Document:

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                                                                EXHIBIT 10.10(b)

                               SECOND AMENDMENT TO
                      REFINERY PURCHASE AND SALE AGREEMENT
                            AND INDEMNITY AGREEMENT

     This SECOND AMENDMENT TO REFINERY PURCHASE AND SALE AGREEMENT AND INDEMNITY
AGREEMENT dated as of October 10, 2005 (the "Second Amendment") by and among LA
GLORIA OIL AND GAS COMPANY, now known as TYLER HOLDING COMPANY, INC., as
"Seller" and DELEK REFINING, LTD., DELEK PIPELINE TEXAS, INC. and DELEK LAND
TEXAS, INC., as "Buyers".

                                   WITNESSETH:

     WHEREAS, Seller and Buyers entered into that certain Refinery Purchase and
Sale Agreement dated as of March 14, 2005 (the "Original Agreement"), pursuant
to which Seller agreed to sell to Buyers and Buyers agreed to purchase from
Seller, among other assets, an oil refinery located in the City of Tyler, Smith
County, Texas; and

     WHEREAS, the Original Agreement was amended by that certain Amendment to
Refinery Purchase and Sale Agreement dated as of April 29, 2005, by and among
Seller and Buyers (the "First Amendment"); and

     WHEREAS, at the request of Buyers, Crown Central LLC, a Maryland limited
liability company ("Crown"), the direct or indirect parent limited liability
company of Seller, has entered into an Audit Agreement of even date herewith
(the "Audit Agreement") with Delek US Holdings, Inc. pursuant to which Crown has
agreed to cooperate with Delek US Holdings, Inc. in allowing a certain audit of
Crown's financial statements for the calendar year ending December 31, 2002 to
date; and

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     WHEREAS, as partial consideration for and as a condition precedent to
entering into such Audit Agreement, Crown has required the execution of this
Second Amendment by the parties hereto. (Capitalized terms otherwise not defined
herein shall have the respective meanings ascribed thereto in the Original
Agreement.)

     NOW, THEREFORE, the parties hereto agree as follows:

     1. The Original Agreement, as heretofore amended by the First Amendment (as
so amended, the "Amended Agreement") is hereby further amended as follows:

          (a) The term "Agreement" as set forth in the preamble to the Original
     Agreement is hereby amended to mean the Original Agreement, as amended by
     the First Amendment and by this Second Amendment.

          The term "Unqualified Audit Opinion" shall mean an opinion from Delek
          US Holdings, Inc.'s outside auditor that expresses no material
          concerns about the financial information from Crown that relates to
          the Assets transferred to the Buyers and that is incorporated into any
          financial documents prepared for the initial public offering of Delek
          US Holdings, Inc. It is understood by the Parties hereto that the
          outside auditor intends to perform a "review" rather than a full audit
          of Crown's financial information for the period from January 1, 2005
          to March 31, 2005.

          The term "Seller's Specifically Retained Liabilities" means: (i) the
          Retained Environmental Liabilities other than Retained Remediation
          Costs; (ii) the Pre-Closing Liabilities; (iii) claims made by Buyers
          arising

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          out of a breach of the representations and warranties specified in
          Sections 4.1 (a), 4.1(b), 4.1(c), 4.1(m) and 4.1(o); (iv) all Covered
          Liabilities arising under or in connection with any Excluded Assets;
          and (v) all Taxes to the extent indemnified against under Section
          15.1(b).

          (b) Section 9.14(a) of the Amended Agreement is hereby deleted and
     replaced with the following:

               "Subject to the terms and conditions set forth in this Section
               9.14, on the Closing Date Buyers shall cause a portion of the
               Adjusted Purchase Price in the amount of $5,000,000.00 (the
               "Closing Deposit") to be deposited with the Escrow Agent pursuant
               to the terms and provisions of an escrow agreement by and among
               Buyers, Seller and the Escrow Agent substantially in the form
               attached hereto as EXHIBIT 9.14 (the "Closing Deposit Escrow
               Agreement"). For income tax purposes, Seller shall include in its
               income any interest, dividends and other amounts earned on the
               Closing Deposit ("Closing Deposit Escrow Earnings") prior to
               disbursement of the Closing Deposit to Seller. The Closing
               Deposit shall be held and distributed by the Escrow Agent in
               accordance with the terms and provisions of the Closing Deposit
               Escrow Agreement. If the Closing occurs, Buyers agree to provide
               written notice to Seller of any intent to withdraw from the
               Closing Deposit to satisfy any claims of Buyers for
               indemnification under Section 15.1 of this Agreement; and if
               Seller fails, within thirty

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               (30) days following receipt of such notice from Buyers, to
               provide joint written instructions to the Escrow Agent to allow
               Buyers to withdraw such funds from the Closing Deposit, then
               Buyers may submit the dispute to be resolved by dispute
               resolution set forth in Section 16.12. On the date of any
               distribution to Seller by the Escrow Agent of funds from the
               Closing Deposit, the Escrow Agent shall distribute to Seller the
               Closing Deposit Escrow Earnings on such distribution. Except for
               Seller's Specifically Retained Liabilities (as defined herein),
               Seller's liability for indemnification under Section 15.1 and for
               any other liability under this Agreement, whether for breach of
               contract, breach of warranty, liability for indemnity or any
               other liability under this Agreement, is limited to the Closing
               Deposit and otherwise shall be non-recourse to Seller.

               In addition, if Delek US Holdings, Inc. receives an Unqualified
               Audit Opinion (as defined herein), and subject to and in
               accordance with the provisions of the Closing Deposit Escrow
               Agreement, the Closing Deposit shall be distributed to Seller in
               installments at the indicated times, as follows:

                    (i) upon the date of issuance of an Unqualified Audit
               Opinion by Delek US Holdings, Inc.'s external auditor of the
               financial statements of Crown pertaining to operation of the
               Assets transferred to the Buyers pursuant to the Agreement for
               calendar

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               year 2002, calendar year 2003, calendar year 2004, and the period
               from January 1, 2005 to March 31, 2005 (the "Audit Period") an
               amount equal to the positive difference if any, of $3,000,000
               minus the sum of (x) all Distributions, if any, made prior to
               such date and (y) the aggregate dollar amount of all Unresolved
               Buyer Claims, if any, existing as of such date; and

                    (ii) upon the earlier to occur of (1) April 1, 2006 (or the
               date upon which Delek US Holdings, Inc. receives an Unqualified
               Audit Opinion if no Unqualified Audit Opinion is received by
               April 1, 2006) or (2) the date upon which Delek US Holdings, Inc.
               shall issue shares of stock to the public pursuant to an initial
               public offering of securities, an amount equal to the positive
               difference, if any, of $5,000,000.00 minus the sum of (x) all
               Distributions, if any, made prior to such date (including,
               without limitation, those made pursuant to subparagraph (i)
               above) and (y) the aggregate dollar amount of all Unresolved
               Buyer Claims, if any, existing as of such date."

          (c) Section 9.15(a) of the Amended Agreement is hereby deleted and
     replaced with the following:

               "Subject to the terms and conditions set forth in this Section
               9.15, on the Closing Date Buyers shall cause the amount of
               $5,000,000.00 (the "Buyer Deposit") to be deposited with the

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               Escrow Agent pursuant to the terms and provisions of an escrow
               agreement by and among Buyers, Seller and the Escrow Agent
               substantially in the form attached hereto as Exhibit 9.15 (the
               "Buyer Deposit Escrow Agreement"). For income tax purposes,
               Refinery Buyer shall include in its income any interest,
               dividends and other amounts earned on the Buyer Deposit. The
               Buyer Deposit shall be held and distributed by the Escrow Agent
               in accordance with the terms and provisions of the Buyer Deposit
               Escrow Agreement. If the Closing occurs, Seller agrees to provide
               written notice to Buyers of any intent to withdraw from the Buyer
               Deposit to satisfy any claims of Seller for indemnification under
               Section 15.2 of this Agreement; and if Buyers fail, within thirty
               (30) days following receipt of such notice from Seller, to
               provide joint written instructions to the Escrow Agent to allow
               Seller to withdraw such funds from the Buyer Deposit, then Seller
               may submit the dispute to be resolved by dispute resolution set
               forth in Section 16.12.

               In addition, if Delek US Holdings, Inc. receives an Unqualified
               Audit Opinion, and subject to and in accordance with the
               provisions of the Buyer Deposit Escrow Agreement, the Buyer
               Deposit shall be distributed to Buyers in installments, at the
               indicated times, as follows:

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                    (i) upon the date of issuance of an Unqualified Audit
               Opinion by Delek US Holdings, Inc.'s external auditor of the
               financial statements of Crown pertaining to operation of the
               Assets transferred to Buyers pursuant to the Agreement for the
               Audit Period, an amount equal to the positive difference if any,
               of $3,000,000.00 minus the sum of (x) all Distributions, if any,
               made prior to such date and (y) the aggregate dollar amount of
               all Unresolved Seller Claims, if any, existing as of such date;
               and

                    (ii) upon the earlier to occur of (1) April 1, 2006 (or the
               date upon which Delek US Holdings, Inc. receives an Unqualified
               Audit Opinion if no Unqualified Opinion is received by April 1,
               2006) or (2) the date upon which Delek US Holdings, Inc. shall
               issue shares of stock to the public pursuant to an initial public
               offering of securities, an amount equal the positive difference,
               if any, of $5,000,000.00 minus the sum of (x) all Distributions,
               if any, made prior to such date (including, without limitation,
               those made pursuant to subparagraph (i) above) and (y) the
               aggregate dollar amount of all Unresolved Seller Claims, if any,
               existing as of such date."

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          (d) Section 15.4 is hereby amended by adding new subsection (f) as
     follows:

               "(f) Notwithstanding anything herein provided to the contrary and
               specifically excluding the Seller's Specifically Retained
               Liabilities, Seller's liability under this Agreement for breach
               of covenant, breach of warranty, liability for indemnity or any
               other liability under this Agreement, shall be limited to the
               Closing Deposit and Buyers agree to look solely to such Closing
               Deposit for satisfaction of all such obligations and liabilities
               of Seller under this Agreement (other than the Seller's
               Specifically Retained Liabilities). At such time as the Closing
               Deposit is fully distributed to Seller pursuant to Section
               9.14(a), Seller shall be released from, and have no further
               liability to, Buyers for any breach of covenant, breach of
               warranty, liability for indemnity or any other liability under
               this Agreement except for the Seller's Specifically Retained
               Liabilities.

          (e) Section 16.12 is hereby amended by adding a subsection (d) at the
     end thereof as follows:

               "(d) Notwithstanding anything in this Agreement appearing to the
               contrary and specifically excluding Seller's Specifically
               Retained Liabilities as to which Seller shall be and remain fully

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               liable, any arbitration award against Seller for a monetary
               amount shall be collectable only from the Closing Deposit.

          (f) Incidental to the execution and delivery of this Second Amendment
     and payment of the First Installment Fee described in Section 5 of the
     Audit Agreement, Seller shall assign to Delek Refining, Ltd. and Delek
     Refining Ltd. shall assume all rights and obligations of Seller under the
     following:

               the portion of Crown's membership status and interest in an
               API-sponsored fuel and fuel additives testing consortium
               pertaining to La Gloria Oil and Gas Company's Tyler, Texas
               refinery governed by "Agreement for the Conduct and Funding of a
               Test Program for Fuels and Fuel Additives Under Sections 211(b)
               and (e) of the Clean Air Act", "Subscription Agreement for the
               Conduct and Funding of a Test Program for the Non-baseline Fuel
               Group for Ethyl Tertiary Butyl Ether (ETBE) Under Sections 211(b)
               and (e) of the Clean Air Act", "Subscription Agreement for the
               Conduct and Funding of a Test Program for the Non-baseline Fuel
               Group for Ethanol Under Sections 211(b) and (e) of the Clean Air
               Act", "Subscription Agreement for the Conduct and Funding of a
               Test Program for the Non-baseline Fuel Group for Methyl Tertiary
               Butyl Ether (MTBE) Under Sections 211(b) and (e) of the Clean Air
               Act", "Subscription Agreement for the Conduct and Funding of a
               Test Program for the Non-baseline Fuel Group for Tertiary Amyl
               Methyl Ether (TAME) Under Sections 211(b) and (e) of the

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               Clean Air Act", and "Petroleum & Allied Industry Agreement for
               the Conduct and Funding of a Voluntary Test Program for Petroleum
               High Production Volume Chemicals", insofar and only insofar as
               such agreements and memberships relate to the Tyler, Texas
               refinery sold by Seller to Buyers pursuant to the Amended
               Agreement. Seller represents and warrants to Buyers that: (a) the
               foregoing documents, rights and obligations are fully assignable
               without consent (or that consent has been obtained) and (b) it
               has furnished the Buyers with true and correct copies of each of
               the foregoing documents inclusive of any amendments, exhibits,
               schedules and consents to assignments thereto.

          (g) The Seller and Buyers agree to execute any further documents
     including, without limitation, amendments to the Escrow Agreements attached
     as Exhibits 9.14 and 9.15 to the Agreement, and do all other acts necessary
     to fully effectuate the terms and provisions of this Second Amendment.

     2. Except as modified and amended hereby, the Amended Agreement shall
continue in full force and effect and Seller and Buyers ratify and confirm the
Amended Agreement as modified and amended hereby.

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     IN WITNESS WHEREOF, this Second Amendment is executed in multiple
counterparts, all of which shall be considered one and the same agreement, as of
the date first above written.

TYLER HOLDING COMPANY, INC.,            DELEK REFINING, LTD.
FORMERLY KNOWN AS LA GLORIA OIL
AND GAS COMPANY

By: /s/ Paul J. Ebner                       /s/ Uzi Yemin
    ---------------------------------       ------------------------------------
Name: Paul J. Ebner                     By: Uzi Yemin, President & CEO of
Title: President                            General Partner Delek U.S. Refining
                                            GP, LLC

                                        By: /s/ Assi Ginzburg
                                            ------------------------------------
                                        Name: Assi Ginzburg
                                        Title: VP

DELEK PIPELINE TEXAS, INC.              DELEK LAND TEXAS, INC.

    /s/ Uzi Yemin                           /s/ Uzi Yemin
    ---------------------------------       ------------------------------------
By: Uzi Yemin, President & CEO          By: Uzi Yemin, President & CEO

By: /s/ Assi Ginzburg                   By: /s/ Assi Ginzburg
    ---------------------------------       ------------------------------------
Name: Assi Ginzburg                     Name: Assi Ginzburg
Title: VP                               Title: VP

                                       11<PAGE>
[***] TEXT OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST UNDER RULE 406 UNDER
THE SECURITIES ACT OF 1933, AS AMENDED AND 17 C.F.R. SECTION 200.80(b)(4)

                                                                   EXHIBIT 10.11

                       PIPELINE CAPACITY LEASE AGREEMENT

     THIS Pipeline Capacity Lease Agreement (hereinafter referred to as the
"Lease") is made and entered into this 12th day of April, 1999, by and between
LaGloria Oil and Gas Company, a Delaware corporation, with a mailing address of
4747 Bellaire Boulevard, Bellaire, Texas 77401 (hereinafter referred to as
"LaGloria"), and Scurlock Permian LLC, a Delaware limited liability company,
with a mailing address of P.O. Box 4648, Houston, Texas 77210-4648 (hereinafter
referred to as "SPLLC").

     WHEREAS, SPLLC owns a pipeline system for the transportation of crude oil
beginning at the inlet weld connection to SPLLC's ten-inch, 300 pound scraper
trap located at LaGloria's Nettleton Station in Gregg County, Texas, proceeding
southwesterly a distance of approximately 34.62 miles to a point of termination
at SPLLC's Bullard Junction in Tyler, Smith County, Texas (hereinafter referred
to as the "Pipeline"). The point of termination is defined as the inlet flange
of the downstream ten-inch, 300 pound gate valve at SPLLC's Bullard Junction.
The location of the Pipeline is shown generally on Exhibit "A" attached hereto
and made a part hereof;

     WHEREAS, LaGloria desires to lease the capacity of the Pipeline from SPLLC
for transportation of crude oil.

     NOW, THEREFORE, LaGloria and SPLLC agree as follows:

1.   TERM

     a.   As used in this Lease, the term "Lease Commencement Date" shall mean
          January 1, 2000; and the term "Lease Year" shall mean the period from
          January 1 to December 31.

     b.   This Lease shall have an initial term of five (5) Lease Years
          commencing on the Lease Commencement Date (hereinafter referred to as
          the "Initial Term"), unless sooner terminated as provided in Section 3
          below. This Lease may be renewed thereafter on a year-to-year basis by
          the mutual agreement of the parties.

2.   LEASE OF CAPACITY

     a.   Upon and subject to the terms and conditions set forth in this
          Lease, SPLLC leases all the Pipeline capacity to LaGloria for delivery
          of crude oil from LaGloria's Nettleton Station to SPLLC Bullard
          Junction.

     b.   Pipeline capacity for LaGloria and other shippers, if any, shall be
          scheduled and transported ratably on a month-to-month basis such that
          volumes actually scheduled for delivery out of the Pipeline in any
          month may vary.

     c.   In addition to the Pipeline, SPLLC shall also provide LaGloria with
          the use of SPLLC's tankage at Munro Station (tank numbers 992 and
          1016), with a shell capacity totaling 140,000 barrels. Nothing
          contained in this Lease obligates SPLLC to construct, or obtain, new
          or additional tankage to accommodate or increase the Pipeline
          capacity. The Pipeline capacity is currently 24,000 barrels of crude
          oil per day, however, this volume is subject to change and may be
          reduced due to

[***] CONFIDENTIAL TREATMENT REQUESTED
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     regulatory, operational or other capacity changes during the Term of this
     Lease. SPLLC shall give LaGloria notice in writing in the event the
     Pipeline capacity is reduced.

d.   LaGloria shall deliver crude oil to SPLLC at the inlet weld connection to
     SPLLC's ten-inch, 300 pound scraper trap at LaGloria's Nettleton Station at
     480 pounds maximum delivery pressure.

e.   LaGloria shall provide linefill inventories of crude oil to the Pipeline as
     SPLLC determines necessary to operate the Pipeline at its maximum
     efficiency, and a minimum of 12,000 barrels of crude oil for each tank at
     SPLLC's Munro Station. Upon termination of this Lease, the linefill
     inventories in the Pipeline and the inventories in the storage tanks at
     SPLLC's Munro Station, if any, shall be delivered to LaGloria, as soon as
     reasonable, provided that all costs and expenses for such delivery shall be
     solely borne by LaGloria.

f.   LaGloria owns 1.9 miles of pipeline from SPLLC's Bullard Junction to
     LaGloria's Tyler refinery (hereinafter referred to as "Pipeline Two"). La
     Gloria shall confirm that Pipeline Two complies with the laws, rules and
     regulations of the local, state and federal agencies, having jurisdiction
     over this 1.9 miles of Pipeline Two. LaGloria grants SPLLC the right to the
     exclusive use and operation of Pipeline Two at no cost or expense in
     connection with the operation of the Pipeline under this Agreement.

g.   From time to time and upon 48 hours notice, LaGloria may request SPLLC to
     deliver crude oil to SPLLC's Munro Station. If so requested by LaGloria,
     SPLLC can delivery crude oil from the Pipeline through SPLLC's three-inch,
     positive displacement meter, pumped through a separate SPLLC pipeline
     system to a tank at SPLLC's Nettleton Station, and then delivered to a
     three-inch, positive displacement meter for delivery into LaGloria's
     Nettleton Station. This volume of crude oil delivered at SPLLC's Munro
     Station, at LaGloria's request, will be transported to LaGloria's Nettleton
     Station at no additional cost above the Rent as stated in Section 4, below,
     however, this volume will not be applied to the minimum throughput volume
     specified in Section 3, below.

3.   MINIMUM THROUGHPUT VOLUME

     For the first two (2) years of the Initial Term (January 1, 2000 through
December 31, 2001), LaGloria shall schedule and transport a minimum of
7,500,000 barrels of crude oil through the Pipeline excluding volumes delivered
pursuant to Subsection 2.g., above. If this minimum volume of 7,500,000 barrels
of crude oil, subject to the capacity limits of Subsection 2.c., above has not
been transported by December 31, 2001, LaGloria shall pay SPLLC the difference
between the transported volume and 7,500,000 multiplied by [***] per barrel, as
discussed in Section 4 below, which shall be due and payable within thirty (30)
days of receipt of SPLLC's statement. In the event of force majeure, as
described in Section 15 herein, during the first two (2) years of the Initial
Term, the time period to schedule and transport the minimum of 7,500,000
barrels shall be extended for the same period of time as the force majeure
condition exists.

[***] CONFIDENTIAL TREATMENT REQUESTED

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4.    RENT

      In consideration of SPLLC's lease of Pipeline capacity to LaGloria under
this Lease, LaGloria shall pay Rent to SPLLC within fifteen (15) days of
SPLLC's statement date for the volume of crude oil received at SPLLC's ten-inch,
300 pound scraper trap at LaGloria's Nettleton Station, as measured by
LaGloria's positive displacement meter, in the previous month as follows:

      a.    For the initial 21,500,000 barrels of crude oil, the Rent shall be
            calculated by multiplying the total volume of crude oil received,
            subject to the capacity limits of Subsection 2.c., above, by [***]
            per barrel of crude oil.

      b.    For each barrel of crude oil in excess of 21,500,000 barrels, the
            Rent shall be calculated by multiplying the total volume of crude
            oil received, subject to the capacity limits of Subsection 2.c.,
            above by [***] per barrel of crude oil.

      c.    During the annual renewal(s), if any, LaGloria and SPLLC shall
            mutually agree upon the Rent.

      In addition to the Rent, LaGloria shall pay directly or reimburse SPLLC
for the costs and expenses of Subsection 8.b., below.

5.    PERMISSIBLE CRUDE OIL

            LaGloria shall not put through the Pipeline any material which has
      been classified as, or would constitute in SPLLC's sole discretion, a
      hazardous waste, material or substance or damage the Pipeline or render it
      unfit for use. LaGloria warrants that the crude oil transported through
      the Pipeline shall be of merchantable quality and fit for normal refinery
      processing. Merchantable crude oil is defined as virgin crude oil produced
      from wells which are free of foreign contamination (whether injected or
      outside) and free of added chemicals containing (by way of illustration
      and not of limitation) halogenated organic compounds and/or oxygenated
      compounds, SPLLC may return any crude oil containing contaminants in which
      event LaGloria agrees to: accept the returned crude oil; reimburse SPLLC
      for any costs incurred; and be liable for all damages, but excluding
      consequential damages and loss of profits suffered by SPLLC. SPLLC
      reserves the right to refuse crude oil having a Reid vapor pressure of 10
      psi or above. Without limiting the generality of the foregoing, LaGloria
      shall not put into or through the Pipeline and SPLLC shall not be
      obligated to accept or transport (1) any contaminated crude oil or (2) any
      material which does not conform.

6.    PIPELINE SYSTEM TARIFF

      a.    SPLLC shall have the right to file from time to time, as necessary,
            for regulatory approval for tariffs and regulations that comport
            with the terms and conditions of this Lease, as reasonably
            practical, and comply with the federal and state regulations for the
            Pipeline and Pipeline Two, as hereinafter defined.

      b.    In the event of a protest or complaint filed by any third party,
            including any local, state or federal agency, with respect to
            SPLLC's Pipeline tariff, if, as and/or when a tariff may be on file,
            SPLLC shall have the right to file such tariff in its absolute

[***] CONFIDENTIAL TREATMENT REQUESTED

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            discretion and to refile a new tariff that comports to the terms and
            conditions of this Lease, as reasonably practical, and the
            then-current state or federal tariff regulations.

7.    USE OF PIPELINE/TARIFFS

      SPLLC'S ownership, management and supervision and LaGloria's use of the
Pipeline shall be subject to, and SPLLC and LaGloria agree to and shall comply
with, the terms and conditions of this Lease and all applicable federal, state
and local laws, ordinances, rules, regulations, orders and judgments which are
now or hereafter may be applicable to the ownership, use or occupancy of the
Pipeline.

8.    OPERATION AND MAINTENANCE

      a.    SPLLC shall operate the Pipeline providing supervision, labor and
            materials. It is understood that LaGloria it not involved in the
            management, supervision, method of operation or maintenance and
            repair of the Pipeline.

      b.    The costs and expenses of electricity and tankage at LaGloria's
            Nettleton Station shall be solely borne by LaGloria. All costs of
            operation of Pipeline Two, including labor and materials for
            maintenance and repair of Pipeline Two, shall be for the account of
            LaGloria. LaGloria will be responsible for the performance, at its
            sole expense, of all routine maintenance of the 1.9 miles of
            Pipeline Two from the inlet flange of the downstream ten-Inch, 300
            pound gate valve at SPLLC's Bullard Junction to LaGloria's Tyler
            refinery, such as, but not limited to, clearing right of way,
            excavation, construction, maintenance, repair, inspection, testing,
            patrolling, corrosion control and aerial patrol.

      c.    Except as provided in Subsection 8.b., above, all costs of operation
            of the Pipeline, including labor and materials for maintenance and
            repair of the Pipeline, shall be for the account of SPLLC SPLLC will
            be responsible for the performance, at its sole expense, of all
            routine maintenance of the Pipeline such as, but not limited to,
            clearing right of way, excavating, construction, maintenance,
            repair, inspection, testing, patrolling, corrosion control and
            aerial patrol.

      d.    SPLLC agrees to use its best efforts to schedule and/or perform any
            and all operations, maintenance and repair so as to avoid loss of
            use of the Pipeline capacity by LeGloria and shall give LaGloria
            reasonable notice of maintenance and repair work, except in the case
            of emergency, prior to its performance.

      e.    LaGloria shall designate a valve connection on a crude oil storage
            tank at LaGloria's Tyler refinery, which will be locked open by
            SPLLC for use in a relief valve system. SPLLC shall design and, upon
            approval from LaGloria, which approval shall not be unreasonably
            denied, install a pressure relief system from a point upstream of
            LaGloria's positive displacement meter at the Tyler refinery to this
            dedicated valve. At the termination of this Lease, this relief valve
            system will be conveyed from SPLLC to LaGloria, at no cost to
            LaGloria.

      f.    SPLLC agrees to comply with all governmental regulations applicable
            to the operation of the Pipeline, including, but not limited to,
            environmental and safety laws relating to the Pipeline, at SPLLC's
            sole expense.

[***] CONFIDENTIAL TREATMENT REQUESTED

                                       4
<PAGE>

9.    CRUDE OIL LOSSES AND GAINS

      a.    For the purposes of this Lease, crude oil losses and gains shall be
            classified as "accountable losses" and "unaccountable losses and
            gains" "Unaccountable losses and gains" shall be those experienced
            in the operation of the Pipeline which cannot be attributed to a
            specific occurrence, "Accountable losses" shall include those
            resulting from specific occurrences, such as, but not limited to,
            acts of God, fire, earthquakes, floods, malicious mischief,
            insurrection, riots, strikes, war and any other similar cause and
            losses arising from line breaks and/or specific losses during
            transit in the Pipeline. This Section 9 shall not apply if the crude
            oil losses occur because of SPLLC's gross negligence or willful
            misconduct.

      b.    "Unaccountable losses and gains" in the Pipeline during any calendar
            month shall be ratably charged to LaGloria or other shippers, if
            any, on the basis of the shipper's total deliveries out of the
            Pipeline through such shipper's respective owned or leased space
            during such calendar month, as compared to the total of all barrels
            delivered out of the Pipeline during such month.

      c.    "Accountable losses" for any one event or a sequence of connected
            events in the Pipeline during any calendar month shall be SPLLC's
            responsibility. The measurement of any such loss can be calculated
            on an over and short calculation using LaGloria's Nettleton and
            Tyler positive displacement meters and the storage tank inventories,
            if any. If either SPLLC or LaGloria disputes the over and short
            calculation, the parties mutually agree to resolve the dispute
            through arbitration. If arbitration is requested, both parties shall
            designate one arbitrator and those two designated arbitrators shall
            select a third  arbitrator. The decision of these three arbitrators
            on any over and short calculation shall be binding on the parties
            hereto.

10.   PIPELINE APPORTIONMENT

      In the event capacity in the Pipeline is restricted on account of
maintenance, emergencies, force majeure, or legal or regulatory requirements,
SPLLC shall: (1) forthwith advise LaGloria of such capacity restriction and the
anticipated duration thereof; and (2) apportion among all shippers in proportion
to the volumes nominated by each for such month, based on the capacity of the
Pipeline.

11.   NOMINATIONS

      a.    Either party shall have the right to require Pipeline nominations.
            If requested, LaGloria will be responsible for scheduling movements
            in its portion of the capacity of the Pipeline and will furnish
            SPLLC, on the twenty-fifth (25th) day of each month, or if such day
            is a holiday, then on the most immediate business day preceding such
            holiday, a monthly schedule indicating the Pipeline capacity
            scheduled for the upcoming month, and the expected volumes.

      b.    LaGloria shall at all times be responsible for providing that share
            of the volume of crude oil required for linefill, tank bottoms, and
            working stock in the Pipeline equal to the ratio that its current
            deliveries bear to the total of all current deliveries out of

[***] CONFIDENTIAL TREATMENT REQUESTED

                                       5
<PAGE>

            the Pipeline. Only crude oil shall be shipped through the Pipeline
            and on a common stream basis with other crude oil of similar
            characteristics. SPLLC shall assume no risk of loss for crude oil or
            value thereof transported and/or commingled in or through the
            Pipeline.

12.   INDEMNIFICATION

      a.    LAGLORIA AGREES TO AND SHALL INDEMNIFY SPLLC, ITS PARENT,
            SUBSIDIARIES, DIVISIONS, AFFILIATES, EMPLOYEES, CONTRACTORS,
            SUBCONTRACTORS, AGENTS, REPRESENTATIVES, AND/OR CONSULTANTS FROM ANY
            LOSS, DAMAGE, INJURY, COST, EXPENSE (INCLUDING BUT NOT LIMITED TO
            ATTORNEY FEES AND COURT COSTS) CLAIMS, DEMANDS, LIABILITY, OR CAUSES
            OF ACTION ARISING OUT OF, IN WHOLE OR IN PART: (1) A BREACH BY
            LAGLORIA, ITS EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, AGENTS,
            REPRESENTATIVES, AND/OR CONSULTANTS OF ANY TERM, PROVISION OR
            WARRANTY CONTAINED IN THIS LEASE; (2) ANY ACT OR OMISSION OF
            LAGLORIA ITS EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, AGENTS,
            REPRESENTATIVES, AND/OR CONSULTANTS IN THE PERFORMANCE OF THIS
            LEASE; OR (3) ANY VIOLATION BY LAGLORIA, ITS EMPLOYEES, CONTRACTORS,
            SUBCONTRACTORS, AGENTS, REPRESENTATIVES, AND/OR CONSULTANTS OF ANY
            LAWS, REGULATIONS OR ORDINANCES RELATED TO THIS LEASE.

      b.    SPLLC AGREES TO AND SHALL INDEMNIFY, LAGLORIA, ITS EMPLOYEES,
            CONTRACTORS, SUBCONTRACTORS, AGENTS, REPRESENTATIVES, AND/OR
            CONSULTANTS, FOR ANY LOSS, DAMAGES, INJURY, COST, EXPENSE (INCLUDING
            BUT NOT LIMITED TO ATTORNEY FEES AND COURT COSTS), CLAIMS, DEMANDS,
            LIABILITY, OR CAUSES OF ACTION ARISING OUT OF, IN WHOLE OR IN PART;
            (1) SPLLC'S BREACH OF ANY TERM, PROVISION OR WARRANTY CONTAINED IN
            THIS LEASE; (2) ANY ACT OR OMISSION OF SPLLC, ITS EMPLOYEES,
            CONTRACTORS, SUBCONTRACTORS, AGENTS, REPRESENTATIVES (AND/OR
            CONSULTANTS) IN THE PERFORMANCE OF THIS LEASE; OR (3) ANY VIOLATION
            BY SPLLC, ITS EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, AGENTS,
            REPRESENTATIVES (AND/OR CONSULTANTS), OF ANY LAWS, REGULATIONS OR
            ORDINANCES RELATED TO THIS LEASE.

      c.    LAGLORIA AND SPLLC, SHALL, IN THE EVENT OF LIABILITY ARISING OUT OF
            THEIR JOINT OR CONCURRENT ACTS OR OMISSION, BE LIABLE TO THE OTHER
            AND ANY DAMAGED THIRD PARTY IN PROPORTION TO THEIR RELATIVE DEGREE
            OR FAULT OR RESPONSIBILITY.

[***] CONFIDENTIAL TREATMENT REQUESTED

                                       6
<PAGE>

      d.    NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL
            DAMAGES.

13.   ASSIGNING, SUBLETTING, LIENS

      LaGloria shall not have the right to assign or sublease its rights under
this Lease without the written consent of SPLLC, such consent shall not be
unreasonably withheld, provided, however, that it is reasonable that SPLLC may
consider the safety record, operations ability and financial condition of the
proposed assignee. LaGloria shall not allow any lien or encumbrance to be placed
on the Pipeline, or any part thereof, by operation of law or otherwise.

14.   NOTICES

      All notices required or permitted hereunder shall be in writing and sent
by mail, postage prepaid, or by facsimile, and shall be effective when received
by a party at the address set forth for that party below, or such other address
hereafter specified by notice to the other party.

      For SPLLC:       Scurlock Permian LLC
                       P. O. Box 4648
                       Houston, Texas 77210-4648
                       Attn: Mr. J. B. Fryfogle, Senior Vice President Trading,
                             Scheduling and Lease Acquisition
                       Facsimile No. 713-646-4680

      For LaGloria:    LaGloria Oil and Gas Company
                       4747 Bellaire Boulevard
                       Bellaire, Texas 77401
                       Attn: Mr. J. E. Blakistone
                       Facsimile No. 713-660-4550

15.   FORCE MAJEURE

      a.    Effect of Force Majeure. In the event that either SPLLC or LaGloria
            is rendered unable, by reason of an event of force majeure, as
            defined herein, to perform, wholly or in part, any obligation or
            commitment set forth in this Lease, then upon such party's giving
            notice and full particulars of such event as soon as practicable
            after the occurrence thereof, the obligations of both parties, to
            the extent they are affected by such event of force majeure, except
            for unpaid financial obligations arising prior to such event of
            force majeure, shall be suspended to the extent and for the period
            of such force majeure condition.

      b.    Nature of Force Majeure. The term "force majeure" as employed in
            this Lease shall mean acts of God, strikes, lockouts or industrial
            disputes or disturbances, civil disturbances, arrests and restraint
            from rulers of people, interruptions by government or court orders,
            present and future valid orders, decisions or rulings of any
            government or regulatory entity having proper jurisdiction, acts of
            the public enemy,

[***] CONFIDENTIAL TREATMENT REQUESTED

                                       7
<PAGE>

            wars, riots, blockades, insurrections, inability to secure labor or
            inability to secure materials, including inability to secure
            materials by reason of allocation promulgated by authorized
            governmental agencies, epidemics, landslides, lightning,
            earthquakes, fire, storms, floods, washouts, inclement weather which
            necessitates extraordinary measures and expense to construct
            facilities and/or maintain operations, explosions, breakage or
            accident to machinery or lines of pipe, inability to obtain or delay
            in obtaining easements or rights-of-way, the making of repairs or
            alterations to pipelines or facilities, or any other cause, whether
            of the kind herein enumerated or otherwise, not reasonably within
            the control of the party claiming force majeure. The term "force
            majeure" as employed in this Lease shall not include LaGloria
            idling, suspending operation, shutting down or otherwise ceasing
            operations, whether temporary or permanent, of their refinery in
            Tyler, Smith County, Texas.

      c.    Resumption of Normal Performance. Should there be an event of force
            majeure affecting performance hereunder, the parties shall
            cooperate, other than financially, to take all reasonable steps to
            remedy such event with all reasonable dispatch to insure resumption
            of normal performance.

      d.    Termination. In the event that, by reason of force majeure, the
            Pipeline, or any substantial portion thereof, is shut down or unable
            to operate for any continuous period of sixty (60) days or in the
            event either party, by reason of force majeure, is unable to resume
            its obligations described in this Lease for any continuous period of
            sixty (60) days such that it materially affects the ongoing economic
            operation of the Pipeline in this Lease, then either party on thirty
            (30) days written notice to the other party may elect to terminate
            this Lease, unless within such thirty (30) days notice period such
            event of force majeure is relieved. Any such termination shall be
            without liability of either party to the other. The term of this
            Lease shall not be extended for any period of shutdown or inability
            to operate attributable to any event of force majeure.

16.   EVENTS OF DEFAULT

      If one or more of the following events (hereinafter referred to as "Events
of Default") shall occur:

      a.    LaGloria shall fail to pay monthly rent when due and nonpayment
            continues for thirty (30) days after the same becomes due and
            payable; or

      b.    SPLLC or LaGloria shall fail to perform or comply with any of the
            terms or conditions of this Lease, other than those referred to in
            the foregoing Subsection 16.a., above and such failure shall
            continue for sixty (60) days after written notice of such failure is
            received by the non-performing party;

then, in any such event, SPLLC (and LaGloria in the case of non-performance by
SPLLC in accordance with Subsection 16.b., above) and any time thereafter may
give a written termination notice to the other party specifying a date, which
shall be at least ten (10) days after the giving of such notice, on which this
Lease shall terminate, and on such date the term of this Lease shall expire and
terminate and all rights of LaGloria under this Lease shall cease, except as set
forth elsewhere in this Lease. The exercise of such right to terminate this
Lease upon the occurrence of any of the

[***] CONFIDENTIAL TREATMENT REQUESTED

                                       8

<PAGE>

foregoing Events of Default shall not operate to deprive either party of any
other action, right or premedy against the other party at law or equity or by
statute or otherwise.

17.   MISCELLANEOUS

      a.    This Lease embodies the entire agreement between the SPLLC and
            LaGloria and it may not be modified or terminated except as provided
            herein or by other written agreement between the parties and
            executed by authorized officers.

      b.    The headings of the sections herein arc for convenience and shall
            not be used in construing the meaning of any provision of this
            Lease.

      c.    Failure of either party to insist on strict performance of the
            terms, agreements and conditions herein contained, or any of them,
            or to exercise any right, power or remedy consequent upon a breach
            thereof, shall not constitute or be construed as a waiver or
            relinquishment of such party's right to enforce any such term,
            agreement or condition, but the same shall continue in full force
            and effect. No waiver of any breach shall affect or alter this
            Lease, which shall continue in full force and effect with respect to
            any other existing or subsequent breach.

      d.    Each right, power and remedy provided for in this Lease shall be
            cumulative and concurrent and shall be in addition to every other
            right, power or remedy provided for in this Lease or now or
            hereafter existing at law, in equity, by statute or otherwise, and
            the exercise or beginning of the exercise of any one or more of the
            rights,powers or remedies provide for in this Lease or now or
            hereafter existing at law, equity, by statute or otherwise shall not
            preclude the simultaneous or later exercise of any or all such other
            rights, powers or remedies.

      e.    This Lease shall be governed by and construed in accordance with,
            and the rights and liabilities of the parties under this Lease shall
            be determined in accordance with, the laws of the State of Texas. In
            the event of any legal action between the parties in respect of this
            Lease, the parties hereby acknowledge and agree to attorn to the
            jurisdiction of the courts of Texas, with venue in Harris County,
            Texas, having jurisdiction over such matters, excluding any choice
            of law rules which may direct the application of the laws of another
            jurisdiction.

      f.    This Lease wholly replaces and supersedes any and all previous
            agreements, whether written or oral, between SPLLC and LaGloria with
            respect to or pertaining to the subject matter hereof.

      g.    If any provisions or part of this Lease is hold or deemed to be
            invalid, illegal or void, then, in such event, the remainder of this
            Lease Shall still be in full force and effect as if such invalid,
            illegal or void provision has been deleted from or never included in
            the Lease

      h.    This Lease may be executed by the parties in duplicate originals but
            not in counterpart.

[***] CONFIDENTIAL TREATMENT REQUESTED

                                       9

<PAGE>

      IN WITNESS WHEREOF, SPLLC and LaGloria have caused this Pipeline Capacity
Lease Agreement to be executed as of the day and year first hereinabove written.

ATTEST:                                      Scurlock Permian LLC

/s/ Lisa Beene                               By: /s/ Gerald E. Wassum
                                                 -----------------------------

                                             Name: Gerald E. Wassum

                                             Title: President

ATTEST:                                      LaGloria Oil & Gas Company

/s/ Karen A. Jones                           By: /s/ Randall M. Trembly
                                                 -----------------------------

                                             Name: Randall M. Trembly

                                             Title: Executive Vice President

[***] CONFIDENTIAL TREATMENT REQUESTED

                                       10

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