Document:

Exhibit

Exhibit 10.05

Amendment and Restatement of
 Exhibits to Amended and Restated Services and Secondment Agreement

April 1, 2016

An Amended and Restated Services and Secondment Agreement was executed as of March 1, 2015 (the “Amended and Restated Services and Secondment Agreement”), among Valero Services, Inc., a Delaware corporation, Valero Refining Company-Tennessee, L.L.C., a Delaware limited liability company, Valero Refining-Texas, L.P., a Texas limited partnership, and Valero Energy Partners GP LLC, a Delaware limited liability company.  Capitalized terms not otherwise defined in this document shall have the terms set forth in the Amended and Restated Services and Secondment Agreement. 
The Parties agree that, as of the date first written above, the Exhibits are hereby amended and restated in their entirety to be as attached hereto. Pursuant to Section 6.18 of the Amended and Restated Services and Secondment Agreement, such amended and restated Exhibits shall replace the prior Exhibits as of the date hereof and shall be incorporated by reference into the Amended and Restated Services and Secondment Agreement for all purposes.  As amended hereby, the Amended and Restated Services and Secondment Agreement is hereby ratified and affirmed and shall continue in full force and effect.
[Remainder of page intentionally left blank.] 

IN WITNESS HEREOF, each of the undersigned have executed this Amendment and Restatement of Exhibits to Amended and Restated Services and Secondment Agreement on, and effective as of, the date first written above.

	
		
	Valero Services, Inc.

	 
	 

	 
	 

	By:  /s/ R. Lane Riggs                                      

	Name:
	R. Lane Riggs

	Title:
	Executive Vice President

	
		
	Valero Refining Company-Tennessee, L.L.C.

	 
	 

	 
	 

	By:  /s/ R. Lane Riggs                                      

	Name:
	R. Lane Riggs

	Title:
	Executive Vice President

	
		
	Valero Refining-Texas, L.P.

	 
	 

	By:
	Valero Tejas Company LLC, its

	 
	general partner

	
		
	By:  /s/ R. Lane Riggs                                      

	Name:
	R. Lane Riggs

	Title:
	Executive Vice President

	
		
	Valero Energy Partners GP LLC

	 
	 

	 
	 

	By:  /s/ Richard F. Lashway                            

	Name:
	Richard F. Lashway

	Title:
	President and Chief Operating Officer

Signature Page to Amendment and Restatement of Exhibits

EXHIBIT A 
 
Assets

The Assets consist of all above and below-ground equipment, facilities and improvements owned (in whole or in part) or leased by any Partnership Entities, or with respect to which any of the Partnership Entities have the right and/or obligation to operate and/or maintain, at each of the office, terminal and truckhaul locations and comprising each of the pipeline systems set forth in the following chart.  
Without limiting the generality of the foregoing, the Assets expressly include all of the following located at or comprising any part of the facilities, locations and systems listed in the following chart, to the extent owned, leased or otherwise under the control of any Partnership Entity:  
Piping
Pumps
Valves
Fittings
Interconnects
Lease automatic custody transfer (LACT) units
Metering equipment and associated equipment
Cathodic protection equipment
Fire suppression equipment
Tanks
Tank roofs
Tank dikes and foundations
Truck racks and associated equipment
Vapor recovery equipment
Docks and associated equipment
Buildings and improvements, and all fixtures, furnishings and equipment therein
Security equipment, including fences and gates
Drives, walks and parking areas
Signage
Utilities infrastructure
Environmental monitoring and remediation equipment
SCADA equipment
Oil / water separators 
Wastewater treatment equipment
Laboratories and associated equipment

A-1

Exhibit A, continued

As used in the following chart, the following terms have the following respective meanings:

“Asset Owner” means the Partnership Entity that owns the Asset.

“Service Date” means the date that Seconded Employees first began providing Operational Services at and/or for the Asset.

“Employing Operator” means the Operator that employs the Seconded Employees who will be providing Operational Services related to the Asset.

“Fee Structure” refers to the manner in which Operator is to be paid the portion of the Services Reimbursement associated with the Asset, being one of the two following methods:

“Pass Through” means that Seconded Employee Expenses associated with the Asset are being passed through to GP by the Operator on a reimbursable basis in accordance with Sections 3.1 and 3.2.

“Flat Fee” means that the Operator is charging GP a Flat Fee for all Operational Services being provided by Seconded Employees with respect to the Asset in accordance with Section 3.3.  The Flat Fee amounts set forth in the chart are initial amounts as of the Service Date, and are subject to periodic adjustment in accordance with Section 3.3.

Key to entity name abbreviations:

	
				
	Operators:
	Asset Owners:

	 
	 
	 
	 

	VRCT
	Valero Refining Company-Tennessee, L.L.C.
	VMKS
VPCE
	Valero MKS Logistics, L.L.C.
Valero Partners Corpus East, LLC

	VRT
	Valero Refining-Texas, L.P.
	VPCW
	Valero Partners Corpus West, LLC

	VSI
	Valero Services, Inc.
	VPEP
	Valero Partners El Paso, LLC

	 
	 
	VPH
	Valero Partners Houston, LLC

	 
	 
	VP Lucas
	Valero Partners Lucas, LLC

	 
	 
	VP La.
	Valero Partners Louisiana, LLC

	 
	 
	VPM
	Valero Partners Memphis, LLC

	 
	 
	VP McKee
	Valero Partners McKee, LLC

	 
	 
	VPNT
	Valero Partners North Texas, LLC

	 
	 
	VPP
	Valero Partners PAPS, LLC

	 
	 
	VPST
	Valero Partners South Texas, LLC

	 
	 
	VPW
	Valero Partners Wynnewood, LLC

	 
	 
	VPWM
	Valero Partners West Memphis, LLC

A-2

	
					
	Asset
	Asset Owner
	Service Date
	Employing
Operator
	Fee Structure

	 
	 
	 
	 
	 

	Terminals, Offices and Truckhauls
	 
	 
	 
	 

	Lucas Terminal
9405 West Port Arthur Road
Beaumont, TX  77705

	VP Lucas
	Dec. 16, 2013
	VSI
	Pass Through

	El Vista Terminal
6300 W. Port Arthur Road
Port Arthur, TX  77640

	VPP
	Dec. 16, 2014
	VSI
	Pass Through

	West Memphis Terminal
1282 South 8th St.
West Memphis, AR  72301

	VPWM
	Dec. 16, 2013
	VSI
	Pass Through

	Collierville Terminal
772 Wingo Road
Byhalia, MS  38611

	VMKS
	Dec. 16, 2013
	VRCT
	Pass Through

	Memphis Truck Terminal
321 West Mallory Ave.
Memphis, TN  38109
	VPM
	Dec. 16, 2013
	VRCT
	Pass Through

	Wynnewood System:
          Wynnewood Terminal
          Murray County, OK

	VPW
	July 1, 2014
	VSI
	Pass Through

	Three Rivers Crude System:
CR 422 Crude Oil Terminal
Live Oak County, Texas

Three Rivers Pipeline Office
Live Oak County, Texas

Three Rivers Meter Site
Live Oak County, Texas

	VPST
	July 1, 2014
	VSI
	Pass Through

	McKee Crude System:
Clawson Station

Hansford County, TX

Coble Station
Hutchinson County, TX

Farnsworth Station
Ochiltree County, TX

Follett Station
Lipscomb County, TX

	VPNT

	July 1, 2014

	VSI

	Pass Through

A-3

	
					
	Frass Station
Lipscomb County, TX

Glazier Station
Lipscomb County, TX

Gruver Station
Hansford County, TX

Hitchland Station
Hansford County, TX

Hooker Station
Texas County, OK

McKee Station
Moore County, TX

McKee Valve & Meter Site
and 8” Pipeline
Moore County, TX

Merten Station   
Gray County, TX

Perryton Office & Pipe Yard
Ochiltree County, Texas

Perryton Station (Nos. 1, 2, 3
and 4)
Ochiltree County, TX

Piper Station    (Nos. 1, 2 and 3)
Lipscomb County, TX

Sunray Pump Station
Sherman County, TX

Tubbs Station
Lipscomb County, TX

Turpin Terminal
Beaver County, OK

Waka Station
Ochiltree County, TX
	 
	 
	 
	 

	St. Charles Terminal - Located in Norco, Louisiana
	VP La.
	March 1, 2015
	VSI
	Flat Fee of $11,067,000 per calendar year

	Houston Terminal - Located in Houston, Texas
	VPH
	March 1, 2015
	VRT
	Flat Fee of $6,323,000 per calendar year

	Corpus Christi East Terminal - Located in Corpus Christi, Texas
	VPCE
	October 1, 2015
	VRT
	Flat Fee of $9,866,000 per calendar year

	Corpus Christi West Terminal - Located in Corpus Christi, Texas
	VPCW
	October 1, 2015
	VRT
	Included in the Corpus Christi East Terminal Flat Fee

A-4

	
					
	McKee Terminal – Located in Sunray, Texas
	VP McKee
	April 1, 2016
	VSI
	Flat Fee of $4,060,000 per calendar year

	Pipelines
	 
	 
	 
	 

	Port Arthur System:
Nederland pipeline:  A five-mile, 32-inch pipeline that delivers crude oil to the Lucas terminal from the Sunoco Logistics Nederland marine terminal.
	

VP Lucas
	Dec. 16, 2013

	VSI
	Pass Through

	Lucas pipeline: A 12-mile, 30-inch pipeline that delivers crude oil from the Lucas terminal to the Valero Port Arthur refinery (1801 South Gulfway Dr., Port Arthur, Texas  77640).
	VP Lucas
	 
	 
	 

	PAPS 20” Pipeline:  A three-mile, 20-inch pipeline that delivers diesel from the Port Arthur refinery to the PAPS terminal.

	VPP
	 
	 
	 

	El Vista 20” Pipeline: A four-mile, 20-inch pipeline that delivers gasoline from the Port Arthur refinery to the El Vista terminal. 

	VPP
	 
	 
	 

	12-10 pipeline:  An approximately 13 mile, 12-inch and 10-inch pipeline that delivers refined petroleum products from the Port Arthur refinery to the Enterprise TE Products pipeline connection, the Sunoco Logistics MagTex pipeline connection at their Hebert Terminal (15651 West Port Arthur Rd. Beaumont, TX 77705) and Oiltanking’s Beaumont marine terminal (6275 Highway 347 Beaumont TX 77705).
	VPP
	 
	 
	 

	Memphis System

Collierville pipeline: Approximately 52 miles of 10- to 20-inch pipelines that deliver crude oil to the Valero Memphis refinery (543 West Mallory Ave., Memphis, Tennessee  38109) from the Collierville terminal.
Shorthorn pipeline: Approximately seven miles of 14-inch pipeline that delivers diesel and gasoline produced at the Valero Memphis refinery to the West Memphis terminal, and two miles of 12-inch pipeline that delivers diesel and gasoline from the West Memphis terminal and the Valero Memphis refinery to Exxon’s Memphis refined petroleum products terminal (454 Wisconsin Ave., Memphis, TN 38106). 

	VMKS

	Dec. 16, 2013

	VRCT

	Pass Through

A-5

	
					
	Memphis Airport pipeline system:  A nine-mile, six-inch pipeline that delivers jet fuel produced at the Valero Memphis refinery to the Swissport Fueling, Inc. terminal (2491 Winchester Rd., Memphis, Tennessee 38116) located at the Memphis International Airport and a two-mile, six-inch pipeline that delivers jet fuel from the Valero Memphis refinery to the FedEx jet fuel terminal (2903 Sprankle Ave, Memphis, TN 38118) located at the Memphis International Airport
	

	 
	 
	 

	Wynnewood System:
Wynnewood Pipeline.  A twelve inch (12”) nominal diameter pipeline, approximately 30 miles in length, originating at the Valero Ardmore Refinery in Carter County, Oklahoma and terminating at the Valero Wynnewood Terminal in Murray County, Oklahoma
	VPW
	July 1, 2014
	VSI
	Pass Through

	Three Rivers Crude System:
CR 422 - Valero Ref #1-12.  A twelve inch (12”) nominal diameter pipeline, approximately 3,225 feet / 0.61 miles in length, originating at the Valero CR 422 crude oil facility and terminating the Valero Three Rivers Refinery in Live Oak County, Texas.

CR 422 - Valero Ref #2-12.  A twelve inch (12”) nominal diameter pipeline, approximately 3,064 feet / 0.58 miles in length, originating at the Valero CR 422 crude oil facility and terminating the Valero Three Rivers Refinery in Live Oak County, Texas.

CR 422 - Valero Ref #3-12.  A twelve inch (12”) nominal diameter pipeline, approximately 3,139 feet / 0.59 miles in length, originating at the Valero CR 422 crude oil facility and terminating the Valero Three Rivers Refinery in Live Oak County, Texas.

	VPST
	July 1, 2014
	VSI
	Pass Through

	McKee Crude System:
Tubbs 4” – A four inch (4”) nominal diameter pipeline, approximately 73,081 feet / 13.84 miles in length, originating at The Shamrock Pipe Line Corporation’s Tubbs Station in Lipscomb County, Texas and terminating at The Shamrock Pipe Line Corporation’s Tubbs /Citizens scrapper trap site in Lipscomb County, Texas.

	VPNT
	July 1, 2014
	VSI
	Pass Through

A-6

	
					
	Citizens 6” – A six inch (6”) nominal diameter pipeline, approximately 48,762 feet / 9.24 miles in length, originating at The Shamrock Pipe Line Corporation’s Tubbs/Citizens scrapper trap site in Lipscomb County, Texas and terminating at The Shamrock Pipe Line Corporation’s Piper Station in Lipscomb County, Texas.  
	 
	 
	 
	 

	Lipscomb 6” – A six inch (6”) nominal diameter pipeline, approximately 258,838 feet / 49.02 miles in length, originating at Frass Station in Lipscomb County, Texas and terminating at The Shamrock Pipe Line Corporation’s Perryton Station in Ochiltree County, Texas. 

	 
	 
	 
	 

	Perryton-Waka 10” - A ten inch (10”) nominal diameter pipeline, approximately 80,135 feet / 15.18 miles in length, originating at The Shamrock Pipe Line Corporation’s Perryton Station in Ochiltree County, Texas and terminating at The Shamrock Pipe Line Corporation’s Waka Station in Ochiltree County, Texas.

	 
	 
	 
	 

	Perryton-Waka 6” - A six inch (6”) nominal diameter pipeline, approximately 80,657 feet / 15.28 miles in length, originating at The Shamrock Pipe Line Corporation’s Perryton Station in Ochiltree County, Texas and terminating at The Shamrock Pipe Line Corporation’s Waka Station in Ochiltree County, Texas.

	 
	 
	 
	 

	Waka-Gruver 8” - An eight inch (8”) nominal diameter pipeline, approximately 133,047 feet / 25.19 miles in length, originating at The Shamrock Pipe Line Corporation’s Waka Station in Ochiltree County, Texas and terminating at The Shamrock Pipe Line Corporation’s Gruver Station in Hansford County, Texas.  

	 
	 
	 
	 

	Gruver-Clawson 8” - An eight inch (8”) nominal diameter pipeline, approximately 1,497 feet / 0.28 miles in length, originating at The Shamrock Pipe Line Corporation’s Gruver Station in Hansford County, Texas and terminating at NuStar Logistics, L.P.’s Clawson Station in Hansford County, Texas.  

	 
	 
	 
	 

	Clawson-Gruver 6” - A six inch (6”) nominal diameter pipeline, approximately 1,069 feet / 0.20 miles in length, originating at NuStar Logistics, L.P.’s Clawson Station in Hansford County, Texas and terminating at The Shamrock Pipe Line Corporation’s Gruver Station in Hansford County, Texas.  

	 
	 
	 
	 

A-7

	
					
	Turpin-Gruver 6” - A six inch (6”) nominal diameter pipeline, approximately 304,313 feet / 57.64 miles in length, originating at Valero Plains Company LLC’s Turpin Terminal in Beaver County, Oklahoma and terminating at The Shamrock Pipe Line Corporation’s Gruver Station in Hansford County, Texas.

	 
	 
	 
	 

	Gruver-McKee 6” - A six inch (6”) nominal diameter pipeline, approximately 157,609 feet / 29.85 miles in length, originating at The Shamrock Pipe Line Corporation’s Gruver Station in Hansford County, Texas and terminating at The Shamrock Pipe Line Corporation’s McKee scrapper trap site in Moore County, Texas.  

	 
	 
	 
	 

	McKee - McKee Refinery 8” - An eight inch (8”) nominal diameter pipeline, approximately 4,747 feet / 0.90 miles in length, originating at The Shamrock Pipe Line Corporation’s McKee scrapper trap site in Moore County, Texas and terminating at the Valero McKee Refinery in Moore County, Texas.

	 
	 
	 
	 

	Turpin 6”  (Hansford County, TX) - A six inch (6”) nominal diameter pipeline, approximately 5,899 feet / 1.12 miles in length, originating west of SH 15 in Hansford County, Texas and terminating south of FM 1262 in Hansford County, Texas.  

	 
	 
	 
	 

	Turpin 6”  (Moore County, TX) - A six inch (6”) nominal diameter pipeline, approximately 5,280 feet / 1.0 miles in length, originating at The Shamrock Pipe Line Corporation’s McKee scrapper trap site in Moore County, Texas and terminating at the Valero McKee Refinery in Moore County, Texas.
	 
	 
	 
	 

A-8

EXHIBIT B
Operational Services

General Note:  Not all of the following Operational Services apply with respect to each Asset.   Rather, the Seconded Employees working at a specific location shall only be required to provide those Operational Services applicable to the Assets at such location.

 
List of Operational Services

Operation of the Assets in accordance with prudent industry practice and the directions for product and feedstock movements given by GP (or, where customary practice dictates, customers of the Partnership, in which case such directions shall be deemed for purposes of this Agreement to have come from GP, acting for and on behalf of the Partnership), including but not limited to operation of the pump stations and other facilities within such operating parameters and specifications as may be in accordance with sound engineering and operating practices and applicable laws, operation of meter stations, including calibration of measurement and product analysis equipment, operation of booster pumps, providing custody measurement as required and the coordination of product and feedstock movements as directed. 
Operation of truck rack loading and unloading, including blending operations, management of computer loading systems and processing of delivery tickets.  

Operation of vapor recovery systems, to include emission monitoring requirements. 

Operation of wastewater treatment systems and/or oil water separator systems (in compliance with all applicable hazardous waste handling procedures).
Provision of communications, inspection, surveillance, flow control, corrosion control and monitoring. 
Establishment of and compliance with safety, health, environmental, training, emergency response, spill response and other programs in connection with the operation of the Assets. 
Preparation and retention of appropriate records and logs as required by applicable laws and consistent with past practice (subject to changes required by changes in law and/or the adoption of new policies and procedures).
Maintenance of instrument systems required for performance of pipeline monitoring and control services, product analysis and measurements in accordance with applicable requirements and generally accepted industry practices.

B-1

Providing scheduling services for all products shipped into and delivered out of the Assets, with appropriate consultation and coordination with affected refineries, third-party pipelines, third-party off-line delivery and shipper personnel, and control room personnel. 
Coordination of all inventory management activities and assistance in the development and implementation of inventory control policies and guidelines regarding the Assets. 
Determining net volume received and delivered by utilizing measurement facilities installed, operated and maintained in accordance with the latest edition of the American Petroleum Institute Manual of Petroleum Measurement Standards and standard industry practices, and reconciliation of book inventory with actual inventory. 
Provision of sufficient on-the-job and outside training to employees and contractors operating and maintaining the Assets for the operation of the Assets in a safe and efficient manner in accordance with the applicable Partnership policies and procedures and applicable governmental rules, regulations and laws. 
Preparation, filing and renewal, as applicable and, to the extent not performed under the Omnibus Agreement, of all operating licenses and/or permits as directed by GP. 
Emergency response services, including but not limited to closing pipeline valves in connection with a response to any emergency involving the Assets. 
Laboratory and analytical services including but not limited to product quality and assurance analysis. 
Additive procurement services and inventory management of additive inventories (except to the extent any additives are procured and/or managed by customers of the Partnership, in which case the services hereunder shall consist of appropriate coordination with such customers). 
Security services, including but not limited to controlling access to the Assets and (except to the extent such activities are customarily conducted by customers of the Partnership) negotiation, execution and management of access agreements. 
Maintenance and repair of the Assets, including but not limited to pipeline repairs, terminal repairs, aerial pipeline patrols, population density counts, right-of-way maintenance (including but not limited to filling of washes, mowing weeds and brush, repairing fences, erection and maintenance of fences, barricades or other suitable protection to protect the Assets and associated equipment from damage due to mowers, trucks or other vehicles, flagging and identification of pipelines in the event of excavation in the vicinity of the pipelines by the Operators or third parties), in each case, within such maintenance/repair parameters and specifications as may be in accordance with sound engineering and maintenance practices and applicable laws. 
Implementation and administration of a preventative maintenance program for the Assets, including, without limitation, periodic testing, adjustment and maintenance of the Assets, meter station and 

B-2

valve inspections and meter proving maintenance, in each case in accordance with prudent maintenance practices and applicable laws. 
Implementation and administration of a tank maintenance and integrity program for the Assets, including, without limitation, periodic testing, maintenance, repair and/or replacement in each case in accordance with prudent maintenance practices and applicable laws. 
 Inspection services for monitoring work performed by others in the vicinity of the Assets. 
Preparation and retention of appropriate records and logs as required by applicable laws and that a prudent provider of maintenance services would maintain regarding the Assets. 
Reconstruction, reconditioning, overhaul and/or replacement of the Assets, as appropriate. 
Technical services for trouble-shooting problems, improving the Assets performance, upgrading the Assets, repairing the Assets and/or meeting regulatory or safety requirements. 
Maintaining compliance with all applicable federal, state and local environmental, health and safety laws including but not limited to conducting all environmental investigation and remediation activities, as required by federal, state and local environmental laws and prudent business practices. 
Facilitating the acquisition of all materials (including spare parts inventories), equipment, services, supplies and labor necessary for the maintenance and repair of the Assets. 
Except to the extent provided under the Omnibus Agreement, performing all planning, design and engineering functions related to the maintenance and repair of the Assets including but not limited to selecting and overseeing contractors and material suppliers for such activities. 
Preparing excavation plans for pipeline right-of-way work, and advising the Partnership of any right-of-way work which could threaten the integrity of the Partnership’s pipelines. 
Construction, reconstruction, reconditioning, overhaul and replacement of the Assets, including but not limited to engineering, procurement, construction and project performance testing and services relating thereto. Related functions include: 
		
	•
	Oversight and management services as may be necessary in connection with these activities. 

		
	•
	Planning, design and engineering functions related to the activities. 

		
	•
	Procurement of all materials, equipment, services, supplies and labor necessary for and related to the activities. 

Preparation and/or assistance in the preparation of capital project (AFE) documents for approval by the Partnership.

B-3

Routine maintenance, repairs and inspections of the tanks and other facilities at the St. Charles Terminal and Houston Terminal.
Routine maintenance, repairs and inspections of the tanks and other facilities at the Corpus Christi East Terminal and Corpus Christi West Terminal.
Routine maintenance, repairs and inspections of the tanks and other facilities at the McKee Terminal.
Together with such other routine maintenance and operational services as GP may require in connection with the ownership and operation of the Assets consistent with the Operators’ past practices at the Assets.

B-4Exhibit

Exhibit 10.07

TERMINAL SERVICES SCHEDULE
(McKee Terminal)

This Terminal Services Schedule (this “Schedule”) is entered into on the 1st day of April, 2016 (the “Effective Date”) by and between VALERO PARTNERS OPERATING CO. LLC, a Delaware limited liability company (“Company”) and VALERO MARKETING AND SUPPLY COMPANY, a Delaware corporation (“Customer”) pursuant to the Master Terminal Services Agreement (“Agreement”) between Company and Customer dated December 16, 2013. Except as set forth herein, the terms and conditions of the Agreement are incorporated by reference into this Schedule. Unless otherwise defined in this Schedule, the defined terms in this Schedule will have the same meaning used in the Agreement.

1.    Definitions. For purposes of this Schedule and the Agreement as it relates to this Schedule, the following terms shall have the meanings set forth below:
(a)    “Tankage” means the crude oil, refined products and intermediates storage tanks identified on Exhibit A attached hereto and incorporated herein for all purposes that are located at the Terminal.
(b)    “Tank” means any individual crude oil, refined product or intermediate storage tank within the Tankage. The Company may designate alternate tankage in the event the Tanks become unavailable.
2.    Term. This Schedule shall have a primary term commencing on the Effective Date and ending 10 years from the Effective Date (the “Initial Term”), and may be renewed by Customer, at Customer’s sole option, for one successive 5 year renewal term (a “Renewal Term”), upon at least 180 Days’ written Notice from Customer to Company prior to the end of the Initial Term. The Initial Term and Renewal Term, if any, shall be referred to in this Schedule as the “Term”.
3.    Terminal. The terminal services contemplated by this Schedule will be performed at Company’s Affiliate’s McKee Tank Farm located in Sunray, Texas (the “Terminal”).
4.    Refinery. The Terminal supports Customer’s Affiliate’s McKee Refinery located in Sunray, Texas (the “Refinery”).
5.    Product. The products to be handled and stored under this Schedule (each a “Product”, and collectively the “Products”) are those specified Products set forth on Exhibit B attached hereto and incorporated herein for all purposes.
6.    Receipts and Deliveries. Product will be received at and delivered from the Terminal by pipeline. Custody of Products received at the Terminal shall pass to Company at the Demarcation Point. Custody of Products delivered from the Terminal shall pass to Customer at the Demarcation Points. For purposes of this Section 6, the “Demarcation Points” shall mean those points at which any receipt pipeline to the Tankage or delivery pipeline from the Tankage connects to any receipt or delivery pipeline outside of the Terminal that is used for the purpose of transporting Products to and from the Terminal. The Parties may determine the actual Demarcation Points following the 

Effective Date and agree to execute any amendments or supplements to this Schedule if necessary to incorporate the actual Demarcation Points.
7.    Specifications. Customer will ensure that all of Customer’s Product delivered to the Terminal under the terms of this Schedule meets the Company’s applicable specifications for such Product (the “Specifications”), provided that (i) the Product specifications and properties remain consistent with the pipeline system specifications for the applicable pipelines connected to the Terminal, and (ii) the Product specifications and properties comply with any specifications imposed by Law. These Specifications are minimum specifications for the Terminal and do not supersede any published or otherwise required specification set forth by the delivering pipelines that may be more stringent for movements on those third party pipelines. Ethanol delivered to the Terminal by or on behalf of Customer shall meet all the specifications listed in the latest version of ASTM D4806.
8.    Throughput Charges. For each Month during the Term, Customer will pay Company (i) $0.333 per Barrel of Product throughput and handled at the Terminal for or on behalf of Customer for throughput volumes up to 320,000 average Barrels per Day of Products (“Tier 1 Rate”), and (ii) $0.05 per Barrel of Products throughput and handled at the Terminal by or on behalf of Customer on terminal throughput volumes in excess of 320,000 average Barrels per Day of Products (“Tier 2 Rate”), in each case subject to escalation pursuant to Section 11. The Tier 1 Rate and Tier 2 Rate may be referred to collectively or individually as the “Throughput Charge”. For the avoidance of doubt, to the extent any Quarterly Deficiency Payment is applied to any Quarterly Surplus Volumes (such volumes being referred to as “Pre-Paid Volumes”), the Throughput Charge for such Pre-Paid Volumes shall be the Tier 1 Rate for the Calendar Quarter in which such Quarterly Deficiency Payment was made. For each Month within a Calendar Quarter, the Throughput Charge applied to volumes tendered for such Month shall be based on a quarter-to-date calculation of the Minimum Monthly Commitment (as defined below), and the revenue billed for such Month shall be adjusted to reflect such quarter-to-date calculation. For purposes of this Section 8, the term “Minimum Monthly Commitment” shall be 272,000 average Barrels per Day multiplied by the number of days in the applicable Month. An illustrative example of the quarter-to-date calculation of the Minimum Monthly Commitment and applicable Throughput Charges for such quarter is attached hereto as Exhibit C. For avoidance of doubt, movements of Product from the Terminal to the Refinery for processing at the Refinery and movements of Product out of the Refinery from processing to the Terminal are not considered throughput for which Customer will be charged a Throughput Charge.
9.    Other Charges.
(a)    Holdover Fee. If Customer does not remove its Product from the Terminal on or before the date this Schedule terminates, except to the extent any delay in removal is caused by Company, Customer will pay a holdover fee of $0.05 per Barrel of Product per day in addition to any Throughput Charge.
(b)    Sampling Fee. Customer will pay a $100 fee per sample for all samples drawn at Customer’s request excluding any composite samples taken on pipeline receipts to or pipeline deliveries from the Terminal.

2

10.    Minimum Throughput Commitments. For each Calendar Quarter during the Term, Customer shall tender or cause to be tendered an average of at least 272,000 Barrels per Day of Products to or from the Terminal for handling in approximately ratable quantities (such average, the “Minimum Quarterly Commitment”) and Company shall accept and deliver such Product in accordance with the terms of this Schedule. Except as expressly provided in the Agreement in connection with an Outage, a Company Force Majeure or a Customer Force Majeure, if during any Calendar Quarter, Customer fails to satisfy its Minimum Quarterly Commitment in such Calendar Quarter, then Customer will pay Company a deficiency payment (each, a “Quarterly Deficiency Payment”) in an amount equal to the volume of the deficiency (the “Quarterly Deficiency Volume”) multiplied by the Throughput Charge. Customer shall pay Company the amount of such Quarterly Deficiency Payment along with any Throughput Charge payable hereunder. The dollar amount of any Quarterly Deficiency Payment paid by Customer may be applied as a credit against any amounts incurred by Customer and owed to Company with respect to volumes of Product handled at the Terminal in excess of Customer’s Minimum Quarterly Commitment (or, if this Schedule expires or is terminated, to volumes handled at the Terminal in excess of the applicable Minimum Quarterly Commitment in effect as of the date of such expiration or termination) (such excess volume in any Calendar Quarter during the Term is referred to as the “Quarterly Surplus Volume”) during any of the succeeding four Calendar Quarters, after which time any unused credits will expire. This Section 10 shall survive the expiration or termination of this Schedule, if necessary for the application of any Quarterly Deficiency Payment against any Quarterly Surplus Volume as set forth herein.
11.    Escalation. On July 1, 2017, and on July 1st of each year thereafter while this Schedule is in effect, Company shall adjust the Throughput Charge, which adjustments shall be effective as of July 1st of the year in which such election is made, by multiplying the Throughput Charge, by an amount equal to a maximum of (a) 1.0 plus (b) a fraction, of which (i) the numerator is the positive change, if any, in the Consumer Price Index – All Urban Consumers (Series ID CUUR0300SA0) (such index, the “CPI”) during the 12-Month period ending on March 31st of such year, as reported during the Month of April of such year and (ii) the denominator is the CPI as of the first day of such 12-Month period, provided that if, with respect to any such 12-Month period, the CPI has decreased during such 12-Month period, Company may increase fees on the following July 1st only to the extent that the percentage change in the CPI since the most recent previous such increase in fees is greater than the aggregate amount of the cumulative decreases in the CPI during the intervening period or periods.
12.    Nominations. Customer shall furnish to Company, by the 20th Day of each Month preceding the Month of delivery (except for the first Month of the Term, which shall be on or before the 5th day of such Month), a delivery schedule that includes the estimated quantity of Products that Customer anticipates delivering to and receiving from the Terminal during the following Month.
13.    Monthly Statements. For purposes of this Schedule and the Agreement as it relates to this Schedule, Section 6.01 of the Agreement is hereby amended and restated as follows:
Within 10 days after the end of each Month, Company will provide Customer a statement (a “Monthly Statement”) for each proceeding Month, which Monthly Statement shall 

3

include for each Product specified on Exhibit B to this Schedule: receipts and withdrawals, and the Throughput Charges due the Company (after application of any Quarterly Surplus Volume credit to which the Company may be entitled pursuant to this Schedule). If requested by Customer, Company will provide pipeline meter tickets for receipts and withdrawals at the Terminal for such Month, if available. Each Monthly Statement immediately following the last Month in each Calendar Quarter shall include a report that sets forth the amount of Quarterly Deficiency Volume, if any, or Quarterly Surplus Volume, if any, and any Quarterly Deficiency Payment that may be due and payable by Customer.
14.    Liens. Customer hereby grants to Company a warehouseman’s lien on all of Customer’s Products in storage at the Terminal for any amounts payable by Customer to Company that have not been paid when due hereunder. If a warehouse receipt is required under Law for such a lien to arise, this Schedule will be deemed to be the warehouse receipt for all Products at the Terminal.
15.    Special Termination by Customer. If Customer or any of its Affiliates determines to completely or partially suspend refining operations at the Refinery for a period of at least 12 consecutive Months, the Parties will negotiate in good faith to agree upon a reduction of the Minimum Quarterly Commitment to reflect such suspension of operations. If the Parties are unable to agree to an appropriate reduction of the Minimum Quarterly Commitment, then after Customer or such Affiliate has made a public announcement of such suspension, Customer may provide written Notice to Company of its intent to terminate this Schedule and this Schedule will terminate 12 Months following the date such Notice is delivered to Company. In the event Customer or such Affiliate publicly announces, prior to the expiration of such 12-Month period, its intent to resume operations at the Refinery, then such Notice shall be deemed revoked and this Schedule shall continue in full force and effect as if such Notice had never been delivered.
16.    Effect of Customer Restructuring. If Customer or any of its Affiliates determines to restructure its respective supply, refining or sales operations at the Refinery in such a way as could reasonably be expected to materially and adversely affect the economics of Customer’s performance of its obligations under this Schedule, then the Parties will negotiate in good faith an alternative arrangement that is no worse economically for Company than the economic benefits to be received by Company under this Schedule, which may include the substitution of new commitments of Customer on other assets owned or to be acquired or constructed by Company.
17.    Additional Services. If Company performs additional services at Customer’s written request, or if Company, upon written notice to Customer, performs any additional services because Customer’s Product does not meet the applicable Specifications, Customer will pay Company the cost of such services plus an administrative fee that is equal to 10% of such documented, invoiced costs.
18.    Removal of Tank for Service Inspection. The Parties agree that if the Company determines to remove a Tank included in the Terminal from service or if a Tank is removed from service for inspection in compliance with API Standard 653 for Aboveground Storage Tanks then Company will not be required to utilize, operate or maintain such Tank or provide the services required under this Schedule with respect to such Tank; provided however, that any such removal will not reduce 

4

the Throughput Charge except to the extent that Company is unable to provide to Customer the applicable throughput capacity to satisfy the Minimum Quarterly Commitment.
19.    Tank Cleaning and Removal of Products. Notwithstanding any provision herein to the contrary, Customer will be responsible for all actual costs incurred by Company for tank cleaning, product removal, and disposal of all residual Product (including any BS&W) during the Term in the event (x) of a change in service of a Tank, (y) any cleaning of the Tankage is necessary for Company to comply with Applicable Law, including compliance with API 653 or any legal or regulatory requirement adopting or substantially similar to the requirements set forth in API 653, or (z) it becomes necessary to remove a Tank from service for maintenance. Under such circumstances, Company shall exercise commercially reasonable efforts to (a) provide Customer with at least sixty (60) days prior written notice of its intention to remove a Tank for cleaning or maintenance, which notice shall include (i) the legal basis for such requirement, if required, and (ii) the estimated amount of time any such Tank will be taken out of service for such purpose, and (b) except as otherwise prohibited by Applicable Law, clean only one Tank in a particular service at any given time while allowing the other Tanks to remain in service, subject to any Force Majeure event; provided, however, the failure of Company to timely provide such notice shall not relieve Customer of its obligations required hereunder.
20.    Dewatering Services. Notwithstanding any provision herein to the contrary, Company shall not be responsible for dewatering Customer’s Products. To the extent it becomes necessary during the Term to remove and dispose of water from the Tanks, Customer shall bear the cost of, or reimburse the Company for, such removal and disposal by vacuum truck. The Company shall control and oversee, and cooperate with Customer on arranging for, the completion of such removal and disposal.
21.    Marketing of Throughput and Storage Services to Third Parties. During the Term, Company may provide throughput services to third parties at the Terminal and storage services to third parties in the Tankage, provided that, (i) the provision of such throughput and storage services to third parties is not reasonably likely to negatively impact Customer’s ability to use either the Terminal or the Tankage in accordance with the terms of this Schedule in any material respect, (ii) prior to any third party use of either of the Terminal or the Tankage or the entry into any agreement with respect thereto, Company shall have received prior written consent from Customer with respect to such third party usage or the entry into such agreement, as applicable, not to be unreasonably withheld, conditioned or delayed and (iii) to the extent such third-party usage reduces the ability of Company to provide the throughput capacity to satisfy the Minimum Quarterly Commitment, the Minimum Quarterly Commitment shall be proportionately reduced to the extent of the difference between the Minimum Quarterly Commitment and the amount that can be throughput at the Terminal or stored in the Tankage (prorated for the portion of the Quarter during which the Minimum Quarterly Commitment was unavailable).
22.    Increase in Ad Valorem Taxes. If Company’s ad valorem tax obligation related to the Tankage and other facilities at the Terminal substantially increases after the Effective Date as a result of the change in ownership of the Terminal or the Terminal being assessed separately from the Refinery, the Parties will renegotiate the Throughput Charge in good faith based on the amount of the increased tax liability and Company’s good faith estimate of Customer’s pro rata share (or 

5

if the amount of the increased tax liability relate only to Customer’s Tankage, then 100%) of the increase in the Throughput Charges necessary to cover such increased tax liability. 
23.    Operating and Maintenance Expenses. If during the first three years of the Term of this Schedule, Company’s expenses related to the operation and maintenance of the Tankage and other facilities at the Terminal substantially increase or decrease relative to the Parties’ expectations as of the Effective Date, the Parties will renegotiate the Throughput Charges in good faith in order to reset the Throughput Charges to preserve the Parties’ original economic, operational, commercial, and competitive expectations related to this Schedule as of the Effective Date.
24.    Contacts and Notices.
(a)    For Company. The following contacts and their respective subject matter expertise are provided for convenience purposes only. All formal notices and communication required under this Schedule to Company shall be in writing and delivered as set forth in the Agreement:
	
		
	Operational:
	VP Pipelines & Terminals

	 
	Tel: (210) 345-4057

	 
	Fax: (210) 370-4801-

	 
	 

	Invoice:
	Troy Heard, Supervisor Accounting

	 
	Tel: (210) 345-3219

	 
	Fax: (210) 370-4355

(b)    For Customer: The following contacts and their respective subject matter expertise are provided for convenience purposes only. All formal notices and communication required under this Schedule to Customer shall be in writing and delivered as set forth in the Agreement:
	
		
	Operational:
	VP & General Manager – McKee Refinery

	 
	Tel: (806) 935-1256

	 
	Email: Lauren.Bird@valero.com

	 
	 

	Invoice:
	Troy Heard, Supervisor Accounting

	 
	Tel: (210) 345-3219

	 
	Fax: (210) 370-4355

6

IN WITNESS WHEREOF, the Parties hereto have caused this Schedule to be duly executed by their respective authorized officers.

Company:

VALERO PARTNERS OPERATING CO. LLC

	
		
	By:
	 /s/ Richard F. Lashway

	Name:
	Richard F. Lashway

	Title:
	President and Chief Operating Officer

Customer:

VALERO MARKETING AND SUPPLY COMPANY

	
		
	By:
	 /s/ R. Lane Riggs

	Name:
	R. Lane Riggs

	Title:
	Executive Vice President

[Signature Page to Terminal Services Schedule (McKee Terminal)]

EXHIBIT A
TANKS

	
			
	McKee Tank Ref #
	Type
	Shell Capacity (Barrels)

	TK1
	CR
	9,999

	TK1001
	EFR
	99,085

	TK1003
	EFR
	98,750

	TK100M1
	CR
	100,621

	TK100M2
	EFR
	107,074

	TK100M3
	EFR
	109,957

	TK101
	EFR
	100,088

	TK120M1
	EFR
	118,453

	TK120M2
	EFR
	117,815

	TK120M3
	EFR
	116,945

	TK120M4
	IFR
	119,440

	TK121
	CR
	3,078

	TK125
	CR
	3,119

	TK126
	CR
	3,114

	TK127
	CR
	9,983

	TK128
	CR
	9,920

	TK130
	CR
	67,427

	TK133
	EFR
	19,297

	TK134
	EFR
	19,324

	TK138
	EFR
	19,880

	TK139
	EFR
	19,765

	TK140
	IFR
	24,854

	TK142
	CR
	3,121

	TK145
	IFR
	3,124

	TK148
	CR
	9,239

	TK1501
	EFR
	14,783

	TK1502
	EFR
	14,800

	TK150M1
	EFR
	149,515

	TK150M2
	IFR
	150,150

	TK150M3
	EFR
	161,044

	TK150M4
	EFR
	163,613

	TK157
	EFR
	117,271

	TK161
	EFR
	19,772

	 
	 
	 

Exhibit A – Page 1

	
			
	McKee Tank Ref #
	Type
	Shell Capacity (Barrels)

	TK163
	EFR
	19,871

	TK164
	EFR
	9,967

	TK166
	CR
	10,197

	TK167
	EFR
	19,943

	TK168
	EFR
	19,688

	TK2
	CR
	9,645

	TK200M1
	EFR
	211,453

	TK20M5
	CR
	20,046

	TK20M6
	CR
	20,046

	TK20M7
	CR
	20,046

	TK21
	CR
	20,153

	TK22
	CR
	19,768

	TK24
	CR
	5,127

	TK2601
	CR
	2,665

	TK2602
	CR
	2,664

	TK2606
	CR
	2,660

	TK2607
	CR
	2,662

	TK2608
	CR
	4,975

	TK29
	CR
	5,127

	TK30
	CR
	5,127

	TK3001
	EFR
	29,440

	TK3002
	EFR
	29,501

	TK300M1
	CR
	295,470

	TK300M2
	CR
	298,504

	TK300M3
	CR
	299,684

	TK31
	EFR
	70,757

	TK32
	CR
	5,127

	TK33
	CR
	1,005

	TK34
	CR
	1,006

	TK4
	IFR
	166,162

	TK5501
	CR
	55,521

	TK5502
	CR
	55,521

	TK5503
	CR
	55,521

	TK5504
	EFR
	54,267

	TK5505
	EFR
	54,739

	TK5506
	IFR
	55,355

	TK551
	CR
	3,109

	 
	 
	 

Exhibit A – Page 2

	
			
	McKee Tank Ref #
	Type
	Shell Capacity (Barrels)

	TK60M1
	EFR
	68,866

	TK60M2
	EFR
	66,219

	TK6701
	EFR
	65,334

	TK6702
	EFR
	66,110

	TK80M1
	IFR
	80,950

	 
	TOTAL:
	4,414,418

Exhibit A – Page 3

EXHIBIT B

PRODUCTS
Products are hydrocarbons commonly stored in atmospheric storage tanks (<11 psia TVP) (True Vapor Pressure) such as, but not limited to:

Crude (Crude Oil, Blended Crude Oil, Crude Oil Mixture, Diluted Crude Oil, Synthetic Crude, Bitumen Crude)

Gasoline and Gasoline Blendstocks including Alkylate, Naphtha, Reformate, Cat gasoline, LSR, Naphtha

Distillate (Ultra Low Sulfur Diesel, Kerosene, Jet Fuel, Light Cycle Oil, Other distillates such as High Sulfur Diesel)

Gas Oils (Vacuum Gas Oil (VGO), Coker gas oil)

Resid (Fuel Oil, Residual Fuel Oil, No. 6 High Sulfur, Slurry, ATB)

Benzene, Toluene, Xylene 

Products exclude:
Petcoke
Sulfur
Butane
Propane
Propylene
Hydrogen
Natural Gas
Butane / Butylene
P/P
NC4
Y-Grade
Acid
Spent Caustic
Process Water
Sour Water

Exhibit B – Page 1

EXHIBIT C

EXAMPLE

Exhibit C – Page 1

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