Document:

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                                                                    EXHIBIT 10.7

 Pages where confidential treatment has been requested are marked "Confidential
 Treatment Requested." The redacted material has been separately filed with the
    Commission, and the appropriate place and in the margin with a star (*).

                         RAW PRODUCT GATHERING AGREEMENT

        THIS RAW PRODUCT GATHERING AGREEMENT ("AGREEMENT") is made and entered
into as of the 1st day of January, 2002, by and between DYNEGY LIQUIDS MARKETING
AND TRADE, a general partnership, hereinafter referred to as "DLMT", and DYNEGY
MIDSTREAM SERVICES, LIMITED PARTNERSHIP, a Delaware limited partnership,
hereinafter referred to as "Dynegy", sometimes also referred to individually as
a "Party" and collectively as the "Parties." All capitalized terms used in this
Agreement, including in the recitals immediately below, shall have the meanings
ascribed to them in this Agreement unless reference is expressly made otherwise.

                                   WITNESSETH:

        WHEREAS, DLMT owns and/or controls or in the future may own and/or
control certain volumes of Raw Product, as hereinafter defined, produced from
various gas processing plants; and,

        WHEREAS, DLMT desires to have said Raw Product received and gathered by
Dynegy through its Raw Product gathering system to points on Dynegy's system
where same can be either fractionated, stored or delivered into pipelines for
transport; and,

        WHEREAS, Dynegy desires to so receive and gather said Raw Product either
on Dynegy's East Leg Gathering System or West Leg Gathering System, hereinafter
defined as provided herein;

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
to be kept and performed by the parties, the parties agree as follows.

1.      DEFINITIONS

        For the purposes of this Agreement, the following terms and expressions
shall have the meanings set forth below, unless the context indicates otherwise:

        "AFFILIATE" means, of any Person, a Person Controlling, Controlled by or
        under common Control with, directly or indirectly, through one or more
        intermediaries, such Person. Any Person shall be deemed to be an
        Affiliate of any specified Person if such Person owns 50% or more of the
        voting securities of the specified Person, if the specified Person owns
        fifty percent (50%) or more of the voting securities of such Person, or
        if fifty percent (50%) or more of the voting securities of the specified
        Person and such Person are under common Control.

        "BARREL" shall mean 42 (U.S.) Gallons.

        "BASE RATE" shall mean a per annum rate of interest equal to the lower
        of (i) the maximum rate of interest allowed by law or (ii) two percent
        above the "prime rate" of interest as announced from time to time by
        Bank One, Chicago, Illinois (or any then current successor thereto).

        "BUSINESS DAY" shall mean a Day on which Federal Reserve member banks in
        Houston, Texas, are open for business.

                                       -1-
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        "COMPONENT" shall mean the individual hydrocarbon constituents of Raw
        Product, including but not limited to: methane, ethane, propane,
        isobutane, normal butane, isopentane, normal pentane, hexanes and
        heavier, as well as other non-hydrocarbon components authorized
        hereunder.

        "CURRENT SUPPLY CONTRACTS" shall mean the contracts under which DLMT, as
        of the date hereof, is acquiring title and/or control over Raw Product
        produced at the Plants, which contracts are described in more detail in
        Exhibit C attached hereto.

        "DAY" OR "DAILY" shall mean a twenty-four (24) hour period commencing
        12:00 a.m. Midnight Central Standard or Daylight Savings time, as
        applicable, and extending until 12:00 a.m. Midnight Central Standard or
        Daylight Savings time, as applicable, on the following Day.

        "DELIVERY POINT(s)" shall mean the point of interconnection between the
        tailgate of the respective Plant(s) and the inlet of the Gathering
        System.

        "EAST LEG GATHERING SYSTEM" shall mean the system of pipes, gathering
        lines, pumps, valves, controls and all other related equipment and
        systems owned and/or operated by Dynegy currently utilized to gather Raw
        Product from the Acadia, CMS LNG, Grand Chenier, Iowa and Lowry Plant(s)
        and deliver the same to the Redelivery Point located at the Hackberry
        Storage Facility situated in Cameron Parish, Louisiana, as such system
        exists as of the Effective Date.

        "EFFECTIVE DATE" shall have the meaning ascribed to it in Section 2.

        "FRACTIONATION AGREEMENT" shall mean that certain Fractionation
        Agreement between Dynegy and DLMT of even date herewith.

        "GALLON" shall mean one U.S. liquid Gallon, which is the unit of volume
        used for the purpose of measurement of liquid. One U.S. liquid Gallon
        contains 231 cubic inches when the liquid is at a temperature of 60 DEG.
        degrees Fahrenheit and at the vapor pressure of the liquid being
        measured.

        "GATHERING SYSTEM" shall mean collectively the East Leg Gathering System
        and West Leg Gathering System.

        "HACKBERRY STORAGE FACILITY" shall mean the underground natural gas
        liquids storage facility situated in Cameron Parish, Louisiana which is
        owned and operated by Dynegy.

        "LAKE CHARLES FRACTIONATION FACILITY" or "FRACTIONATOR" shall mean the
        Fractionation Facility situated in Calcasieu Parish, Louisiana, which is
        owned and operated by Dynegy for the purpose of fractionating liquid
        hydrocarbons into specification products.

        "LOSSES" shall mean any and all liabilities, losses, damages, demands,
        claims, penalties, fines, actions, suits, legal, administrative or
        arbitration or alternative dispute resolution proceedings, judgments,
        orders, directives, injunctions, decrees or awards of any jurisdiction,
        costs and expenses (including, but not limited to, reasonable attorneys'
        fees and related costs).

        "MONTH" OR "MONTHLY" shall mean the period commencing on the first Day
        of a calendar Month and ending on the last Day of such calendar Month.

        "NEW SUPPLY CONTRACT" shall have the meaning ascribed to it in Section
        3.4.

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        "NGL PIPELINE" shall mean that certain bi-directional natural gas
        liquids pipeline owned by Dynegy NGL Pipeline Company and operated on
        such owner's behalf by Dynegy for the transportation of NGLs or other
        products which extends from Rose Bluff, Louisiana to Mont Belvieu,
        Texas.

        "PLANTS" shall mean the following described gas processing plants which
        produce volumes of Raw Product which DLMT currently owns and/or controls
        or in which it may obtain an interest during the term of this Agreement,
        as same exists as of the Effective Date and any gas processing plants
        which may in the future be connected to the Gathering System:

<Table>
<Caption>
           ------------------------------------------------------------------------
           PLANT NAME        LOCATION                              GATHERING SYSTEM
           ------------------------------------------------------------------------
           <S>               <C>                                   <C>
           Acadia            Acadia Parish, Louisiana              East Leg
           ------------------------------------------------------------------------
           Barracuda         Cameron Parish, Louisiana             West Leg
           ------------------------------------------------------------------------
           Cameron           Cameron Parish, Louisiana             West Leg
           ------------------------------------------------------------------------
           CMS LNG           Calcasieu Parish, Louisiana           East Leg
           ------------------------------------------------------------------------
           Dupont SRW        Orange County, Texas                  West Leg
           ------------------------------------------------------------------------
           Grand Chenier     Cameron Parish, Louisiana             East Leg
           ------------------------------------------------------------------------
           Iowa              Jefferson Davis Parish, Louisiana     East Leg
           ------------------------------------------------------------------------
           Lowry             Cameron Parish, Louisiana             East Leg
           ------------------------------------------------------------------------
           Sabine Pass       Cameron Parish, Louisiana             West Leg
           ------------------------------------------------------------------------
           Stingray          Cameron Parish, Louisiana             West Leg
           ------------------------------------------------------------------------
</Table>

        "PRODUCT STORAGE AGREEMENT" shall mean an agreement of that title,
        executed simultaneously herewith between DLMT and Dynegy, covering
        storage of Raw Product and other specification products at Dynegy's
        Hackberry Storage Facility.

        "RAW PRODUCT" shall mean that mixture of natural gas liquid hydrocarbons
        recovered from the Plant(s) meeting either the specifications set forth
        in the Current Supply Contracts, as to volumes delivered thereunder, or
        the specifications set forth in Exhibit A attached hereto with regard to
        volumes delivered under New Supply Contracts.

        "REDELIVERY POINTS" shall mean those locations set forth in Exhibit D to
        this Agreement and such other points agreed to by the Parties for Dynegy
        to redeliver DLMT's Raw Product gathered hereunder.

        "SPECIFICATIONS" shall mean the specifications for Raw Product set forth
        in the Current Supply Contracts and any New Supply Contracts entered
        into in compliance with Section 3.4.

        "SUPPLY CONTRACTS" shall mean the Current Supply Contracts plus any
        additional contracts under which DLMT is acquiring or in the future may
        acquire title and/or control over Raw Product for delivery into the
        Gathering System, provided same are in compliance with the requirements
        of Section 3.4 below.

        "WEST LEG GATHERING SYSTEM" shall mean the system of pipes, gathering
        lines, pumps, valves, controls and all other related equipment and
        systems owned and operated by Dynegy utilized to gather Raw Product from
        the Barracuda, Cameron, Sabine Pass, Stingray and Dupont SRW Plant(s)
        and deliver the same to either to the Hackberry Storage Facility, the
        Lake Charles Fractionator or the Redelivery Point(s) into the NGL
        Pipeline at locations in the Lake Charles, Louisiana vicinity, as such
        systems exists as of the Effective Date.

                                       -3-
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2.      TERM

        This Agreement shall have a primary term commencing effective January 1,
2002, (the "Effective Date") and ending December 31, 2021 (the "Primary Term")
and shall continue in effect Year to Year thereafter; provided however, that
either Party shall have the right to terminate this Agreement effective at the
end of the Primary Term or any Yearly anniversary thereafter by giving the other
Party at least ninety (90) Days prior written notice.

3.      PERFORMANCE

3.1.    DELIVERY AND REDELIVERY OBLIGATIONS

        DLMT hereby commits to the performance of this Agreement and agrees to
        deliver to Dynegy at the Delivery Point(s), its owned and/or controlled
        Raw Product produced at the Plant(s) and received by DLMT pursuant to
        the Supply Contracts. Dynegy agrees to receive all such Raw Product
        attributable to the Supply Contracts from DLMT at the Delivery Points,
        gather the Raw Product in the Gathering System and redeliver the Raw
        Product to DLMT at the Redelivery Point(s), as mutually agreed upon.

3.2.    SUPPLY CONTRACTS

        The Parties acknowledge that DLMT does not own or operate any of the
        Plants but that DLMT's owned or controlled Raw Product to be delivered
        under this Agreement is being acquired from third parties pursuant to
        the Supply Contracts. Dynegy acknowledges receipt and knowledge of the
        full contents of the Current Supply Contracts, including the
        specifications for Raw Product to be delivered thereunder, minimum
        volume receipt obligations, all measurement and testing provisions and
        provisions regarding the means and manner for physical delivery
        thereunder.

3.3.    AGENCY DESIGNATION & DUTIES

        DLMT hereby designates Dynegy, for the term of this Agreement, to serve
        as its agent under the Supply Contracts for the limited purposes of
        administering the physical receipt, measurement and testing of Raw
        Products delivered thereunder (the "Product Receipt Services"). Dynegy
        agrees to perform such Product Receipt Services on behalf of DLMT, for
        the term of this Agreement, expeditiously and in a good and workmanlike
        manner; it being understood, however, that Dynegy is not acting as a
        guarantor of DLMT's performance under the Supply Contracts.

3.4.    ADDITIONAL SUPPLY CONTRACTS

        DLMT may, from time to time hereafter, enter into either: i) additional
        purchase or exchange contracts with third parties under which it
        acquires title or control over additional volumes of Raw Product which
        DLMT wishes to be delivered into the Gathering System for gathering to
        the Redelivery Points; or ii) amendments, renewals or replacement
        contracts which materially modify the obligations under any Supply
        Contracts (collectively referred to as "New Supply Contracts"). In such
        an instance, Dynegy agrees to accept such additional volumes of Raw
        Product and to provide all Product Receipt Services for same, provided
        DLMT complies with the following requirements:

        (a)    The specifications of the Raw Product to be delivered under the
               New Supply Contract are consistent with those set forth in
               Exhibit A to this Agreement;

                                       -4-
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                       "Confidential Treatment Requested"

        (b)    If the New Supply Contract requires the addition of a new
               Delivery Point to the Gathering System, the Parties must first
               agree on who shall bear the cost of installing the new Delivery
               Point. Dynegy is not obligated to add any new Delivery Point,
               expand the capacity of the Gathering System or to accept new
               volumes of Raw Product at an existing Delivery Point if, in
               Dynegy's sole opinion, addition of same would have a material
               adverse effect on i) the operation of the Gathering System, ii)
               the ability of Dynegy to perform its then existing obligations
               under this Agreement (including, without limitation, the Product
               Receipt Services with regard to then existing Supply Contracts)
               or under any other agreements or iii) the ability of Dynegy to
               comply with applicable laws then in effect.

        (c)    The New Supply Contract is in a form which either:

                    (1)    has been approved by Dynegy with regard to all
                           provisions which could relate to or affect Product
                           Receipt Services, expressly excluding any financial
                           or compensatory provisions therein, which shall be in
                           the sole control and authority of DLMT and which may
                           be kept confidential from Dynegy; or

                    (2)    includes provisions substantially identical to the
                           following portions of this Agreement, or complies
                           with the provisions of the following sections which
                           are expressly referenced as being applicable to New
                           Supply Contracts: Section 5.1, applicable provisions
                           of Section 5.3, and all of Section 8.

        (d)    Unless approved by Dynegy in advance, the New Supply Contract
               shall not include: (i) any provisions guarantying a maximum
               Gathering System inlet pressure; (ii) curtailment provisions
               which give the delivering party any greater receipt priority
               rights than normal prorata curtailment; or (iii) any obligations
               which are in conflict with any receipt obligations under then
               existing Supply Contracts such that ability to perform under such
               existing Supply Contracts may be, in Dynegy's sole opinion,
               materially endangered or restricted.

3.5.    SUPPLY CONTRACT RELATED COSTS

        Should modifications or expansion of the Gathering System be required to
        enable DLMT to perform its obligations under any New Supply Contracts
        but Dynegy is not comparably bound under the other terms of this
        Agreement to make such modifications or expansions, the Parties shall
        meet to determine who should bear the costs of such modifications or
        expansions. If the Parties are unable to agree on the appropriate
        sharing of costs, (i) no modifications or expansions shall be required
        to be made and (ii) DLMT shall be released from any dedication under
        this Agreement pertaining to the Plant covered by such New Supply
        Contract.

4.      GATHERING FEE

  As consideration for the gathering Services provided by Dynegy under this
* Agreement, DLMT shall pay Dynegy an initial gathering fee of [REDACTED]
  ("Fee") for all Raw Product delivered by DLMT to Dynegy at the Delivery
  Point(s). This Fee shall be adjusted each Year during the term of this
  Agreement, beginning January 1, 2003, according to the following formula (such
  Fee being expressed in cents per Gallon):

*       Fee           =   [REDACTED]

                                       -5-
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                       "Confidential Treatment Requested"

*       Where:   A    =   [REDACTED]

                                       -6-
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               GDP2   =   United States Bureau of Economic Analysis GDP Implicit
                          Price Deflator for the previous calendar quarter.

               GDP1   =   The average of the GDP Implicit Price Deflator for the
                          fourth quarter of the previous calendar year (i.e. for
                          the first adjustment this would be for the last
                          quarter of 2002.

5.      QUALITY, CUSTODY AND MEASUREMENT

5.1.    Raw Product delivered hereunder shall be in compliance with the
        Specifications. Should any of the Plants produce Raw Product not in
        compliance with the Specifications under the applicable Supply Contract
        ("Offspec RP"), Dynegy shall advise DLMT of whether it is capable of
        accepting such Offspec RP and what fees or additional costs would be
        required to allow acceptance of such Offspec RP.

5.2.    Custody of the Raw Product shall transfer to Dynegy at the Delivery
        Point. DLMT shall arrange for the delivery of the Raw Product to Dynegy
        at the Delivery Point(s) at a pressure sufficient to enable the Raw
        Product to enter into the Gathering System.

5.3.    Volumes of Raw Product delivered to Dynegy, and determination of the
        Components contained therein, shall be measured and calculated at each
        Delivery Point in accordance the measurement and testing procedures set
        forth in the Supply Contract applicable thereto. With regard to New
        Supply Contracts or to the extent any applicable standards or procedures
        are absent from a particular Supply Contract, volumes of Raw Product
        delivered to Dynegy, and determination of the Components contained
        therein, shall be measured and calculated at each Delivery Point in
        accordance the measurement procedures for the type of meter in use at
        the Delivery Point as set forth in the Exhibit B attached hereto. DLMT
        shall have the right to witness all such measurements, tests and
        determinations. As between Dynegy and DLMT hereunder, all Raw Product
        gains and/or losses across the Gathering System shall be for the account
        of Dynegy.

6.      BILLING AND PAYMENT

6.1.    During the Month following the Month gathering services are provided by
        Dynegy to DLMT hereunder, Dynegy shall furnish to DLMT an invoice
        reflecting all applicable fees and charges due under this Agreement and
        DLMT shall pay to Dynegy via electronic funds transfer, in accordance
        with instructions provided by Dynegy, the amounts due no later than ten
        (10) Business Days after DLMT's receipt of invoice.

6.2.    For payments due under Section 6.1 above, and if the Day on which any
        payment is due is not a Business Day, then the relevant payment shall be
        due upon the immediately succeeding Business Day. Any amounts which
        remain due and owing after the due date shall bear interest thereon at
        the Base Rate. If a good faith dispute arises as to the amount payable
        in any invoice, the amount not in dispute shall be paid. If it is
        subsequently determined, whether by mutual agreement of the Parties or
        otherwise, that the withholding Party is required to pay all or any
        portion of the disputed amounts to the other Party, in addition to
        paying over such amounts, the withholding Party shall pay interest
        accrued on such amounts at the Base Rate from the original due date
        until paid in full.

                                       -7-
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7.      TAXES

        Solely as between DLMT and Dynegy, DLMT shall be responsible for the
payment of any royalties, overriding royalties and other similar payments due or
to become due on the Raw Product, which are subject to this Agreement. Any tax
applicable to the production or ownership of the Raw Product or sales or use
taxes with respect to the transfer of Raw Product or the services provided by
Dynegy hereunder, including but not limited to any sales and/or use tax
applicable to stored volumes of Raw Product, shall be borne and paid by DLMT
unless such tax is by law imposed upon Dynegy, in which event, such tax shall be
paid by Dynegy and reimbursed by DLMT upon receipt of invoice for same. In no
event shall DLMT be liable to Dynegy for other taxes due on the account of the
services rendered by Dynegy hereunder (including, without limitation, taxes
measured by the gross receipts or net income of Dynegy). DLMT shall indemnify
and hold Dynegy and its Affiliates, and their respective representatives,
harmless from and against any and all Losses arising with respect to the payment
of any taxes, royalties, overriding royalties and other payments which are the
responsibility of DLMT as set forth above.

8.      INDEMNIFICATION AND LIMITATION OF LIABILITY

8.1.    MUTUAL INDEMNITIES

        As between the Parties, DLMT shall be deemed to be in exclusive control
        and possession of the Raw Product delivered hereunder until the same
        shall have been delivered to Dynegy at the Delivery Point(s); and with
        regard to same, DLMT shall be responsible for any injury or damage
        caused thereby or for loss of such Raw Product. After receipt of Raw
        Product by Dynegy at the Delivery Point(s), Dynegy shall be deemed to be
        in exclusive control and possession of such Raw Product and shall be
        responsible for any injury or damage caused thereby or for any loss of
        same. Each Party will indemnify and hold the other Party and its
        Affiliates, and their respective representatives, harmless from and
        against any injuries, damages or losses for which such Party is
        responsible as set forth in this Section 8.1; provided, however, that no
        Party or its Affiliates, or their respective representatives, shall be
        indemnified against their own negligence or intentional misconduct or
        the negligence or intentional misconduct of their own representatives or
        Affiliates. Solely for the purpose of this Section 8.1, Dynegy and DLMT
        shall not be deemed Affiliates.

8.2.    LIMITATION OF LIABILITY

        Except as to third party claims covered by the indemnity provisions of
        Section 8.1 above, neither Party shall be responsible or liable to the
        other Party or its Affiliates, or their respective representatives, for
        any special, incidental, consequential or punitive damages arising out
        of this Agreement or any breach hereof, regardless of the causes of
        same.

9.      FORCE MAJEURE

9.1.    In the event either Party hereto is rendered unable, wholly or in part,
        by reason of Force Majeure to carry out its obligations under this
        Agreement, upon such Party's giving notice and reasonably full
        particulars of such Force Majeure in writing to the other Party after
        the occurrence of the cause relied on, then the obligations of such
        Party, other than the obligation to pay money due hereunder, insofar and
        only 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 such cause shall, so far as reasonably possible, be
        remedied with all reasonable dispatch.

                                       -8-
<Page>

9.2.    The term "Force Majeure" shall mean any causes, whether of the kind
        enumerated herein or otherwise, which are not within the control of the
        Party claiming suspension and which by the exercise of due diligence
        such Party is unable to prevent or overcome and may include acts of God,
        strikes, lockouts or other industrial disputes or disturbances, acts of
        the public enemy, wars, blockades, insurrections, riots, epidemics,
        landslides, lightning, earthquakes, fires, tornadoes, hurricanes,
        storms, and warnings for any of the foregoing which may necessitate the
        precautionary shut-down of wells, plants, pipelines, gathering systems,
        loading facilities, terminals, the Fractionator, or other related
        facilities, floods, washouts, arrests and restraints of governments
        (either federal, state, civil or military), civil disturbances,
        explosions, sabotage, breakage or accidents to equipment, machinery,
        plants (including the Plants), the Fractionator, or lines of pipe, the
        making of repairs or alterations to any of the foregoing, inability to
        secure labor or materials, partial or entire failure of wells or gas
        supply, electric power shortages or outages, and necessity for
        compliance with any court order, or any law, statute, ordinance, rule,
        regulation or order promulgated by a governmental authority having or
        asserting jurisdiction. Such term shall likewise include, in those
        instances where either Party hereto is required to obtain servitudes,
        rights-of-way, grants, permits or licenses to enable such Party to
        fulfill its obligations hereunder, the inability of such Party to
        acquire, or delays on the part of such Party in acquiring, at reasonable
        cost and after the exercise of reasonable diligence, such servitudes,
        rights-of-way grants, permits or licenses, and in those instances where
        either Party hereto is required to furnish materials and supplies for
        the purpose of constructing or maintaining facilities to enable such
        Party to fulfill its obligations hereunder, the inability of such Party
        to acquire, or delays on the part of such Party in acquiring, at
        reasonable cost and after the exercise of reasonable diligence, such
        materials and supplies. The term "Force Majeure" shall also include any
        event of force majeure occurring with respect to the facilities or
        services of either Party's suppliers, including such Party's affiliates,
        or customers providing a service or providing any equipment, goods,
        supplies or other items necessary to the performance of such Party's
        obligations, and shall also include curtailment or interruption of
        deliveries or services by such suppliers or customers as a result of an
        event that would otherwise be defined as Force Majeure hereunder.

9.3.    Notwithstanding Section 9.1 above, 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 the opposing party when such course is
        inadvisable in the discretion of the Party (or its Affiliate) having the
        difficulty.

10.     MISCELLANEOUS

10.1.   EXISTING LAWS AND REGULATIONS. This Agreement and the operations
        hereunder shall be subject to the applicable federal and state laws and
        the applicable orders, laws, rules and regulations of any state or
        federal authority having or asserting jurisdiction, but nothing
        contained herein shall be construed as a waiver of any right to question
        or contest any such order, law, rule or regulation. The parties shall be
        entitled to regard all such laws, rules, regulations and orders as valid
        and may act in accordance therewith until such time as the same may be
        invalidated by final judgment in a court of competent jurisdiction.

10.2.   GOVERNING LAW. This Agreement and the rights and duties of the Parties
        arising out of this Agreement shall be governed by and construed,
        enforced and performed in accordance with the laws of the State of
        Texas, as the same may be amended from time to time, without giving
        effect to any choice or conflict of law provision or rule that would
        cause the application of the laws of any jurisdiction other than the
        State of Texas.

                                       -9-
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10.3.   WAIVER. No waiver by either Party of any default under this Agreement or
        any of the provisions of this Agreement shall be deemed to be a waiver
        of any future default or any other provision hereof, whether of a like
        or a different character. No waiver shall be effective unless made in
        writing and signed by the Party to be charged with such wavier, nor
        shall such waiver constitute a continuing waiver unless expressly
        provided by the Party to be charged with such wavier.

10.4.   SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of and
        be binding upon the parties hereto and their respective successors and
        assigns. Notwithstanding the foregoing, neither Party may assign this
        Agreement, nor any interest herein, without the prior written consent of
        the other Party, which consent shall not be unreasonably withheld or
        delayed; provided, however, that a Party may from time to time (i)
        designate an Affiliate to perform this Agreement, either in whole or in
        part, such performance being considered that of the Party hereto, or
        (ii) assign this Agreement to an Affiliate without obtaining the other
        Party's consent thereto. It is understood, however, that by such
        designation or assignment, unless the non-assigning Party expressly
        releases the assigning Party, such assigning Party shall not thereby
        avoid obligations imposed by the terms and provisions hereof, past,
        present or future. DLMT agrees that it will not assign or transfer any
        interest in the volumes of Raw Product dedicated to this Agreement
        during the term hereof unless such assignment is made subject to this
        Agreement and any assignee ratifies and adopts this Agreement in
        writing.

10.5.   EXHIBITS. Unless specifically otherwise provided, if any term or
        condition expressed or implied in any Exhibit to this Agreement
        conflicts or is at variance with any term or condition of this
        Agreement, this Agreement shall prevail. All Exhibits as referenced
        herein are attached hereto and made a part hereof.

10.6.   DTPA WAIVER. THE PARTIES CERTIFY THAT THEY ARE NOT "CONSUMERS" WITHIN
        THE MEANING OF THE TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION
        ACT, SUBCHAPTER E OF CHAPTER 17, SECTIONS 17.42, ET SEQ., OF THE TEXAS
        BUSINESS AND COMMERCE CODE, AS AMENDED ("DTPA"). THE PARTIES COVENANT,
        FOR THEMSELVES AND FOR AND ON BEHALF OF ANY SUCCESSOR OR ASSIGNEE, THAT,
        IF THE DTPA IS APPLICABLE, (a) THE PARTIES ARE "BUSINESS CONSUMERS" AS
        THAT TERM IS DEFINED IN THE DTPA, (b) OTHER THAN SECTION 17.555 OF THE
        TEXAS BUSINESS AND COMMERCE CODE, EACH PARTY HEREBY WAIVES AND RELEASES
        ALL OF ITS RIGHTS AND REMEDIES UNDER THE DTPA AS APPLICABLE TO THE OTHER
        PARTY AND ITS SUCCESSORS AND ASSIGNS, AND (c) EACH PARTY SHALL DEFEND
        AND INDEMNIFY THE OTHER FROM AND AGAINST ANY AND ALL LOSSES OF OR BY
        THAT PARTY OR ANY OF ITS SUCCESSORS AND ASSIGNS OR ANY OF ITS OR THEIR
        AFFILIATES BASED IN WHOLE OR IN PART ON THE DTPA, ARISING OUT OF OR IN
        CONNECTION WITH THE TRANSACTION SET FORTH IN THIS AGREEMENT.

10.7.   HEADINGS, SECTIONS AND EXHIBITS. All references to "Sections" and
        "Exhibits" herein pertain to the Sections of this Agreement and the
        Exhibits attached hereto, unless expressly stated otherwise. Headings
        are for purposes of reference only and shall not be used to construe the
        meaning of this Agreement.

10.8.   PRINCIPLES OF CONSTRUCTION AND INTERPRETATION. In construing this
        Agreement, the following principles shall be followed:

        (i)    no consideration shall be given to the fact or presumption that
               one Party had a greater or this Agreement;

        (ii)   examples shall not be construed to limit, expressly or by
               implication, the matter they illustrate;

                                      -10-
<Page>

        (iii)  the word "includes" and its syntactical variants mean "includes,
               but is not limited to" and corresponding syntactical variant
               expressions; and

        (iv)   the plural shall be deemed to include the singular and vice
               versa, as applicable.

10.9.   NOTICES. Any notice, request, instruction, correspondence, or other
        documentation to be given hereunder by either Party to the other shall
        be in writing and delivered personally or mailed by registered or
        certified mail, postage prepaid and return receipt requested, or
        facsimile as follows:

        FOR DYNEGY:

        To:        Dynegy Midstream Services, Limited Partnership
                   Attention:   Vice President, Liquids Assets - Eastern Region
                   At:          1000 Louisiana, Suite 5800
                                Houston, Texas 77002-5050
                                Phone: (713) 507-6729
                                Fax:   (713) 507-6575

        FOR DLMT:

        To:              Dynegy Liquids Marketing and Trade
        Attention:       Sr. Vice President
                         At:    1000 Louisiana, Suite 5800
                                Houston, Texas  77002
                                Phone: (713) 507-6450
                                Fax:   (713) 507-3715

        A notice sent by facsimile shall be deemed to have been receive by the
        close of the first Business Day following the Day on which it was
        transmitted and confirmed by transmission report or such earlier time as
        confirmed orally or in writing by the receiving Party. Notice by U.S.
        Mail, whether by U. S. Express Mail, registered mail or certified mail,
        or by overnight courier shall be deemed to have been received by the
        close of the second Business Day after the Day upon which its was sent,
        or such earlier time as is confirmed orally or in writing by the
        receiving Party. Any Party may change its address or facsimile number by
        giving notice of such change in accordance with herewith.

10.10.  NO THIRD PARTY BENEFICIARY. This Agreement is for the sole benefit of
        the Parties and their respective successors and permitted assigns, and
        shall not inure to the benefit of any other person whomsoever, it being
        the intention of the Parties that no third person shall be deemed a
        third party beneficiary of this Agreement or otherwise have any rights
        hereunder.

10.11.  SEVERABILITY. If any provision of this Agreement is held to be illegal,
        invalid, or unenforceable under the present or future laws effective
        during the term of this Agreement, (i) such provision will be fully
        severable, (ii) this Agreement will be construed and enforced as if such
        illegal, invalid, or unenforceable provision had never comprised a part
        of this Agreement, and (iii) the remaining provisions of this Agreement
        will remain in full force and effect and will not be affected by the
        illegal, invalid, or unenforceable provision or by its severance from
        this Agreement. Furthermore, in lieu of such illegal, invalid or
        unenforceable provision, there will be added automatically as a part of
        this Agreement a provision similar in terms to such illegal, invalid, or
        unenforceable provision as may be possible and as may be legal, valid,
        and enforceable. If a provision of this Agreement is or

                                      -11-
<Page>

        becomes illegal, invalid, or unenforceable in any jurisdiction, the
        foregoing event shall not affect the validity or enforceability in that
        jurisdiction of any other provision of this Agreement nor the validity
        or enforceability in other jurisdictions of that or any other provision
        of this Agreement.

10.12.  ENTIRE AGREEMENT AND AMENDMENT. This Agreement, including, without
        limitation, all exhibits hereto, integrates the entire understanding
        between the Parties with respect to the subject matter covered and
        supersedes all prior understandings, drafts, discussions, or statements,
        whether oral or in writing, expressed or implied, dealing with the same
        subject matter. This Agreement may not be amended or modified in any
        manner except by a written document signed by both parties that
        expressly amends this Agreement.

10.13.  SETOFFS AND COUNTERCLAIMS. Except as otherwise provided herein, each
        Party reserves to itself all rights, set-offs, counterclaims, and other
        remedies and/or defenses which that Party is or may be entitled to
        arising from or out of this Agreement or as otherwise provided by law.

10.14.  NO PARTNERSHIP OR ASSOCIATION. Nothing contained in this Agreement shall
        be construed to create an association, trust, partnership or joint
        venture or impose a trust or partnership duty, obligation or liability
        on or with regard to either Party.

10.15.  NO COMMISSIONS, FEES OR REBATES. Except as expressly authorized by this
        Agreement, no director, employee or agent of either Party shall give or
        receive any commission, fee, rebate gift or entertainment of significant
        cost or value in connection with this Agreement. Any representative or
        representative(s) authorized by either Party may audit the applicable
        records of the other Party for the purpose of determining whether there
        has been compliance with this Section.

10.16.  OTHER AGREEMENTS. Simultaneously with the execution of this Agreement,
        DLMT and Dynegy or its (or their) Affiliate(s) shall execute the Product
        Storage Agreement and the Fractionation Agreement of even date herewith.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Day and

DYNEGY:
DYNEGY MIDSTREAM SERVICES, LIMITED PARTNERSHIP

By:   Dynegy Midstream G.P., Inc., its general partner

By:
      --------------------------------------------

Name:
      --------------------------------------------

Title:
      --------------------------------------------

                                      -12-
<Page>

DLMT:
DYNEGY LIQUIDS MARKETING AND TRADE

By:
      --------------------------------------------

Name:
      --------------------------------------------

Title:
      --------------------------------------------

                                      -13-
<Page>

                                    EXHIBIT A
                     TO THE RAW PRODUCT GATHERING AGREEMENT

                           RAW PRODUCT SPECIFICATIONS

(a)     The Raw Product delivered to Dynegy at the Delivery Point shall contain
        no solid materials or free water at 60 DEG. F.

(b)     Total sulfur content shall not exceed 30 ppm by weight to be determined
        by ASTM-D-2784.

(c)     The hydrogen sulfide content shall not exceed 1.5 ppm by weight, and the
        corrosiveness of the Raw Product shall not exceed "1" (cooper strip) as
        given in ASTM-D-1838.

(d)     The Raw Product shall not contain in excess of 1.0 liquid volume percent
        carbon dioxide in the untreated ethane (ethane Component including all
        carbon dioxide) at any time nor exceed 35 hundredths (0.35) liquid
        volume percent carbon dioxide in the untreated ethane (ethane Component
        including all carbon dioxide) when averaged over any given Month.

(e)     The Raw Product shall not contain in excess of 1.5 liquid volume percent
        methane and inerts of the ethane Component.

(f)     The Raw Product color shall have a minimum Saybolt Number of +25 as
        determined by ASTM-D-156.

(g)     The maximum product end point at 14.7 psia shall not exceed 375 DEG. F
        as determined by distillation pursuant to ASTM-D-216. The distillation
        and color test are to be run on that portion of the mixture having a
        boiling point of 70 DEG. F and above and at atmospheric pressure.

(h)     DLMT shall not deliver Raw Product at temperatures in excess of
        100 DEG. F or less than 60 DEG. F.

(i)     The Raw Product shall not contain more than 1 ppm fluorides.

(j)     The Raw Product shall not contain more than 1 ppm carbonyl sulfide
        (COS).

Exhibit A                                                                 Page 1
<Page>

                                    EXHIBIT B
                     TO THE RAW PRODUCT GATHERING AGREEMENT

                 PART I: MEASUREMENT PROTOCOL - CORIOLIS METERS

A.      GENERAL

1.      UNIT OF MEASUREMENT: The unit of measurement of the Raw Product stream
shall be one (1) Pound mass.

2.      DESIGN PRESSURE: The Delivery Point custody measurement station shall be
capable of measuring the volume of Raw Product delivered hereunder at pressures
up to 1440 pig or at a pressure as later amended.

3.      FLOW METERING: The custody measurement station shall be designed,
operated, tested, and maintained and the mass of hydrocarbon streams calculated
in accordance with the latest edition of Gas Processors Association ("GPA")
Standard 8182 and the appropriate parts of the American Petroleum Institute
Manual of Petroleum Measurement Standards (hereinafter referred to as "MPMS").
The custody measurement station will, in Dynegy's sole discretion, be comprised
of: a coriolis meter, composite sampler and microprocessor; or a turbine meter,
densitometer, composite sampler and microprocessor; or an orifice meter,
densitometer, composite sampler and microprocessor.

4.      DELIVERY POINT: As set forth in Section 1, DEFINITIONS, of the Agreement

5.      FLOW METER CALIBRATION: All calibrations, adjustments and calculations
shall be adjusted to Standard Conditions. Standard Conditions shall mean 60 DEG.
degrees Fahrenheit and the equilibrium vapor pressure of the Raw Product being
measured. All flow measurement will be made utilizing temperature and pressure
at flowing line conditions.

6.      ACCESS TO EQUIPMENT: DLMT, or its representative, shall have access at
all reasonable times to the equipment of Dynegy's custody measurement station,
or that of Dynegy's designees, but the reading, calibrating and adjusting
thereof shall be done by the employees, agents, representatives or designees of
Dynegy. Similarly, Dynegy shall have access at all reasonable times to the
equipment of DLMT's check measurement stations, but the reading, calibrating,
and adjusting thereof shall be done by the employees, agents or representatives
of DLMT.

7.      METER TICKET: A meter ticket will be generated for the Delivery Point
above each Day. The billing period is from 07:00 hours on the first Day of each
Month to 07:00 hours on the first Day of the following Month.

8.      REVIEW OF MEASUREMENT DATA: Dynegy's and DLMT's personnel shall exchange
measurement data on a timely basis in order to detect measurement discrepancies
as they arise. In the event that Dynegy and DLMT measurement differ more than
one (1) percent for two (2) or more Days in succession, both metering facilities
will be examined and calibrated to determine whether or not either or both
metering facilities are conforming to good measurement practice and/or
operation.

9.      FLOW METER PROVING FREQUENCY: On a scheduled Day of each Month, or at
other mutually agreeable intervals, Dynegy or Dynegy's designee shall test and
verify the accuracy of its measurement equipment in accordance with the
appropriate referenced standards. Dynegy or its designee shall give DLMT notice
of the date and time of each test sufficiently in advance (48 hours minimum) to
permit DLMT to have a

Exhibit B                                                                 Page 1
<Page>

representative present to witness such test result. Calibration records of
either Dynegy's or DLMT's measurement equipment shall be available for review by
either Party.

10.     CERTIFICATION OF TEST EQUIPMENT: Certification and calibration records
of Dynegy and DLMT's applicable test equipment shall be maintained and made
available for review by either Party.

11.     SPECIAL TESTS: Either Party to this Agreement may also request a special
test of any measurement equipment at its cost and expense. In such event, the
Parties shall cooperate to secure prompt verification of accuracy of the
equipment.

B.      MASS MEASUREMENT CALCULATIONS

1.      RAW PRODUCT: The quantity shall be determined by mass measurement
procedures in accordance with MPMS and GPA standards and/or procedures agreed to
by both Parties.

2.      CORIOLIS METER: Coriolis meters will be installed, operated, maintained
and calibrated according to the latest edition of the API Draft Standard
Measurement of Fluids by Coriolis Meters (when issued) and manufacturers
recommendations.

3.      DENSITOMETER: Where installed, the flowing density of the stream shall
be determined by the continuous use of a densitometer of standard make installed
in accordance with MPMS Chapter 14.6 and the manufacturer's recommendations and
operated so that the instrument will properly measure the density of the fluid
at flowing pressure and temperature.

4.      TIME BASIS: Mass measurement shall be calculated on a daily basis by
determining the necessary readings at the designated time on one Day and those
same readings at the designated time on the previous Day.

5.      CONVERT MASS TO GALLONS: If required by either Dynegy or DLMT, the
determined mass shall be converted to Gallons at Standard Conditions in
accordance with GPA 8173, latest edition, using weight-in-vacuum factors from
GPA Standard 2145, latest edition.

C.      DENSITOMETER PROVING

1.      PROVING FREQUENCY: The accuracy of the densitometer shall be verified
Monthly by calibrating and proving the instrument in accordance with MPMS
Chapter 14.6 and the manufacturer's recommendations.

2.      DENSITOMETER CORRECTION FACTOR: Two (2) provings shall be performed to
establish the densitometer correction factor. The average of the two- (2)
provings shall be taken as the densitometer correction factor if the two- (2)
provings have a repeatability tolerance not greater than 0.05 percent.

3.      DEVIATION REQUIREMENTS: See "Meter and Densitometer Factor or Orifice
Calibration Deviation," Section D below.

D.      METER AND DENSITOMETER FACTOR OR ORIFICE CALIBRATION DEVIATION

1.      ORIFICE METER CALIBRATIONS: All the orifice meter instrumentation
(DP, PT, TT and chart recorders (if applicable) shall be calibrated and the
orifice plate inspected at the beginning of the delivery and a minimum of every
thirty (30) Days during the delivery. Necessary repairs to the metering
equipment and replacement

Exhibit B                                                                 Page 2
<Page>

of the orifice plate shall be made when the equipment does not meet the required
standards provided in the appropriate MPMS manual, latest edition.

2.      ERRORS LESS THAN 0.25%: If the meter factor, densitometer factor or
orifice meter calibration deviates less than +/- 0.25% from one scheduled
proving to the next, the effective date of the new factor shall be the date of
the proving and shall remain in effect until the next proving.

3.      ERRORS MORE THAN 0.25% AND LESS THAN 0.50%: If the meter factor,
densitometer factor or orifice meter calibration deviates more than +/- 0.25%,
but less than +/- 0.50%, then the effective date of the new factor shall be the
date on which an event occurred which is known to have changed the factor, or if
such date is not known, then the effective date is determined as defined in
"Volume Corrections", Section E below. If the factor deviation falls between
+/- 0.25% and +/- 0.50%, then it shall be the decision of the concerned field
Parties as to the scope and corrective action taken, if any.

4.      ERRORS MORE THAN 0.50%: Any deviation greater than+/-0.50% is not
acceptable, and immediate steps shall be taken to effect the required
maintenance or repairs.

E.      VOLUME CORRECTIONS

If, upon calibration tests, the meter does not meet requirements given, then any
previous recording of such equipment shall be corrected for any period which is
known or agreed upon, but in case the period is not known or agreed upon, such
correction shall apply to one-half (1/2) the total volume measured since the
date of the last calibration (proving). However, this correction shall not
exceed sixteen (16) Days.

F.      SAMPLING AND ANALYSIS

1.      DELIVERY POINT: A composite sample of the Raw Product shall be taken at
the Delivery Point Monthly or more frequently, if required, and used with the
mass calculation to determine a "Raw Product delivery in volume" (if
applicable). The subject volume calculation shall be based upon a temperature of
60 DEG. degrees F and the equilibrium vapor pressure of the Raw Product.

2.      COMPOSITE SAMPLER: An automatic continuous sampler shall be installed
and used at the Delivery Point or at other mutually agreeable point in
accordance with the following requirements:

        a.     OPERATOR: Dynegy or its designee shall operate the sampling
equipment.

        b.     SAMPLE BASIS: The sampling equipment shall be designed to
accumulate a representative sample proportional to the flow of the Raw Product
passing through the measurement station.

        c.     MIXING DEVICE: The sampling equipment shall be equipped with
mixing facilities to eliminate any stratification.

        d.     SAMPLING METHOD: All sampling shall be in accordance with GPA
Standard 2174, latest edition.

3.      RAW PRODUCT ANALYSIS: Raw Product analysis shall be in accordance with
"Analysis of Demethanized Hydrocarbon Liquid Mixtures Containing Nitrogen and
Carbon Dioxide by Gas Chromatography", GPA Standard 2177, latest edition.

Exhibit B                                                                 Page 3
<Page>

4.      CHECK SAMPLE AND REFEREE: Check samples will be collected on the same
schedule as the custody samples. Analysis of these samples will be optional
based on the outcome of the custody sample analysis settlement.

5.      UNAVAILABLE SAMPLE: In the event that a sample is not available for a
particular Month, the Parties shall determine an analysis based on the most
recent mutually accepted data.

G.      CORRECTION OF ERRORS

Measuring equipment found to be registering inaccurately or out of service
should be adjusted to read accurately and/or placed in service immediately. For
any error not known or agreed upon for the period in which the meter was
inaccurate or out of service, the volume of the stream shall be estimated by use
of any of the following or other methods which shall be mutually agreed upon by
the Parties:

        a.     In the event that only one of the metering facilities is found to
have had a significant defect in performance, the other measuring facility will
be the agreed upon billing basis for that billing period.

        b.     If it is determined that both of the measuring installations
experienced significant defects in performance, billing for the period in
question shall be based upon such data as Dynegy and DLMT shall find mutually
acceptable.

H.      TECHNICAL PUBLICATIONS

1.      Revisions to such MPMS and GPA publications shall apply to computations
and operation of measurement stations but shall not be construed to require
major modifications to, or replacement of, said equipment.

2.      Following is the current list of publications referenced in this
Exhibit.

        a.     API MANUAL OF PETROLEUM MEASUREMENT STANDARDS (MPMS), AMERICAN
               PETROLEUM INSTITUTE, WASHINGTON, D.C.:

               (1)    Chapter 1, Vocabulary, Second Edition, July 1994

               (2)    Chapter 4, Proving Systems, Section 2, Conventional Pipe
                      Provers, First Edition, October 1988, Reaffirmed October
                      1993

               (3)    Chapter 4, Proving Systems, Section 3, Small Volume
                      Provers, First Edition, July 1988, Reaffirmed October 1993

               (4)    Chapter 5, Metering, Section 3, Measurement of Hydrocarbon
                      Liquids by Turbine Meters, Second Edition, November 1987,
                      Reaffirmed October 1992

               (5)    Chapter 5, Metering, Section 4, Accessory Equipment for
                      Liquid Meters, Second Edition, November 1987, Reaffirmed
                      October 1992

               (6)    Chapter 14, Natural Gas Fluids Measurement, Section 6,
                      Continuous Density Measurement, Second Edition, April 1991

Exhibit B                                                                 Page 4
<Page>

               (7)    Chapter 14, Natural Gas Fluids Measurement, Section 3,
                      Concentric Square-Edged Orifice Meters. Parts 1, 2, 3 and
                      4

               (8)    API Draft Standard, Measurement of Fluids by Coriolis
                      Meters, pending issue.

        b.     STANDARDS OF THE GAS PROCESSORS ASSOCIATION (GPA), TULSA,
               OKLAHOMA:

               (1)    GPA Standard 8182-95, Standard for Mass Measurement of
                      Natural Gas Liquids

               (2)    GPA Standard 8173-94, Method for Converting Mass Natural
                      Gas Liquids and Vapors to English Liquid Volumes

               (3)    GPA Standard 2145-2000, Physical Constants for Paraffin
                      Hydrocarbons and Other Components of Natural Gas

               (4)    GPA Standard 2174-93, Obtaining Liquid Hydrocarbon Samples
                      for Analysis by Gas Chromatography

               (5)    GPA Standard 2186-95, Tentative Method for the Extended
                      Analysis of Hydrocarbon Liquid Mixtures Containing
                      Nitrogen and Carbon Dioxide by Temperature Programmed Gas
                      Chromatography

               (6)    GPA Standard 2177-95, Analysis of Demethanized Hydrocarbon
                      Liquid Mixtures Containing Nitrogen and Carbon Dioxide by
                      Gas Chromatography

               (7)    GPA Technical Publication TP-16, Composite Pressure and
                      Temperature Volume Correction Factor Table for Liquified
                      Petroleum Gas (LPG) and Natural Gasoline

               (8)    GPA Technical Publication TP-17, Table of Physical
                      Properties of Hydrocarbons for Extended Analysis of
                      Natural Gases

Exhibit B                                                                 Page 5
<Page>

                 PART II: MEASUREMENT PROTOCOL - TURBINE METERS

                          CUSTODY TRANSFER MEASUREMENT
                                 TURBINE METERS

1.      GENERAL

        (A)    Installation, operation, testing and maintenance of primary
               measurement elements, recording devices, sampling equipment and
               data transmission equipment and analysis of samples shall be in
               accordance with the latest edition of the API Manual of Petroleum
               Measurement Standards (API MPMS) and Gas Processors Association
               (GPA) standards. Industry standards and publications referenced
               in this Exhibit shall mean the latest revision. A detailed list
               of standards and publications is provided at the end of this
               Exhibit.

        (B)    MEASUREMENT BASIS. The quantity of Raw Product measured at the
               Delivery Point shall be calculated by mass measurement
               techniques.

        (C)    LIMITATION TO REVISIONS. Revisions to such API MPMS and GPA
               standards and publications shall apply to computations and
               operation of measurement stations but shall not be construed to
               require major modifications to, or replacement of, said
               equipment.

        (D)    FLOW METERING. The custody measurement station will be comprised
               of a turbine meter, densitometer, composite sampler and
               microprocessor.

2.      RESPONSIBILITY

        (A)    CUSTODY TRANSFER POINT. The point of custody transfer for Raw
               Product shall be the meter station at the Delivery Point.

        (B)    CUSTODY TRANSFER PARTY. Dynegy will measure and account for the
               mass, volume and quality of the Raw Product received at the
               Delivery Point.

        (C)    CHECK MEASUREMENT. Either Party may install check measurement
               facilities at its own cost and expense as long as the check
               measurement facilities do not interfere with the custody transfer
               meter and equipment.

        (D)    DIVISION OF RESPONSIBILITY. DLMT, or its representative, shall
               have access at all reasonable times to the equipment of Dynegy's
               custody measurement station, or that of Dynegy's designees, but
               the reading, calibrating and adjusting thereof shall be done by
               the employees, agents, representatives or designees of Dynegy.
               Similarly, Dynegy shall have access at all reasonable times to
               the equipment of DLMT's check measurement stations, but the
               reading, calibrating, and adjusting thereof shall be done by the
               employees, agents or representatives of DLMT.

3.      EQUIPMENT

        (A)    DESIGN PRESSURE. The Delivery Point custody measurement station
               shall be capable of measuring Raw Product delivered hereunder at
               pressures up to 1,440 psig.

Exhibit B                                                                 Page 6
<Page>

        (B)    MICROPROCESSOR. The measurement station shall include a
               microprocessor meeting the requirements of API MPMS Chapter 21.2
               and capable of continuously integrating gross metered volumes
               from the volumetric meter with flowing density from the
               densitometer and reporting in gross Pounds and gross Barrels (or
               Gallons).

        (C)    SAMPLE AND COMPOSITION. The metering facility for Raw Product at
               the Delivery Point shall include an automatic sampling device to
               obtain a representative sample of the Raw Product in accordance
               with GPA Standard 2174. The sampling device will extract a sample
               in proportion to the metered quantity. The sample of the liquids
               shall be secured throughout the entire metering period. The
               volume of the sample will be at a minimum 600cc in order that
               each Party may have enough volume to run its own analysis if DLMT
               elects to run a separate analysis. If DLMT elects to run its own
               analysis, same shall be at DLMT's sole cost and expense and DLMT
               will be responsible for picking up Dynegy's sample cylinder at
               Dynegy's Sulphur, Louisiana offices, and returning the cylinder
               to Dynegy within 14 calendar days of pick-up.

        (D)    QUANTITY. The equipment used in the meter station shall conform
               to the following standards and publications.

               1.     TURBINE METER(s) shall be installed and operated in
                      accordance with API MPMS Chapter 5 and manufacturer's
                      recommendations.

               2.     DENSITOMETER(s) shall be installed and operated in
                      accordance with API MPMS Chapter 14, Section 6 and
                      manufacturer's recommendations.

4.      OPERATION

        (A)    FLOW METER BACKPRESSURE. The metering backpressure will be a
               minimum of the sum of 1.25 times the stream bubble point pressure
               at flowing temperature plus two times the differential pressure
               across the meter at flowing conditions.

        (B)    DENSITOMETER. The densitometer will measure density in grams per
               cubic centimeter at flowing conditions.

        (C)    SAMPLING. At the end of each metering period, one (1)
               representative sample will be withdrawn from the automatic
               sampling device utilizing a floating piston cylinder in
               accordance with GPA Standard 2174. After emptying the automatic
               sampling device of any remaining liquids, Dynegy will re-service
               the sampler and return it to service. DLMT's representative may
               witness the withdrawing of the liquid sample. After laboratory
               analysis, the remaining sample in the sample cylinder will be
               discarded at the expiration of the fourteen (14) Day objection
               period specified in Paragraph 7(A) of this Exhibit, Objections
               and Challenges.

5.      PROVING & CALIBRATION

        (A)    PRESSURE AND TEMPERATURE DEVICES. Instrumentation including
               static pressure, temperature and any chart recorders shall be
               calibrated at the beginning of the delivery and at least Monthly
               during the delivery period. Instrument calibration and repairs
               shall be made when the test results exceed the tolerances
               specified in the appropriate API MPMS standard.

Exhibit B                                                                 Page 7
<Page>

        (B)    QUANTITY DEVICES. The flow and density meter(s) will be proven no
               less frequently than once each Month during the delivery period.
               Dynegy will prove the meter(s) at the metering station and will
               give DLMT forty-eight (48) hours notice of the intent and time to
               prove so that representatives of DLMT can be present.

               1.     TURBINE. Five (5) consecutive calibration tests shall be
                      performed to establish the meter correction factor
                      applicable for turbine meters. Each calibration test shall
                      consist of the total pulses obtained from a proof run. The
                      determined meter correction factor thus obtained shall be
                      applied to the Daily registered meter reading. The average
                      of the five (5) calibration tests shall be taken as the
                      meter correction factor for the meter if the five (5)
                      calibration tests are within 0.05% of each other. The
                      meter correction factor shall be established at flowing
                      conditions in accordance with API MPMS, Chapter 4. The
                      meter proving data shall be delivered to DLMT on a meter
                      proving report. A turbine meter element shall not be
                      removed from service for maintenance without first proving
                      such meter. The meter correction factor so determined
                      shall be used in accordance with Paragraph 8(A), of this
                      Exhibit, FACTOR DEVIATION.

               2.     DENSITOMETER. The accuracy of the densitometer shall be
                      verified Monthly by calibrating and proving the instrument
                      in accordance with the API MPMS Chapter 14, Section 6 and
                      the manufacturer's recommendations. Two (2) provings shall
                      be performed to establish the densitometer correction
                      factor. The determined densitometer correction factor thus
                      obtained shall be applied to the Daily registered meter
                      reading. The average of the two provings shall be taken as
                      the densitometer correction factor if the two provings are
                      within 0.05% of each other. A densitometer shall not be
                      removed from service for maintenance without first proving
                      such densitometer. The densitometer correction factor so
                      determined shall be used in accordance with Paragraph
                      8(A), of this Exhibit, FACTOR DEVIATION.

        (C)    UNSCHEDULED CALIBRATIONS. Either Party may ask for an unscheduled
               flow meter or densitometer calibration at any time. The Party
               requesting the unscheduled proving shall bear the expense of the
               special proving if the correction factor deviates less than 0.25%
               from the previous factor. However, in order to have a meter
               ticket adjustment, the Parties shall follow the procedures in
               Paragraph 7 of this Exhibit, Objections and Challenges.

6.      CALCULATION

        (A)    MASS MEASUREMENT.

               1.     QUANTITY. The quantity of Raw Product measured at the
                      Delivery Point shall be calculated by mass measurement
                      procedures in accordance with API MPMS and GPA standards.
                      The determined mass in Pounds shall be converted to
                      Barrels (or Gallons) at standard conditions by applying
                      the analysis of the composite sample to the flow period in
                      accordance with GPA Standard 8173 using weight-in-vacuum
                      factors from GPA Standard 2145.

               2.     ANALYSIS. Samples of Raw Product will be analyzed by a
                      laboratory mutually agreeable to the Parties using gas
                      chromatography methods in accordance with GPA Standard
                      2177. The composition of the representative sample of Raw
                      Product for each metering period shall be applied to the
                      quantity measured during the period

Exhibit B                                                                 Page 8
<Page>

                      covered by the sample. The molecular (mole) percentage
                      values of nitrogen, carbon dioxide and natural gas
                      hydrocarbons C(1) through C(6)+ or C(7)+ shall be
                      determined. Raw Product analysis shall be in accordance
                      with "Analysis of Demethanized Hydrocarbon Liquid Mixtures
                      Containing Nitrogen and Carbon Dioxide by Gas
                      Chromatography", GPA Standard 2177, latest edition.

                      a) GPA 2145 CONSTANTS. The conversion constants for
                         nitrogen, carbon dioxide, propylene and C(1) through
                         C(5) shall be in accordance with GPA Standard 2145.

                      b) HEXANE AND HEAVIER CHARACTERIZATION. Where hexane and
                         heavier components are present, the individual
                         components of C(6)+ or C(7)+ shall be analyzed and used
                         to determine the weighted average molecular weight and
                         density of the hydrocarbons from a representative
                         sample. GPA Standard 2186 shall be used for extended
                         analysis to quantify C(6)+ or C(7)+ composition.
                         Physical constants contained in GPA Technical
                         Publication TP-17 shall be used in the calculation of
                         the averages. The average determination shall be made
                         at least once during each calendar quarter during the
                         delivery period.

7.      OBJECTIONS AND CHALLENGES

        (A)    ANALYSIS. Either DLMT or Dynegy, within fourteen (14) Days after
               the end of the measurement period, may challenge the analysis by
               submitting a written objection to the other Party. If Dynegy and
               DLMT cannot agree on the analysis for a measurement period, the
               remaining portion of the sample shall be sent to a mutually
               agreeable outside laboratory for analysis and that analysis
               utilized for the measurement period. Charges for such referee
               analysis shall be borne by the Party requesting the referee
               analysis, if the referee analysis indicates the original analysis
               is within tolerances specified in the appropriate GPA standard.
               If there is no sample available for analysis, Dynegy and DLMT
               shall follow the procedures in Paragraph 8(C) of this Exhibit.

        (B)    VOLUME AND/OR MASS. Either DLMT or Dynegy, within one Month after
               the end of the measurement period, may challenge the ticketed
               volume and/or mass by submitting a written objection to the other
               Party. Using the methods described in Paragraph 8(D) of this
               Exhibit, the Parties may agree to a volume, an average
               temperature, an average pressure, and/or an average density
               during the time of the measurement disagreement, and the meter
               ticket may be adjusted according to Paragraph 8(B) of this
               Exhibit. If the Parties cannot agree, either Party may ask for an
               unscheduled flow meter or densitometer calibration and the meter
               ticket may be adjusted according to Paragraph 8(B).

8.      ERROR CORRECTION

        (A)    FACTOR DEVIATION.

               1.     LESS THAN +/- 0.25%. If the meter or densitometer
                      correction factor deviates less than +/-0.25% from one
                      scheduled proving to the next, the effective date of the
                      correction factor shall be the date of the proving and
                      shall remain in effect until the next proving.

               2.     MORE THAN +/- 0.25%. If the meter or densitometer
                      correction factor deviates more than +/-0.25% corrective
                      action may need to be performed on the meter. It shall be

Exhibit B                                                                 Page 9
<Page>

                      the decision of the Dynegy and DLMT as to the scope of any
                      corrective action to be taken, if any. The effective date
                      of the new correction factor shall be the date on which an
                      event occurred which is known to have changed the
                      correction factor, or if such date is not known, then the
                      affected metering period is determined in accordance with
                      Paragraph (B) of this Exhibit.

               3.     MORE THAN +/- 0.50%. Should the new meter correction
                      factor deviate more than +/- 0.50%, Dynegy shall proceed
                      with diligence to effect maintenance, repair or
                      replacement of the meter. A new turbine element will not
                      be proved before a 24-hour break-in period. The proving
                      after the break-in period will provide the meter
                      correction factor which will be effective the date of the
                      new element installation. This factor will be used until
                      the next scheduled proving.

        (B)    MASS & VOLUME. If, upon calibration or proving, the meter does
               not meet requirements given, then any previous recording of such
               equipment shall be corrected for any period which is known or
               agreed upon, but in case the period is not known or agreed upon,
               such correction shall apply to one-half (1/2) the total volume
               measured since the date of the last calibration (proving).
               However, this correction shall not exceed one Month.

        (C)    ANALYSIS. If the sampler should fail or is out of service, or the
               analysis is not representative of the liquid metered at the
               custody transfer station, Dynegy and DLMT shall agree on a
               composition determined from one of the following methods in the
               order stated:

               1.     By using the sample from properly operating check
                      measuring equipment; or

               2.     By using the composition of the most recent accurate and
                      representative sample; or

               3.     By using the composition from on-line gas chromatograph
                      equipment used for the Acadia Plant control after first
                      determining the bias between it and the results from
                      mutually agreed upon laboratory; or

               4.     Alternatively, by agreement of Dynegy and DLMT.

        (D)    ERROR RESOLUTION. If the meter should fail or is out of service,
               the quantity for the measurement period while the meter is out of
               service will be determined by the following methods in the order
               stated:

               1.     By using data recorded by any properly operating check
                      measuring equipment; or

               2.     By correcting the error if the percentage of error can be
                      ascertained by calibration test or calculation; or

               3.     By comparison with deliveries during earlier periods under
                      similar conditions when the meter was registering
                      accurately; or

               4.     Alternatively, by agreement of Dynegy and DLMT.

Exhibit B                                                                Page 10
<Page>

9.      TECHNICAL PUBLICATIONS

        (A)    API Manual of Petroleum Measurement Standards (MPMS), American
               Petroleum Institute, Washington, D.C.:

               1.     Chapter 1, Vocabulary, Second Edition, July 1994

               2.     Chapter 4, Proving Systems, Section 2, Conventional Pipe
                      Provers, First Edition, October 1988, Reaffirmed October
                      1993

               3.     Chapter 4, Proving Systems, Section 3, Small Volume
                      Provers, First Edition, July 1988, Reaffirmed October 1993

               4.     Chapter 5, Metering, Section 3, Measurement of Hydrocarbon
                      Liquids by Turbine Meters, Second Edition, November 1987,
                      Reaffirmed October 1992

               5.     Chapter 5, Metering, Section 4, Accessory Equipment for
                      Liquid Meters, Second Edition, November 1987, Reaffirmed
                      October 1992

               6.     Chapter 14, Natural Gas Fluids Measurement, Section 3,
                      Concentric Square-Edged Orifice Meters. Parts 1, 2, 3 and
                      4

               7.     Chapter 14, Natural Gas Fluids Measurement, Section 6,
                      Continuous Density Measurement, Second Edition, April 1991

               8.     API Draft Standard, Measurement of Fluids by Coriolis
                      Meters, pending issue.

        (B)    Standards of the Gas Processors Association (GPA), Tulsa,
               Oklahoma:

               1.     GPA Standard 2145-2000 Revision 2, Physical Constants for
                      Paraffin Hydrocarbons and Other Components of Natural Gas

               2.     GPA Standard 2174-93, Obtaining Liquid Hydrocarbon Samples
                      for Analysis by Gas Chromatography

               3.     GPA Standard 2177-95, Analysis of Demethanized Hydrocarbon
                      Liquid Mixtures Containing Nitrogen and Carbon Dioxide by
                      Gas Chromatography

               4.     GPA Standard 2186-95, Tentative Method for the Extended
                      Analysis of Hydrocarbon Liquid Mixtures Containing
                      Nitrogen and Carbon Dioxide by Temperature Programmed Gas
                      Chromatography

               5.     GPA Standard 8173-94, Method for Converting Mass Natural
                      Gas Liquids and Vapors to English Liquid Volumes

               6.     GPA Standard 8182-95, Standard for Mass Measurement of
                      Natural Gas Liquids

               7.     GPA Technical Publication TP-16, Composite Pressure and
                      Temperature Volume Correction Factor Table for Liquefied
                      Petroleum Gas (LPG) and Natural Gasoline

Exhibit B                                                                Page 11
<Page>

               8.     GPA Technical Publication TP-17, Table of Physical
                      Properties of Hydrocarbons for Extended Analysis of
                      Natural Gases

               9.     GPA Technical Publication TP-25, Temperature Correction
                      for the Volume of Light Hydrocarbons, Tables 24E and 23E.

Exhibit B                                                                Page 12
<Page>

                                    EXHIBIT C
                     TO THE RAW PRODUCT GATHERING AGREEMENT

                            CURRENT SUPPLY CONTRACTS

1.  Exchange Agreement dated June 2, 2000, and effective May 1, 2000, between
    Duke Energy NGL Services, Inc. and DLMT (as successor to Dynegy Midstream
    Services, Limited Partnership). (IOWA Plant)

2.  Hydrocarbon Exchange Agreement dated October 1, 1991, between BP NGL,
    successor in interest to Vastar Resources Inc. and ARCO Oil and Gas Company,
    and DLMT (as successor to Dynegy Midstream Services, Limited Partnership,
    successor in interest to Warren NGL Inc. and Trident NGL, Inc.), as amended.
    (Grand Chenier Plant)

3.  Exchange Agreement effective November 1, 1996 between Williams Field
    Services Company and DLMT (as successor to Dynegy Midstream Services,
    Limited Partnership, successor in interest to Warren NGL Inc.), as amended.
    (Cameron Plant)

4.  Exchange Agreement dated December 19, 2001 and effective January 1, 2002
    between El Paso Field Operations Company and DLMT (Sabine Pass Plant)

5.  Hydrocarbon Exchange Agreement effective February 1, 2001 between Conoco
    Inc. and DLMT (as successor to Dynegy Midstream Services, Limited
    Partnership). (Acadia Plant)

6.  Hydrocarbon Exchange Agreement effective November 1, 2000 between CMS
    Marketing, Services, and Trading Company and DLMT (as successor to Dynegy
    Midstream Services, Limited Partnership). (CMS Field Services Lake Charles
    Plant)

Exhibit C                                                                 Page 1
<Page>

                                    EXHIBIT D
                     TO THE RAW PRODUCT GATHERING AGREEMENT

                                REDELIVERY POINTS

1.      The inlet connections between the Gathering System and the Lake Charles
        Fractionator.

2.      The inlet connections for Raw Product delivery from the Gathering System
        into the Hackberry Storage Facility.

3.      Interconnect between the Gathering System and the NGL Pipeline near Rose
        Bluff, Louisiana.

4.      Interconnect between the West Leg Gathering System and Citgo's Lakemont
        pipeline.

5.      Morse/El Paso Interconnect (New interconnect to be located near Morse,
        Louisiana, which is to be installed pursuant to agreement between DLMT
        and El Paso Field Operations Company ("El Paso") for delivery of Raw
        Product under a DLMT exchange agreement with El Paso effective
        January 1, 2002).

Exhibit D                                                                 Page 1<Page>

                                                                    EXHIBIT 10.8

 Pages where confidential treatment has been requested are marked "Confidential
 Treatment Requested." The redacted material has been separately filed with the
    Commission, and the appropriate place and in the margin with a star (*).

                           PRODUCT STORAGE AGREEMENT
                 (DYNEGY HACKBERRY, LOUISIANA STORAGE FACILITY)

THIS PRODUCT STORAGE AGREEMENT (the "Agreement") is made and entered into as of
this 1st Day of January, 2002, by and between DYNEGY MIDSTREAM SERVICES, LIMITED
PARTNERSHIP ("Dynegy") and DYNEGY LIQUIDS MARKETING AND TRADE ("DLMT") of 1000
Louisiana, Suite 5800, Houston, Texas 77002.

Subject to the following general terms and conditions and the attached specific
terms and conditions, "Dynegy" agrees to provide natural gas liquid storage for
Dynegy Liquids Marketing and Trade at its underground storage facilities
situated in Cameron Parish, Louisiana:

1.      PRODUCT STORAGE

For and in consideration of the rates and fees to be paid by DLMT to Dynegy as
provided herein, Dynegy hereby agrees to lease storage space at its underground
storage facility for the storage of up to, but not to exceed, the maximum
quantity of natural gas liquid specification products or raw product
("Product(s)") set forth in Exhibit A which is attached hereto and made a part
hereof (the "Lease Volume").

2.      DEFINITIONS

For the purpose of this Agreement, the following terms and expressions shall
have the following meanings:

        "AFFILIATE" shall mean any Person that directly or indirectly through
        one or more intermediaries, controls or is controlled by or is under
        common control with the Person specified. The term "control" (including
        the terms "controlled by" or "under common control with") means the
        possession, directly or indirectly, of the power to direct or cause the
        direction of the management and policies of a Person, whether through
        ownership, by contract, or otherwise. Any Person shall be deemed to be
        an Affiliate of any specified Person if such Person owns 50% or more of
        the voting securities of the specified Person, if the specified Person
        owns 50% or more of the voting securities of such Person, or if 50% or
        more of the voting securities of the specified Person and such Person
        are under common control.

        "BARREL" shall mean forty-two (42) U.S. Gallons.

        "BASE RATE" shall mean a per annum rate of interest equal to the lower
        of (i) the maximum rate of interest allowed by law or (ii) two percent
        above the "prime rate" of interest as announced from time to time by
        Bank One, Chicago, Illinois (or any then current successor thereto).

        "BUSINESS DAY" shall mean a Day on which Federal Reserve member banks in
        Houston, Texas, are open for business.

        "DAY OR DAILY" shall mean a twenty-four (24) hour period commencing
        12:00 a.m. Midnight local time and extending until 12:00 a.m. Midnight
        local time on the following Day.

        "DELIVERY & RECEIPT POINTS" shall mean the points where Dynegy will
        receive and deliver DLMT's Product(s) from and to the points outlined on
        Exhibit C attached hereto and made a part hereof, subject to
        availability of pipelines and wells in service for storing and
        delivering such Product(s). Custody transfer measurement shall be
        performed by Dynegy unless provided by the operator of the Receiving
        Facilities.

                                       -1-
<Page>

        "DYNEGY FACILITIES" shall mean the Hackberry Storage Facility and any
        other facilities used in accepting receipts or making deliveries of any
        Products hereunder.

        "EFFECTIVE DATE" shall mean the date on which DLMT may begin to store
        Product(s) under this Agreement as set forth in Exhibit A.

        "FORCE MAJEURE" shall have the meaning specified in Section 14.

        "FRACTIONATION AGREEMENT" shall mean that certain Fractionation
        Agreement between Dynegy and DLMT dated of even date herewith.

        "GALLON" shall mean the unit of volume used for the purpose of
        measurement of liquid. One (1) U.S. liquid Gallon contains two hundred
        thirty-one (231) cubic inches when the liquid is at a temperature of
        sixty degrees Fahrenheit (60 DEG. F) and at the vapor pressure of the
        liquid being measured.

        "GATHERING AGREEMENT" shall mean that certain Gathering Agreement
        between Dynegy and DLMT of even date herewith.

        "HACKBERRY STORAGE FACILITY" shall mean the underground storage
        facilities owned and operated by Dynegy at or near Hackberry, Louisiana,
        including, but not limited to, all storage caverns, related surface and
        subsurface equipment and any pipelines owned or operated by Dynegy or
        its Affiliates which deliver any Products to such underground storage
        facilities.

        "LAKE CHARLES FRACTIONATOR" shall mean the Dynegy owned and operated
        natural gas liquids fractionation facility located near Lake Charles,
        Louisiana.

        "LEASE VOLUME" shall have the meaning specified in Section 1.

        "LOSSES" shall mean any and all liabilities, losses, damages, demands,
        claims, penalties, fines, actions, suits, legal, administrative or
        arbitration or alternative dispute resolution proceedings, judgments,
        orders, directives, injunctions, decrees or awards of any jurisdiction,
        costs and expenses (including, but not limited to, reasonable attorneys'
        fees and related costs).

        "MONTH" OR "MONTHLY" shall mean a period commencing at 7:00 a.m. local
        time on the first Day of a calendar Month and extending until 7:00 a.m.
        local time on the first Day of the next succeeding calendar Month.

        "OFFSPEC PRODUCT" shall have the meaning specified in Section 4.

        "PERSON" shall mean any individual, corporation, partnership, limited
        liability company, association, joint venture, trust or other
        organization of any nature or kind.

        "PRODUCT(s)" shall have the meaning specified in Section 1.

        "RAW PRODUCT SPECIFICATIONS" shall have the same meaning as ascribed to
        it in the Fractionation Agreement, which definition is incorporated
        herein by reference.

        "RECEIVING FACILITIES" shall mean third party facilities connected
        either to the Storage Facility or to any of the Specification Product
        Pipelines operated by Dynegy delivering to or receiving Product(s) from
        the Hackberry Storage Facility.

        "RAW PRODUCT" shall mean that mixture of natural gas liquid hydrocarbons
        recovered from various gas processing plants which is owned and/or
        controlled by DLMT meeting the Raw Product Specifications.

                                       -2-
<Page>

                         "Confidential Treatment Requested"

        "YEAR" or "YEARLY" shall mean a period of 365 consecutive Days;
        provided, however that any Year which contains the date of February 29
        shall consist of 366 consecutive Days.

3.      TERM

  The term of this Agreement shall commence on the Effective Date and shall
  terminate as specified in Exhibit A. Unless a new storage agreement is entered
  into or this Agreement is renewed, at the expiration or termination of this
  Agreement, DLMT shall remove all Product(s) stored hereunder on or before the
  last Day of the term of this Agreement subject to the payment of all accrued
  storage fees and other charges hereunder. In the event DLMT fails to remove
  its Product(s) at the expiration of the term of this Agreement, Dynegy shall
  have the right to sell all or any portion of such Product(s) on terms and at
  such prices as Dynegy, in its sole discretion, deems appropriate under the
  then existing circumstances. If Dynegy sells all or a portion of DLMT's
  Product(s) under the terms of this Section 3, within sixty (60) Days of its
  receipt of the proceeds derived from the sale of such Product(s), Dynegy shall
* remit same to DLMT less (i) a sales commission equal to [REDACTED] of the
  gross proceeds of such sale(s) and (ii) any fees then due and owing by DLMT to
  Dynegy.

  Notwithstanding the Term of this Agreement as set forth in Exhibit A, every
* [REDACTED] after the Effective Date of this Agreement, either party shall have
  the option to open this Agreement solely for the purpose of renegotiating
  certain of the provisions of Exhibit A, including the Lease Volume, the Lease
  Rate and Excess Storage fee (collectively, the "Variable Terms"). To exercise
  such option, a party at least ninety (90) days before the expiration of such
* [REDACTED] period must provide to the other party written notification (the
  "Renegotiation Notice") of its desire to renegotiate one or more of the
  Variable Terms of Exhibit A. If, after negotiating in good faith for a period
  of ninety (90) days following the date of the Renegotiation Notice, the
  parties are unable to agree upon mutually acceptable changes to the Variable
  Terms that are subject to renegotiation, either party shall have the right to
  terminate this Agreement. During the period while negotiations are ongoing
  until new provisions are mutually agreed to, the then existing provisions of
  this Agreement immediately prior to such renegotiation shall continue to
  apply. Except as otherwise agreed to in writing by the parties, if new
  Variable Terms are mutually agreed to, such new Variable Terms shall be
  effective as of, and shall, if necessary, be made retroactive to, the first
* Day of the applicable [REDACTED] period immediately following the
  Renegotiation Notice, plus interest thereon at the Base Rate.

4.      PRODUCT SPECIFICATIONS

All deliveries of Product(s) by DLMT hereunder shall meet Dynegy's
specifications for the type of Product(s) stored, as such specifications may
change from time to time, the most current of which are set forth in Exhibit B
attached hereto and made a part hereof. Provided, however, that as to Raw
Product which was gathered by Dynegy pursuant to the Gathering Agreement and
which is delivered directly into the Hackberry Storage Facility from Dynegy's
liquids gathering system, the Raw Product shall be deemed to meet the
specifications set forth in Exhibit B if it complied with the applicable Raw
Product Specifications. Otherwise, Dynegy reserves the right to perform an
analysis of DLMT's Product(s) prior to accepting same for storage, but assumes
no responsibility for doing so, and may refuse to accept delivery of such
Product(s) if it is contaminated or otherwise fails to conform with the
applicable specifications. DLMT agrees to and does indemnify fully and hold
harmless Dynegy and its parents, subsidiaries and Affiliates and its and their
agents, officers, directors, employees, representatives, successors and assigns
from and against any and all Losses arising out of or in any manner related to
DLMT delivering or causing to be delivered into the Dynegy Facilities any
Product(s) which is contaminated and/or fails to meet the applicable
specifications ("Offspec Product"), unless such Offspec Product was produced at
the Lake Charles Fractionator, in which event, Dynegy agrees to and does
indemnify fully and hold harmless DLMT and its parents, subsidiaries and
Affiliates and its and their agents, officers, directors, employees,
representatives, successors and assigns from and against any and all Losses
arising out of or in any manner related to such production of Offspec Product.
Without limiting the indemnity by DLMT to Dynegy as set forth herein, if Dynegy
accepts into storage Offspec Product delivered by or on behalf of DLMT, DLMT
shall reimburse Dynegy for the reasonable costs and expenses incurred in
handling such Offspec Product. The foregoing indemnity shall not be applicable
to the extent any volumes of Offspec Product received from DLMT hereunder are
volumes that were produced at the Lake Charles Fractionator and same were
directly delivered from such facility into the Dynegy Facilities hereunder in
such a manner that no party other than Dynegy could have commingled any other
volumes of any Products or contaminants with same.

5.      PRODUCT DELIVERY AND REDELIVERY

Product(s) redelivery to DLMT out of the Hackberry Storage Facility will only
be made on the request of DLMT's designated representative or duly authorized
agent or as may be directed by representatives of DLMT. Dynegy will not
recognize sales, assignments or transfers of title to Product(s) while in
storage unless made in a manner approved by Dynegy in advance and then only
to another person or entity that has

                                       -3-
<Page>

entered into a valid storage agreement with Dynegy for storage at the Hackberry
Storage Facility. Product(s) redelivered by Dynegy hereunder shall be
redelivered only to the Delivery & Receipt Points. Volumes of Products delivered
by truck delivery to Dynegy's truck unloading and loading facility located at
the Lake Charles Fractionator shall be deemed to be delivered to Dynegy first
under the terms of the Fractionation Agreement and shall not be deemed to be
delivered into storage and within the scope of this Agreement until same are
received at one of the Delivery & Receipt Points downstream of such truck
unloading/loading facility. Dynegy's redelivery of Product(s) to DLMT shall be
subject to the operating conditions, rates of delivery, delivery pressures,
scheduling, etc. of the receipt facilities at the Delivery & Receipt Point.
Custody of the Product(s) delivered or redelivered hereunder shall be deemed to
be transferred at the Delivery & Receipt Point. DLMT shall use all reasonable
efforts to give Dynegy advanced notice of deliveries or withdrawals of
Product(s). Dynegy shall not be required to receive or redeliver Product(s)
unless it has been given at least two Business Days advance notice of such
Product(s) delivery or redelivery, but always subject to the physical
capabilities of the Dynegy Facilities. Measurement of Product(s) delivered or
redelivered hereunder shall take place as near to the Delivery & Receipt Point
as practicable and shall be made by Dynegy in accordance with Dynegy's standard
measurement procedures, which shall conform to good measurement practices in the
industry. All measurements made by Dynegy shall be binding on the parties hereto
unless proven to be in error. DLMT shall have the right to witness all such
measurements.

6.      LOSS ALLOWANCE

Due to normal operating losses which occur in receiving Product(s) for storage,
storing such Product(s) and redelivering Product(s) out of storage, DLMT's
withdrawals from storage shall be limited to the total volumes of each Product
received hereunder less a loss allowance percentage as specified in Exhibit A.
Dynegy shall be responsible for all Product losses exceeding the loss allowance
as specified in Exhibit A.

7.      TRANSPORTATION COSTS TO AND FROM STORAGE

All transportation charges and other expenses incurred in connection with (i)
DLMT' delivery of Product(s) to the Delivery & Receipt Point and (ii) DLMT'
receipt of Product(s) at the Delivery & Receipt Point, if any, shall be paid by
DLMT directly to such transporter.

8.      STORAGE AND HANDLING CHARGES

        (a)    DLMT shall pay Dynegy Monthly for the availability of the storage
               space the "Lease Rate" as set forth in Exhibit A, without regard
               as to whether any Product(s) has actually been or will be
               delivered by DLMT to Dynegy for storage hereunder. DLMT shall
               also pay to Dynegy each Month the other rates, fees and charges
               set forth in Exhibit A.

        (b)    If at the end of any Month (i) the volume of a particular Product
               stored by DLMT exceeds the storage volume of such Product
               allocated for that Month as designated by DLMT as provided herein
               (the initial allocation of which is set forth in Exhibit A),
               and/or (ii) the total volume of all Products stored by DLMT
               exceeds the Lease Volume, DLMT shall pay to Dynegy the Excess
               Storage fee as set forth in Exhibit A.

        (c)    Nothing in this Section 8 shall be construed to create an
               obligation on Dynegy to accept more Product(s) into storage in
               excess of the Lease Volume. At any time there is an excess
               balance, Dynegy may by written notice to DLMT require DLMT to
               remove such excess balance within seventy-two (72) hours of
               DLMT's receipt of such written notice and if any excess balance
               remains at the end of such period, then DLMT shall reimburse
               Dynegy for

                                       -4-
<Page>

               any costs or liabilities incurred by Dynegy as a result thereof.
               Notwithstanding the foregoing, DLMT shall never exceed the Lease
               Volume without Dynegy's prior written consent.

9.      INVOICING AND PAYMENTS

Each Month during the term of this Agreement, Dynegy shall invoice DLMT for all
amounts owed by DLMT to Dynegy for the immediately preceding Month's activities
and DLMT shall pay to Dynegy via wire transfer the amounts due no later than ten
(10) Days after DLMT's receipt of invoice therefor. If the Day on which any
payment is due is not a Business Day, then the relevant payment shall be due
upon the immediately preceding Business Day, except if such payment due date is
a Sunday or Monday, then the relevant payment shall be due upon the immediately
succeeding Business Day. Any amounts which remain due and owing after the due
date shall bear interest thereon at the Base Rate. If a good faith dispute
arises as to the amount payable in any statement, the amount not in dispute
shall be paid. If DLMT elects to withhold any payment otherwise due as a
consequence of a good faith dispute, DLMT shall provide Dynegy with written
notice of its reasons for withholding payment. If it is subsequently determined,
whether by mutual agreement of the parties or otherwise, that DLMT is required
to pay all or any portion of the disputed amounts to Dynegy, in addition to
paying over such amounts, DLMT also shall pay interest accrued on such amounts
at the Base Rate from the original due date until paid in full.

10.     TITLE TO STORED PRODUCT

It is understood and agreed that (i) title to the Product(s) stored hereunder
shall remain in DLMT, subject to being commingled with like Product(s) belonging
to Dynegy and/or other parties, which DLMT hereby grants unto Dynegy the right
to do so as long as such commingling does not contaminate DLMT's Product(s), and
(ii) Product(s) redelivered to DLMT by Dynegy may not be identical Product(s)
delivered by DLMT hereunder, but shall be considered as fungible goods meeting
the same quality specifications. With respect to Product(s) in storage pursuant
to this Agreement, it is specifically agreed as follows:

        (a)    In the event there should be any loss of Product(s) (other than
               normal operating losses which are provided for in Section 6) from
               Dynegy's storage facilities and such loss is not attributable to
               the failure of Dynegy to exercise that degree of care as would be
               exercised by a reasonably careful Person under like
               circumstances, then DLMT shall be prorated by Dynegy on the basis
               of the ratio of DLMT's stored Product(s) to the total volumes of
               like stored Product(s) in the Hackberry Storage Facility,
               including those volumes owned by DLMT and Dynegy.

        (b)    In the event there should be a loss from storage and it is
               ultimately determined that such loss was solely attributable to
               Dynegy's failure to exercise that degree of care as would be
               exercised by a reasonably careful Person under like
               circumstances, then, subject to the provisions of Section 12, it
               is agreed that Dynegy shall have the option, in its sole
               discretion, to replace DLMT's lost volumes with like Product(s)
               or to pay DLMT the fair market value of such lost Product(s) at
               the time of the loss.

11.     TAXES

Any tax, fee, charge or other exaction ("Levies"), now or hereafter enacted,
levied or assessed by any federal, state, local or other governmental authority
upon, or as a result of, any of the transactions contemplated in this Agreement,
or on any Product(s) delivered pursuant to such transactions, shall be borne by
DLMT. Any personal property or other ad valorem taxes ("Property Taxes") levied
or assessed by any

                                       -5-
<Page>

governmental authority upon DLMT's Product(s) delivered, stored and/or
redelivered hereunder shall be paid by DLMT. DLMT shall furnish Dynegy a proper
exemption certificate(s) where an exemption is claimed with regard to any
Product(s) or transactions under this Agreement that would otherwise be subject
to any Levies or Property Taxes. After giving DLMT written notice that intends
to take such action and a period of time no less than fifteen (15) for DLMT to
satisfy same, Dynegy shall have the right, but not the obligation, to pay any
such Levies or Property Taxes on behalf of DLMT (but, as to Property Taxes, at a
like rate no greater than that paid by Dynegy on its own like Product(s) in
storage) and DLMT shall be obligated to reimburse Dynegy for any such amounts so
paid on behalf of DLMT within ten (10) Days from DLMT's receipt of Dynegy's
invoice therefor.

12.     LIMITATION OF LIABILITY

        (a)    Except as otherwise provided elsewhere in this Agreement, Dynegy
               shall not be liable to DLMT for any loss of or injury to the
               Product(s) stored by DLMT, however caused, unless such loss or
               injury directly results from the failure of Dynegy to exercise
               that degree of care as would be exercised by a reasonably careful
               man under like circumstances. If any such loss or injury could
               not have been avoided through the exercise of such care as a
               reasonably careful person would exercise under like
               circumstances, Dynegy shall not be liable for such loss or
               injury.

        (b)    NOTWITHSTANDING ANYTHING TO CONTRARY SET FORTH HEREIN, DYNEGY
               SHALL NOT BE RESPONSIBLE FOR ANY LOSSES, INJURIES OR DAMAGES
               HEREUNDER IN EXCESS OF THE STORAGE FEES AND RATES PAID BY DLMT TO
               DYNEGY AS PROVIDED HEREIN, UNLESS CAUSED BY DYNEGY'S GROSS
               NEGLIGENCE OR WILLFUL MISCONDUCT. DYNEGY SHALL NOT BE RESPONSIBLE
               FOR OBTAINING INSURANCE TO COVER THE PRODUCT(s) STORED HEREUNDER.

        (c)    DLMT shall defend and hold Dynegy and its parents, subsidiaries
               and Affiliates and its and their agents, officers, directors,
               employees, representatives, successors and assigns harmless from
               any and all Losses arising out of or in any manner related to
               DLMT's storage, transportation, use or handling of DLMT's
               Product(s) before such Product(s) are delivered to Dynegy or
               after such Product(s) are redelivered by Dynegy to DLMT as
               provided in this Agreement.

        (d)    FOR BREACH OF ANY PROVISION FOR WHICH AN EXPRESS REMEDY OR
               MEASURE OF DAMAGES IS PROVIDED IN THIS AGREEMENT, SUCH EXPRESS
               REMEDY OR MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE
               REMEDY HEREUNDER, AND THE OBLIGOR'S LIABILITY SHALL BE LIMITED AS
               SET FORTH IN SUCH PROVISION, AND ALL OTHER REMEDIES OR DAMAGES
               ARE WAIVED. IF NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY
               PROVIDED HEREIN, THE OBLIGOR'S LIABILITY SHALL BE LIMITED TO
               DIRECT ACTUAL DAMAGES ONLY, EXCLUDING LOST PROFITS, AND SUCH
               DIRECT ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY
               HEREUNDER, AND ALL OTHER REMEDIES OR DAMAGES ARE WAIVED.
               EXCEPT FOR THIRD PARTY CLAIMS COVERED BY ANY INDEMNITY
               PROVISIONS SET FORTH IN THIS AGREEMENT, NEITHER PARTY SHALL
               BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL,
               PUNITIVE,

                                       -6-
<Page>

               EXEMPLARY, OR INDIRECT DAMAGES IN TORT, CONTRACT OR OTHERWISE.

13.     NOTICE OF CLAIM AND FILING OF SUIT

Claims by DLMT and all other persons claiming, by, through or under DLMT, must
be presented in writing to Dynegy within a reasonable time, and in no event
later than sixty (60) Days after (i) DLMT' Product(s) is (are) redelivered or
removed from the Hackberry Storage Facility or (ii) DLMT is notified by Dynegy
that loss of or injury to any Products has occurred, whichever is shorter. No
action may be maintained by DLMT and any other persons claiming by, through or
under DLMT, against Dynegy for loss of or injury to Product(s) stored in the
Hackberry Storage Facility unless a written claim therefor is received by Dynegy
within the time periods set forth herein and such action is commenced within
nine (9) Months after (a) DLMT's Product(s) is redelivered or removed from the
Hackberry Storage Facility or (b) DLMT is notified by Dynegy that loss of or
injury to Product(s) has occurred, whichever is shorter. In the situation where
Dynegy notifies DLMT of a loss or injury to Product(s), the time limits for
making written claims and the maintaining of actions after notice, as set forth
herein, shall begin on the date such notice is received by DLMT.

14.     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, it is agreed that
upon such party's giving notice and reasonably full particulars of such Force
Majeure in writing to the other party after the occurrence of the cause relied
on, then the obligations (except for the obligation to pay money due hereunder)
of the party giving such notice, so far as and to the extent that they are
affected by such Force Majeure, shall be suspended during the continuance of any
inability so caused, but for no longer period, and such cause shall so far as
possible be remedied with all reasonable dispatch. The term "Force Majeure" as
used herein shall mean acts of God, strikes, lockouts, or other industrial
disturbances, acts of the public enemy, wars, blockades, insurrections, riots,
epidemics, landslides, lightning, earthquakes, fires, tornadoes, hurricanes, or
storms, tornado, hurricane, or storm warnings which in any party's reasonable
judgment require the precautionary shutdown of a facility, floods, washouts,
arrests or restraints of the government, either federal or state, civil or
military, civil disturbances, explosions, sabotage, breakage, or accident to
equipment, machinery or lines of pipe, lack or brine or brine handling capacity,
freezing of machinery, equipment or lines of pipe, electric power shortages,
inability of any party to obtain necessary permits and/or permissions due to
existing or future rules, orders, laws or governmental authorities (both
federal, state and local), or any other causes, whether of the kind herein
enumerated or otherwise, which were not reasonably foreseeable, and which are
not within the control of the party claiming suspension and which such party is
unable to overcome by the exercise of due diligence. The term "Force Majeure"
shall also include those instances in which either party hereto is delayed in
acquiring, at reasonable cost and after the exercise of reasonable diligence,
(i) materials and supplies required for the purpose of constructing and
maintaining facilities, when such party is obligated to do so for the
performance of its obligations under this Agreement, or (ii) permits or
permission from any governmental agency required for the purpose of (a)
constructing and maintaining such facilities or (b) acquiring materials or
supplies required for such purpose. 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 opposing parties
when such course is inadvisable in the discretion of the party having
difficulty.

                                       -7-
<Page>

15.     MISCELLANEOUS

15.1    SUCCESSORS AND ASSIGNS

This Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns. Notwithstanding the
foregoing, neither party may assign this Agreement, nor any interest herein,
without the prior written consent of the other party, which consent shall not be
unreasonably withheld or delayed; provided, however, that a party may from time
to time (i) designate an Affiliate to perform this Agreement, either in whole or
in part, such performance being considered that of the party hereto, or (ii)
assign this Agreement to an Affiliate without obtaining the other party's
consent thereto. It is understood, however, that by such designation or
assignment, unless the non-assigning party expressly releases the assigning
party, such assigning party shall not thereby avoid obligations imposed by the
terms and provisions hereof, past, present or future. DLMT agrees that it will
not assign or transfer any interest in the volumes of Raw Product dedicated to
this Agreement during the term hereof unless such assignment is made subject to
this Agreement and any assignee ratifies and adopts this Agreement in writing.

15.2    NO COMMISSIONS, FEES OR REBATES.

No director, employee or agent of either party shall give or receive any
commission, fee, rebate gift or entertainment of significant cost or value in
connection with this Agreement. Any representative or representative(s)
authorized by either party may audit the applicable records of the other party
for the purpose of determining whether there has been compliance with this
Section.

15.3    SEVERABILITY.

This Agreement and the operations hereunder shall be subject to the valid and
applicable federal and state laws and the valid and applicable orders, laws,
local ordinances, rules, and regulations of any local, state or federal
authority having jurisdiction, but nothing contained herein shall be construed
as a waiver of any right to question or contest any such order, laws, rules, or
regulations in any forum having jurisdiction in the premises. If any provision
of this Agreement is held to be illegal, invalid, or unenforceable under the
present or future laws effective during the term of this Agreement, (i) such
provision will be fully severable, (ii) this Agreement will be construed and
enforced as if such illegal, invalid, or unenforceable provision had never
comprised a part of this Agreement, and (iii) the remaining provisions of this
Agreement will remain in full force and effect and will not be affected by the
illegal, invalid, or unenforceable provision or by its severance from this
Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there will be added automatically as a part of this Agreement a
provision similar in terms to such illegal, invalid, or unenforceable provision
as may be possible and as may be legal, valid, and enforceable. If a provision
of this Agreement is or becomes illegal, invalid, or unenforceable in any
jurisdiction, the foregoing event shall not affect the validity or
enforceability in that jurisdiction of any other provision of this Agreement nor
the validity or enforceability in other jurisdictions of that or any other
provision of this Agreement.

15.4    GOVERNING LAW

THIS AGREEMENT AND THE RIGHTS AND DUTIES OF THE PARTIES ARISING OUT OF THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED, ENFORCED, AND PERFORMED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, AS THE SAME MAY BE AMENDED FROM
TIME TO TIME, WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION
OR RULE THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER
THAN THE STATE OF TEXAS.

                                       -8-
<Page>

15.5    ENTIRE AGREEMENT; WAIVER

This Agreement, including, without limitation, all exhibits hereto, integrates
the entire understanding between the parties with respect to the subject matter
covered and supersedes all prior understandings, drafts, discussions, or
statements, whether oral or in writing, expressed or implied, dealing with the
same subject matter. Provided, however, shall there be any conflict regarding
the interpretation or meaning of any provisions of this Agreement, this
Agreement shall be construed together with the Ethane Agreement and, if
possible, shall be interpreted in a manner that will avoid conflicts between the
terms of this Agreement and the Ethane Agreement. This Agreement may not be
amended or modified in any manner except by a written document signed by both
parties that expressly amends this Agreement. No waiver by either party hereto
of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provision hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver unless expressly provided. No waiver shall
be effective unless made in writing and signed by the party to be charged with
such wavier.

15.6    SETOFFS AND COUNTERCLAIMS

Except as otherwise provided herein, each party hereto reserves to itself all
rights, set-offs, counterclaims, and other remedies and/or defenses which such
party is or may be entitled to arising from or out of this Agreement or as
otherwise provided by law.

15.7    NO PARTNERSHIP, ASSOCIATION, ETC.

Nothing contained in this Agreement shall be construed to create an association,
trust, partnership or joint venture or impose a trust or partnership duty,
obligation or liability on or with regard to either party.

15.8    EXHIBITS

All Exhibits attached hereto are incorporated herein by reference as fully as
though contained in the body hereof. If any provision of any Exhibit conflicts
with the terms and provisions hereof, the provisions of this Agreement shall
prevail.

15.9    DTPA WAIVER

        EACH PARTY EXECUTING THIS AGREEMENT HEREBY WAIVES ITS RESPECTIVE RIGHTS,
        IF ANY, UNDER THE DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION ACT,
        SECTION 17.41 ET SEQ., EXCEPT FOR SECTION 17.555 TEXAS BUSINESS &
        COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND
        PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF ITS OWN SELECTION,
        EACH PARTY EXECUTING THIS AGREEMENT VOLUNTARILY CONSENTS TO THIS WAIVER.
        IN ADDITION, EACH PARTY EXECUTING THIS AGREEMENT HEREBY REPRESENTS AND
        WARRANTS TO THE OTHER PARTY THAT (i) SUCH PARTY'S LEGAL COUNSEL WAS NOT
        DIRECTLY OR INDIRECTLY IDENTIFIED, SUGGESTED, OR SELECTED BY THE OTHER
        PARTY OR BY AN AGENT OF SUCH OTHER PARTY, AND (ii) NEITHER PARTY
        EXECUTING THIS AGREEMENT IS IN A SIGNIFICANTLY DISPARATE BARGAINING
        POSITION.

15.10   PRINCIPLES OF CONSTRUCTION AND INTERPRETATION

In construing this Agreement, the following principles shall be followed:

                                      -9-
<Page>

        (a)    no consideration shall be given to the fact or presumption that
               one party had a greater or lesser hand in drafting this
               Agreement;

        (b)    examples shall not be construed to limit, expressly or by
               implication, the matter they illustrate;

        (c)    the word "includes" and its syntactical variants mean "includes,
               but is not limited to" and corresponding syntactical variant
               expressions; and

        (d)    the plural shall be deemed to include the singular and vice
               versa, as applicable.

15.11   NOTICES

Any notice or other communication provided for in this Agreement or any notice
which either party may desire to give to the other shall be in writing and shall
be deemed to have been properly given if and when sent by facsimile
transmission, delivered by hand, or if sent by mail, upon deposit in the United
States mail, either U.S. Express Mail, registered mail or certified mail, with
all postage fully prepaid, or if sent by courier, by delivery to a bonded
courier with charges paid in accordance with the customary arrangements
established by such courier, in each case addressed to the parties at the
following addresses:

        IF TO DYNEGY:   DYNEGY MIDSTREAM SERVICES,
                        LIMITED PARTNERSHIP
                        1000 Louisiana, Suite 5800
                        Houston, Texas 77002
                        Attention: Vice President - Louisiana Gulf Coast Region
                        Phone:     (713) 507-6729
                        Telecopy:  (713) 767-8286

        IF TO DLMT:     DYNEGY LIQUIDS MARKETING AND TRADE
                        1000 Louisiana, Suite 5800
                        Houston, Texas 77002
                        Attention: Sr. Vice President
                        Phone:     (713) 507-6450
                        Telecopy:  (713) 507-3715

        or at such other address as either party shall designate by written
        notice to the other. A notice sent by facsimile shall be deemed to have
        been received by the close of the business Day following the Day on
        which it was transmitted and confirmed by transmission report or such
        earlier time as confirmed orally or in writing by the receiving party.
        Notice by U.S. Mail, whether by U.S. Express Mail, registered mail or
        certified mail, or by overnight courier shall be deemed to have been
        received by the close of the second business Day after the Day upon
        which it was sent, or such earlier time as is confirmed orally or in
        writing by the receiving party. Any party may change its address or
        facsimile number by giving notice of such change in accordance herewith.

15.12   OTHER AGREEMENTS.

Simultaneously with the execution of this Agreement, DLMT and Dynegy or its (or
their) Affiliate(s) shall execute the Fractionation Agreement and a Gathering
Agreement of even date herewith.

                                      -10-
<Page>

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Day and
Year first above written.

DYNEGY MIDSTREAM SERVICES,                  DYNEGY LIQUIDS MARKETING
LIMITED PARTNERSHIP                         AND TRADE

By:   Dynegy Midstream G.P., Inc., its
      General Partner

By:                                         By:
      --------------------------------            ------------------------------

Name:                                       Name:
      --------------------------------            ------------------------------

Title:                                      Title:
      --------------------------------            ------------------------------

                                      -12-
<Page>

                         "Confidential Treatment Requested"

                                    EXHIBIT A

                                     TO THE

                            PRODUCT STORAGE AGREEMENT

This Storage Agreement along with the General Terms and Conditions set forth in
the Product Storage Agreement to which this Exhibit is attached shall constitute
our mutual agreement to lease space in facilities owned or controlled by Dynegy.

  1.          LESSOR:            Dynegy Liquids Marketing and Trade

  2.          TERM:              From January 1, 2002 to December 31, 2021
                                 (the "Primary Term") and shall continue from
                                 Year to Year thereafter unless terminated by
                                 either party hereto at the end of such Primary
                                 Term or any Yearly extensions thereto by giving
                                 the other party at least ninety (90) Days
                                 advance written notice of its intention to
                                 terminate this Agreement.

  3.          PRODUCTS:          Raw Product, Purity Ethane, Propane and BG Mix.

  4.          STORAGE FACILITY:  Dynegy's Hackberry Storage Facility, as
                                 described in the Agreement.

* 5.          LEASE VOLUME:      [REDACTED]

* 6.          LEASE RATE:        [REDACTED] cents per Barrel per Year (payable
                                 on a Monthly basis).

  7.          EXCESS STORAGE:    For all Barrels in DLMT's account at Month-end
                                 in excess of the Lease Volume, the excess
*                                storage fee shall be [REDACTED] cents per
                                 Barrel. shall be required to obtain Dynegy's
                                 prior written consent prior to exceeding the
                                 Lease Volume at any time whether during or at
                                 the end of the Month.

* 8.          LOSS ALLOWANCE:    [REDACTED] All other gains and losses of
                                 Product(s) at the Hackberry Storage Facility
                                 shall be for the account of Dynegy.

DLMT shall be required to schedule all movements through Dynegy's Product
Movement Group. Delivery orders for DLMT's account will only be set up to cover
volumes that are physically in the storage account.

In the event conditions change such that this Agreement causes, or could
reasonably be expected to cause, a material long term economic or operational
hardship to either party, upon the written request of either party, Dynegy and
DLMT shall meet to renegotiate in good faith such burdensome terms and
provisions so as to make them fair and equitable. Such renegotiations shall
occur within thirty (30) Days of the date of the non-requesting party's receipt
of such written request for renegotiations. If the parties are unable to agree
on new provisions to replace such burdensome terms and provisions within ninety
(90) Days of the non-requesting party's receipt of such written request, either
party shall have the right to terminate this Agreement. It is understood and
agreed that the rights granted in this paragraph can only be used by a party to
commence good faith renegotiations once during each Year during the Primary Term
hereof.

                                       -1-
<Page>

                                    EXHIBIT B
                                     TO THE
                            PRODUCT STORAGE AGREEMENT

                             PRODUCT SPECIFICATIONS

                           RAW PRODUCT SPECIFICATIONS

(a)     The Raw Product delivered to Dynegy at the Delivery Point shall contain
        no solid materials or free water at 60 DEG. F.

(b)     Total sulfur content shall not exceed 30 ppm by weight to be determined
        by ASTM-D-2784.

(c)     The hydrogen sulfide content shall not exceed 1.5 ppm by weight, and the
        corrosiveness of the Raw Product shall not exceed "1" (copper strip) as
        given in ASTM-D-1838.

(d)     The Raw Product shall not contain in excess of 1.0 liquid volume percent
        carbon dioxide in the untreated ethane (ethane Component including all
        carbon dioxide) at any time nor exceed 35 hundredths (0.35) liquid
        volume percent carbon dioxide in the untreated ethane (ethane Component
        including all carbon dioxide) when averaged over any given Month.

(e)     The Raw Product shall not contain in excess of 1.5 liquid volume percent
        methane and inerts of the ethane Component.

(f)     The Raw Product color shall have a minimum Saybolt Number of +25 as
        determined by ASTM-D-156.

(g)     The maximum product end point at 14.7 psia shall not exceed 375 DEG. F
        as determined by distillation pursuant to ASTM-D-216. The distillation
        and color test are to be run on that portion of the mixture having a
        boiling point of 70 DEG. F and above and at atmospheric pressure.

(h)     DLMT shall not deliver Raw Product at temperatures in excess of 100 DEG.
        F or less than 60 DEG. F.

(i)     The Raw Product shall not contain more than 1 ppm fluorides.

(j)     The Raw Product shall not contain more than 1 ppm carbonyl sulfide
        (COS).

                                       -1-
<Page>

                          PURITY ETHANE SPECIFICATIONS

Product characteristics with test methods are herein specified for purity ethane
mixtures received or delivered by Dynegy Midstream Services, Limited
Partnership.

<Table>
<Caption>
                                                                                             TEST METHODS
   PRODUCT CHARACTERISTICS                      MINIMUM           MAXIMUM                   LATEST REVISION
   -----------------------                      -------           -------                   ---------------
<S>                                             <C>               <C>                       <C>
1.    COMPOSITION                                                                           ASTM E-260
        Percent by Liquid Volume
        Methane                                                   3.0                       GPA-2177
        Ethane                                  95.0              100.0
        Ethylene                                                  1.0
        Heavier than Ethane                                       3.5                       ASTM D-863
        Propylene                                                 1.0

2.    CORROSION
        Copper Strip @ 100 DEG. F                                 1-b                       ASTM D-1838
        (Invalid if additive or inhibitor
        is used.)
        Corrosion Additive or Inhibitor,
        PPM by Weight                                             1                         Applicable Industry
                                                                                            Practices
3.    TOTAL SULFUR
        PPM by Weight in Liquid                                   5                         ASTM D-3246

4.    DRYNESS                                                     7 pounds per              Visual
                                                                  standard cubic
                                                                  fee of vapor maximum
5.    CARBON DIOXIDE
        PPM by Weight in Liquid                                   1,000                     GPA 2177
</Table>

PRODUCT ACCOUNTING

Any excess of these hydrocarbon components above the specification limits shall
not be accounted for.

                                       -2-
<Page>

                             PROPANE SPECIFICATIONS

Product characteristics with test methods are herein specified for propane
received by Dynegy. This product meets the requirement of the GPA HD-5 propane
specification.

<Table>
<Caption>
                                                                                                  TEST METHODS
   PRODUCT CHARACTERISTICS                      MINIMUM                   MAXIMUM                LATEST REVISION
   -----------------------                      -------                   -------                ---------------
<S>                                             <C>                       <C>                    <C>
1.    COMPOSITION                                                                                ASTM E-260
        Percent by Liquid Volume Ethane                                   As limited by other
                                                                          components & vapor
                                                                          pressure.
                                                                          100
        Propane                                 90.0                      5.0
        Propylene                                                         2.5                    ASTM D-2163
        Butanes & Heavier
2.    VAPOR PRESSURE
        Psig @ 100 DEG. F                                                 208                    ASTM D-1267
3.    CORROSION
        Copper Strip @ 100 DEG. F                                         1-b                    ASTM D-1838
        (Invalid if additive or inhibitor
        is used.)
        Corrosion Additive or Inhibitor,
        PPM by Weight.                                                    1                      Applicable Industry Practices
4.    TOTAL SULFUR
        PPM by Weight in Liquid                                           120                    ASTM D-3246
5.    HYDROGEN SULFIDE
        PPM by Weight in Liquid                                           1                      Field - Length of Stain Tube
        (Lab test required if field test is                                                      Lab Chromatography  with Flame
        positive.)                                                                               Photometric Detector
6.    CARBONYL SULFIDE
        PPM by Weight in Liquid                                           2                      Field - Length of Stain Tube
        (Field test  invalid if C(4) + exceeds
        1.0 LV%) (Lab test required if field                                                     Lab - UOP 212 or UOP 791
        test is positive.)                                                                       Lab - Gas Chromatography  with
                                                                                                 Flame Photometric Detector
7.    NON-VOLATILE RESIDUE
        a) Milliliters @ 100 DEG. F                                       0.05                   ASTM D-2158
        b) Oil Stain                                                      Pass

THE FOLLOWING TESTS ARE OPTIONAL, DEPENDING UPON THE PRODUCT SOURCE:
8.    DRYNESS
        Freeze Valve, Seconds                                             60 (Note 2)            ASTM D-2713
9.    VOLATILE RESIDUE
        95% Evaporated - Temperature, DEG. F                              -37                    ASTM D-1837
10.   AMMONIA
        PPM  by Weight in Liquid                                          1                      Field - Length of Stain Tube
                                                                                                 Lab - UOP 430
11.   FLUORIDES
        PPM by Weight in Liquid as                                        5                      Field - Length of Stain Tube
        Monatomic Fluorine
12.   OTHER DELETERIOUS SUBSTANCES (PPM BY WEIGHT IN LIQUID)
        Includes but not limited to                                       1                      Gas chromatography with flame
        (Isoprene, Butadiene, Vinyl                                                              ionization or electron
        Chloride, glycol, amine, caustic)                                                        capture detection or other
</Table>

NOTES: (1) The test methods for items 2 and 7 are not necessary if a
compositional analysis is available which indicates compliance with these
requirements. (2) The addition of methanol in the distribution system should be
on a spot basis and must not exceed a rate of 5 Gallons per 10,000 Gallons of
product.

                                       -3-
<Page>

                                    EXHIBIT C

                            DELIVERY & RECEIPT POINTS

The Delivery & Receipt Points are the points of interconnect between the
Hackberry Storage Facility (including the pipelines to and from same) and the
following, with each point being bi-directional unless specified otherwise:

1.  RAW PRODUCT:

      -   Dynegy liquids gathering system
      -   Dynegy NGL Pipeline from near Rose Bluff, Louisiana, to Mont Belvieu,
          Texas
      -   Dynegy Fractionator
      -   ChevronTexaco (Texaco Pipeline L.L.C.) Lake Charles Pipeline
      -   Interconnect to CITGO Lakemont Pipeline at the CITGO Pecan Grove
          facility

2.  PURITY ETHANE

      -   Dynegy Fractionator (Receipt Only)
      -   Interconnects to the following pipelines or facilities located at the
          CITGO Pecan Grove facility: CITGO Lakemont Pipeline; Westlake
          Petrochemical
      -   Interconnects to the following pipelines or facilities located at the
          Equistar Chemicals L.P. Propylene Fractionation Unit: Equistar
          Chemicals plant (Delivery Only); Sasoil ethane pipeline (Delivery
          Only); and Williams ethane pipeline
      -   ChevronTexaco (Texaco Pipeline L.L.C.) Lake Charles Pipeline
      -   Kinder Morgan Cypress Pipeline

3.  PROPANE (HD-5)

      -   Dynegy Fractionator
      -   Dynegy NGL Pipeline from near Rose Bluff, Louisiana, to Mont Belvieu,
          Texas
      -   Interconnects to the following pipelines or facilities located at the
          CITGO Pecan Grove facility: CITGO Lakemont Pipeline; Westlake
          Petrochemical
      -   Interconnect to the Equistar Chemicals plant located at the Equistar
          Chemicals L.P. Propylene Fractionation Unit
      -   ChevronTexaco (Texaco Pipeline L.L.C.) Lake Charles Pipeline

4.  BUTANE-GASOLINE MIX (BG MIX)

      -   Dynegy Fractionator
      -   Dynegy NGL Pipeline from near Rose Bluff, Louisiana, to Mont Belvieu,
          Texas
      -   CITGO Refinery via Pecan Grove interconnect
      -   ChevronTexaco (Texaco Pipeline L.L.C.) Lake Charles Pipeline
      -   Interconnect to CITGO Lakemont Pipeline at the CITGO Pecan Grove
          facility

                                       -1-

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