EX-10.47



 





Exhibit 10.47




AGREEMENT




Between




COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC




and




THE PAPER, ALLIED-INDUSTRIAL, CHEMICAL & ENERGY




WORKERS INTERNATIONAL UNION




AFL-CIO-CLC




and




LOCAL NO. 5-432, HEADQUARTERED IN BARTLESVILLE, OKLAHOMA




Effective:                                         





 









 







AGREEMENT Between COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC and THE PAPER, ALLIED-INDUSTRIAL,
CHEMICAL & ENERGY WORKERS INTERNATIONAL UNION AFL-CIO-CLC and LOCAL NO. 5-432, HEADQUARTERED IN
BARTLESVILLE, OKLAHOMA.




TABLE OF CONTENTS




	 	 	 	 	 
	ARTICLE 1 SCOPE OF AGREEMENT
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 BINDING EFFECT OF THIS AGREEMENT
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 3 NO STRIKES OR LOCKOUTS; CONTINUITY OF OPERATION
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 4 NO SOLICITATION OR DISTRIBUTION
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 5 MANAGEMENT RIGHTS
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 6 PROBATIONARY PERIOD
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 7 SENIORITY, LAYOFFS, TRANSFERS AND PROMOTIONS
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 8 SCOPE OF WORK AND WORK SCHEDULES
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 9 OVERTIME
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 10 MEAL PERIODS
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 11 HOLIDAYS
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 12 PAID TIME OFF
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 13 JURY DUTY
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 14 PHYSICAL EXAMINATIONS
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 15 DRUG AND ALCOHOL POLICY
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 16 LEAVE OF ABSENCE
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 17 MILITARY LEAVE
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 18 BEREAVEMENT LEAVE
	 	 	11	 






	 	 	 
	 

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	ARTICLE 19 SAFETY
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 20 EDUCATION AND TRAINING
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 21 NONDISCRIMINATION
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 22 DISCIPLINE AND DISCHARGE
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 23 GRIEVANCE PROCEDURE
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 24 BULLETIN BOARD
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 25 VALIDITY
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 26 WAGE RATE
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 27 INSURANCE
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 28 401K
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 29 MISCELLANEOUS
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 30 TERM OF AGREEMENT
	 	 	18	 






	 	 	 
	 

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AGREEMENT




     THIS AGREEMENT is made and entered into, effective the                      day of                                         , 2004, by and
between Coffeyville Resources Crude Transportation, LLC (hereinafter referred to as the “Employer”
or the “Company”), and the Paper, Allied-Industrial, Chemical & Energy Workers International Union,
AFL-CIO-CLC (“PACE”) and Local No. 5-432, headquartered in Bartlesville, Oklahoma (hereinafter
referred to as the “Union”) for designated Employees under the authority of the N.L.R.B.
Certification Order No. 17-UA-682.



WITNESSETH:




     WHEREAS, the parties have, by negotiation and collective bargaining, reached complete
agreement on wages, hours of work, working conditions and other related, negotiable subjects to be
incorporated into a new Labor Agreement which shall supersede all previous verbal or written
agreements applicable to the employees in the bargaining unit defined herein, which may have
existed between the predecessor of the Employer and the Union.



     WHEREAS, the Employer and organized labor both clearly recognize the responsibilities that
both have to each other and the need for a close and continued friendly relationship between them,
and because they further recognize that such relationship will result in mutual benefits by giving
effective service in the interest of the Employer and creating improved labor standards for the
members of the Union; consequently, this Agreement is entered into with good will and
understanding.



     WHEREAS, the Employer and the Union agree to do everything in their power to obtain maximum
productivity on the part of individual employees within the limits of safety and good health. The
Employer and the Union agree that the economic condition of the Employer and the industry
necessitate an increased militance against waste and inefficiency and the parties pledge that
unnecessary overtime for calls to work outside of duty hours are to be avoided wherever
practicable.



     NOW, THEREFORE, in consideration of the foregoing, the execution of this Agreement and the
full and faithful performance of the covenants, representations and warranties contained herein, it
is mutually agreed as follows:



ARTICLE 1  SCOPE OF AGREEMENT





	1.1	 	The Union is recognized as acting as the sole bargaining agency for all full time employees
of the Employer engaged in the operations as set forth in this Article except supervisory
employees, foremen, plant protection employees and employees whose duties are of a clerical,
professional or technical nature.





	 	 	 
	 

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	1.2	 	This Agreement shall apply to those operations at the time of entering into this Agreement of
Coffeyville Resources Crude Transportation, LLC in Butler, Cowley, Sedgwick, Chautaugua. Elk,
Montgomery, Sumner, and Wilson counties in the State of Kansas, and Osage, Washington, Craig,
Tulsa, Kay, Pawnee, Creek, Rodgers and Nowata counties in the State of Oklahoma.






	1.3	 	In this Agreement, whenever the context so requires, the masculine gender includes the
feminine.





ARTICLE 2  BINDING EFFECT OF THIS AGREEMENT





	2.1	 	This Agreement shall be binding upon the parties’ signatory hereto. In the event that the
Employer’s business is sold, assigned or transferred, the parties shall have all rights and
obligations conferred by law. In the event the facility is sold, the Company shall give
notice of the existence of this Agreement to any purchaser.





ARTICLE 3  NO STRIKES OR LOCKOUTS; CONTINUITY OF OPERATION





	3.1	 	During the existence of this Agreement, there shall be no lockouts or strikes, including
sympathy strikes, picketing, work stoppages, slowdowns or disruptive activity by the Union or
by any employee. It is specifically understood and agreed that a work stoppage or disruption
of work or slowdown occasioned by the honoring of another union’s (whether or not affiliated
or associated with the Union) picket line shall constitute a forbidden work stoppage under
this Article.






	3.2	 	Any and all Employees who violate any of the provisions of this Article may be disciplined by
the Company, up to and including discharge.






	3.3	 	Upon expiration of the Agreement and because of the nature of the petroleum business, need
for safety in the community, and desirability of orderly turnover of the operation there shall
be no strike or lockout until after a lapse of a period of not less than 72 hours following a
notice of strike or lockout from the party giving such notice to the other party and that this
Article 3 shall be considered as in full force until expiration of such period of 72 hours.






	3.4	 	Nothing contained herein shall preclude the Company from obtaining judicial restraint and
damages in the event any provision of this Article is violated. Any alleged violation of this
Article (with the exception of just cause discipline issues) shall not be subject to the
provisions of the grievance and arbitration provisions of this Agreement.





	 	 	 
	 

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ARTICLE 4  NO SOLICITATION OR DISTRIBUTION





	4.1	 	Employees may not solicit or distribute printed materials of any kind to employees during
work time or in work areas. Employees who are not on work time may not solicit or distribute
printed materials to employees who are on work time.





ARTICLE 5  MANAGEMENT RIGHTS





	5.1	 	The Employer has the sole discretion to manage and operate the Company, including all of its
operations, activities and the direction of its Employees, with the right to hire, or suspend,
discipline or discharge for just cause; to promote, demote, assign work, separate, classify,
reclassify, transfer, and layoff Employees, and to recall or relieve Employees from duty and
to and maintain discipline and efficiency among Employees; to decide the number of Employees
to be utilized; to establish reasonable facility rules; to determine the type and scope of
work to be performed; to establish schedules of operation; to determine work schedules of
Employees and to change such schedules as determined appropriate; to require overtime; and to
determine the methods, procedures and means of operation. The Company shall also have the
right to introduce new or improved working methods or facilities. Nothing in this Section is
intended to limit any rights of the Company not specifically and expressly covered.





ARTICLE 6  PROBATIONARY PERIOD





	6.1	 	Each employee will be regarded as a probationary employee until he has completed one hundred
twenty (120) working days of continuous employment. During this period of probationary
employment, the services of the employee may be terminated, with or without cause, and without
recourse to the grievance procedure; no advance notice of layoff or termination, or payment in
lieu thereof, shall be required; and seniority rights provided elsewhere in this Agreement
shall not apply.






	6.2	 	The period of probation shall be extended by the number of days the Employee is absent from
scheduled work while on probationary status.





ARTICLE 7  SENIORITY, LAYOFFS, TRANSFERS AND PROMOTIONS





	7.1	 	Company Seniority is the length of continuous full-time service from an Employee’s most
recent date of hire by the Employer. Company Seniority shall apply to determine eligibility
for benefits as specified in this Agreement, including vacation benefits. Farmland service
with each employee hired in conjunction with the sale of the facility from Farmland to the
Employer shall be credited as Company seniority.






	7.2	 	The following categories of seniority will be established: The Employee’s date of hire will
establish his seniority based upon his successful completion of his probationary





	 	 	 
	 

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	 	 	   period. Company seniority will be utilized in the event of layoff or recall, subject to the
ability and qualifications of the employee to

   perform the duties of the position in question.






	7.3	 	Layoff and Rehire. In the event layoffs become necessary, which Employees will be
laid off or retained and which Employees shall be recalled shall be determined by the
appropriate Company seniority. An employee whose position is eliminated due to a reduction in
force or is bumped by a senior qualified employee will apply the following procedure: the
employee may displace the most junior employee in his current classification first if he is
qualified. If he is not qualified to perform the work, he may displace the most junior
employee in each lower classification he is qualified to perform until he has obtained a job
or is laid off from the facility.






	7.4	 	Temporary Transfers. The Employer, in its sole discretion, may transfer Employees
temporarily between shifts and between jobs and departments in order to maintain efficient
and/or economical operations of the system. Temporarily as used in the Article is defined and
understood to mean any period of time, which does not exceed thirty (30) consecutive work days
provided, however, that by mutual agreement between the Company and the Union, the period of
time may be extended. Transferred employees will receive either the rate of pay for the
position to which he is transferred or his regular rate of pay, whichever is higher, for no
more than thirty (30) days.






	7.5	 	With regard to the electrician and welder positions (or trainee positions for said
positions), the Employer shall exercise its management right to place and/or promote those
individuals who, in the sole discretion of the Employer, are the most qualified to fill
available position(s). With respect to these electrician and welder positions, in the event
that Management, in its sole discretion, deems individuals to be equally qualified, seniority
shall be used as the determining factor. For all other positions, seniority shall be used to
determine placement into available positions where employees are minimally qualified for any
such available positions. Whenever practicable, Management shall post available job openings
for all interested Employees to apply. Said posting shall state the minimum qualifications
for the available opening.






	7.6	 	An Employee voluntarily leaving the service of the Employer or discharged for cause shall
forfeit all seniority and service rights, and shall, if he is reemployed be considered as a
new Employee.





ARTICLE 8  SCOPE OF WORK AND WORK SCHEDULES





	8.1	 	No foreman or supervisor shall, except in the case of emergencies, training employees, or in
the interest of avoiding accidents, do any work peculiar to any job classification, the
performance of which would cause an employee to suffer layoff or loss of pay.





	 	 	 
	 

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	8.2	 	The established work week shall consist of seven (7) consecutive days beginning at 12:01 a.m.
on Mondays. The normal daily and weekly work schedule shall be determined by management and
the normal weekly work schedule shall consist of forty (40) hours of work.






	8.3	 	Nothing in this Agreement shall be interpreted to restrict the amount of time an Employee can
be required work to eight (8) hours in one day or forty (40) hours in one week. It is also
understood that the foregoing does not constitute a guarantee of any fixed number of hours of
work in any week.






	8.4	 	The working time of any Employee shall commence when he has reported for work at the
designated time and regular place.






	8.5	 	Vacation days for an 8 hour shift job will be charged as 8 hours vacation. Vacation days for
a 10 hour shift job will be charged 10 hours vacation.






	8.6	 	Callout Pay. An Employee who reports to work pursuant to a callout, is guaranteed
two hours and forty minutes of pay at his overtime hourly rate. Further, to qualify for the
callout guarantee, an Employee must accept such work assignment as may be made by the Company
and report at the facility or work location within an hour.





ARTICLE 9  OVERTIME





	9.1	 	Employees shall be paid at a rate of one and one-half (11/2 x) times the Employee’s regular
hourly rate for all hours worked in excess of their regularly scheduled work day (consisting
of at least eight (8) hours in a day) or forty hours in a workweek, or for all hours worked on
any of the holidays specified in this Agreement for up to their regularly scheduled work day.
Overtime or holiday compensation shall not be pyramided; i.e., hours worked at a rate of time
and one-half time shall not be computed more than once in calculating overtime or holiday pay
earned, nor shall any premium rate be further expanded to time and one-half or double time of
such premium rate under any Article of this Agreement.






	9.2	 	No overtime shall be worked or permitted except by direction of proper authority, except in
case of emergency where advance authority is not obtainable. An Employee on continuous
operations shall remain at his post of duty until relieved. In cases where shift men are
required to work for a longer time due to the failure of relief men to appear, such overtime
shall be paid at the rate of one and one-half, however, the relief man shall be paid only for
the number of hours worked.






	9.3	 	The Employer shall, in-so-far as practicable, distribute overtime uniformly within each
classification. When overtime is required, the employee within that classification who is
lowest on the overtime list will be asked first, if he declines, all employees in that





	 	 	 
	 

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	  	 	classification will be asked. If no employee accepts, the low man within that
classification will be required to work overtime.






	9.4	 	No Employee shall be required to take time off from his regular work week for the purpose of
off-setting overtime previously worked.






	9.5	 	When an Employee takes vacation time, as defined in this Agreement, the Employee shall be
paid up to eight (8) hours (10 hours for a four X ten hour shift employee) of straight-time
pay and such hours shall be counted as hours worked for the purpose of computing overtime for
that week. Holidays shall also be counted as hours worked. Use of PTO days (other than
vacation), jury duty, leaves of absence or layoff shall not be counted as hours worked for the
purpose of computing overtime for that week.





ARTICLE 10  MEAL PERIODS





	10.1	 	Employees shall receive one (1) thirty (30) minute meal period per shift when they work a
full scheduled shift. Employees required to work at least four (4) hours over his regularly
scheduled shift shall be provided with a meal paid for by the Employer.





ARTICLE 11 HOLIDAYS





	11.1	 	The Employer recognizes the following holidays:







New Year’s Day

Good Friday

President’s Day

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Day after Thanksgiving Day

Christmas Day

Personal Holiday




		 	When a holiday falls on a Saturday, the holiday will be observed on the previous Friday.
When a holiday falls on a Sunday the following Monday will be observed as the holiday. This
Article will not apply to employees with rotating days off. When a holiday falls on an
employee’s regularly scheduled day off, the employee will be entitled to one additional
personal PTO day. Use of the personal holiday and PTO time must be arranged for and
approved in advance by the employee’s supervisor.






	 	 	 
	 

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	11.2	 	Employees who wish to observe certain holidays of worship or commemoration not included in
the Employer’s holiday schedule may do so with approval from management as an unpaid, excused
absence or use a PTO day.






	11.3	 	For the purpose of this Agreement a holiday shall consist of a twenty-four (24) hour period
commencing at 12:01 a.m. the morning of the recognized holiday.






	11.4	 	Each Employee who is not required to work on a particular holiday shall be paid straight-time
pay for their regular number of work hours (either 8 or 10 hours), provided that no such
payment shall be made to an Employee, with respect to a holiday, if such Employee:






	 	   a.	 	Was not present for work on both his last scheduled work day before the holiday
and his next scheduled work day after the holiday unless there is reasonable excuse for
absence.
	 
	 	   b.	 	Is scheduled to work on that holiday and without permission of the Employer
fails to report for work, unless there is reasonable excuse for such absence.
	 
	 	   c.	 	Is removed from the active payroll during the period in which the holiday
occurs, such as when on leave of absence or layoff.






	11.5	 	An Employee required to work on any day observed as his holiday as outlined above shall, in
addition to the holiday pay, receive straight-time pay (except for those hours worked in
excess of 40, which will be paid at time and one half times the Employee’s regular rate of
pay).






	11.6	 	It is expressly understood that pay for time off not worked shall be construed to mean hourly
pay and that reference to days herein this Agreement shall be construed as reference to an
employee’s regular work day (either eight (8) or ten (10) hour days).






	11.7	 	Employees hired from Farmland immediately after the purchase of the facility shall be
entitled to receive holiday pay upon initial hire by the Company. Probationary employees and
temporary employees will not be eligible to receive holiday pay.





ARTICLE 12  PAID TIME OFF





	12.1	 	Paid Vacation. Full-time regular Employees who have twelve (12) months of continuous
Company service are entitled to paid vacation according to the following schedule:





	 	 	 
	One (1) year of service

	 	One (1) week
	Two (2) to fifteen (15) years of service

	 	Two (2) weeks
	Fifteen (15) to Twenty (20) years of service

	 	Three (3) weeks
	Over Twenty (20) years

	 	Four (4) weeks






	 	 	 
	 

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	 	A.	 	Paid vacation eligibility is calculated on the employee’s
anniversary date. For purposes of vacation entitlement, Farmland years of
service shall be recognized. Vacation may be taken as it is accrued. Vacation
shall be accrued monthly. No advances of vacation time will be made unless
otherwise provided in this agreement.
	 
	 	B.	 	Vacation and PTO pay and use will be based upon the employee’s
regular hourly rate of pay for their regular work day (either 8 or 10 hours).
	 
	 	C.	 	Probationary employees and temporary employees will not be
eligible to use vacation time.
	 
	 	D.	 	Employees must indicate their desired vacation periods to the
Employer between December 1 and 15 of each year for vacations to be taken
during the next calendar year.
	 
	 	E.	 	Vacations shall be taken in increments of at least one (1) full
week unless otherwise approved by the Employee’s supervisor.
	 
	 	F.	 	An Employee’s preference shall be considered in scheduling
vacations, but the vacation schedule shall be subject to the Employer’s work
requirements.






	 	1.	 	When scheduling conflicts occur, the first
Employee to submit the request shall have a preference for the
requested vacation. In the event that Employees simultaneously submit
requests, which would create a scheduling conflict, the Employee with
the greatest length of service (including Farmland service) shall have
first preference. However, once a vacation request has been approved,
the Employee may not be “bumped” in favor of another who has greater
seniority.
	 
	 	2.	 	Vacation time can be carried over from year to
year in the following increments:





	 	 	 
	 

	 	1 year to 15 years of service – 5 days;

greater than 15 years of service – 10 days







Carry over of a greater number of days will not be made with the
following two (2) exceptions:




	 	a.	 	If the Employee is required to
forego any portion of his vacation for the Employer’s
convenience, he shall be allowed to carry any unused time
forward into the next





	 	 	 
	 

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anniversary year. The Employee’s Department Head should
write a memo to the file documenting the carry over, with a
copy to the Union and the Employee.




	 	b.	 	If an Employee is unable to use
all of his accrued vacation due to a work-related disability,
the unused portion of the vacation shall carry over into the
next anniversary year.






	 	3.	 	Pay in lieu of time off shall not be granted
unless there is mutual agreement between the Union and the Employer.






	 	G.	 	Vacation may not be used in conjunction with any disability pay
the Employee receives.
	 
	 	H.	 	The Employer may block certain periods of time throughout the
year when vacation cannot be taken. If the Employer chooses to block certain
periods, notice will be given at the time Employees are to indicate their
desired vacation periods.






	12.2	 	Paid Time Off (PTO). PTO can be used for any purpose and is available as a flexible
addition to vacation time. For example, PTO can be used for sick days, religious holidays and
personal emergencies. All employees are allotted five (5) PTO days each calendar year. An
employee cannot use PTO unless prior approval is given by the employee’s supervisor to the
extent possible. Employees will be permitted to carry over up to ten (10) PTO days from year
to year. If an employee is unable to attend work due to illness, injury or other reason, the
employee shall notify his supervisor of the leave as far in advance as reasonably
ascertainable. If an employee decides to take such leave on the morning of the scheduled
workday, the employee shall notify the employee’s supervisor or another appropriate manager at
least two (2) hours before the employee is scheduled to start work. An employee will not be
paid for unused PTO time.





ARTICLE 13  JURY DUTY





	13.1	 	It is agreed that no loss of base pay shall be incurred by an Employee as a result of jury
service when loss of time is caused by actual service on a jury, and he shall be permitted to
retain his jury fee. Employees will be paid their regular hourly rate for their regular work
schedule (either eight (8) or ten (10) hour days). Employees called but not chosen for jury
duty are required to work any remaining hours of his regular work schedule.





ARTICLE 14 PHYSICAL EXAMINATIONS





	14.1	 	Applicants for employment shall be examined by a reputable physician.





	 	 	 
	 

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	14.2	 	Upon the request of the Employer, the employee shall furnish the Employer’s regular medical
examination form signed by an accredited physician.






	14.3	 	In case a dispute arises over the physical fitness of an Employee to return to work or to
continue to work, a board of three accredited physicians shall be selected, one by the
Company, one by the Employee, and one selected by the two so named. The decision of the
majority of the board shall be final. The Company shall bear the expense of the physician it
selects and one-half of the expense of the physician chosen by the first two. The Employee
shall bear the expense of the physician he selects and one-half the expense of the physician
chosen by the first two.





ARTICLE 15  DRUG AND ALCOHOL POLICY





	15.1	 	Drug or Alcohol Test. The Employer will adopt a drug and alcohol policy. Employees
are required to adhere to that policy and shall be subject to the testing procedures contained
therein. Any Employee suspected of consuming, using or being under the influence of drugs or
alcohol must submit to an immediate drug and/or alcohol test. The Employer may monitor an
Employee’s work performance and behavior to determine whether the Employer suspects that the
Employee is under the influence of drugs or alcohol. Such testing shall be conducted by a
certified lab to insure the integrity of the specimen.






	15.2	 	Job-Related Accident. Any Employee involved in a job-related accident requiring
attention at a medical facility may be required to submit to a drug and/or alcohol test.






	15.3	 	Consequence of Positive Test. The Employer shall have just cause to discharge an
Employee in the event that the drug or alcohol test indicates the presence of drugs or
alcohol.






	15.4	 	Refusal to Submit. Any Employee subject to drug and/or alcohol testing as outlined
above who refuses to submit to such test shall be considered to have failed the test for
purposes of this Article.






	15.5	 	Random Drug Testing. The Employer shall implement a random drug testing policy, to
the extent permitted by law. Such random testing shall be conducted quarterly and up to 25%
of the bargaining unit members may be subject to such testing each quarter.






	15.6	 	Compliance with Applicable laws. The Employer agrees to comply with all applicable
laws, including Department of Transportation regulations with regard to employee drug testing.





	 	 	 
	 

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ARTICLE 16  LEAVE OF ABSENCE





	16.1	 	The parties will comply with the requirements of the Family and Medical Leave Act of 1993,
hereinafter, “the FMLA.” Employees shall be permitted to take the leaves allowed by law,
subject to the Company’s right to adopt a policy detailing any procedures, requirements or
restrictions on such leaves, as are permitted by law or this Agreement. An Employee seeking
FMLA leave must provide sufficient information concerning the reason for the leave so that the
Company can determine whether the leave qualifies under the FMLA.






	16.2	 	If an employee desires an unpaid leave of absence in order to engage in any work pertaining
to the business of the Union, said request will be presented to local Management for approval
and such approval will not be unreasonably withheld. Such leave may not exceed one (1) year
and will not affect the employee’s seniority status. Only one employee at a time shall be
given such union leave.





ARTICLE 17  MILITARY LEAVE





	17.1	 	An Employee who enters the Armed Forces of the United States shall retain and accumulate
seniority under this Agreement during such period of military service and shall have the right
to reinstatement to his former employment in accordance with established laws applicable to
veterans of the United States Armed Forces.






	17.2	 	An Employee who is a member of the National Guard or military reserve corps requiring
periodic training courses necessitating his being absent from work will be entitled to a leave
from work on his own time or to the right to apply the time lost against earned vacation,
whichever the Employee prefers.





ARTICLE 18  BEREAVEMENT LEAVE





	18.1	 	In the event of a death in a full-time Employee’s immediate family (defined as the Employee’s
spouse, child, step child, parent or step parent or parent in law, or blood brother or
sister), an Employee shall be granted up to three (3) consecutive work days off as funeral
leave if the employee attends the funeral. Proof of the death and of the family relation may
be required by the Company.





ARTICLE 19  SAFETY





	19.1	 	No Employee shall be required to perform services that seriously endanger his physical
safety, and his refusal to do such work shall not warrant or justify discharge. In all such
cases, an immediate conference between the Employer and the Union shall be held to settle the
issue in question.





	 	 	 
	 

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	19.2	 	An Employee shall not be disciplined, if physically and mentally capable of continuing his
duties, because of any accident unless the accident was caused by negligence, carelessness, or
malicious intent of the Employee.






	19.3	 	The Employer and the Union agree to the immediate formation of a joint committee, which shall
be known as the “Joint Safety Committee.” The purpose of the committee to study and make
recommendations that will ensure safe and efficient operation of the Employer’s operation.
Such joint safety committee shall meet on the first Tuesday of every month. Unless mutually
agreed to change to a different date. It is understood and agreed that the committee shall
not have the right to alter, vary or modify provisions of this Agreement. It is further
understood that the establishment and function of the committee provided herein shall in no
way alter, vary or modify the right of any Employee, the Union or the Company to pursue any
matter through the grievance and arbitration provisions of this Agreement. Activities of the
Employee-members of the safety committee shall not interfere with the proper performance of
the Employee’s work.





ARTICLE 20  EDUCATION AND TRAINING





	20.1	 	The Company and the Union agree to the establishment of a “Joint Education and Training
Committee” to develop education and training initiatives that are determined by the Company to
be necessary for future business needs and to provide opportunities for Employees to gain
additional employment skills. Toward that end, the Joint Education and Training Committee
shall be established and shall consist of two (2) representatives appointed by the Union and
two (2) representatives of management. This Committee shall meet primarily for the purpose of
fostering and promoting the advancement of effective education and training programs. It is
understood and agreed that the committee shall not have the right to alter, vary or modify
provisions of this Agreement. It is further understood that the establishment and function of
the committee provided herein shall in no way alter, vary or modify the right of any Employee,
the Union or the Company to pursue any matter through the grievance and arbitration provisions
of this Agreement. Activities of the Employee-members of the Education and Training committee
shall not interfere with the proper performance of the Employee’s work.





ARTICLE 21  NONDISCRIMINATION





	21.1	 	It is mutually agreed that there shall be no coercion, intimidation, or discrimination
practiced by the Employer or the Union because of membership or non-membership in the Union.






	21.2	 	It is the mutual intent of both the Employer and the Union to comply with all State and
Federal laws, including the Americans with Disabilities Act.





	 	 	 
	 

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	21.3	 	The Employer and the Union agree that they will not discriminate against any employee or
applicant because of race, sex, color, creed, age, nationality, or religion, or any other
legally protected status under local, state or federal law. All actions affecting personnel
are administered fairly and in accordance with applicable laws. This policy applies to all
terms and conditions of employment.






	21.4	 	The parties agree that during the term of this Agreement, the Company is permitted to take
all actions necessary to comply with the “Americans With Disabilities Act of 1990,” 42, USC
12101 legislation. It is not the intent of the parties to displace regular full-time
Employees in order to comply with the Act.






	21.5	 	The Employer is committed to maintaining a work environment free from harassment, including
sexual harassment. The Employer shall have good cause to discipline, up to and including
discharge, any Employee who engages in harassment directed toward any Employee, customer,
visitor or vendor. Harassment is defined as unwelcome verbal or physical conduct of a
discriminatory nature based upon age, race, religion, national origin, disability, veteran
status, or any other protected classification, which creates a work environment that is
offensive, hostile or intimidating. Sexual harassment includes, but is not limited to,
solicitation of sexual favors, offensive touching, lewd or suggestive comments, sexual jokes
or innuendoes, visual displays of pornographic materials, and visual displays of sexual
materials. It is incumbent upon an Employee to immediately report to his or her supervisor
any other Employees who are engaging in harassment. Employees who fail to satisfy this
obligation may be subject to discipline, up to and including termination.





ARTICLE 22  DISCIPLINE AND DISCHARGE





	22.1	 	No regular Employee, after having completed the probationary period under Article 7, shall be
disciplined and/or discharged except for just cause. The Employer shall follow a system of
progressive discipline. The parties agree that progressive discipline normally requires,
prior to discharge, that an Employee be given a verbal, written and then final written warning
to correct the deficiency, but that with the principle of progressive discipline, the Employer
may impose immediate suspension or discharge for dishonesty, incompetence, misconduct,
insubordination, failure to report to work without just cause, walking off the job during a
shift, or drinking alcohol or use of controlled substance, or being under the influence
thereof, during the Employee’s shift.






	22.2	 	An Employee may be placed on “final written warning” status for up to one (1) month at any
time when his performance has deteriorated to the extent that his supervisor believes, and the
Employer’s Human Resources Director agrees, that it is necessary to impress upon him the
significance of poor performance and the need for improvement. The Employer shall advise the
Employee and the Union of his deficiencies and the areas where improvement is required with
specificity. The Employer shall advise the Union





	 	 	 
	 

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that the Employee has been placed on final written warning status within 24 hours of being
placed on such status. An Employee who improves satisfactorily during this period may be
restored to regular status. Failure to improve performance during this period may result in
termination or transfer to another job more suited to the Employee’s capabilities.
Deficiencies in work performance should be documented and placed in the Employee’s file.
Regular Employees who have been placed on final written warning status are eligible for
normal benefit accrual but may not take any vacation days during that period, unless
approved by the facility manager. The final written warning status period shall be extended
by the number of days the Employee is absent from scheduled work while on such status.




	22.3	 	Any Employee who is requested to participate in an investigatory interview, that the Employee
reasonably anticipates will result in the imposition of a disciplinary penalty, may request
that a Union representative be present. The Employer may grant or deny the Employee’s
request. If the Employer denies the Employee’s request, the Employee shall have the option of
continuing the interview without the presence of a Union representative, or discontinuing the
interview. If the Employee’s request is granted, the Union representative shall be summoned
by the Employer and allowed to be present during the investigatory interview. The interview
shall be scheduled for a date and time acceptable to the Employer and the Union. The Employer
may proceed with the interview without the presence of a Union representative, if the Union
representative is unavailable for 36 consecutive hours following notification. In that event,
the Employee may decide whether he desires to participate in the interview without the
presence of a Union representative.





ARTICLE 23  GRIEVANCE PROCEDURE





	23.1	 	A grievance shall be defined as a dispute regarding the interpretation and application of the
provisions of this Agreement raised by the Union alleging a violation of the terms and
provisions of this Agreement. However, disputes specifically excluded in other Articles of
this Agreement from the grievance and arbitration procedure shall not be construed as falling
within this definition.






	23.2	 	All grievances shall be handled exclusively in the following manner:





	 	 	 
	STEP 1:

	 	Matters for discussion must first be
orally submitted to the employee’s
immediate supervisor. Such a meeting
shall normally include the employee,
the local union or unit
representative, and the foreman and
shall be held within five (5) working
days of the time that the aggrieved
party has knowledge of the grievance.
If the grievance is not resolved at
this step, then the union may file a
formal written grievance within five
(5) days under the procedures set
forth below. If the matter is not
resolved, the immediate supervisor
shall render a written response to
the Union within five (5) business
days after the grievance is
presented.






	 	 	 
	 

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	STEP 2:

	 	If the grievance is not settled at
Step 1 and the Employee or Union
wishes to file a written grievance to
Step 2 of the grievance procedure, it
shall be submitted in writing to the
Employee’s department head within
five (5) business days after receipt
of the Company’s answer in Step 1, or
within five (5) business days of the
time when such answer would have been
due. The grievance shall state the
provision or provisions of this
Agreement, which are alleged to have
been violated, the relief requested,
and the basis upon which the grievant
believes the grievance was improperly
denied at the previous step in the
grievance procedure. The department
head shall investigate the grievance
and, in the course of such
investigation, may offer to discuss
the grievance within five (5) days
with the grievant and an authorized
Union representative at a time
mutually agreeable to the parties.
If no settlement of the grievance is
reached, the department head shall
provide a written answer to the
grievant and to the Union within ten
(10) business days following receipt
of the Step 2 grievance.
	 
	 	 
	STEP 3:

	 	If the grievance is not settled at
Step 2 and the Union wishes to appeal
the grievance to Step 3 of the
grievance procedure, it shall be
submitted in writing (signed by both)
to the General Manager or his
designated representative within five
(5) business days after receipt of
the Company’s answer in Step 2, or
within five (5) business days of the
time that such answer would have been
due. The grievance shall
specifically state the basis upon
which the grievant believes the
grievance was improperly denied at
the previous step in the grievance
procedure. The General Manager or
his designated representative shall
investigate the grievance and, in the
course of such investigation, shall
offer to discuss the grievance within
five (5) days with the grievant and
authorized Union representatives at a
time mutually agreeable to the
parties. If no settlement of the
grievance is reached, the General
Manager or his designated
representative shall provide a
written answer to the grievant and
the Union within ten (10) business
days following receipt of the Step 3
grievance.
	 
	 	 
	STEP 4:

	 	If the grievance is not settled at
Step 3 and the Union desires to
appeal, the Union may refer the
grievance to arbitration, as
described below, within thirty (30)
business days of receipt of the
Company’s written answer as provide
to the Union at Step 3:







	 	    (a)		The parties shall attempt to agree upon an arbitrator within five (5)
business days after receipt of the notice of referral. In the event the parties are
unable to agree upon the arbitrator within said five (5) business day period, the
parties shall jointly request the Federal Mediation and Conciliation Service to
submit a panel of seven (7) arbitrators. Each party retains the right to reject one
(1) panel in its entirety and request that a new panel be submitted. Both the Union
and the Company shall have the right to alternately strike names from the panel,
with the party requesting arbitration striking the first name. The person remaining
shall be the arbitrator.





	 	 	 
	 

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	 	    (b)	 	The arbitrator shall be notified of his/her selection and shall be
requested to set a time and place for the hearing, subject to the availability of
Union and Company representatives.
	 
	 	    (c)	 	The Company and the Union shall have the right to request the arbitrator
to require the presence of witnesses or documents. The Company and the Union retain
the right to employ legal counsel at their own expense.
	 
	 	    (d)	 	The arbitrator shall submit his/her decision in writing within thirty
(30) calendar days following the close of the hearing or the submission of briefs by
the parties, which ever is later. This decision shall be final and binding on the
Company, the grievant, the Employees covered by this Agreement, and the Union.
	 
	 	    (e)	 	More than one grievance may be submitted to the same arbitrator if both
parties mutually agree in writing.
	 
	 	    (f)	 	The fees and expenses of the arbitrator and the cost of a written
transcript if requested by both parties shall be divided equally between the Company
and the Union; provided, however, that each party shall be responsible for
compensating its own representative and witnesses.
	 
	 	    (g)	 	The arbitrator shall have no power to add to, subtract from, amend,
change or alter any of the terms of this Agreement.
	 
	 	    (h)	 	Any Employee covered by this Agreement who is discharged by the Employer
and who disputes that his/her discharge was for just cause shall have an affirmative
duty to mitigate any potential damages which might result to the Employer, in the
event the discharge involved is subject to Grievance and Arbitration, and an
arbitrator overrules the discharge. In any dispute over the amount of back pay due
to an Employee under an arbitration award, the arbitrator shall have no authority to
award any back pay to that Employee unless that Employee or the Union has
affirmatively proven by a preponderance of the evidence that the Employee has
fulfilled his/her duty to mitigate damages at all times since his/her discharge.






	23.3	 	Time limitations set forth in this Article may be waived or modified by mutual agreement
between the parties involved. Absent a waiver to the contrary, if either party fails to
comply with the time limitations as established herein, the other party shall be deemed to
have prevailed on the grievance in question.






	23.4	 	It is understood that the grievance can be withdrawn or settlement agreed upon between the
parties at any time prior to the formal hearing of the grievance by the Arbitrator.





	 	 	 
	 

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ARTICLE 24  BULLETIN BOARD





	24.1	 	The Employer shall make a bulletin board available to the Union where the Union may post
notices of Union elections and results, meetings and recreational and social affairs.





ARTICLE 25  VALIDITY





	25.1	 	If any court shall hold any part of this Agreement invalid, such decision shall not
invalidate the entire Agreement.





ARTICLE 26  WAGE RATE





	26.1	 	Rates of pay for Employees in positions covered thereunder are set forth in Appendix “A”
attached hereto.





ARTICLE 27  INSURANCE





	27.1	 	Employees will be offered the opportunity to enroll in, and participate in the Employer’s
medical insurance plan on the terms and conditions of the plan as set forth in Appendix “B”
attached hereto. It is understood and agreed that increases to the insurance premiums set
forth in Appendix B after year 1 of this Agreement shall be shared between the Employer and
Employees in the following manner: Employer to pay 70% of the increase; and Employees to pay
30% of the increase. It is understood and agreed that during the term of this Agreement
Employees covered by this Agreement shall not be required to pay more than 25% of the total
premium cost for medical insurance.





ARTICLE 28  401K





	28.1	 	Employees will be eligible to participate in the Coffeyville Resources Crude Transportation,
LLC 401K plan under the terms and conditions of the plans as set forth in Appendix “C”
attached hereto.





ARTICLE 29  MISCELLANEOUS





	29.1	 	Reimbursement for Safety Equipment. The Company shall reimburse each employee fifty
dollars ($50.00) per year toward the purchase of ANSI approved steel-toe shoes, provided that
the employee provides a receipt. The Company shall provide each employee with one pair of
safety eyeglasses each year.






	29.2	 	Check-Off. To the extent approved and authorized by individual employees and as
permitted by State law, the Company agrees to check-off dues by voluntary authorization. Said
arrangement shall be continued in effect for the term of this Agreement. The Union and the
Company will agree upon a check off authorization form which complies with applicable law to
be provided to members. The Union shall provide copies of individual





	 	 	 
	 

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consent forms to the Company for
processing. The Company shall remit each
month to the designated financial officer
of the Union, the amount of deductions
made for that particular month, together
with a list of employees and their Social
Security numbers, for whom such deductions
have been made.



ARTICLE 30 TERM OF AGREEMENT





	30.1	 	Subject to provisions of Article 3. No Cessation of Work, herein above, this Agreement is
effective                                                              , 2004, and shall remain in effect through           
          , and from year to
year thereafter, unless a written request to alter, modify or terminate the Agreement is
received on or before sixty (60) days prior to                     , or any subsequent                     , either
party shall make written request for alternations.





	 	 	 
	COFFEYVILLE RESOURCES

	 	THE PAPER, ALLIED-INDUSTRIAL,
	CRUDE TRANSPORTATION, LLC

	 	CHEMICAL & ENERGY WORKERS
	 

	 	INTERNATIONAL UNION,
	 

	 	ALF-CIO-CLC AND LOCAL 5-432
	 
	 	 
	 

	 	 
	DATE

	 	DATE






	 	 	 
	 

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APPENDIX A




JOB CLASSIFICATIONS AND WAGE RATES




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Proposed
	 	 	 	 	 	 	Wage Rate
	 	 	 	 	 	 	Increase Each
	Classifications	 	Wage Rate	 	Year
	Gauger
	 	 	18.62	 	 	 	3	%
	 
	 	 	 	 	 	 	 	 
	Electrician
	 	 	18.04	 	 	 	3	%
	 
	 	 	 	 	 	 	 	 
	Welder
	 	 	18.04	 	 	 	3	%
	 
	 	 	 	 	 	 	 	 
	Mechanic (Truck)
	 	 	18.04	 	 	 	3	%
	 
	 	 	 	 	 	 	 	 
	Stock Gauger Eng.
	 	 	17.71	 	 	 	3	%
	 
	 	 	 	 	 	 	 	 
	Back Hoe, Truck
Driver (1 Ton +)
Tractor Operator
	 	 	17.31	 	 	 	3	%
	 
	 	 	 	 	 	 	 	 
	Pipeliner
	 	 	16.98	 	 	 	3	%
	 
	 	 	 	 	 	 	 	 
	Transport Driver
	 	 	16.59	 	 	 	3	%
	 
	 	 	 	 	 	 	 	 
	Probationary Employees *
	 	11.75 minimum**	 	 	 	 








 




			
	*	 	This probationary rate will not apply to Farmland Employees hired by Coffeyville Resources
Crude Transportation, LLC.
	 
	**	 	To be determined in the sole discretion of the facility manager.





	 	 	 
	 

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APPENDIX B




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bartlesville Facility	 	 	 	 	 	 	 	 
	Proposed Benefit Rates for	 	 	 	 	 	 	 	 
	2004	 	 	 	 	 	 	 	 
	 
	Medical (20% Employee / 80% Employer)	 	Distribution of Premium	 	 
	BCBS - Kansas	 	 	 	 	 	Employee	 	Employer	 	TOTAL
	Option 1. $200/$600 deductible	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employee Only
	 	 	 	 	 	$	58.45	 	 	$	233.78	 	 	$	292.23	 
	Employee/Child
	 	 	 	 	 	$	111.55	 	 	$	446.19	 	 	$	557.74	 
	Employee/Spouse
	 	 	 	 	 	$	125.92	 	 	$	503.68	 	 	$	629.60	 
	Family
	 	 	 	 	 	$	178.00	 	 	$	712.00	 	 	$	890.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Option 2. $500/$1000 deductible	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Employee Only
	 	 	 	 	 	$	53.09	 	 	$	212.34	 	 	$	265.43	 
	Employee/Child
	 	 	 	 	 	$	102.29	 	 	$	409.17	 	 	$	511.46	 
	Employee/Spouse
	 	 	 	 	 	$	113.96	 	 	$	455.82	 	 	$	569.78	 
	Family
	 	 	 	 	 	$	163.17	 	 	$	652.66	 	 	$	815.83	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Monthly Expense
	 	 	 	 	 	$	59,755	 	 	$	239,018	 	 	$	298,772	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Annual Expense
	 	 	 	 	 	$	717,058	 	 	$	2,868,212	 	 	$	3,585,270	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dental – (20% Employee / 80% Employer)	 	 	 	 	 	 	 	 	 	 	 	 
	Delta Dental of Kansas
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Employee only
	 	 	 	 	 	$	4.44	 	 	$	17.77	 	 	$	22.21	 
	Employee/child
	 	 	 	 	 	$	8.53	 	 	$	34.10	 	 	$	42.63	 
	Employee/Spouse
	 	 	 	 	 	$	8.80	 	 	$	35.19	 	 	$	43.99	 
	Family
	 	 	 	 	 	$	14.57	 	 	$	58.30	 	 	$	72.87	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Monthly Expense
	 	 	 	 	 	$	4,727	 	 	$	18,912	 	 	$	23,639	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Annual Expense
	 	 	 	 	 	$	56,728	 	 	$	226,945	 	 	$	283,673	 
	 	 	 	 	 	 	 






	 	 	 
	 

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	Life and AD&D (all Employer Paid)	 	 	 	 	 	 
	Minnesota Life	 	 	 	 	 	Life Rate	 	ADD Rate	 	Total Rate
	Amount in Force
	 	$	11,173,423	 	 	$	0.27	 	 	$	0.02	 	 	$	0.29	 
	Monthly Expense
	 	 	 	 	 	$	3,006	 	 	$	268	 	 	$	3,274	 
	Annual Expense
	 	 	 	 	 	$	36,068	 	 	$	3,218	 	 	$	39,286	 
	 	 	 	 	 	 	 





Rates subject to final adjustment by BC/BS of Kansas if closing occurs after December 1, 2003.

Increases to medical and dental insurance rates in years 2 through 5 of the contract shall be split
in the following manner: 70% of increase to be assumed by Employer, 30% of increase to be assumed
by employees.




	 	 	 
	 

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APPENDIX C 




401(K) PLAN



Employees will be eligible and offered the opportunity to participate in the Employer’s 401(k)
Plan. The Employer shall match $0.50 for every dollar contributed by each employee up to a maximum
of 6% of each employee’s annual salary. The Employer’s contribution will vest in equal amounts
over a three year period, e.g., 33.3% each year until fully vested. The Employer’s contribution
shall fully vest automatically upon the retirement of any Employee during the first three years of
the contract.




	 	 	 
	 

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SIDE LETTER



The probationary period set forth in Article 6 shall be 90 WORKDAYS for employees hired directly
from Farmland upon the purchase of the operation. For all hires after the initial purchase the 120
work day probationary period shall apply.



On the condition that the bargaining unit members vote in favor of the Agreement upon one vote and
by October 23, 2003, the Company will pay a one time lump sum payment of $1,500.00 to those former
Farmland bargaining unit employees who are not hired. Employees hired by the Company but then
dismissed during their initial 90 day probationary period shall also be entitled to receive this
$1,500 payment.



Upon date of hire of Farmland Employees Coffeyville Resources Crude Transportation, LLC will allow
each employee to borrow up to five days of vacation time during the first six months of 2004. Each
borrowed vacation day will be paid back as vacation time is accrued by the employee.




	 	 	 
	 

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