Supplier’s West Refinery and that all of Supplier’s  curtailment be applied to Supplier’s East Refinery, Supplier shall pay to  Processor an amount equal to the difference between the Plant Net Proceeds  Attributable to Supplier’s Off-Gas from its East Refinery and the Plant Net  Proceeds Attributable to Supplier’s Off-Gas from its West Refinery for all  Off-Gas not curtailed and processed from Supplier’s West Refinery in lieu of  Off-Gas processed from Supplier’s East Refinery ******  provided that such payment amount shall never be less than zero. An example  of this calculation is included in Exhibit B.                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | Processor shall notify Supplier  of the nature and extent of each instance of curtailment due to a non-routine  event as soon as reasonably practicable. Such notice shall include the  reasons for the curtailment and an estimate of the amount of time the  curtailment is expected to last. Processor shall give Supplier no less than  thirty (30) days prior written notice of scheduled maintenance or repairs  that are expected to fully or significantly curtail operations at the Plant  and shall include a general description of such activities and the amount of  time the curtailment is expected to last. Processor agrees to use  commercially reasonable efforts to minimize the time of any such curtailments  and, to the extent practicable, coordinate with Supplier any scheduled  curtailment with Supplier’s activities at its Refineries. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.2    |   | Subject to reasonable fees, terms  and conditions, Processor will assist in transporting Gas between the  Refineries or to Supplier’s designees, or provide other services in this  context only during Processor’s total Plant outages.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.3    |   | Supplier is aware that material  changes in the quality and quantity of Supplier’s Off-Gas delivered to the  Plant could adversely affect Plant operations. If, in Processor’s sole but  reasonable opinion, changes in the composition or volume of Supplier’s  Off-Gas have an adverse affect on Plant operations, Processor may adjust  Supplier’s Off-Gas deliveries until such time as the composition and/or volume  of Supplier’s Off-Gas returns to the original composition, or becomes  otherwise acceptable to Processor.                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.4    |   | Supplier shall provide Processor  with no less than thirty (30) days advance written notice of Supplier’s  planned outages which are anticipated to impact the volume or composition of  Supplier’s Off-Gas.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

 

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ARTICLE V

DELIVERY AND QUALITY OF SUPPLIER’S OFF-GAS

 
| 5. 1 |   | Supplier shall deliver its  Off-Gas to Processor at the Delivery Point, (a) at a pressure not to  exceed the lesser of (i) one hundred (100) psig or (ii) the  Javelina Pipeline MAOP; (b) at a pressure of not less than seventy (70)  psig; and (c) meeting the following specifications: |
|------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| Ammonia      |   | 50 ppmv maximum                   |
|--------------|--------|-----------------------------------|
| H2S          |   | 80 ppmv maximum                   |
| Total Sulfur |   | 100 ppmv maximum                  |
| CO2          |   | 2 mol% maximum                    |
| CO           |   | 1.5 mol% maximum                  |
| Oxygen       |   | 0.5 mol% maximum                  |
| H2O          |   | No free water                     |
| Temperature  |   | Less than 120  degrees Fahrenheit |

 
|   |   | Processor may  refuse to accept all or any portion of Supplier’s Off-Gas that does not meet  the above quality specifications or Supplier’s Off-Gas that contains other  constituents which neither Supplier nor Processor knows or should have known  may affect Plant Products quality, Plant operations or damage Plant  equipment. In the event such otherwise unknown constituent will, does or may  affect Processor’s Plant Product(s) quality, Plant operations or damage  Plant equipment, then Processor will provide notice to Supplier that  Supplier’s Off-Gas is rejected until Supplier has corrected the problem. If  Supplier’s Off-Gas is rejected, Supplier shall correct the problem before resuming deliveries of  Supplier’s Off-Gas to the Delivery Point(s). It is Supplier’s option whether or not to take any actions to correct  said problem and therefore resume delivery of Off-Gas to Processor. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | Processor shall have the right to curtail the delivery of Supplier’s  Off-Gas if a particular constituent of total sulfur in the combined Inlet Gas  streams from all suppliers is of sufficient concentration that Processor believes  in its reasonable and sole opinion, may affect product quality, Plant  operations, or damage Plant equipment, even though the total sulfur in the  respective Refineries’ Off-Gas streams are within the above specifications.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | Additionally, Processor may refuse to accept all or any portion of  Supplier’s Off-Gas that contains H2S between 50 ppmv and 80 ppmv. If Supplier’s Off-Gas is  rejected under this subparagraph, Supplier will obtain approval from  Processor before resuming deliveries of Off-Gas that contains H2S between 50 ppmv and 80 ppmv.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 5.2    |   | Supplier shall  deliver Off-Gas to the Plant on a daily, pro-rata and continuous basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 5.3    |   | Processor shall  have the right at any time to secure supplies of Gas from any other source  which it, in its sole discretion, chooses, regardless of whether such  supplies cumulatively exceed the Processing capacity of the Plant. If at any  time                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

 

9

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|   |   | during the term  of this Agreement, the cumulative supply of Inlet Gas, including Supplier’s  Off-Gas, delivered to the Plant exceeds its operating capacity, Processor  may, with notice as soon as practicable thereafter to Supplier, reduce the  volume of Supplier’s Off-Gas Processed based on its economic value to Processor,  ******, when the Plant is operating  normally and when such quantities of Off-Gas are available from Supplier.  Processor will use commercially reasonable efforts to******  when the Plant is operating normally and when such quantities of Off-Gas are  available from Supplier. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

# ARTICLEVI

OFF-GAS PROCESSING

 
| 6.1    |   | Subject to the  other provisions of this Agreement, Processor shall accept possession of and  title to Supplier’s Off-Gas at Delivery Point(s). Processor shall own and  have all right, title and interest in and to all Plant Products and  impurities extracted from such Off-Gas at the Plant in which Processor, in  its sole discretion, desires to so retain.                                                                                                                                                                                                                                                                                                                                                                           |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | After  construction of the Residue Gas Pipeline as defined in Section 9.1,  Processor shall deliver and Supplier shall accept possession of and title to  Supplier’s Residue Gas at the Redelivery Point.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 6.2    |   | The Plant Thermal Reduction attributable to the Processing of  Supplier’s Off-Gas to produce the Plant Products shall be determined by using  the applicable conversion factors for (i) all Plant Products except  ethylene, propylene and hydrogen as set forth in the Gas Processors  Association Publication 2145-03 and any subsequent revisions thereof in  effect at the time such calculation is performed, and (ii) for ethylene,  propylene and hydrogen, as set forth in the API Technical Data Book –  Petroleum Refining and any subsequent revisions thereof in effect at the time  such calculation is performed. All calculations shall be done at a pressure  base of 14.65 psia to conform to NAESB standards. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 6.3    |   | Processor shall provide Supplier  with a “Plant Allocation Statement” no later than the last calendar day of  the Month following the Month of production. An example Plant Allocation  Statement is attached hereto as Exhibit B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 6.4    |   | Other than as provided in  Section 8.2, Processor shall sell all Plant Products on an “arms length”  basis to Nonaffiliated Third Parties, unless the Parties mutually agree  otherwise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

 

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# ARTICLEVII

GAS MEASUREMENT AND TRANSMISSION

 
| 7.1        |       | Supplier shall  provide, install, operate and maintain, or cause to be provided, installed,  operated and maintained, at its sole cost, risk and expense, all pipelines  and related facilities (i) upstream of the Delivery Point to enable  Supplier to deliver its Off-Gas to Processor hereunder and, following the  construction of the Residue Gas Pipeline, (ii) downstream of the  Redelivery Point to enable Processor to deliver Supplier’s Residue Gas to  Supplier, or Supplier’s designee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|------------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 7.2        |       | Processor shall provide, install, operate and maintain, or cause to  be provided, installed, operated, and maintained, at its sole cost, risk and  expense all pipelines, instrumentation equipment, including meters, telemetry  and telecommunications equipment, and related facilities (i) downstream  of the Delivery Point to enable Processor to receive Supplier’s Off-Gas at  the Delivery Point and, following the construction of the Residue Gas  Pipeline, (ii) upstream of the Redelivery Point to enable Processor to deliver Supplier’s Residue Gas to  Supplier, or its designee, at the Redelivery Point.                                                                                                                                                                                                                                                                                                                                                                       |
|       |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 7.3        |       | Processor shall operate, or cause to be operated, all facilities to  transport and meter Supplier’s Off-Gas downstream of the Delivery Point.  Processor shall perform the measurement,  testing and analysis of Supplier’s Off-Gas in accordance with appropriate  sections of this Article VII and Exhibit D. Processor’s meters  shall be the controlling meters regarding all Delivery Point measurements  hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| ** ** | ** ** | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 7.4        |       | Following the construction of the Residue Gas Pipeline, Processor shall operate, or cause to be  operated, all facilities to transport and meter Supplier’s Residue Gas,  Excess Gas, and all other Gas upstream of the Redelivery Point.  Processor shall perform the measurement,  testing and analysis of Supplier’s Residue and Excess Gas in accordance with  appropriate sections of this Article VII and Exhibit D. Processor’s  meter(s) shall be the controlling meter(s) regarding all Redelivery  Point measurements hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ** ** | ** ** | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 7.5        |       | Each Party shall  have the right, upon prior written request, at its own expense and during  normal business hours, to have a firm of independent certified public  accountants audit the books, records and other pertinent documents and data  (collectively, the “Records”) of the other Party relating to this Agreement,  to the extent necessary to verify the accuracy of any statement, charge,  computation or demand made under or pursuant to this Agreement, provided,  however that such accountants shall not disclose to the Party requesting the  audit any information obtained during the audit and shall only report to such  Party the results of the audit and whether same shows compliance with the  terms of this Agreement, or as the case may be, the respects in which the  terms of this Agreement have not been complied with. If any such examination  reveals, or if either Party otherwise discovers, any error in its own or the  other Party’s statements, payments, |

 

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|   |   | calculations or  determinations, then proper adjustment thereof shall be made as promptly as  practical thereafter. It is understood, however, that no adjustment of any  statement or payment shall be made after the lapse of two (2) year from  the end of the Month to which such statement or payment pertains.  Each Party shall retain all records for  four (4) years from the end of the calendar year in which they were  compiled, unless the statement or payment is subject to dispute, in which  case the pertinent records shall be retained until the dispute is resolved.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 7.6    |   | Each Party shall  preserve for a period of twenty-four (24) months all test data, charts, and  other similar records for auditing.   Either Party shall have the right, during normal business hours, to  examine such records of the other Party and the accuracy of any statement,  charge or computation made pursuant to this Agreement, to the extent  necessary, to verify the performance of the Agreement.  However, no such examination shall be made  by a Party more frequently than once each twelve (12) months, and no  examination may cover any time periods that were the subject of a prior  examination by that Party.  If any such  examination reveals any clerical or mathematical inaccuracy in any billing or  payment, the appropriate adjustment in the billing and payment shall be  promptly made.  All payments made shall  be considered final twenty-four (24) Months after they are made, unless disputed  by either Party prior to the expiration of such twenty-four (24) month  period.   If the other Party fails to  have a representative present, the results of the test shall nevertheless be  considered accurate until the next test as long as such test results are  within reasonable and customary readings for such meter(s). |

 

ARTICLE VIII

DETERMINATION OF PROCEEDS

 
| 8.1    |   | Processor shall  pay to Supplier the Supplier’s Proceeds by wire transfer with the appropriate  adjustments made pursuant to this Agreement, within seven (7) business  days following Processor’s issuance of the “Plant Allocation Statement” as  set forth in Section 6.3. Payment shall be made in accordance with  Supplier’s wiring instructions. Processor shall retain the remaining portion  of such Plant Net Proceeds Attributable to Supplier’s Off-Gas for its own  account and such amount shall be referred to as “Processor’s Proceeds”.                                                              |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 8.2    |   | Upon receipt of  written notice from Processor that Processor has******Supplier  agrees to allow Processor or such affiliate or related entity, at Processor’s  option, to purchase for its own account, **. This provision shall be  effective for ****** from the date of the above  notice and is not intended to extend the term of this Agreement. If this  Agreement is extended beyond the Primary Term on a Contract Year to Contract  Year basis, then with respect to ****** this  section shall continue to be utilized in the determination of Plant Net  Proceeds Attributable to Supplier’s Off-Gas for each such Contract Year until  the ****** of |

 

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|   |   | this provision  has expired. In addition, if for any period between the end of the Primary  Term and prior to the expiration of the ****** period of  this provision, this Agreement expires or terminates and is not extended, but  Processor nevertheless processes Supplier’s Off-Gas at the Plant under any  other agreement or arrangement, the Parties hereby agree that the pricing  mechanism set forth in this section for the ******  shall be utilized to price ****** under such  other agreements or arrangements.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 8.3    |   | The quantity of each Component of Plant Products allocated to  Supplier each Month shall be equal to the total quantity of such Component of  Plant Products recovered by Processor at the Plant during such Month  multiplied by a fraction, the numerator of which shall be the total quantity  of each such Component of Plant Products that is contained in Supplier’s  Off-Gas delivered to the Delivery Point during such Month and the denominator  of which shall be the total quantity of such Component of Plant Products as  are contained in all Inlet Gas delivered at all delivery points during such  Month.                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 8.4    |   | The theoretical Residue Gas attributable to Supplier during each  month shall be determined by subtracting the calculated PTR from the  quantity, in MMbtus, of Off-Gas delivered by Supplier as measured at the  Delivery Point. The total quantity of Residue Gas due Supplier each Month  shall be equal to the actual Residue Gas attributable to all Inlet Gas  delivered to the Plant during such Month multiplied by a fraction, the  numerator of which shall be the theoretical Residue Gas attributable to  Supplier’s Off-Gas delivered to the Delivery Point during such Month and the  denominator of which shall be the total quantity of theoretical Residue Gas  as is contained in all Inlet Gas delivered at all delivery points during such  Month. The PTR Calculation will be done monthly and reported in  Statement 2 of the Plant Allocation Statement. An example of the Plant  Allocation Statement and PTR Calculation is included in Exhibit B. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 8.5    |   | The Energy  Expense Charge deducted from Supplier’s Proceeds and attributable to  Supplier’s Off-Gas shall be determined based on the following formula:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

 
| EEC =  |  EE times R/T                                                                                           |
|--------|--------------------------------------------------------------------------------------------------------------|
|   |                                                                                                         |
| Where: |                                                                                                         |
| EEC =  | The Energy  Expense Charge allocated each Month to Supplier                                                  |
| EE =   | The total amounts paid by  Processor for all Plant Energy Expenses paid during such Month.                   |
| R =    | The total  quantity of Off-Gas, measured in Mscf, delivered by Supplier during the  Month.                   |
| T =    | The total quantity of all Inlet  Gas, measured in Mscf, delivered at all  delivery points during such Month. |

 

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ARTICLE IX

RESIDUE GAS PIPELINE

 
| 9.1    |   | Processor shall construct ****** to allow the delivery of Supplier’s Residue Gas to  Supplier at****** upon commencement of a  connection agreement for the Residue Gas Pipeline. The Parties shall commit  to negotiating and executing a connection agreement for the Residue Gas  Pipeline as soon as reasonably practical. Processor shall commence  construction of such Residue Gas Pipeline ******  and shall complete the construction of the Residue Gas Pipeline****** The Residue Gas Pipeline shall originate at  Processor’s existing valve site at the intersection of Buddy Lawrence Drive  and Interstate Highway 37 and shall terminate at and connect into Supplier’s  existing twelve (12) inch fuel gas manifold at the inlet to vessel V4 located  inside Supplier’s East Refinery. The estimated length of the Residue Gas  Pipeline is 2,725 feet, which includes approximately 600 feet of pipeline to  be located within Supplier’s East Refinery. Processor shall install, own and  operate all required measurement equipment at the existing meter station on  Buddy Lawrence Drive. Processor shall retain ownership of the entire Residue  Gas Pipeline excluding the 600 feet of pipeline to be located within  Supplier’s East Refinery. Following the construction, Supplier shall own and  operate the approximately 600 feet of pipeline to be located within  Supplier’s East Refinery. Supplier shall be responsible for all costs associated  with the construction of the approximately 600 feet of pipeline to be located  within the East Refinery. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.2    |   | Until such time  as the Residue Gas Pipeline has been constructed and operational, Processor  shall******                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | · | From the date of  this Agreement through****** |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ** ** | ** ** |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | · | Beginning on****** and continuing through ****** |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ** ** | ** ** |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | · | Notwithstanding  anything to the contrary above, if the Residue Pipeline is not completed and  in service within****** |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ** ** | ** ** |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | · | Once the Residue  Gas Pipeline is operational,****** |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 9.3    |   | After the  Residue Gas Pipeline, as set forth in Section 9.1, has been completed  and is operational, then, from time to time and if available, Supplier may  have the opportunity to ******.****If Supplier and Processor agree in writing that Supplier  shall******                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.4    |   | Following the  completion of the Residue Gas Pipeline, Processor shall return to Supplier,  or its designee, and Supplier shall accept and take title to 100% of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

 

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|   |   | Supplier’s  Residue Gas and Excess Gas at the Redelivery Point. The Residue Gas and the  Excess Gas shall meet the specifications set forth in Exhibit A attached  hereto, failing which Supplier shall not be obligated to receive such Residue  Gas or Excess Gas. If, following the completion of the Residue Gas Pipeline,  Processor (i) delivers Residue Gas or Excess Gas to Supplier, or for the  account of Supplier, at the Redelivery Point in excess of the quantity of  Residue Gas or Excess Gas to which Supplier is entitled hereunder, or (ii) fails  to tender to Supplier all or a portion of the Residue Gas or Excess Gas  Supplier was entitled to and capable of receiving during a Month (in either  case “Imbalance Gas”), such over or under deliveries of Imbalance Gas, shall  be settled by Processor buying from, or selling to, as applicable, Supplier  such Imbalance Gas at ****** Both  Parties agree this Section is designed to address minor imbalances.                                                                                                 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 9.5    |   | In the event  Processor tenders to Supplier and Supplier is unable or refuses to receive  all or any portion of its Residue Gas and Excess Gas during a Month, unless  otherwise agreed in writing, Processor shall have the right, but not the  obligation to otherwise dispose of such quantity of Supplier’s Residue Gas  and Excess Gas not taken by Supplier during such Month in any reasonable  manner, with the proceeds thereof less all associated losses, costs and  expenses suffered or incurred by Processor to be for Supplier’s account in a  temporary situation not expected to last more than (12) twelve hours after  Supplier’s notification of their inability to accept Residue Gas. Prior to  the expiration of the twelve hour period, Supplier shall notify Processor of  Supplier’s option to (i) curtail deliveries of Supplier’s Inlet Gas to  Processor, or (ii) have Processor’s Residue Gas delivered to a third  party, up to available pipeline capacity, or (iii) offer to sell its  Residue Gas to Processor at Processor’s disposal price. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 9.6    |   | Following the  completion and operation of the Residue Gas Pipeline, Supplier shall have the  option to****** during the remainder of the  Primary Term and any subsequent annual extension thereof of this Agreement  when the following conditions are met: ****** Within six  (6) months of the execution of this Agreement, at Supplier’s option, the  Parties will negotiate in good faith the terms of an agreement to ******                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 9.7    |   | Except as set forth in Exhibit A and Section 11.1 below,  PROCESSOR MAKES NO WARRANTY, AND HEREBY DISCLAIMS ALL EXPRESS OR IMPLIED  WARRANTIES AS TO THE QUALITY OR QUANTITY, OR AS TO THE MERCHANTABILITY OR  FITNESS FOR A PARTICULAR PURPOSE, OF SUPPLIER’S RESIDUE GAS AND EXCESS GAS  DELIVERED TO SUPPLIER AT THE REDELIVERY POINT.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

 

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ARTICLE X

TERM

 
| 10.1       |       | The primary term  of this Agreement shall be seven (7) years and shall commence on  July 1, 2007 (the “Primary Term”). The Agreement shall continue  thereafter for consecutive one (1) year terms until terminated by either  Party upon at least two (2) years prior written notice to the other  Party prior to end of the Primary Term or any subsequent annual extension  thereof.                                                                                                                                                                                                                                                                                                                                                                                                                 |
|------------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.2       |       | Notwithstanding  anything to the contrary in Section 10.1, in the sole event that  Supplier decides, in its sole discretion, that it will permanently cease  operation of either one or both of Supplier’s Refineries, Supplier shall have  the right to suspend this Agreement in part for one of Supplier’s Refineries  or in whole for both of Supplier’s Refineries at any time by giving written  notice to Processor at least one (1) year in advance of such shutdown  and suspension (“Shutdown Notice”). A shutdown of one (1) year or  greater will constitute a permanent cessation hereunder, and a shutdown of  the FCC Unit shall constitute a shutdown of the entire East Refinery, and a shutdown  of the Coker Unit shall constitute a shutdown of the entire West Refinery. |
|       |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|       |       | If Supplier  provides such Shutdown Notice to Processor indicating that Supplier will  shutdown either one or both Refineries, Supplier shall ******.****If Supplier shuts down the West Refinery only, Supplier******. If Supplier shuts down the East Refinery, within  thirty (30) days from the shutdown, Supplier ******                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ** ** | ** ** | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|       |       | If Processor  completes the construction of the Residue Gas Pipeline at any time prior to  Processor’s receipt of Shutdown Notice from Supplier, ******                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ** ** | ** ** | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|       |       | If Processor  completes the construction of the ****** at any  time prior to Processor’s receipt of Shutdown Notice from Supplier,******                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

 

ARTICLE XI

WARRANTY

 
| 11.1 |   | Supplier  warrants that upon delivery of its Off-Gas to Processor at the Delivery Point  that (i) Supplier owns the Off-Gas and the Liquefiable Hydrocarbons,  hydrogen and incidental non-hydrocarbon materials contained therein free and  clear of all liens, and encumbrances, and (ii) the Off-Gas shall meet  the specifications set forth in Section 5.1. EXCEPT AS SET FORTH IN THIS  SECTION 11.1, SUPPLIER MAKES NO WARRANTY, AND HEREBY DISCLAIMS ALL  EXPRESS OR IMPLIED WARRANTIES AS TO THE QUALITY OR QUANTITY, OR AS TO THE  MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OF SUPPLIER’S OFF-GAS |
|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

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|   |   | DELIVERED TO  PROCESSOR AT THE DELIVERY POINT.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 11.2   |   | Subject to  Supplier’s warranty above, Processor warrants that (i) all Supplier’s  Residue Gas and Excess Gas delivered to Supplier, or its designee at the  Redelivery Point, shall be free and clear of all liens and encumbrances, and  (ii) the Residue Gas and Excess Gas shall meet the specifications set  forth in Exhibit A. EXCEPT AS SET FORTH IN THIS SECTION 11.2, SUPPLIER  MAKES NO WARRANTY, AND HEREBY DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES AS  TO THE QUALITY OR QUANTITY, OR AS TO THE MERCHANTABILITY OR FITNESS FOR A  PARTICULAR PURPOSE, OF THE RESIDUE GAS AND EXCESS GAS. |

 

ARTICLE XII

FORCE MAJEURE

 
| ** ** | ** ** | In the event  either Party is rendered unable, wholly or in part, by *force  majeure*, to carry out its obligations under this Agreement, other  than the obligation to make any payments or accounting hereunder, then the  obligations of such Party, insofar as they are affected by such *force majeure*, shall be suspended during the continuance  of any inability so caused, but for no longer period, and the Party giving  such notice shall use good faith efforts to eliminate such *force majeure* and /or minimize its effects or impacts to  the other Party, insofar as reasonably possible, with a minimum of delay. The  term “*force majeure*” as employed herein  shall mean any and all cause(s) beyond the reasonable control of the  Party claiming *force majeure*, including but  not limited to acts of God, that render such Party unable to wholly or  partially carry out its obligations under this Agreement, other than  obligations to make payment or accounting.   It is understood and agreed that the settlement of strikes or lockouts  shall be entirely within the discretion of the Party having the difficulty,  and that the above requirement that any *force majeure*  shall be remedied with all reasonable dispatch shall not require the  settlement of strikes or lockouts by acceding to the demands of any opposing  party, when such course is inadvisable in the discretion of the Party having  the difficulty. |
|------------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

ARTICLE XIII

NOTICES

 
|   |   | All notices or  demands required or provided for herein, except for routine communications,  as hereinafter provided, shall be in writing and shall be considered as duly  delivered when hand delivered or, if mailed by United States certified mail,  postage prepaid, three (3) days after mailing or, if sent by facsimile  transmission, when receipt is confirmed by the equipment of the transmitting  Party; provided, if receipt of a facsimile transmission is confirmed |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

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|   |   | after normal  business hours, receipt shall be deemed to be the next business day.  Such notice shall be given to the other  Party at the following address, or to such other address as either Party  shall designate by like written notice to the other Party: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 
|   | **SUPPLIER**:                                                                                                                                                                              |                                         | CITGO Refining  and Chemicals Company, L.P. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|---------------------------------------------|
|   |                                                                                                                                                                                       | Attn: Plant  Manager                         |
|   |                                                                                                                                                                                       |                                         |
|   |                                                                                                                                                                                       | Physical and  Mailing Address:               |
|   |                                                                                                                                                                                       | 1802 Nueces  Boulevard                       |
|   |                                                                                                                                                                                       | Corpus Christi,  TX 78469                    |
|   |                                                                                                                                                                                       | Fax number:  361-844-4853                    |
|   |                                                                                                                                                                                       |                                         |
|   |                                                                                                                                                                                       | With a copy to                               |
|   |                                                                                                                                                                                       | CITGO Petroleum  Corporation                 |
|   |                                                                                                                                                                                       | P.O. Box  4689                          |
|   |                                                                                                                                                                                       | Houston, TX  77210                           |
|   |                                                                                                                                                                                       | Attention:  Product Manager - Petrochemicals |
|   |                                                                                                                                                                                       |                                         |
|   | **PROCESSOR:**MarkWest Javelina  Company                                                                                                                                                   |
|   |                                                                                                                                                                                       | Attn: Plant Manager                          |
|   |                                                                                                                                                                                       |                                         |
|   |                                                                                                                                                                                       | Physical and Mailing Address**:**            |
|   |                                                                                                                                                                                       | 5438 Union Street                            |
|   |                                                                                                                                                                                       | Corpus Christi, TX 78407                     |
|   |                                                                                                                                                                                       |                                         |
|   | No legal notice required or permitted hereunder concerning a claim or  breach arising hereunder or notice of termination shall be valid unless  provided in the manner described above to: |
|   |                                                                                                                                                                                       |                                         |
|   |                                                                                                                                                                                       | MarkWest Energy Partners, L.P.               |
|   |                                                                                                                                                                                       | 1515 Arapahoe Street                         |
|   |                                                                                                                                                                                       | Tower 2, Suite 700                      |
|   |                                                                                                                                                                                       | Denver, CO 80202                             |
|   |                                                                                                                                                                                       | Fax: (303) 925-9308                          |
|   |                                                                                                                                                                                       | Attn: General Counsel                        |
|   |                                                                                                                                                                                       |                                         |
|   | Routine  communications, including statements, computations and allocations may be transmitted  by ordinary mail, facsimile,  email or other generally acceptable electronic means.        |

 

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ARTICLE XIV

MISCELLANEOUS

 
| 14.1   |   | PROCESSOR AND  SUPPLIER SHALL EACH INDEMNIFY AND HOLD THE OTHER HARMLESS FROM AND AGAINST  ANY AND ALL CLAIMS FOR PERSONAL INJURY OR PROPERTY DAMAGE EXCEPT THOSE CAUSED  BY GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE OTHER PARTY IN THE  PERFORMANCE OF THIS AGREEMENT (A PARTY RESPONSIBLE FOR “REGULAR” NEGLIGENCE  SHALL BE AS PROVIDED FOR BY APPLICABLE LAW, SUBJECT TO THE TERMS OF THIS  AGREEMENT AS APPLICABLE); PROVIDED HOWEVER, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO  THE OTHER FOR LOSS OF INCOME/REVENUE/PROFITS, INCIDENTAL, CONSEQUENTIAL,  SPECIAL OR PUNITIVE DAMAGES, NO MATTER HOW ARISING, WHETHER IN CONTRACT, TORT  OR OTHERWISE.                                                                                                                                                                                                                                                               |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.2   |   | Upon execution  by both Parties, this Agreement shall extend to and be binding upon the  Parties and their respective successors and assigns. This Agreement and the  rights and obligations of either Party may not be assigned or otherwise  conveyed in whole or in part, except with the prior written consent of the  non-assigning Party, which consent shall not be unreasonably conditioned,  withheld or delayed. Notwithstanding the forgoing, either Party may assign or  convey this Agreement without consent to an entity or person who purchases  100% of the assets of said Party so long as all obligations under this  Agreement are assumed by said entity or person. No assignment or other  transfer of interest hereunder shall be effective or bind the other Party  until such Party shall have been furnished with a copy of the recorded  instrument under which the permitted assignment or other transfer occurs. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.3   |   | Any and all taxes, fees, or other charges imposed or assessed by  governmental or regulatory bodies, the taxable incident of which is the  transfer of title or the delivery of the product hereunder, or the receipt of  payment therefore, regardless of the character, method of calculation, or  measure of the levy or assessment, shall be paid by the Party upon whom the  tax, fee, or charge is imposed by law. The importer of record shall be  responsible for and shall pay all custom duties, import fees, environmental  fund fees, and other assessments pertaining to the importation of the  products.                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | If Processor claims exemption from any of the aforesaid taxes, then  Processor must furnish Supplier with a properly completed and executed  exemption certificate in the form prescribed by the appropriate taxing  authority in lieu of payment of such taxes or reimbursement of such taxes to  Supplier. Notwithstanding anything to the contrary contained herein, each  Party shall be responsible for its own income and franchise taxes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.4   |   | No director, officer, employee, or agent of either Party or its  direct or indirect parents, subsidiaries, or affiliates shall give or receive  any commission, fee, rebate, gift, or entertainment of significant value or  cost in connection with this Agreement. Further, neither Party or its direct  or indirect parents, subsidiaries, or affiliates shall make any commission,  fee, rebate, gift, or entertainment of significant value or cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

 

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|   |   | to any governmental official or employee in connection with this  Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.5   |   | Each Party hereto agrees to comply with all laws, rules, regulations,  ordinances and requirements of federal, state and local governmental or  regulatory bodies which are applicable to this Agreement, including but not  limited to environmental laws and regulations and the provisions contained in  Section 18, to the extent that such laws or regulations are applicable  to this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.6   |   | Any matters not specifically covered in this Agreement shall be dealt  with in accordance with the custom and practice in the industry.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.7   |   | This  Agreement and the respective rights and obligations of the Parties shall be  construed, interpreted and enforced in accordance with the laws of Texas  notwithstanding any principles of conflicts of laws which may require the  application of the laws of another jurisdiction. Any dispute between the  Parties arising out of or pertaining to this Agreement, not otherwise  resolved to the mutual satisfaction of both Parties, shall be submitted for  resolution by either Party to the exclusive jurisdiction of the appropriate  state or federal court with venue exclusively located in Harris County,  Texas. This Agreement, and the respective rights and obligations of the  Parties, is subject to all valid and applicable current and future laws,  rules and regulations of duly constituted authorities now or hereafter  having jurisdiction over the Parties, the services contemplated herein and  the facilities used to provide those services.        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.8   |   | Any failure by  either Party, whether intentional or unintentional, to enforce any rights  hereunder shall not act as a waiver of its right to enforce such rights  thereafter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.9   |   | Supplier shall  have title to, be in full control and possession of and be responsible for  damage or injury caused by (i) its Off-Gas prior to delivery thereof to  Processor at the Delivery Point and (ii) its Residue Gas after delivery  to Supplier, or its designee, at the Redelivery Point, except for injury or  damage caused by the gross negligence or willful misconduct of Processor.  Processor shall be in control and possession of the Off-Gas, Liquefiable  Hydrocarbons, hydrogen and incidental non-hydrocarbon materials to which  Processor takes title under this Agreement after delivery of Supplier’s Off-Gas  to Processor, or for its account, at the Delivery Point and until delivery of  Supplier’s Residue Gas to Supplier, or its designee, at the Redelivery Point  and shall be responsible for any damage or injury caused thereby, except for  injury or damage caused by the gross negligence or willful misconduct of  Supplier. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.10  |   | Each Party shall  have the right at its sole cost, risk and expense at reasonable times during  normal business hours and with reasonable prior written notice to the other  Party, of access to the Plant, the Refineries, the Delivery Point and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

 

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|   |   | the Redelivery  Point for the purposes of performing its obligations under this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.11  |   | In the event  that any of the provisions, or portions, or applications of this Agreement  are held to be unenforceable or invalid by any court of competent  jurisdiction, the Parties shall negotiate an equitable adjustment in the  provisions of this Agreement with a view toward affecting the purpose of this  Agreement. If the provision cannot be modified so as to be enforceable under  existing laws, this Agreement shall be construed and enforced as if such  provision had not been included herein and the validity and enforceability of  the remaining provisions, or portions or applications thereof, shall not be  affected. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.12  |   | The parties  agree that the rule of construction that a contract be construed against  the drafter, if any, shall not be applied in the interpretation and  construction of this Agreement. The titles and section headings contained in  this Assignment are for reference purposes only and shall not affect the  interpretation of this Assignment.                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.13  |   | This Agreement  may be executed in counterparts, each of which shall be deemed an original  but which together shall constitute one and the same instrument.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.14  |   | During the term  of this Contract, Processor and Supplier shall maintain the confidentiality  of this Contract and not disclose same to any third party except independent  auditors who are under written obligations of confidentiality with respect to  this Contract, and as may be required in the opinion of such parties’ counsel  to comply with orders of any court or governmental agency, or comply with any  laws, rules and regulations of applicable governmental agencies,  including, without limitation, federal, state, and local agencies.                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.15  |   | This Agreement  is intended to give no rights or benefits to anyone other than the Parties  and, accordingly, has no third-party beneficiaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.16  |   | This Agreement  contains the complete, final and exclusive agreement of the Parties with  respect to the matters set forth and supersedes all prior understandings,  negotiations, representations, discussions, statements, inducements and agreements,  written or oral, pertaining thereto. This Agreement may not be amended,  modified or rescinded in any way except by written instrument duly executed  by both Parties.                                                                                                                                                                                                                    |

 

[The remainder of the page isintentionally left blank]

 

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IN WITNESS WHEREOF, thisAgreement is**executed effective by the Parties as ofthe effective date.

 

 
| “SUPPLIER”       |               | “PROCESSOR”        |
|----------------------------|--------------------|------------------------------|
|                       |               |                         |
| **CITGO REFINING AND**     | ** **         | **MARKWEST JAVELINA**        |
| **CHEMICALS COMPANY**      |               | **COMPANY, L.P.**            |
|                       |               |                         |
|                       |               |                         |
| By:                        | /s/ DOYLE  DOMMERT |                         | By: | /s/ FRANK SEMPLE |
|                       |               |                         |
| Name: Doyle  Dommert       |               | Name: Frank  Semple          |
|                       |               |                         |
| Title: GM,  Petrochemicals |               | Title:  Pres. & CEO |
|                            |                    |                              |  |  |

 

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EXHIBIT “A” TO THE

GAS PROCESSING AGREEMENT

BETWEEN MARKWEST  JAVELINA COMPANY

 AND CITGO REFINING AND CHEMICAL LP

 

**Residue Gas and Excess Gas Specifications**

 

ResidueGas and Excess Gas delivered to the Redelivery Point will meet the followingspecifications:

 
| Ammonia       |   | 50  ppmv maximum                                              |
|---------------|--------|---------------------------------------------------------------|
| H2S           |   | 50  ppmv maximum                                              |
| Total  Sulfur |   | 100  ppmv maximum                                             |
| CO2           |   | 2  mol % maximum                                              |
| CO            |   | 1.5  mol % maximum                                            |
| Oxygen        |   | 0.5  mol % maximum                                            |
| H2O           |   | No  free water                                                |
| Temperature   |   | Less  than 120 degrees Fahrenheit                             |
| Pressure      |   | 100  psig minimum                                             |
| Btu  content  |   | 700  – 900 Btus per standard cubic foot (see note below) |

 

NOTE:  Processor expects, when the Plant is innormal operation, that the Residue Gas and the Excess Gas shall have a Btucontent between 700 and 900 Btus per standard cubic foot.  In the event the combined Btu value of theResidue Gas and Excess Gas delivered to the Redelivery Point is (i) lessthan 700 Btus per standard cubic foot or greater than 1000 Btus per standardcubic foot, then upon actual knowledge of such event (in any case as soon ascommercially reasonable under the then existing circumstances) the discoveringParty shall notify the other Party of such event.  Within six (6) hours of Processor’sdiscovery of such event, or Processor’s receipt of notice from Supplier of suchevent, Processor shall take corrective action, as the case may be, to (i) (a) increasethe combined Btu content of the Residue Gas and the Excess Gas delivered to theRedelivery Point to equal or exceed 700 Btus per standard cubic foot or (b) reducethe combined Btu content of the Residue Gas and the Excess Gas delivered to theRedelivery Point to equal or be less than 1000 Btus per standard cubic foot, or(ii) suspend deliveries of the Residue Gas and the Excess Gas to theRedelivery Point until such condition (either low Btu content or high Btucontent) is corrected.

 

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**EXHIBIT B**

 

Plant AllocationStatement

Statement 2 ofExhibit B

 

**Statement 2**

 

**JavelinaPlant Allocation**

**PlantThermal Reduction “PTR”**

**Month,Year**

 
| ** **                                                       | ** ** | **Mmbtus** | ** ** |
|------------------------------------------------------------------|------------|------------|------------|
| **Residue  Gas:**                                                |       |       |       |
| Theoretical Residue  Gas Attributable to Supplier’s Off-Gas | ** ** | ******     | ** ** |
| Total Quantity  of Theoretical Residue Gas for all Inlet Gas     | ** ** | ******     | ** ** |
|                                                             |       |       |       |
| Ratio of  Supplier’s Theoretical Residue Gas                | ** ** | ******     | ** ** |
| ** **                                                       | ** ** |       | ** ** |
| Actual Residue  Gas attributable to All Inlet Gas                | ** ** | ******     | ** ** |
| ** **                                                       | ** ** |       | ** ** |
| Residue Gas  Attributable to Supplier’s Off-Gas             | ** ** | ******     | ** ** |
| ** **                                                       | ** ** |       | ** ** |
| **Plant  Thermal Reduction “PTR”**                     | ** ** |       | ** ** |
| Inlet 441-207  and Inlet 441-200                                 | ** ** | ******     | ** ** |
| ** **                                                       | ** ** |       | ** ** |
| Residue Gas  Attributable to Supplier’s Off-Gas             | ** ** | ******     | ** ** |
| ** **                                                       | ** ** |       | ** ** |
| Refiner’s Plant  Thermal Reduction PTR                      | ** ** | ******     | ** ** |

 

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* All volumes and amountsare fictional and intended for this example only.

 

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EXHIBIT “C” TO THE

GAS PROCESSING AGREEMENT

BETWEEN MARKWEST  JAVELINA COMPANY

 AND CITGO REFINING AND CHEMICALS,LP

 

**Calculation of Weighted Average Sales Price for a sample Plant Product**

 

Following is an exampleof the calculation of the Weighted Average Sales Price for ethane during theexample Month:

 

As setforth below, the Weighted Average Sales Price for ethane in the followingexample would be $665.55 divided by 1,035 gallons or $0.6430 per gallon.

 
| ** **                    | ** ** | **Volume Sold  (gallons)** | ** ** | **Sales Price  ($ per gallon)** | ** ** | **Sum of all  Transportation,  Storage,  Marketing and  Exchange Fees  ($ per gallon)** | ** ** | **Sales  Proceeds   ($)** | ** ** |
|-------------------------------|------------|---------------------------------|------------|------------------------------------------------|------------|-----------------------------------------------------------------------------------------------------------------------|------------|---------------------------|------------|
| ** **                    | ** ** | ** **                      | ** ** | ** **                                     | ** ** | ** **                                                                                                            | ** ** | ** **                | ** ** |
| Ethane in Ethane  Stream      |       | 1,000                           |       | $                                              | 0.62       |                                                                                                                  | $          | 0                         |       | $ | 620.00 |   |
|                          |       |                            |       |                                           |       |                                                                                                                  |       |                      |       |   |   |   |
| Ethane in  Ethylene Stream    |       | 10                              |       | $                                              | 2.27       |                                                                                                                  | $          | 0.065                     |       | $ | 22.05 |   |
|                          |       |                            |       |                                           |       |                                                                                                                  |       |                      |       |   |   |   |
| Ethane in  Propane Stream     |       | 25                              |       | $                                              | 0.94       |                                                                                                                  | $          | 0                         |       | $ | 23.50 |   |
|                          |       |                            |       |                                           |       |                                                                                                                  |       |                      |       |   |   |   |
| Weighted Average  Sales Price |       | 1,035                           |       | .064304                                        |       |                                                                                                                  |       |                      | $          | 665.55 |   |
|                               |            |                                 |            |                                                |            |                                                                                                                       |            |                           |            |  |  |  |  |

 

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*  All volumesand amounts are fictional and intended for this example exhibit only.

 

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EXHIBIT “D” TO THE

GAS PROCESSING AGREEMENT

BETWEEN MARKWEST JAVELINA COMPANY

AND CITGO REFINING AND CHEMICALSCOMPANY, L.P.

 

METHODS OF GAS MEASUREMENT ANDSAMPLING

TEST AND ANALYSES

 

Definitions

 

**“Report No. 3”** shall mean the most current version of AGA Report No. 3, “OrificeMetering of Natural Gas”, Measurement Committee of the American GasAssociation, as such publication may be revised from time to time.

 

A.           Gas Measurement

 

Processor shall, at itscost install, operate, and maintain, or shall cause to be installed, operatedand maintained, at the Delivery Point suitable measurement equipment toaccurately measure the Off-Gas delivered for processing.  Processor shall determine the quantity of allComponents and the Btus per cubic foot contained in representative samples ofOff-Gas at the Delivery Point pursuant to Section B of this Exhibit.

 

The measurement equipmentshall consist of electronic flow measurement transmitters measuringdifferential and static pressure as well as temperature recorders that shall beinstalled, tested and maintained in accordance with the provisions of thisExhibit. Electronic Flow Measurement (EFM) equipment shall conform to allprovisions of API MPMS, Chapter 21. The measuring equipment should include aDaniels Senior Fitting or equivalent using concentric, square-edged orificemeters per API Chapter 14.3, Natural Gas Fluids Measurement.  Volumes shall be measured using a flowcomputer with real time flow-weighted average temperatures and pressures appliedto the volumes in the flow computer to generate a batch end report.    A Coriolis type flow meter may be usedinstead of an orifice type meter if agreed to by both Supplier and Processor.

 

Installation of allelectrical and instrumentation facilities shall conform to all provisions ofthe National Electric Code (NFPA Subpart 70), the American Gas Association “Classificationof Gas Utility Areas for Electrical Installation” XF0277, and ANSI/ISA RPI 12.6“Installation of Intrinsically Safe Instrument System in Class I HazardousLocations”. All electrical equipment installed in a building containing all ora portion of the Facilities shall be classified and

 

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designed for Class I,Division 1 or 2, Group D locations. Any equipment that vents or bleeds naturalgas shall be piped in such a way so as to vent or bleed outside any enclosedstructure in which it may be installed.

 

The unit of volume for the purpose of measurement ofLiquefiable Hydrocarbons, excluding ethylene and propylene, shall be one (1) U.S.liquid gallon of 231 cubic inches, when said liquid has a temperature of sixtydegrees Fahrenheit (60oF) and is at the equilibrium vaporpressure of the liquid being measured.

 

Unit of measurement forethylene and propylene shall be pounds. Unit of measurement for hydrogen shallbe Mcf.

 

B.             Measurements and Tests

 

1.               Standard of measurements and tests:

 

a.               Except as provided in Section B.1(b) relating to deviation, thevolume of Gas delivered hereunder shall be computed in accordance with thelatest methods prescribed in the Report #3, AGA Report No. 8 “SuperCompressibility” and API Chapter 21.1 “Electronic Gas Measurement Standard”.

 

b.              The deviation of the Gas from the Ideal Gas Laws due to the pressures andtemperatures under which Gas is delivered hereunder, shall be determined by themethods prescribed by Report #3. Such determination shall be made at thebeginning of and at such times as either Party hereto may reasonably desireeach Month. Results of each determination shall be used in computing thevolumes of Gas measured hereunder until the next determination is made.

 

c.               The specific gravity of the Off-Gas at the Delivery Point shall bedetermined by Processor using chromatographic analysis of a composite samplenot less than once each Month.

 

d.              The flowing temperature of the Gas at the point of measurement shall bedetermined by means of a recording thermometer of standard make and thearithmetical average of readings during the time Gas is flowing each day shallbe deemed the Gas temperature and used in computing the volumes of Gasdelivered during such day.

 

e.               The Btus per cubic foot of the Gas delivered hereunder shall be determinedat each measurement point hereunder at least once each Month by means ofchromatographic analysis of composite samples and the factors for pureComponents stated in Article V.

 

f.                 In addition to the Monthly determination of Btus per cubic foot, Processorshall install a continuous recording chromatograph or other 

 

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industry acceptedequipment to monitor the Delivery Point. The volume weighted average of dailyrecorded Btus per cubic foot shall be used in computing the total estimatedquantity of Btus received from each delivery point during that day.

 

2.               Measurements

 

a.               For the purpose of calculating the volume of Gas and in the computation ofsuch volumes, the atmospheric pressure shall be assumed to be fourteen andsixty-five hundredths (14.65) pounds per square inch absolute regardless of theactual atmospheric pressure at which the Gas is delivered and measured unlessotherwise established by governmental authority.

 

b.              Processor shall install, maintain and operate at its own expense thenecessary equipment of a character and design acceptable to Supplier to measureseparately the volume of Off-Gas delivered for Processing and perform all testsrequired to accomplish the measurement of volumes, temperatures, specificgravities and Btus per cubic foot of the Gas measured hereunder. Such volumemeasuring equipment shall conform to the specifications contained in Report #3and API Chapter 21.1, “Electronic Gas Measurement Standards”. Supplier shallhave access to such measuring equipment at all reasonable hours, but thecalibration, adjustment and maintenance thereof shall be done only by Processorand witnessed by the Supplier. Upon reasonable request of Supplier all volume,specific gravity, and temperature charts used in measurement of Gas hereundershall be mailed or delivered to Supplier for checking and calculating withintwenty (20) days after the last chart for each accounting period is removedfrom the recorders. Such chart shall be mailed or returned to Processor withinthirty (30) days after receipt thereof by Supplier.

 

c.               Supplier may install, maintain, operate, calibrate and adjust at its ownexpense check measurement equipment, and/or telemetry equipment provided suchequipment does not interfere with the accuracy or operations of the Processor’smeasurement equipment and facilities required by this agreement. ElectronicFlow Measurement (EFM) equipment shall conform to all provisions of API MRMS,Chapter 21. Installations of all electrical and instrumentation equipment shallconform to all provisions set forth by this agreement.

 

d.              Supplier and Processor shall each have the right to be present at the timeof installing, testing, cleaning, changing, repairing, inspecting, calibratingor adjusting done in connection with the measuring equipment of the other whichis used in measurement here under. The Party planning to conduct suchoperations shall give the other Party at least ten (10) days prior noticethereof in order that all necessary parties may be present.

 

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e.               If both EFM and the backup orifice meters are out of service or out ofrepair so that the quantity of Gas is not correctly indicated by readingthereof, the Gas measured during the period shall be estimated and agreed uponon the basis of the best data available, using the first of the followingmethods which is feasible:

 

(1)              By using the registration of any check measuring equipment if  installed and accurately registering; or

 

(2)              By estimating the volume by comparison with volumes during precedingperiods under similar conditions when the recorder was registering accurately;or

 

(3)              .By correcting the error if the percentage of error is ascertainable bycalibration, tests or mathematical calculation.

 

f.                 The accuracy of the measuring equipment shall be tested at reasonableintervals and, if requested, in the presence of representatives of the otherparty, but such verification shall not be required more frequently than once ina thirty (30) day period. In the event either party shall notify the other thatit desires a special test of any measuring equipment, the parties shallcooperate to secure a prompt verification of the accuracy of such equipment.The expense of such a special test as may be requested by either party shall beborne by the party requesting such test if the measurement equipment, by suchtest, is found to be correct.

 

g.              If upon test, any meter or any related instrument or device the readingsof which are used in the registration, integration, or computation ofquantities which affect the measured quantity hereunder is found to be in error to the extent that itintroduces not more than a two percent (2%) measurement error in theindividual  meter or meters affected,previous records of such equipment shall be considered accurate in computingdeliveries hereunder; but such equipment shall be adjusted at once to functioncorrectly. If, upon testing, any such measuring equipment shall be foundinaccurate to the extent that is causes the end result measurement of theindividual meter or meters so affected to be in error by an amount exceedingtwo percent (2%), at a recording corresponding to the average hourly rate offlow through the individual meter or meters affected, for the period since thelast preceding test, then any previous registration, integration or recordingsof such meter or meters affected shall be corrected  to zero error for any part of the periodsince the last test that such error is known to have existed or which may beagreed upon in actual practice by the operating representatives of the parties.In case the period of such error is not known definitely or is not agreed upon,such correction shall be for a period of one-half (1/2) of the time elapsedsince the date of the last such test, but not exceeding a correction period offifteen (15) days.

 

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The records for measuring equipment shall remain theproperty of the operator of such equipment, but upon request the operator willsubmit to the other party its records, together with calculations therefrom,for inspection, subject to return within thirty (30) days after receiptthereof.

 

h.              Gas Sampling and Analysis

 

Processor shall obtainrepresentative samples of Off-Gas in accordance with GPA Publication 2166,latest revision, by utilizing continuous sampling techniques designed to obtaina representative sample over a thirty (30) day period proportional to Gas flowrates. For Monthly accounting, Processor shall analyze this representativesample by chromatographic techniques in accordance with GPA Publication 2261 and2145, latest revision. Suppliers shall have the right to witness the samplingand analyzing of Off-Gas at Delivery Point. Should said representative sample be inadvertently lost or contaminated,then a mutually agreeable replacement sample or previous analysis will be used.

 

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