Exhibit
4.8








TERMINATION
OF ASSIGNMENT OF CHARTER






THIS TERMINATION AGREEMENT (this "Termination") is made
and entered into as of April 8, 2010, by and between (i) CALPETRO TANKERS
(BAHAMAS III) LIMITED, a company organized under the laws of the Bahamas (the
"Owner"), and (ii) CALIFORNIA PETROLEUM TRANSPORT CORPORATION, a company
organized under the laws of the state of Delaware ("CPTC"), to the Assignment of
Charter dated as of March 31, 2006 between the Owner and CPTC (the
"Assignment").  Capitalized terms used herein without definition shall
have the respective meanings ascribed thereto (or incorporated by reference) in
the Assignment, which also contains rules of usage that apply to terms defined
therein and herein.




W I T N E S
S E T H:




WHEREAS, pursuant to the Assignment, the Owner assigned
to CPTC, its successors and assigns, all of the Owner's right, title and
interest in and to the bareboat charter entered into on March 31, 2006 (the
"Charter"), between Front Voyager Inc. and the Owner in respect of the Bahamian
registered vessel FRONT VOYAGER (formerly the WILLIAM E. CRAIN), having Official
Number 731991 (the "Vessel"), a single-hull Suezmax class crude oil tanker that
is no longer permitted to engage in the seaborne transportation of crude oil
effective February 26, 2010, under the environmental regulations of the
International Maritime Organization (the "New Regulations");
and




WHEREAS,
the Vessel serves as collateral for the 8.52% First Preferred Mortgage Notes due
2015 (the "Notes") issued by CPTC; and




WHEREAS,
CPTC, the Owner and Frontline Ltd., the manager of the Vessel (the "Manager"),
have determined, given that no acceptable replacement charter is available for
the Vessel due to the New Regulations, that the Vessel should be released as
collateral for the Notes so that it may be delivered and sold on or after April
1, 2010; and




WHEREAS, holders of 99.92% of the aggregate principal
amount of the Notes outstanding (the "Majority Noteholders") have consented to
changes to the indenture between CPTC and The Bank of New York Mellon Trust
Company, N.A. as indenture trustee (the "Indenture Trustee"), dated as of April
1, 1995, as supplemented and amended by Supplement No. 1, dated as of June 28,
2001 and as further supplemented and amended by Supplement 2, dated as of the
date hereof (the "Indenture"), and certain collateral agreements in connection
therewith (the "Collateral Agreements"), which changes will permit the release
of the Vessel as collateral and the sale of the Vessel under the collateral
trust agreement dated as of April 5, 1995 among CPTC, the Indenture Trustee, The
Bank of New York Mellon Trust Company, N.A. as collateral trustee (the
"Collateral Trustee"), the Owner, CalPetro Tankers (Bahamas I) Limited, CalPetro
Tankers (Bahamas II) Limited, and CalPetro Tankers (IOM) Limited, as amended by
Amendment No.1 dated as of June 28, 2001, and as further amended by Amendment
No. 2 dated as of April 1, 2010 (as the same may be amended, supplemented or
otherwise modified from time to
time in accordance with its terms, the "Collateral Trust Agreement"), which
changes will permit the sale of the Vessel in accordance with the provisions of
the consent solicitation statement dated February 17, 2010, distributed to
holders of the Notes (the "Consent Solicitation Statement");
and









WHEREAS,
certain of the changes set forth in the Consent Solicitation Statement and
approved by holders of Notes will take effect only if the Vessel is sold for an
"Adequate Bid"; and




WHEREAS,
an "Adequate Bid" is a price such that the net proceeds from the sale of the
Vessel (after deducting fees and expenses of the termination and sale) together
with any termination payments paid in connection with the previous and current
charter of the Vessel that are held by the Collateral Trustee pursuant to the
Collateral Trust Agreement are sufficient to redeem the Allocated Principal
Amount of Notes at a redemption price equal to the greater of (x) the sum of (A)
an amount equal to 100% of the Allocated Principal Amount and (B) the Make-Whole
Premium or (y) the applicable Redemption Premium Price, each as defined in the
Indenture, plus accrued but unpaid interest to the date of redemption;
and




WHEREAS,
CPTC, the Owner and the Manager have received an Adequate Bid and the Vessel is
being sold in accordance with such Adequate Bid on the date hereof (the "Sale");
and




WHEREAS,
the Charter was terminated on April 1, 2010; and




WHEREAS,
such termination of the Charter necessitates the corresponding termination of
the Assignment; and




WHEREAS,
the Assignment is one of the Collateral Agreements to which the Majority
Noteholders have consented to amend, supplement, waive or
terminate.




NOW,
THEREFORE, in reference to and consideration of the foregoing and One Dollar
($1.00) and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:




Article
1.     Termination
of Assignment.  The Assignment is hereby terminated in its
entirety and is of no force or effect. Neither party shall have any liability or
obligation to the other under or in connection with the Assignment, and any
prior notice required in connection with the termination of the Assignment is
hereby waived.




Article
2.     Entire
Agreement.  This Termination contains the entire agreement and
understanding of the parties with respect to the subject matter hereof, and
supersedes and replaces all prior negotiations and agreements, including the
Assignment, between the parties, whether written or oral.  Each party
acknowledges that no party has made any promise, representation, or warranty
whatsoever, express or implied, not contained herein, concerning the subject
matter hereof.







Article
3.    Counterparts/Facsimile
Signatures.  This Termination may be executed in any number of
counterparts, each of which when so executed and delivered will be deemed an
original, and all of which together shall constitute one and the same
agreement.  This Termination may be executed and delivered by
facsimile and upon such delivery the facsimile signature will be deemed to have
the same effect as if the original signature had been delivered to the other
party.




Article
4.     Successors
& Assigns.  This Termination shall be binding upon and
inure to the benefit of each of the parties and its or his or her respective
assigns, successors in interests, and representatives.




Article
5.     Governing
Law.  This Termination shall be governed by and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of laws principles.







[THE
REMAINDER OF THE PAGE IS INTENTIONALLY LEFT BLANK.]





IN
WITNESS WHEREOF, the parties hereto have caused this Termination to be executed
by an officer thereunto duly authorized, all as of the date first above
written.








CALPETRO
      TANKERS (BAHAMAS III) LIMITEDBy:
            /s/ Kate BlankenshipName: 
      Kate BlankenshipTitle:    
      DirectorCALIFORNIA
      PETROLEUM TRANSPORT CORPORATIONBy:
            /s/
      Frank B. BilottaName: 
      Frank B. BilottaTitle:    
      President






Consented
      and Agreed to:THE
      BANK OF NEW YORK MELLON
              TRUST
      COMPANY, N.A.as
      Collateral Trustee and Indenture TrusteeBy
            /s/
      Marcella BurgessName: 
      Marcella BurgessTitle:   
      Vice President