Document:

exh10-7.htm

    EXHIBIT 10.7

     

    TERMINALLING
AND STORAGE AGREEMENT

     

    by
and between

     

    SEMMATERIALS,
L.P.,

     

    (“Customer”)

     

    and

     

    SEMMATERIALS
ENERGY PARTNERS, L.L.C.

     

    (“Owner”)

     

    effective
as of

     

    11:59
PM CDT March 31, 2009

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	
                      Section
      1.

                    	
                      Definitions

                    	
                      1

                    
	
                      Section
      2.

                    	
                      Services,
      Statements, Invoices, Documents and Records

                    	
                      4

                    
	
                      Section
      3.

                    	
                      Fees,
      Charges and Taxes

                    	
                      5

                    
	
                      Section
      4.

                    	
                      Operations,
      Receipts and Deliveries

                    	
                      6

                    
	
                      Section
      5.

                    	
                      Product
      Quality Standards and Requirements

                    	
                      8

                    
	
                      Section
      6.

                    	
                      Title
      and Custody of Product

                    	
                      9

                    
	
                      Section
      7.

                    	
                      Limitation
      of Liability and Damages

                    	
                      9

                    
	
                      Section
      8.

                    	
                      Product
      Measurement

                    	
                      10

                    
	
                      Section
      9.

                    	
                      Product
      Loss and Product Gain

                    	
                      10

                    
	
                      Section
      10.

                    	
                      Force
      Majeure

                    	
                      11

                    
	
                      Section
      11.

                    	
                      Inspection
      of and Access to the Storage Tanks

                    	
                      11

                    
	
                      Section
      12.

                    	
                      Assignment

                    	
                      12

                    
	
                      Section
      13.

                    	
                      Notice

                    	
                      12

                    
	
                      Section
      14.

                    	
                      Compliance
      with Law and Safety

                    	
                      12

                    
	
                      Section
      15.

                    	
                      Term
      and Termination

                    	
                      12

                    
	
                      Section
      16.

                    	
                      Insurance

                    	
                      13

                    
	
                      Section
      17.

                    	
                      [Reserved]

                    	
                      14

                    
	
                      Section
      18.

                    	
                      Indemnity

                    	
                      14

                    
	
                      Section
      19.

                    	
                      Miscellaneous

                    	
                      15

                    

            

          

        

      

     

    ATTACHMENT
A

     

    ATTACHMENT
B

     

    ATTACHMENT
C

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    TERMINALLING AND STORAGE
AGREEMENT

     

    This
Terminalling and Storage Agreement (the “Agreement”)
is entered into on April 7, 2009, to be effective as of 11:59 PM CDT March 31,
2009 (the “Effective
Date”), and is made by and between SemMaterials Energy Partners, L.L.C.,
a Delaware limited liability company (“Owner”),
and SemMaterials, L.P., an Oklahoma limited liability company (“Customer”,
each of Owner and Customer sometimes referred to individually as “Party” and
collectively as the “Parties”).

     

    R
E C I T A L S

     

    WHEREAS,
Owner owns and operates certain asphalt cement and residual fuel storage
terminals; and

     

    WHEREAS,
Owner desires to provide terminalling and storage services to Customer for
Customer’s asphalt cement and residual fuel inventory and Customer desires to
receive said services at such storage terminals on the terms and conditions set
forth herein.

     

    NOW
THEREFORE, in consideration of the mutual promises contained in this Agreement,
the Parties agree to the following terms and conditions.

     

    Section
1. Definitions.

     

    In this
Agreement, unless the context requires otherwise, the terms defined in the
preamble have the meanings indicated and the following terms will have the
meanings indicated below:

     

    “Affiliate”
means, in relation to a Party, any Person that (i) directly or indirectly
controls such Party, (ii) is directly or indirectly controlled by such Party or
(iii) is directly or indirectly controlled by a Person that directly or
indirectly controls such Party.  For this purpose, “control” of any
entity or Person means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of any Person,
whether through the ownership of a majority of equity interests or voting power
or control in fact of the entity or Person or otherwise.  For purposes
of this Agreement, Owner and its affiliates shall not be deemed to be Affiliates
of Customer and its affiliates.

     

    “Applicable
Law” means (i) any law, statute, regulation, code, ordinance, license,
decision, order, writ, injunction, decision, directive, judgment, policy, or
decree of any Governmental Authority and any judicial or administrative
interpretations thereof, (ii) any agreement, concession or arrangement with any
Governmental Authority and (iii) any license, permit or compliance requirement
by any Governmental Authority, in each case applicable to either Party and as
amended or modified from time to time.

     

    “Bankruptcy
Cases” means the chapter 11 cases commenced by SemGroup, L.P. and certain
of its direct and indirect subsidiaries on July 22, 2008, jointly administered
under Case No. 08-11525 (BLS).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Bankruptcy
Court” means the United States Bankruptcy Court for the District of
Delaware or any other court having jurisdiction over the Bankruptcy Cases from
time to time.

     

    “Barrel”
means forty-two (42) Gallons.

     

    “Business
Day” means each calendar day, excluding Saturdays, Sundays, or other
holidays observed by Owner.

     

    “Code”
means title 11 of the United States Code, as amended.

     

    “Existing Asphalt
Inventory” means any of SemMaterials’ or its Affiliates’ asphalt cement,
residual fuel oil or other product or inventory that is owned on its own behalf
or held on behalf of third parties and that is stored in the Terminals or
Storage Tanks as of the Effective Date.  For the purposes of clarity,
Existing Asphalt Inventory does not include any tank bottoms.

     

     “Force
Majeure” means (i) strikes, lockouts or other industrial disputes or
disturbances, (ii) acts of the public enemy or of belligerents, hostilities or
other disorders, wars (declared or undeclared), blockades, thefts,
insurrections, riots, civil disturbances or sabotage, (iii) acts of nature,
landslides, severe lightning, earthquakes, fires, tornadoes, hurricanes, storms,
and warnings for any of the foregoing which may necessitate the precautionary
shut-down of pipelines, trucks, docks, loading and unloading facilities storage
tanks or other related facilities, floods, washouts, freezing of machinery,
equipment, or lines of pipe, inclement weather that necessitates extraordinary
measures and expense to construct facilities or maintain operations, tidal
waves, perils of the sea and other adverse weather conditions or unusual or
abnormal conditions of the sea or other water, (iv) arrests and restraints of,
or other interference or restrictions imposed by, governments (either federal,
state, civil or military and whether legal or de facto or purporting to act
under some constitutions, decree, law or otherwise), necessity for compliance
with any court order, or any law, statute, ordinance, regulation, or order
promulgated by a Governmental Authority having or asserting jurisdiction,
embargoes or export or import restrictions, expropriation, requisition,
confiscation or nationalization or (v) epidemics or quarantine, explosions,
breakage or accidents to equipment, machinery, plants, facilities or lines of
pipe, electric power shortages, breakdown or injury of trucks or vessels or any
other causes, whether of the kind enumerated above or otherwise, which were not
reasonably foreseeable, and which are not within the control of the Party
claiming suspension of its obligations under this Agreement pursuant to Section 10 and
which by the exercise of reasonable due diligence such Party is unable to
prevent or overcome.  Such term will likewise include, in those
instances where either Party is required to obtain servitudes, rights-of-way,
grants, permits, or licenses to enable such Party to fulfill its obligations
under this Agreement, the inability of such Party to acquire, or delays on the
part of such Party in acquiring, at reasonable cost and after the exercise of
reasonable diligence, such servitudes, rights-of-way grants, permits or
licenses, and in those instances where either Party is required to furnish
materials and supplies for the purpose of constructing or maintaining facilities
to enable such Party to fulfill its obligations under this Agreement, the
inability of such Party to acquire, or delays on the part of such Party in
acquiring, at reasonable cost and after the exercise of reasonable diligence,
such materials and supplies.  If Owner is claiming a suspension of its
obligations under this Agreement pursuant to Section 10, any
of the above listed events or circumstances will constitute a Force Majeure upon
the first occurrence of the event or circumstance.  If Customer is
claiming a suspension of its obligations under this Agreement, an event or
circumstance will not constitute a Force Majeure unless and until it has
occurred and continues for thirty (30) consecutive days.

    
      
         

      

      
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    “Gallon”
means a U.S. gallon of 231 cubic inches corrected to 60 degrees
Fahrenheit.

     

    “Governmental
Authority” means any foreign or U.S. federal, state, regional, local or
municipal governmental body, agency, instrumentality, board, bureau, commission,
department, authority or entity established or controlled by a government or
subdivision thereof, including any legislative, administrative or judicial body,
or any person purporting to act therefor.

     

    “Indemnified
Party” has the meaning assigned to such term in Section 18.1.

     

    “Indemnifying
Party” has the meaning assigned to such term in Section 18.1.

     

    “Independent
Inspector” means a licensed Person who performs sampling, quality
analysis and quantity determination of the Product received or
delivered.

     

    “Interest
Rate” means the one-month London Interbank Offered Rate.

     

    “Inventory
Schedule” has the meaning assigned to such term in Section
2.6.

     

    “Liability”
means any obligation, liability, charge, deficiency, assessment, interest,
penalty, judgment, award, cost or expense of any kind (including reasonable
attorneys’ fees, other fees, court costs and other
disbursements).  The term also includes any liability that directly or
indirectly arises out of or is related to any claim, proceeding, judgment,
settlement or judicial or administrative order made or commenced by any third
party or Governmental Authority.

     

    “Month”
means a calendar month.

     

    “Product”
means each of the products described in Attachment “C”
which are owned by or for the account of the Customer.

     

    “Product
Loss” means any loss of Product occurring as a result of any
contamination, adulteration, mislabeling, misidentification or other loss of or
damage to Product caused by the failure of the Owner to use reasonable industry
procedures in the handling, testing or storage of Product, provided Product Loss
shall not include the result of loss of or damage to Product (i) associated with
circumstances involving Force Majeure, (ii) caused by the act or omission of
Customer, (iii) due to normal Product evaporation, shrinkage, clingage, (iv)
Product measurement inaccuracies within tolerance acceptable under current
industry practices or (v) any other loss for any reason whatsoever, provided
such loss does not exceed one-half of one percent (0.5%) of Customer’s Product
then in the custody of Owner.

     

    “Storage
Tanks” those asphalt cement and residual fuel storage tanks located at
the Terminals and used to provide the terminalling and storage services to
Customer pursuant to this Agreement.

     

    “Tank Bottom
Schedule” has the meaning indicated in Section
2.7.

    
      
         

      

      
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    “Temporary
Event” has the meaning assigned to such term in Section 4.1.

     

    “Term” has
the meaning indicated in Section
15.1.

     

    “Terminals”
has the meaning indicated in Attachment “A”
and Attachment “B”.

     

    “Third
Party” means any entity other than Owner, Customer or their
Affiliates.

     

    “Third Party
Claim” has the meaning assigned to such term in Section 18.3.

     

    “Ton” means
a U.S. short ton of 2,000 pounds.

     

    “Week”
means a calendar week.

     

    Section
2. Services, Statements,
Invoices, Documents and Records.

     

    2.1 Owner
will provide to or for Customer the following storage and terminalling services
related to the receipt of Product at the Terminals and to the storage,
terminalling and delivery of Product into and out of the Storage Tanks
(collectively, the “Services”):

     

    (a) Receive
and unload all Product delivered by Customer to the Terminals from time to time
during the term of this Agreement;

     

    (b) Move the
off-loaded Product described in Section 2.1(a)
and load such Product into the Storage Tanks;

     

    (c) Store and
terminal the off-loaded Product;

     

    (d) Move
Product among Storage Tanks at a particular location as reasonably requested by
Customer;

     

    (e) Provide
all pumping and heating necessary for proper performance of each of the
foregoing services, including heating facilities adequate to maintain the
temperature of Product as requested by Customer;

     

    (f) Take
samples of Product from various delivering vessels before unloading,
representing a composition of quality for the lot delivered, as reasonably
requested by Customer;

     

    (g) Prepare
all tank or vessel gauging reports, bills of lading and other receiving papers
and deliver copies thereof to Customer at such times and places as it may
reasonably request;

     

    (h) Keep
records and accounts and make reports relating to Product received in storage
and withdrawn from storage; and

     

    (i) Present
all required terminal documents and invoices to Customer which are suitably
detailed for payment.

    
      
         

      

      
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    2.2 The
Services will be performed in a manner consistent with the prior operating
practices of the Terminals and Storage Tanks and in compliance with Applicable
Law.  Owner may adapt its performance of the Services in order to be
consistent with industry practices, in order to meet the requirements of health
and safety laws, rules and regulations and in order to achieve the efficient
utilization of the Terminals and Storage Tanks.

     

    2.3 Within
twenty-five (25) days following the end of each Month during the Term of this
Agreement, Owner will submit to Customer statements recording the volume of
Customer’s Product received into the Terminals and delivered from the Storage
Tanks during such previous Month calculated in accordance with the terms hereof
together with an invoice for amounts due under this Agreement for Services
provided during such Month.

     

    2.4 Except as
provided below in this paragraph, each Party will maintain a true and correct
set of records pertaining to its performance of this Agreement and will retain
copies of all such records for a period of not less than two (2) years following
termination or cancellation of this Agreement.  Upon reasonable prior
notice, a Party or its authorized representative may at its sole cost, during
the Term of this Agreement and thereafter during the aforesaid two year period,
inspect such records of the other Party during normal business hours at the
other Party’s place of business.  Unless a Party has taken written
exception to a statement or invoice within six (6) Months following the end of
the year in which the statement or invoice is delivered, the statement or
invoice shall be conclusively presumed to be true and correct.

     

    2.5 Owner
shall have no liability for not having available capacity in the Terminals for
Customer’s Product; provided, that Owner shall provide available capacity in any
Storage Tank containing Product.

     

    2.6 On the
date hereof, Customer has provided to Owner a schedule (the “Inventory
Schedule”) listing (i) the Terminals or Storage Tanks containing Product
and (ii) a reasonable estimation of the date that all Product will be removed
from such Terminal or Storage Tank, as applicable.  Customer shall
update the Inventory Schedule each Week during the Term.

     

    2.7 On the
date hereof, Customer has provided to Owner a schedule listing the Terminals or
Storage Tanks containing tank bottoms (the “Tank Bottom
Schedule”) and such schedule shall indicate whether Customer intends to
retain or transfer such tank bottoms to Owner in accordance with Section
4.5.  Customer shall update the Tank Bottom Schedule each week
during the Term to reflect (i) the date on which all Product was removed from
such Terminals or Storage Tanks, (ii) the amount of any tank bottoms remaining
in such Terminals or Storage Tanks and (iii) whether such Customer intends to
retain or transfer such tank bottoms to Owner in accordance with Section
4.5.

     

    Section
3. Fees, Charges, Taxes,
Disputed Amounts.

     

    3.1 Customer
will pay Owner the fees, rates and charges set forth in Attachment “A”
with respect to the Services.  All such payments, as well as any taxes
and other amounts to which Owner is entitled under this Agreement, shall be paid
in accordance with the terms and conditions set forth in this
Agreement.

    
      
         

      

      
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    3.2 All fees
and charges reflected in Owner’s invoices are due and payable within fifteen
(15) Business Days of the receipt of Owner’s invoice.  Payment must be
made by electronic wire transfer of same day available federal funds to Owner’s
account and bank, both as indicated on Owner’s invoice.  Invoices may
be sent by electronic mail and telephone facsimile.  If Customer
disputes any portion of an invoice, Customer must pay the undisputed portion of
the invoice.  Overdue amounts or disputed amounts that are resolved in
favor of the Owner will accrue interest at the Interest Rate from the date that
payment is due until paid in full and Customer will pay all of Owner’s
reasonable, out-of-pocket costs (including reasonable attorney’s fees and court
costs) of collecting past due payments and late payment charges, whether or not
suit is brought, provided, however, that the
Parties will share the costs of a Referee in accordance with Section
3.4.  If overdue amounts or disputed amounts are resolved in
favor of the Customer, Owner will pay all of Customer’s reasonable,
out-of-pocket costs (including reasonable attorney’s fees and courts costs) of
defending itself, provided, however, that the
Parties will share the costs of a Referee in accordance with Section
3.4.

     

    3.3 Customer
will pay any and all taxes, fees or other charges and assessments imposed on the
Services, including sales or other excise taxes on the storage and throughput
services.  Customer will also pay any ad valorem or property ownership
taxes, if any, on Customer’s Product located at the Terminals or in the Storage
Tanks and Customer’s other property, if any.  Owner shall be
responsible for and pay all other applicable taxes levied upon Owner, including
its own income and franchise taxes and any property and ad valorem taxes levied
on the Terminals and Storage Tanks and Asphalt Transferred Assets.

     

    3.4 If
Customer disputes the amount reflected in any statement or invoice delivered
pursuant to Section
2.3 or this Section 3 of this
Agreement, then Customer may, within thirty (30) days after receipt of such
statement or invoice, deliver a written notice to Owner (the “Dispute
Notice”) setting forth the items in dispute in reasonable detail (the
“Disputed
Items”).  During the thirty (30) day period following delivery
of the Dispute Notice (the “Resolution
Period”), the Parties will use their commercially reasonable efforts to
reach agreement on the Disputed Items set forth in the Dispute
Notice.  If the Parties are unable to reach an agreement during the
Resolution Period, then they will appoint a mutually acceptable independent
party to review the Dispute Notice and determine the final amount of the
Disputed Items.  If the Parties are unable to agree on a single
independent party within fifteen (15) days after the end of the Resolution
Period, then the Parties will each appoint one (1) independent party, who will
jointly select a third independent party (singly or collectively, the “Referee”),
within thirty (30) days after the end of the Resolution Period.  The
Referee shall deliver its determination to the Parties within thirty (30) days
from the date of its engagement.  The Referee’s report shall be final
and binding upon the Parties.  The cost of the Referee’s engagement
and report shall be shared fifty percent (50%) by Owner and fifty percent (50%)
by Customer.

     

    Section
4. Operations, Receipts and
Deliveries.

     

    4.1 Receipts
and deliveries of Product will be handled within the normal business hours of
the Terminals.  Owner may, without Customer’s approval, make temporary
changes in business hours or temporarily close any Terminal or Storage Tank
because of an extraordinary event which does not last longer than five (5) days
(a “Temporary
Event”).  Owner will notify Customer of such Temporary Event in
advance, or as soon after implementation as is practicable but in no event later
than twenty-four (24) hours after the commencement of a Temporary
Event.  Except as required pursuant to Section 15 or 18 of this Agreement,
Owner will not be responsible for the payment of any costs incurred by Customer
or its transportation carrier for any delay in receiving or delivering Product
or any other costs or fees.

    
      
         

      

      
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    4.2 Customer
must arrange for and pay all Third Party costs related to the delivery of
Customer’s Product to the Terminals and from the Storage Tanks.  Owner
is not responsible for such Third Party costs.  Unless otherwise
provided by Owner in writing, Customer must provide notice reasonably acceptable
to Owner containing all necessary instructions, including without limitation,
the identity and quantity and any other specifications of the Product and the
tentative date of delivery to the Terminals (the “Scheduling
Notice”).  Each Scheduling Notice delivered hereunder by
Customer for deliveries of Product to a Terminal shall be sent to those
individuals that Owner has specified to Owner to receive such Scheduling Notice
for the applicable Terminal with respect to such Product delivery.

     

    4.3 Owner
will deliver to Customer, or to such Third Parties as Customer may direct, the
Product held by Owner in the Storage Tanks for the account of
Customer.  Customer is responsible for providing to Owner
documentation required to authorize deliveries for or on its behalf from the
Storage Tanks.

     

    4.4 Owner
will provide the Services to Customer only with respect to
Product.  Customer will have access to the Terminals and Storage Tanks
for other products only with prior written notice to and consent by
Owner.  Any other product approved by Owner will then become part of
“Product” as defined in this Agreement.  If a special method of
providing the Services is required for Product, then Customer must notify Owner
in sufficient time to enable Owner to consider whether, in Owner’s sole
discretion, it will accept the proposed changes in the method of delivering the
Services and to take the necessary preparatory measures if it agrees with such
changes.  Absent such notice and absent Owner’s written approval with
respect to changes in the Product or the method of delivering the Services,
Owner will not be liable for losses or damage incurred during the terminalling
and storage of Product (except for losses and damages resulting from Product
Loss), nor will Owner be obligated to provide such special
Service.  It is understood that the cost of any additional or special
equipment required by Customer or of alterations made necessary by the nature of
Product will be for the account of Customer, and Customer will be responsible
for the expense of any necessary cleaning and restoration to their previous
condition of the Terminals and Storage Tanks, including, without limitation,
pumps, and loading facilities, unless otherwise explicitly stated in this
Agreement.  All fixtures, equipment and appurtenances attached to the
Storage Tanks will be installed by the Owner and will remain the property of
Owner.

     

    4.5 Upon a
change in the Product to be terminalled and stored during the Term of this
Agreement, or upon termination of this Agreement, or upon the election by
Customer to remove all Product from a Terminal or Storage Tank, Customer shall
remove all Product from the Terminals and Storage Tanks.  Customer
shall have a reasonable amount of time to remove all Product from the Terminals
and Storage Tanks.  All fees, rates and charges under this Agreement
shall continue to apply to any such Terminal or Storage Tank until all Product
is removed from the applicable Terminal or Storage Tank.  Customer
agrees to (i) reimburse Owner for the actual costs of such removal, which shall
include the expense of any necessary cleaning and restoration to their previous
condition of the Terminals and Storage Tanks, plus a ten percent (10%)
administrative fee, (ii) pay for (A) the cost of such removal and (B) upon
removal, the expense of any necessary cleaning and restoration to their previous
condition of the Terminals and Storage Tanks at its sole cost and expense, or
(iii) transfer any and all tank bottoms owned by Customer at any such Terminal
or Storage Tank to Owner and Customer will no longer be liable for any such
removal.

    
      
         

      

      
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    4.6 If any
Governmental Authority requires installation of any improvement, alteration or
addition to any Terminal or Storage Tank for purposes of compliance with
Applicable Law.  Owner will not be required to make any improvements,
alterations or additions to the Terminals or the Storage Tanks in such
circumstance.  If Owner chooses not to pay for such improvement,
alteration or addition, Owner may direct the affected Product to a mutually
acceptable Storage Tank at the same Terminal, another Terminal or at other
facilities owned by Owner or its Affiliates.  If Owner does not direct
the Product to mutually acceptable alternate facilities, either Party may
terminate this Agreement as to the Services provided at the affected Terminals
and/or Storage Tanks from this Agreement, by giving the other Party notice of
its intention no later than thirty (30) days after Owner’s election not to make
such improvement.

     

    4.7 Owner
will keep Customer’s Product separate from the product of other customers
(“Segregated
Service”). Customer will be responsible for providing all tank
bottoms.  Customer will retain ownership of all of the tank bottoms it
provides, except as provided in Section
4.5.

     

    Section
5. Product Quality Standards
and Requirements.

     

    5.1 Customer
warrants to Owner that all Product tendered by or for the account of Customer
for receipt into the Terminals and Storage Tanks will conform to the
specifications for such Product set forth in Attachment “C”,
attached to this Agreement and included in it for all purposes by this
reference, and will comply with industry standards and all Applicable
Law.  Owner may rely upon the specifications and representations of
Customer, if any, set forth in the Scheduling Notice described in Section 4.2 as
to Product quality.  Owner will not be obligated to receive Product
into the Terminals and Storage Tanks that is contaminated or that otherwise
fails to meet the specifications set forth on Attachment “C”,
nor will Owner be obligated to accept Product that fails to meet Product grade,
if any, set forth in the Scheduling Notice.  Should Owner remove or
dispose of or otherwise treat the Product for any water or other material or
contaminants in or associated with the Product at any time, Customer shall pay
or reimburse all costs and expense associated with such removal, disposal or
treatment.

     

    5.2 The
quality of Product tendered into the Terminals and Storage Tanks for Customer’s
account may be verified either by Customer’s laboratory analysis, or by an
Independent Inspector’s analysis indicating that the Product so tendered meets
minimum Product specifications, if any, set forth in the Scheduling
Notice.  Such analysis may be conducted on a periodic basis in
accordance with a quality compliance program implemented by Customer, which
program shall be subject to the approval of Owner, which approval shall not be
unreasonably withheld.  All costs associated with such compliance
program shall be borne by Customer.  Upon reasonable notice to
Customer, Owner, at its expense, may sample any Product tendered to Owner for
Customer’s account for the purpose of confirming the accuracy of the
analysis.

    
      
         

      

      
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    5.3 Customer
may at all reasonable times and without unreasonable disruption  to
Owner’s operations conduct appropriate tests to determine whether Product meets
the applicable specifications set forth in the Scheduling
Notice.  Owner will be liable to Customer by reason of contamination
of Product occurring at the Terminals or in the Storage Tanks that causes the
Product to fail to meet specifications, but only to the extent such
contamination involves a Product Loss.  In all other cases, Customer
shall indemnify Owner for any Liability incurred by Owner to parties who
purchase Product from Customer.

     

    Section
6. Title and Custody of
Product.

     

    6.1 Title to
the Product will remain with Customer at all times subject to any lien in favor
of Owner created under Applicable Law.  Owner will assume custody of
the Product beginning when such Product passes the flange connection between the
rail car, barge, ship, or vehicle and Owner’s receiving hose at the Terminals
and custody will pass back to Customer at the time such Product passes the
outlet flange of each Storage Tank.

     

    6.2 Owner
shall indemnify Customer for damages, losses, or injury caused by Owner’s gross
negligence or intentional misconduct.  Owner shall otherwise have no
responsibility for any loss, damage or injury to persons or property (including
the Product) arising out of possession or use of the Product, except to the
extent that such loss, damage or injury involves a Product
Loss.  Customer shall indemnify Owner for any Liability incurred by
Owner to Third Parties arising out of Owner’s possession or use of the Product
for which Owner is not liable under this paragraph and for any Liability to
Third Parties arising out of or pertaining to the Product before its delivery by
Customer to the Terminals and after its receipt by Customer from the Storage
Tanks.

     

    Section
7. Limitation of Liability and
Damages.

     

    7.1 The
maximum Liability of Owner for Product Loss will not exceed, and is strictly
limited to, the market value of the Product at the time of the Product Loss,
plus the costs and expenses actually, reasonably and necessarily incurred by
Customer or Customer’s immediate purchaser in damage to equipment into which
such Product was delivered from the Storage Tanks, plus any fines and penalties
actually levied or imposed by anyone including federal, state or local
governments against Customer or Customer’s immediate purchaser by reason of such
fault on Owner’s part.  Owner may, in lieu of payment for Product,
replace such Product with Product of like grade and quality.

     

    7.2 EXCEPT
FOR THE PARTIES’ INDEMNIFICATION OBLIGATIONS WITH RESPECT TO CLAIMS OF THIRD
PARTIES, THE PARTIES’ LIABILITY FOR DAMAGES HEREUNDER IS LIMITED TO DIRECT,
ACTUAL DAMAGES ONLY, AND NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR SPECIFIC
PERFORMANCE, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, OR SPECIAL,
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, IN TORT,
CONTRACT OR OTHERWISE, OF ANY KIND, ARISING OUT OF OR IN ANY WAY CONNECTED WITH
THE PERFORMANCE, THE SUSPENSION OF PERFORMANCE, THE FAILURE TO PERFORM, OR THE
TERMINATION OF THIS AGREEMENT.  EACH PARTY ACKNOWLEDGES ITS DUTY TO
MITIGATE DAMAGES HEREUNDER.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    Section
8. Product
Measurement.

     

    8.1 Quantities
of Product delivered to the Terminals and redelivered from the Storage Tanks
shall be determined for deliveries and receipts by truck, rail, ship and barge
volumes and shall be measured by one of the following methods:  meter,
scale weights, bills of lading, barge and ship gauges or terminal tank
gauges.  Absent fraud or manifest error, the quantities of Product in
the Storage Tanks at any time will be determined from inventory records of
receipts and deliveries.  Unless indicated otherwise, quantity
determinations will be based on a Barrel or Ton of Product and shall be
determined in accordance with the latest established API/ASTM standards for the
method of delivery.  Gauging of Product received, delivered and in
storage will be taken jointly by representatives of the Parties; provided, that,
after reasonable advance notice, if Customer does not have representatives
present for gauging, Owner’s gauging will be conclusive, absent fraud or
manifest error.  Customer may use an Independent Inspector at its own
expense.

     

    8.2 Storage
Tank meters and gauges will be calibrated periodically and after each completion
of a repair or replacement of a meter.  Such repairs and replacements
shall be at Owner’s expense.  Such calibration shall be in accordance
with the latest applicable API/ASTM standards.  If a meter or gauge is
determined by either Party to be defective or inoperative, such Party shall
immediately notify the other Party, and it will be the responsibility of the
Owner to promptly make repairs or replacements.  In the event that
Product was received into Storage Tanks having a faulty meter or gauge, the
Parties will determine the correct volume of Product received.  If the
Parties are unable to determine and agree on the correct volume of Product
received, they will appoint a mutually acceptable Independent Inspector to
determine the correct quantity, and the findings of the Independent Inspector
shall be final and binding on the Parties except for fraud or manifest
error.  The Parties shall share equally the cost of the Independent
Inspector under this Section 8.2.

     

    Section
9. Product Loss and Product
Gain.

     

    9.1 During
such time as Owner has custody of the Product pursuant to Section 6, Owner
will indemnify Customer against, and is responsible for, any Product Loss that
occurs while the Product is located at the Terminals or remains in the Storage
Tanks.  In the event of the foregoing Product Losses, the total
Barrels of net Product Loss each Month will be determined and will be replaced
by Owner with Product of like grade and quality as that tendered by Customer to
Owner or Owner will reimburse Customer the cost of such Product on the
determination date thereof.

     

    9.2 Each
Month, Owner will use the measurement procedures set out in Section 8 to
determine the net gain or loss of Product in the Storage Tanks, excluding any
loss resulting in Product Loss.  Owner shall not be liable for any net
loss (other than Product Loss) and may retain any net gain during the Term of
this Agreement.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    Section
10. Force
Majeure.

     

    10.1 If either
Party is unable to perform or is delayed in performing, wholly or in part, its
obligations under this Agreement, other than the obligation to pay funds when
due, as a result of an event of Force Majeure, that Party may be excused from
such performance by giving the other Party prompt written notice of any event
that is or could become an event of Force Majeure with reasonably full
particulars thereof.  The obligations of the Party giving notice, so
far as such obligations are affected by the event of Force Majeure, will be
suspended during, but not longer than, the continuance of the event of Force
Majeure beginning with the time that the event first occurs.  The
affected Party must act with commercially reasonable diligence to overcome or
remedy the event of Force Majeure and resume performance as quickly as
possible.  Once the event of Force Majeure is remedied, the affected
Party shall notify the other Party that the event of Force Majeure no longer
affects such obligations.  If Owner is excused from providing service
pursuant to this Agreement due to an event of Force Majeure, the fees hereunder,
not already due and payable, that are directly affected by such Force Majeure
event will be excused or proportionately reduced, on a daily basis, for so long
as the Owner’s performance is excused due to the event of Force
Majeure.

     

    10.2 The
requirement that any Force Majeure event be remedied with all reasonable
diligence shall not require the settlement of strikes, lockouts, or other labor
difficulty by the Party claiming excuse due to an event of Force Majeure
contrary to its wishes.

     

    10.3 If either
Party is rendered unable to perform by reason of an event of Force Majeure for a
period in excess of one (1) Month, then either Party may terminate this
Agreement with respect to the portion of the Terminals and the Storage Tanks
affected by such Force Majeure event upon written notice to the other
Party.

     

    Section
11. Inspection of and Access to
the Storage Tanks.

     

    11.1 Customer
shall have the right during Owner’s normal business hours and after reasonable
notice to Owner so as not to disrupt the operations of the Terminals or the
Storage Tanks or Owner’s other operations (i) to make periodic operational
inspections of the Terminals and Storage Tanks, (ii) to conduct audits of any
pertinent books and records, including those related to receipts, deliveries and
inventories of Product, and (iii) to conduct physical verifications of the
amount of Product delivered to the Terminals and stored in the Storage
Tanks.  Customer’s right and that of its authorized representatives to
inspect the Terminals and Storage Tanks will be exercised by Customer in a way
that will not interfere with or diminish Owner’s control over or its operation
of the Terminals or Storage Tanks and will be subject to reasonable rules and
regulations promulgated by Owner.

     

    11.2 Customer
acknowledges that any grant of the right of access to the Terminals and Storage
Tanks under this Agreement or under any document related to this Agreement is a
grant of a license only and shall convey no interest in or to the Terminals or
Storage Tanks or any part of it, and may be withdrawn by Owner at its discretion
at any time.

    
      
         

      

      
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    Section
12. Assignment.

     

    No Party
hereto may assign this Agreement, in whole or in part, except with the prior
written approval of each other Party, which approval shall not be unreasonably
withheld, delayed or conditioned; provided, however, that a Party
may assign, without the prior written consent of each other Party, this
Agreement or their respective rights and obligations hereunder, in whole or in
part, to an Affiliate or any purchaser of or successor to all or substantially
all of the asphalt assets or business of such Party; provided, further that Customer
has pledged, and may continue to pledge, its ownership interest in the Product
for the benefit of its creditors to the extent permitted by Applicable
Law.  This Agreement shall inure to the benefit of, and shall be
binding upon, the Parties and their respective permitted successors and assigns,
including with respect to Customer, any reorganized debtor entity appointed
pursuant to the plan of reorganization of Customer.

     

    Section
13. Notice.

     

    Any
notice required under this Agreement must be in writing and will be deemed
received when actually received and delivered by (i) United States mail,
certified or registered, return receipt requested, (ii) confirmed overnight
courier service, or (iii) confirmed facsimile transmission properly addressed or
transmitted to the address of the Party indicated in Attachment “A”
or to such other address or facsimile number as one Party shall provide to the
other Party in accordance with this provision.  Unless provided
otherwise herein, all statements, payments and other documents to be delivered
pursuant to this Agreement shall also be delivered to the address of the Party
indicated in Attachment “A”.

     

    Section
14. Compliance with Law and
Safety.

     

    14.1 Customer
warrants that the Product tendered by it has been and will be produced,
transported and handled in full compliance with all Applicable
Law.  Owner warrants that the services provided by it under this
Agreement are and will be in full compliance with all Applicable
Law.  Each Party also warrants that it may lawfully receive and handle
the Product, and it will furnish to the other Party any evidence required to
provide compliance with Applicable Law and to file with applicable Governmental
Authorities reports evidencing such compliance with Applicable Law.

     

    14.2 Customer
will furnish Owner with information (including material safety data sheets)
concerning the safety and health aspects of the Product terminalled or stored
under this Agreement.  Owner will communicate such information to all
persons who may be exposed to or may handle such Product, including without
limitation, Owner’s agents and contractors.

     

    Section
15. Term and
Termination.

     

    15.1 The term
of this Agreement (the “Term”)
begins on the Effective Date and ends October 31, 2009.  At the end of
the Term, this Agreement may be extended for one (1) Month by mutual agreement
of the Parties.

     

    15.2 A Party
may terminate this Agreement during the Term under the following
circumstances:

    
      
         

      

      
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    (a) Either
Party fails to pay any sum owed by it to the other Party under this Agreement
within fifteen (15) Business Days of the Delivery to the defaulting Party of a
notice of default; provided, however that neither
Party shall have a right to terminate this Agreement under this Section 15.2(a) with
respect to any Disputed Items that remain outstanding in accordance with Section 3.4 of this
Agreement.

     

    (b) The
Parties may terminate this Agreement by execution of a written agreement signed
by authorized representatives of both Parties, in which event the termination
shall be effective on the date specified in such agreement.

     

    (c) Either
Party may terminate this Agreement in the event of a material breach of this
Agreement (other than for failure of payment to which Section 15.2(a) shall
apply) by the other Party, its employees, agents or servants upon not less than
thirty (30) days prior written notice to such non-defaulting Party unless such
breach has been cured within fifteen (15) days from receipt by the defaulting
Party of such notice.

     

    (d) Either
Party may terminate this Agreement, in its entirety or with respect to a portion
of the Terminals or Storage Tanks only, in accordance with the provisions of
Sections 4.6 or
10.3 of this
Agreement.

     

    15.3 Each
Party’s obligations to perform its obligations under this Agreement shall end as
of the effective date of its termination in accordance with this Agreement;
provided, however, that each
Party shall remain liable to the other hereunder with respect to (a) any
obligations accruing under this Agreement prior to the effective date of such
termination, including any indemnification obligations provided hereunder or (b)
as otherwise provided in this Agreement.  Notwithstanding anything in
this Agreement to the contrary, Sections 6.2, 7, 15.3,
18 and 19 shall survive the
expiration or termination of this Agreement.  If the Customer is not
then in default, Customer shall be entitled to remove its Existing Asphalt
Inventory from the Storage Tanks at any time.  In the event that
Customer is unable to remove its Existing Asphalt Inventory in the ordinary
course of business, then Owner will replace the Existing Asphalt Inventory with
Product of like grade and quality as that originally tendered by Customer to
Owner that is immediately removable or Owner will reimburse Customer the cost of
such Existing Asphalt Inventory on the date of such attempted
removal.

     

    Section
16. Insurance.

     

    16.1 Workers’ Compensation
Insurance.  At all times during the term of this Agreement,
each Party shall carry and maintain in force, workers’ compensation insurance,
with policy limits equal to or greater than the statutory requirements of the
states in which the Storage Tanks are located and employers’ liability insurance
with policy limits equal to or greater than $10,000,000 for each accident,
$10,000,000 for each employee and $10,000,000 as to each disease.  In
the event either Party leases employees, then lessee Party shall cause lessor
Party to carry workers’ compensation and/or employer’s liability insurance at
the levels set forth above.

     

    16.2 General Liability
Insurance.  At all times during the term of this Agreement,
each Party shall carry and maintain in force, comprehensive general liability
insurance, with a minimum $10,000,000 combined single limit.  The
Owner’s commercial general liability insurance shall include coverage for
Product Loss for Product in the care, custody and control of Owner and shall
cover “sudden and accidental pollution” events.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    16.3 Automobile and Truck
Insurance.  At all times during the term of this agreement,
each Party shall carry and maintain in force, commercial automobile liability
insurance with a minimum $10,000,000 combined single limit per occurrence for
owned, hired and non-owned automotive equipment.  If work is to be
performed by either Party involving hauling Product subject to section 29 and 30
of the Motor Carrier Act of 1980, then coverage shall include broadened
pollution coverage using ISO endorsement CA-99-48 Broadened Pollution
Coverage – Truckers, or an endorsement that offers similar or greater
coverage.

     

    16.4 Customer’s Product
Insurance.  Insurance on Customer’s Product, if any, that may
be desired by Customer, shall be carried by Customer at Customer’s
expense.

     

    16.5 Miscellaneous Insurance
Provisions.

     

    (a) The above
stipulated levels of insurance coverage may be satisfied through primary
insurance or a combination of primary and excess or umbrella liability
insurance.

     

    (b) Either
Party may elect to self-insure for or elect deductibles to the coverages
required by this Section 16; provided, however, that except
as provided in this Section 16.5(b), a
Party must seek the consent of the other Party for any self-insurance or
deductible in excess of $250,000, which consent shall not be unreasonably
withheld, conditioned or delayed; provided, further, that each
Party may elect to self-insure for or elect deductibles up to and including
$1,000,000 without the consent of the other Party for any coverage relating to
“sudden and accidental pollution” events.

     

    (c) The mere
purchase and existence of insurance coverage shall not reduce or release either
Party from any liabilities incurred or assumed under this
Agreement.

     

    (d) All
insurance required hereunder shall be maintained with responsible, solvent and
reputable insurance companies with an A.M. Best rating of A-IX or better and
qualified to do business in the State of Oklahoma.

     

    Section
17. [Reserved].

     

    Section
18. Indemnity.

     

    18.1 Indemnity.  Subject
to Section 7, each
Party (the “Indemnifying
Party”) shall indemnify and hold the other Party, its Affiliates, and
their employees, directors, officers, representatives, agents and contractors
(collectively, the “Indemnified
Party”) harmless from and against any and all Liabilities arising from
the Indemnifying Party’s (i) breach of this Agreement, (ii) gross negligence or
willful misconduct of it, its Affiliates and their employees, directors,
officers, representatives, agents or contractors in connection with the
performance of such Party’s obligations under this Agreement, or (iii) failure
to comply with Applicable Law with respect to the sale, transportation, storage,
handling or disposal of the Product, unless and to such extent that such
Liability results from the Indemnified Party’s breach of this Agreement, gross
negligence or willful misconduct, or failure to comply with Applicable
Law.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    18.2 No Third Party
Rights.  The Parties’ obligations to defend, indemnify and hold
each other harmless under the terms of this Agreement shall not vest any rights
in or be enforceable by any Third Party, whether a Governmental Authority or
private entity, nor shall they be considered an admission of liability or
responsibility for any purposes other than those enumerated in this
Agreement.  The terms of this Agreement are enforceable only by the
Parties and their permitted successors and assigns, and no Third Party,
including a member of Owner, shall have a separate right to enforce any
provision of this Agreement, or to compel any Party to comply with the terms of
this Agreement.

     

    18.3 Notice.  The
Indemnified Party shall notify the Indemnifying Party as soon as practicable
after receiving notice of any claim or proceeding brought against it that might
give rise to an indemnity claim under this Agreement (a “Third Party
Claim”) and shall furnish to the Indemnifying Party the complete details
within its knowledge.  Any delay or failure by the Indemnified Party
to give notice to the Indemnifying Party shall not relieve the Indemnifying
Party of its obligations except to the extent, if any, that the Indemnifying
Party shall have been materially prejudiced by reason of such delay or
failure.

     

    18.4 Claims.  The
Indemnifying Party shall have the right to assume the defense, at its own
expense and by its own counsel, of any Third Party Claim; provided, however,
that such counsel is reasonably acceptable to the Indemnified
Party.  Notwithstanding the Indemnifying Party’s appointment of
counsel to represent an Indemnified Party, the Indemnified Party shall have the
right to employ separate counsel reasonably acceptable to the Indemnifying
Party, and the Indemnifying Party shall bear the reasonable fees, costs and
expenses of such separate counsel if in the Indemnified Party’s reasonable
judgment (i) the use of counsel chosen by the Indemnifying Party to represent
the Indemnified Party would present such counsel with a conflict of interest or
defenses that are available to the Indemnified Party that are not available to
the Indemnifying Party or (ii) the Indemnifying Party shall not have employed
counsel to represent the Indemnified Party within a reasonable time after notice
of the institution of such Third Party Claim.  If requested by the
Indemnifying Party, the Indemnified Party agrees to reasonably cooperate with
the Indemnifying Party and its counsel in contesting any claim or proceeding
that the Indemnifying Party defends, including, if appropriate, making any
counterclaim or cross-complaint.  All reasonably incurred costs and
expenses incurred in connection with the Indemnified Party’s cooperation shall
be borne by the Indemnifying Party.

     

    18.5 Settlement.  No
Third Party Claim may be settled or compromised by (i) the Indemnified Party
without the consent of the Indemnifying Party or (ii) by the Indemnifying Party
without the consent of the Indemnified Party.

     

    Section
19. Miscellaneous.

     

    19.1 Headings.  The
headings of the sections and subsections of this Agreement are for convenience
only and shall not be used in the interpretation of this Agreement.

    
      
         

      

      
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    19.2 Amendment or
Waiver.  This Agreement may not be amended, modified or waived
except by written instrument executed by officers or duly authorized
representatives of the respective Parties.  The Parties hereby
acknowledge and agree that a material amendment to this Agreement requires the
approval of the Bankruptcy Court prior to the effective date of the plan of
reorganization in the Bankruptcy Cases.  No waiver or failure of
enforcement by any Party of any default by any other Party in the performance of
any provision, condition or requirement herein shall be deemed to be a waiver
of, or in any manner a release of the defaulting Party from, performance of any
other provision, condition or requirement herein, nor deemed to be a waiver of,
or in any manner a release of the defaulting Party from, future performance of
the same provision, condition or requirement; nor shall any delay or omission of
any non-defaulting Party to exercise any right hereunder in any manner impair
the exercise of any such right or any like right accruing to it
thereafter.

     

    19.3 Severability.  Any
provision of this Agreement that is prohibited or not enforceable in any
jurisdiction shall, as to that jurisdiction, be ineffective only to the extent
of the prohibition or lack of enforceability without invalidating the remaining
provisions of this Agreement, or affect the validity or enforceability of those
provisions in another jurisdiction or the validity or enforceability of this
Agreement as a whole.

     

    19.4 Entire Agreement and
Conflict with Attachments.  This Agreement (including
Attachments) contains the entire and exclusive agreement between the Parties
with respect to the subject matter hereof, and there are no other promises,
representations, or warranties affecting it.  The terms of this
Agreement may not be contradicted, explained or supplanted by any usage of
trade, course of dealing or course of performance and any other representation,
promise, statement or warranty made by either Party or their agents that differs
in any way from the terms contained herein will be given no force or
effect.  In the case of any conflict between the body of this
Agreement and any of its Attachments, the terms contained in the Attachments
will govern.

     

    19.5 Governing
Law.  THIS AGREEMENT, THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT, AND ANY CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY), INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, SHALL IN ALL RESPECTS BE
GOVERNED BY AND INTERPRETED, CONSTRUED, AND DETERMINED IN ACCORDANCE WITH, THE
APPLICABLE PROVISIONS OF THE BANKRUPTCY CODE AND THE INTERNAL LAWS OF THE STATE
OF OKLAHOMA (WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION THAT WOULD REQUIRE
THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION).

     

    19.6 Jurisdiction.

     

    (a) Without
limiting any Party’s right to appeal any Order of the Bankruptcy Court, (i) the
Bankruptcy Court shall retain exclusive jurisdiction to enforce the terms of
this Agreement and to decide any claims or disputes which may arise or result
from, or be connected hereby, and (ii) any and all Actions related to the
foregoing shall be filed and maintained only in the Bankruptcy Court, and the
Parties hereby consent to and submit to the jurisdiction and venue of the
Bankruptcy Court and shall receive notices at such locations as indicated in
Section 13;
provided, however, that if a
plan of reorganization has become effective in the Bankruptcy Cases, the Parties
agree to unconditionally and irrevocably submit to the exclusive jurisdiction of
the federal or state courts in Oklahoma City, Oklahoma for the resolution of any
such claim or dispute.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    (b) The
Parties hereby unconditionally and irrevocably waive, to the fullest extent
permitted by Applicable Law, any objection which they may now or hereafter have
to the laying of venue or any dispute arising out of or relating to this
Agreement or any of the transactions contemplated hereby brought in any court
specified in paragraph (a) above, or any defense of inconvenient forum of the
maintenance of such dispute.  Each of the Parties hereto agrees that a
judgment in any such dispute may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law.

     

    (c) Each of
the Parties hereto consents to process being served by any Party to this
Agreement in any suit, Action or proceeding by the mailing of a copy thereof in
accordance with the provisions of Section
13(i).

     

    19.7 Counterparts.  This
Agreement may be executed in any number of counterparts each of which, when so
executed and delivered (including by facsimile or electronic mail transmission),
will be deemed original but all of which together will constitute one and the
same instrument.

     

    19.8 Further
Assurances.  Subject to the terms and conditions of this
Agreement, each of the Parties hereto will use commercially reasonable efforts
to take, or cause to be taken, all action, and to do, or cause to be done, all
things necessary under applicable laws and regulations to consummate the
transactions contemplated by this Agreement.

     

    19.9 No Third-Party
Beneficiaries.  Except as provided in Section 18, nothing
contained in this Agreement, expressed or implied, is intended or shall be
construed to confer upon or give to any Person (including any limited partners
of SemGroup Energy Partners, L.P.) other than the Parties hereto and their
successors or permitted assigns, any rights or remedies under or by reason of
this Agreement.

     

    19.10                      No Strict
Construction.  The Parties to this Agreement have participated
jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises with respect to this
Agreement, this Agreement shall be construed as if drafted jointly by the
Parties, and no presumption or burden of proof shall arise favoring or
disfavoring a Party by virtue of the authorship of any of the provisions of this
Agreement.

    
      
         

      

      
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    This
Agreement has been executed by the authorized representatives of each Party as
indicated below as of the date hereof to be effective as of the Effective
Date.

     

    

     

    SemMaterials,
L.P.

     

    By:           SemOperating
G.P., L.L.C.

     

    Its:           General
Partner

     

    

     

    By:                  /s/ Terrence
Ronan                                                         

     

    Name: Terrence Ronan

     

    Title:             President
& CEO

     

    

     

    SemMaterials
Energy Partners, L.L.C.

     

    

     

    By:                  /s/ Alex G.
Stallings                                                         

     

    Name: Alex G.
Stallings

     

    Title:             Chief
Financial Officer and Secretary

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    ATTACHMENT
“A”

     

    
      	
              1.  

            	
              Customer
      Notice and Billing Address

            

    

     

    SemMaterials,
L.P.

    Two
Warren Place

    6120
South Yale Avenue, Suite 700

    Tulsa,
Oklahoma 74136

    

    With a
copy to:

    

    Weil,
Gotshal & Manges, LLP

    Attn:  Michael
A. Saslaw, Esq.

    200
Crescent Court, Suite 300

    Dallas,
TX 75201-6950

    

    
      	
              2.  

            	
              Owner
      Notice Address

            

    

     

    SemMaterials
Energy Partners L.P.

    Two
Warren Place

    6120
South Yale Avenue, Suite 500

    Tulsa,
Oklahoma 74136

    

    With a
copy to:

    

    Baker
Botts L.L.P.

    Attn:  Doug
Rayburn

    2001 Ross
Avenue, Suite 600

    Dallas,
Texas 75201

    

    
      	
              3.  

            	
              Fees
      for Storage and Terminalling Services; Reimbursement of Energy
      Costs

            

    

     

    
      	
              (a)  

            	
              Storage Service Fees:
      Customer is required to pay for storage services equal to $0.565
      per Barrel per Month multiplied by the total shell capacity in Barrels for
      each Storage Tank where Customer and its Affiliates have Product; provided
      that if Customer removes all Product from a Storage Tank prior to the end
      of the Month, then the Storage Service Fees shall be pro-rated for such
      Month based on the number of calendar days storage was actually
      used.  The Storage Service Fees will be payable as outlined in
      Section 3
      of this Agreement.

            

    

     

    
      	
              (b)  

            	
              Terminalling
      Fees: “Throughput” means, for any period, the aggregate quantity of
      Product moved through Owner’s Storage Tanks on behalf of Customer under
      this Agreement and such quantity shall be calculated based upon the total
      quantity of asphalt products shipped and/or sold by Customer from the
      facilities where the Storage Tanks are located with such quantity of
      asphalt products converted to base asphalt cement Tons based upon agreed
      to formulas between Owner and Customer.  Customer is required to
      pay for throughput services at a charge of $9.25 per Ton; provided that no
      fees will be payable for transfers of Product between Storage Tanks
      located at the same or different Terminals.  The Terminalling
      Fees will be payable as outlined in Section 3 of
      this Agreement.

            

    

     

    
      	
              (c)  

            	
              Reimbursement of
      Energy Costs:

            

    

     

    Customer
shall reimburse Owner for all direct energy costs (e.g., electricity, natural
gas, steam) attributable to the services provided hereunder.  Direct
energy costs will be based upon usage as determined by metering equipment that
serves the facility where the Storage Tanks are located.  Energy costs
will be invoiced monthly for the prior month’s energy usage and will be
pro-rated as described in paragraph (a) above.

     

    
      	
              4.  

            	
              Operating
      Hours

            

    

     

    Each
Terminal’s operating hours shall be its normal business hours in the ordinary
course of business and consistent with past practice.

     

    
      	
              5.  

            	
              Terminals

            

    

     

    Terminals
means (i) the asphalt cement and residual fuel storage Terminals of Owner as
listed in Attachment B
attached hereto, and as may be amended from time to time, and (ii) any asphalt
cement or residual fuel storage terminals as are subsequently acquired or
constructed by the Owner to replace such existing asphalt cement and residual
fuel storage terminals.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ATTACHMENT
“B”

     

    Terminals

     

    Ardmore,
OK

     

    Austin,
TX

     

    Bay City,
MI

     

    Billings,
MT

     

    Boise,
ID

     

    Catoosa,
OK (Emulsion plt)

     

    Catoosa,
OK (Port 33)

     

    Chicago,
IL Marine Oil

     

    Columbus,
OH

     

    Denver C,
CO

     

    Denver K,
CO

     

    Dodge
City, KS

     

    El
Dorado, KS

     

    Ennis,
TX

     

    Fontana,
CA

     

    Garden
City, GA

     

    Gloucester
City, NJ

     

    Grand
Island, NE

     

    Grand
Jct, CO

     

    Halstead,
KS

     

    Las
Vegas, NV

     

    Lawton,
OK

     

    Little
Rock, AR

     

    Lubbock,
TX

     

    Memphis
Emulsion, TN

     

    Memphis
TN

     

    Morehead
City, NC

     

    Muskogee,
OK

     

    N.  Salt
Lake City, UT

     

    New
Madrid, MO

     

    Newport
News, VA

     

    Northumberland,
PA

     

    Parsons,
TN

     

    Pasco,
WA

     

    Pekin,
IL

     

    Port of
Catoosa, OK

     

    Pueblo,
CO

     

    Reading,
PA

     

    Saginaw,
TX

     

    Salina,
KS

     

    Sedalia,
MO

     

    Spokane
(Hillyard), WA

     

    Spokane
(Valley), WA

     

    St.
Louis, MO

     

    Warsaw,
IN

     

    Woods
Cross, UT

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ATTACHMENT
“C”

     

    Asphalt
Cement meeting the following specifications:  all viscosity and
penetration for graded paving, including, but not limited to, AC-5, AC-7, AC-10,
AC-13, AC-15, AC-20, AC-30, AC-40/50, RA-800, RA-900, RA-925 and all asphalt
emulsion base stock products and all tank bottoms related thereto.

     

    Residual
Fuel oils meeting the following specifications:  all residual fuel oil
products, including but not limited to, vacuum gas oil, carbon black oil, vacuum
tower bottoms, light cycle oils, FCC bottoms and flux and all tank bottoms
related thereto.exh10-8.htm

    EXHIBIT
10.8

     

    ACCESS
AND USE AGREEMENT

     

    THIS
ACCESS AND USE AGREEMENT (this “Agreement”)
is entered into on April 7, 2009 to be effective as of 11:59 PM CDT March 31,
2009 (the “Effective
Date”), by and between SemMaterials, L.P., an Oklahoma limited
partnership (“SemMaterials”),
and SemMaterials Energy Partners, L.L.C., a Delaware limited liability company
(“SMEP”).  SemMaterials
and SMEP are sometimes herein referred to individually as a “Party” and
collectively as the “Parties.”

     

    W
I T N E S S E T H:

     

    WHEREAS, SemMaterials and SMEP entered
into that certain Terminal Access and Use Agreement, dated as of January 28,
2008 (the “Terminal
Agreement”) which set forth certain rights, obligations, terms,
conditions and restrictions associated with and necessary for SemMaterials to
access the Terminals to facilitate the processing, sale, delivery, and/or
removal of asphalt cement, residual fuel oil or other product or
inventory;

    

    WHEREAS,
commencing on July 22, 2008, SemGroup, L.P., an Oklahoma limited partnership
(“SemGroup”)
and certain of its Affiliates (including SemMaterials), filed voluntary
petitions for relief under chapter 11 of the Bankruptcy Code (as defined
herein);

     

    WHEREAS,
on March 6, 2009, SemGroup and certain of its Affiliates (including
SemMaterials) and SemGroup Energy Partners, L.P., a Delaware limited partnership
(“SGLP”) and
certain of its Affiliates (including SMEP) entered into a term sheet regarding
the principal terms of a settlement agreement (the “Settlement”)
between SemGroup and SGLP;

     

    WHEREAS,
pursuant to the terms of the Settlement, SemGroup and its Affiliates agreed to
transfer the Asphalt Transferred Assets (as defined herein) to SGLP and its
Affiliates;

     

    WHEREAS, as part of the Settlement
SemMaterials will reject the Terminal Agreement in the Bankruptcy Cases and
liquidate the Existing Asphalt Inventory (as defined herein); and

     

    WHEREAS,
the Parties desire to agree upon and set forth certain rights, obligations,
terms, conditions and restrictions associated with and necessary for
SemMaterials to access the Terminals and the Asphalt Transferred Assets, as
necessary, to facilitate the processing, sale, delivery and/or removal of the
Existing Asphalt Inventory during the Liquidation Period (as defined
herein).

     

    NOW
THEREFORE, in consideration of the mutual promises and covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereby agree as follows:

     

    1. Definitions.  In
addition to terms defined elsewhere in this Agreement, where capitalized, the
following words and phrases in this Agreement shall be defined as
follows:

     

    (a) “Affiliate”
means, with respect to any entity, any other entity that, directly or
indirectly, controls, is controlled by or is under common control with, such
specified entity through one or more intermediaries or otherwise; provided that, for purposes
of this Agreement, (i) SemGroup Energy Partners G.P., L.L.C., SemGroup Energy
Partners, L.P. and their subsidiaries (the “SGLP
Parties”) shall not be deemed to be Affiliates of SemGroup G.P., L.L.C.,
SemGroup, L.P. and their subsidiaries (other than the SGLP Parties) (the “SemGroup
Parties”) and (ii) the SemGroup Parties and its subsidiaries shall not be
deemed to be Affiliates of the SGLP Parties.  For the purposes of this
definition, “control” means, where used with respect to any entity, the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such entity, whether through the
ownership of voting securities, by contract or otherwise, and the terms
“controlling” and “controlled” have correlative meanings.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b) “Asphalt
Transferred Assets” means, collectively, (i) the “Asphalt Processing
Assets” as defined in the Contribution Agreement, (ii) the “Prior Retained
Easements” as defined in the Contribution Agreement and (iii) the “Prior
Retained Leasehold Agreements” as defined in the Contribution
Agreement.

     

    (c) “Bankruptcy
Cases” means the chapter 11 cases commenced by SemGroup and certain of
its direct and indirect subsidiaries on July 22, 2008 (including any case
commenced after the date of this Agreement), jointly administered under Case No.
08-11525 (BLS).

     

    (d) “Bankruptcy
Code” means Title 11 of the United States Code, as amended.

     

    (e) “Bankruptcy
Court” means the United States Bankruptcy Court for the District of
Delaware or any other court having jurisdiction over the Bankruptcy Cases from
time to time.

     

    (f) “Contribution
Agreement” means that certain Contribution, Conveyance, Assignment and
Assumption Agreement, dated as of the Effective Date, by and among SemMaterials,
K.C. Asphalt L.L.C., SemMaterials Energy Partners, L.L.C. and SGLP Asphalt,
L.L.C.

     

    (g) “Existing Asphalt
Inventory” means any of SemMaterials’ or its Affiliates’ asphalt cement,
residual fuel oil or other product or inventory that is owned on its own behalf
or held on behalf of third parties and that is stored in the Asphalt Transferred
Assets or in SGLP’s or its Affiliates’ liquid asphalt cement facilities as of
the Effective Date.

     

    (h) “Liquidation
Period” means the period commencing as of the Effective Date and ending
on October 31, 2009.

     

    (i) “SMEP Owned Real
Property” means that certain land owned in fee by SMEP at which some of
the Terminals are located as more particularly described on Schedule 1(i)
attached hereto.

     

    (j) “SMEP Leased Real
Property” means that certain land leased by SMEP at which some of the
Terminals are located as more particularly described on Schedule 1(i)
attached hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (k) “Terminal
Assets” means all of the property of SMEP at and comprising the Terminals
including the SMEP Owned Real Property, the SMEP Leased Real Property and all of
those certain asphalt and residual fuel oil storage tanks and related equipment,
facilities, buildings, loading facilities, controls and other assets located at
or used in connection with the Terminals, all as more particularly described on
Schedule 1(k)
attached hereto.

     

    (l) “Terminals”
means those certain terminals described in Schedule 1(i)
which include the Terminal Assets, the SMEP Owned Real Property or SMEP Leased
Real Property, as applicable, and the Asphalt Transferred Assets.

     

    2. Reservation
and Recognition of Access and Use Rights. SemMaterials hereby reserves
and retains the rights to access and use SMEP’s Terminal Assets and the Asphalt
Transferred Assets, to the extent necessary (a) to permit the processing, sale,
delivery and/or removal of the Existing Asphalt Inventory during the Liquidation
Period in accordance with customary industry practice and in a manner consistent
with historical practice, and (b) to permit the fulfillment by the Parties of
their obligations under Section 10 of
this Agreement, and (c) to park mobile equipment including trucks, trailers, and
paving related equipment to the extent such parking does not interfere with the
operation of the Terminals.  SMEP hereby recognizes and agrees to
provide and accommodate the access rights of SemMaterials under this Agreement
subject to, and agrees to perform and abide by, the terms and conditions set
forth in this Agreement.  SemMaterials expressly disclaims the right
to use Terminal Assets which relate solely to SMEP’s asphalt cement and residual
fuel oil terminalling and storage business and operations and which are not
needed in connection with the processing, sale, delivery and/or removal of the
Existing Asphalt Inventory during the Liquidation Period.

     

    3. Term.  This
Agreement shall commence on the Effective Date and shall remain in effect
separately with respect to each Terminal until the earlier of conclusion of the
Liquidation Period or the date on which all Existing Asphalt Inventory is
removed from each Terminal and Customer provides a written notice to Owner
stating all Product is removed (the “Term”).  Such
written notice can be delivered via electronic mail or facsimile.

     

    4. Operation
and Maintenance of Terminal and Assets; Sharing of Common
Costs.

     

    (a) Apportionment
and Sharing of Costs.  Except as provided in this Section 4, SMEP shall
be solely responsible for and shall pay and discharge when due and payable all
costs and expenditures relating to the ownership and operation of Terminal
Assets, SMEP Owned Real Property, SMEP Leased Property and Asphalt Transferred
Assets. SemMaterials shall be solely responsible for those costs and
expenditures that directly relate to processing, storage and distribution
activities with respect to the Existing Asphalt Inventory during the Liquidation
Period, which costs shall be prorated for the portion of the month or other time
period the Terminal Assets or Asphalt Transferred Assets are used by
SemMaterials.  Notwithstanding anything to the contrary herein,
SemMaterials shall not be responsible for any portion of SMEP’s overhead
costs.

     

    (b) Payment
and Discharge of Apportioned Costs; Audit Rights.  SMEP shall
be obligated to pay all costs associated with the ownership and operation of the
Terminals and the Asphalt Transferred Assets and shall invoice SemMaterials for
its respective share of operating costs under Section 4(a) on
a monthly basis during the Liquidation Period with reasonable supporting
documentation for each cost item described in the invoice.  Such cost
allocation will also comply with the terms of the Transition Services Agreement
between the Parties.  Such invoices shall be payable within fifteen
(15) days after receipt.  SMEP shall keep such books and records
(which shall be maintained on a consistent basis and substantially in accordance
with generally accepted accounting principles) and shall readily disclose the
basis for any charges or costs or credits, ordinary or extraordinary, billed or
due to the other Party under this Agreement and shall make them available for
examination, audit, and reproduction by the other Party and its agents for a
period of eighteen (18) months after such charge or credit is billed or
due.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           Disputed
Amounts.

     

    If
SemMaterials disputes the amount reflected in any statement or invoice delivered
pursuant to Section
4(b) of this Agreement, then SemMaterials may, within thirty (30) days
after receipt of such statement or invoice, deliver a written notice to SMEP
(the “Dispute
Notice”) setting forth the items in dispute in reasonable detail (the
“Disputed
Items”).  During the thirty (30) day period following delivery
of the Dispute Notice (the “Resolution
Period”), the Parties will use their commercially reasonable efforts to
reach agreement on the Disputed Items set forth in the Dispute
Notice.  If the Parties are unable to reach an agreement during the
Resolution Period, then they will appoint a mutually acceptable independent
party to review the Dispute Notice and determine the final amount of the
Disputed Items.  If the Parties are unable to agree on a single
independent party within fifteen (15) days after the end of the Resolution
Period, then the Parties will each appoint one (1) independent party, who will
jointly select a third independent party (singly or collectively, the “Referee”),
within thirty (30) days after the end of the Resolution Period.  The
Referee shall deliver its determination to the Parties within thirty (30) days
from the date of its engagement.  The Referee’s report shall be final
and binding upon the Parties.  The cost of the Referee’s engagement
and report shall be shared fifty percent (50%) by Owner and fifty percent (50%)
by Customer.

     

    5. Health
and Safety.  In use of SMEP’s Terminal Assets and the Asphalt
Transferred Assets and the exercise of its rights hereunder, SemMaterials shall
conduct safe operations and shall comply with all applicable federal, state, and
local rules, regulations and orders and SMEP job-site rules and regulations
regarding safety, health and fire protection.  SMEP shall provide
SemMaterials with copies of all manuals, pamphlets and brochures and obtain
other information regarding SMEP’s safety and emergency policies, procedures and
rules.  SemMaterials shall familiarize themselves and their employees,
agents, contractors and invitees with such safety and emergency information and
shall be responsible for providing any required
training.  SemMaterials shall provide all such appropriate protective
equipment and clothing as may be required, and all persons accessing the
Terminals shall wear such required protective equipment and clothing at all
times while thereon.  SemMaterials will access and use the Terminals,
Terminal Assets and the Asphalt Transferred Assets in a manner that will not
unreasonably interfere with SMEP’s operations at such Terminals or create an
unreasonable safety risk or hazard.  No smoking or open flame or
matches or lighters shall be permitted on the Terminal property without SMEP’s
express prior approval.  SemMaterials shall ensure that the Terminals
are at all times kept free of waste and are left clean and
orderly.  Equipment placement and material storage shall be at
locations satisfactory to SMEP.  SMEP shall have no duty to monitor
compliance by SemMaterials or any contractors, employees or other third parties
with any safety rules, regulations or requirements; provided, however, if SMEP
becomes aware of any such violation of safety rules, regulations or
requirements, SMEP may require SemMaterials to correct violations immediately,
and in the event of aggravated or repeated violations, SMEP may refuse to allow
any person or persons committing such violations to have continuing access to
the Terminal, Terminal Assets or the Asphalt Transferred
Assets.  SemMaterials shall use commercially reasonable efforts to
prevent and minimize hazardous conditions arising as a result of its use of the
Terminals and the Asphalt Transferred Assets and shall promptly correct any
unsafe or hazardous condition at the Terminals or relating to any of the Asphalt
Transferred Assets caused by SemMaterials or its respective employees or agents
of which they are aware.  SMEP shall promptly correct any unsafe or
hazardous condition at the Terminals caused by SMEP or its employees or agents
of which SMEP is aware which could materially interfere with the use by
SemMaterials of the Terminals, Terminal Assets or the Asphalt Transferred Assets
for the purposes described herein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6. Security.  SemMaterials
and its employees, agents, invitees and contractors shall comply with SMEP’s
security requirements applicable to each Terminal and shall obey the applicable
directions of SMEP’s security personnel and contractors.  SMEP may
impose reasonable restrictions and limitations upon access to all or any portion
of the Terminal, Terminal Assets or the Asphalt Transferred Assets, including
restrictions as to time and place of access at any particular time or location
to the extent it does not materially interfere with exercise of rights by
SemMaterials hereunder.  All persons shall abide by all such
restrictions and limitations.  Any person found in violation of any
such restrictions and limitations may be removed from the Terminal by SMEP, and
SMEP may refuse to allow such person any further access to the
Terminal.  Unless otherwise specifically provided in writing, SMEP
shall have no duty to provide any security for protection of the persons or
property of SemMaterials or any contractors, employees, agents or
invitees.  SMEP may issue passes or visitor identification cards to
employees, contractors, or representatives of SemMaterials, which must be
presented upon request before entry into Terminals and surrendered upon demand
or upon any termination or expiration of this Agreement.  Passes or
other identification shall be issued only to persons meeting any reasonable
security criteria applicable at the relevant Terminal.

     

    7. Wastes;
Hazardous Materials.  Each Party shall at all times keep those
areas within the Terminal used by such Party pursuant to this Agreement free
from accumulations of waste material or rubbish resulting from such Party’s use
thereof, and each Party shall remove at their own expense all temporary
structures, rubbish and waste materials resulting therefrom.  Each
Party shall take all commercially reasonable steps to eliminate or minimize the
generation of Hazardous Materials in connection with its use of the
Terminals.  Each Party shall be responsible for safely and properly
handling, removing and disposing of all Hazardous Materials used, stored or
generated in conjunction with any use of the Terminals, the Asphalt Transferred
Assets or their other respective assets, including, without limitation, the
Existing Asphalt Inventory, in accordance with all applicable Hazardous
Materials Laws.  Upon completion of any work on or about a Terminal,
each Party shall leave the work site in a clean and orderly condition, free from
trash, rubbish, debris and other wastes.  “Hazardous
Materials,” as used herein, shall mean, without limitation, those
materials defined or regulated as hazardous substances, extremely hazardous
substances, hazardous chemicals, hazardous materials, toxic substances, toxic
chemicals, air pollutants, toxic pollutants, hazardous wastes, extremely
hazardous wastes, radioactive materials or restricted hazardous waste by
Hazardous Materials Law.  The term “Asbestos”
as used herein shall mean any asbestos or material containing
asbestos.  The term “Hazardous
Materials Law” as used herein means any federal, state, or local law
(including common law), ordinance or regulation or any court judgment or order
of any federal, state or local agency or regulatory body applicable to the
Terminal relating to industrial hygiene or to environmental or unsafe conditions
including, but not limited to, those relating to the generation, manufacture,
storage, use, handling, transportation, recycling, disposal, release, emission
or discharge of Hazardous Materials and Asbestos, those in connection with the
construction, fuel supply, power generation and transmission, waste disposal or
any other operations or processes relating to the Terminal, and those relating
to the atmosphere, soil, surface and ground water, wetlands, stream sediments
and vegetation on, under, in or about each Terminal.  Each Party shall
use commercially reasonable efforts to reduce and minimize accidents arising in
connection with use of the Terminal and shall promptly report to the other Party
all accidents or occurrences resulting in injuries to the employees of
SemMaterials or third parties and damage to the other Party’s property or third
parties, arising out of such Party’s use of a Terminal.  SemMaterials
and SMEP shall provide each other a detailed written incident report and shall
furnish such other Party with a copy of non-privileged reports made by the
reporting Party to such Party’s insurers, governmental entities or to others of
such accidents or occurrences.  Each Party shall promptly report any
governmental inspections relative to such Party’s operations conducted at the
Terminal and the results of the inspections.  Where advance notice of
an inspection is given, each Party shall promptly notify the other Party using
the Terminal of the same.  Each Party shall inform the other Party of
any notices, warnings, or asserted violations issued by any governmental
agencies relative to any activities performed by such Party at the
Terminal.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8. Reserved.

     

    9. Personnel,
Contractor Prohibitions and Restrictions.  The possession, use,
manufacture, distribution, transfer of, or being under the influence of any
unauthorized, prohibited, illegal or controlled substance, or drug
paraphernalia, or possession of any firearm, weapon, explosive or ammunition is
prohibited at the Terminals.  As used in this provision, “substance”
refers to alcohol, drug(s), chemical(s), illegal or prescribed, that may be
inhaled, injected, absorbed or taken by mouth that may, in the SMEP’s opinion,
impair an individual.  SemMaterials shall not allow and shall take all
steps reasonably necessary to prevent the possession of any unauthorized,
prohibited, illegal, or controlled substance, illegal weapon or firearm by one
of its employees, agents, contractors or invitees at the
Terminal.  Any employees, agents, invitees or contractors of
SemMaterials who violate this prohibition are subject to immediate removal from
the Terminal and such removal shall not constitute any cause for claim or
damages against SMEP, and SMEP may prevent such persons from returning to the
Terminal.  Prohibited items and substances may be confiscated and
transferred to appropriate law enforcement authorities.  SMEP shall
enforce the prohibitions and restrictions described in this paragraph against
its own personnel, contractors or visitors, or other users of the
Terminals.

     

    10. Regulatory
Matters and Compliance.  SMEP and SemMaterials and their
respective employees, agents and invitees shall comply with all applicable
federal, state, and local laws, rules, regulations and orders in connection with
their respective use of the Terminals.  Each Party shall secure and
maintain current all required permits, licenses, certificates, and approvals
relating to its use of the Terminals or the Asphalt Transferred Assets, as
applicable and in accordance with the terms of the Transition Services
Agreement.  SMEP shall comply with all applicable federal, state, and
local laws, rules, regulations and orders pertaining to the operation of the
Terminal and the Asphalt Transferred Assets to the extent reasonably necessary
to enable SemMaterials to exercise the rights provided
hereunder.  SemMaterials and SMEP shall reasonably cooperate and
coordinate with each other with respect to permits, environmental prevention
plans and storm water permitting.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    11. Notice of
Damage; Emergency Management.  SemMaterials shall promptly
notify SMEP of any matters pertaining to any damage or impending damage to or
loss of any of the SMEP’s assets or facilities that are known to such
Party.  SMEP shall promptly notify SemMaterials of any damage or
impending damage to or loss of any of their assets or facilities, including any
unpermitted release or threat of release of Hazardous Materials, that are known
to SMEP.  In the event of an emergency occurring at any Terminal, SMEP
and SemMaterials shall diligently cooperate in good faith to appropriately
manage the emergency situation in a timely and effective manner.  Such
cooperation shall include, but not be limited to, providing of necessary access
to all portions of the Terminal and the improvements thereon.

     

    12. Access to
Terminals and Asphalt Transferred Assets.  SemMaterials shall
have access to the Terminals and the Asphalt Transferred Assets for the exercise
of its rights granted hereunder during each such Terminal’s normal business
hours in accordance with its ordinary course of business and consistent with
past practice, subject to the terms and
conditions set forth in this Agreement and to reasonable Terminal shutdowns or
restrictions to address emergency or hazardous situations or as reasonably
necessary to protect SMEP’s assets or operations.  SMEP may reasonably
designate certain areas within the Terminals as private and restrict the access
of SemMaterials thereto to the extent such areas do not relate to SemMaterials’
business activities or unduly impede SemMaterials’ access to the Asphalt
Transferred Assets.  In the event SemMaterials needs access to any
such restricted areas at a particular Terminal, SemMaterials shall provide SMEP
with advance notice and SMEP shall provide an escort for such
access.

     

    13. Reserved.

     

    14. Standards
of Operation; Prevention of Interference with Other Party’s
Operations.  Except as otherwise set forth herein, for purposes
of this Agreement, the normal and customary standards of performance within the
asphalt industry shall be the measure of whether a Party’s performance is
reasonable and timely and each Party shall conduct its business, operations and
other activities undertaken at the Terminals pursuant to this Agreement in
accordance with such standards.  Neither SemMaterials nor SMEP shall
use equipment, technologies, or methods of operation that adversely interfere or
affect the operations or assets of the other Party using the
Terminal.  Each Party shall take all reasonable precautions to prevent
damage to the Terminals or any of the assets located thereon.

     

    15. Reserved.

     

    16. Reserved.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    17. Indemnification.

     

    (a) SemMaterials,
for itself, its successors and assigns hereby (i) waives its right to bring any
claim or cause of action against SMEP, its agents and employees and (ii) agrees
to indemnify, defend and hold harmless SMEP for any claim or cause of action for
any loss, damage, injury, or other casualty of whatsoever kind or by whomsoever
caused, to the person or property arising out of, or resulting from
SemMaterials' use, possession or operation thereof, or from its installation,
existence, use, maintenance, conditions, repair, alteration, removal or
replacements of any improvements thereof, unless due to the gross negligence or
willful misconduct of SMEP, its agents or employees.

     

    (b) SemMaterials
agrees to indemnify and save SMEP harmless from and against any and all
liabilities, claims, demands, suits, judgments, damages or losses, including
costs, fees and expenses, in connection therewith, or incidental thereto, in any
manner arising from or in connection with, any actual or threatened pollution or
threatened pollution or contamination, in any manner, resulting from: (i)
SemMaterials’ access and use of the Terminals under this Agreement and (ii) the
performance of any of the obligations set forth in this Agreement by
SemMaterials, its invitees, or persons, firms, or corporations doing work for
SemMaterials or by the agents, servants or employees of any of
them.

     

    18. Limitation
of Liability.  Notwithstanding any other provision,
SemMaterials shall not be liable to the other Party for special, punitive,
exemplary, consequential, or indirect losses or damages suffered by SMEP as a
result of the performance or nonperformance of its obligations under this
Agreement, or its acts or omissions related to this Agreement or its use of the
system, whether or not arising from sole, joint or concurrent negligence, strict
liability, violation of law, breach of contract, breach of warranty, or any
other source whether or not foreseeable and even if the Parties have been
advised of the possibility of such damages.

     

    19. Insurance.

     

    (a) Obligation
to Obtain.  During the Term, the Parties (or their agents)
shall each obtain and/or maintain not less than the following
insurance:

     

    (i) Commercial
General Liability Insurance with a combined single limit of $1,000,000 for
bodily injury and property damage per occurrence and in the
aggregate.

     

    (ii) If a
Party has employees, Worker’s Compensation Insurance (including Occupational
Disease coverage) in amounts required by applicable law and Employers Liability
Insurance (including Occupational Disease coverage) with limits not less than
$500,000 each accident.  If work is to be performed in North Dakota,
Ohio, Washington, Wyoming, or West Virginia, the Party shall participate in the
appropriate state fund(s) to cover all eligible employees and provide a stop gap
endorsement.

     

    (iii) Automobile
Liability Insurance with a combined single limit of $1,000,000 for bodily injury
and property damage per occurrence, to include coverage for all owned,
non-owned, and hired vehicles.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (iv) Excess
(or Umbrella) Liability Insurance with a combined single limit of $9,000,000 for
bodily injury and property damage per occurrence, such insurance providing
excess or umbrella liability coverage above primary liability limits set forth
in Subsections (i), (ii), and (iii) of this Section.

     

    (v) Insurance
on an all risk basis for the replacement value of such Party’s property
(including fixtures, improvements and equipment) located at the Terminals and
any other insurance against other perils and in such amounts as the Parties
agree from time to time should be reasonably required.

     

    The
limits set forth above are minimum coverage amounts and are not intended and
shall not be construed to limit the liability of either Party under this
Agreement.  Failure of either Party to demand such certificate or
other evidence of full compliance with these insurance requirements or failure
of either party to identify a deficiency from evidence that is provided shall
not be construed as a waiver of either Party’s obligation to maintain such
insurance.

     

    (b) Policy
Requirements.  All insurance required hereunder shall be
maintained with responsible, solvent and reputable insurance companies with an
A.M. Best rating of A-IX or better that are qualified to do business in the
State of Oklahoma. Each Party shall provide the other Party with an
insurance certificate confirming compliance with the insurance requirements of
this Article.  SemMaterials shall, in addition to and without
limitation of the requirements of this Section 20, cause the
insurance policies described in Sections 20(a)(i) and
20(a)(iii) to
include SMEP as an additional insured.  All insurance required
hereunder and provided by SemMaterials shall be primary to any other insurance
coverage of SMEP and shall apply and be in full force and effect regardless of
the existence of other insurance.  The insurance certificate shall
indicate that the other Party shall be notified not less than ten (10) calendar
days prior to any cancellation in coverage; provided, however, that with
respect to the policies described in Sections 20(a)(i) and
20(a)(iii), the
insurance certificate shall provide that SMEP shall be notified not less than
thirty (30) calendar days prior to any cancellation in coverage.  If
either Party provides any of the foregoing coverages through a claims-made
policy basis, that Party shall endeavor to maintain, for at least three years
beyond the expiration of this Agreement, a tail policy.

     

    (c) Waiver of
Claims; Waiver of Subrogation.  Each Party hereto hereby waives
any and all claims for recovery which such Party or anyone claiming through such
Party may have against the other Party hereto (or such other Party’s officers,
agents or employees) for or with respect to any loss of or damage to such
waiving Party’s property which is (i) insured under valid insurance policies, to
the extent of any recovery actually collectible under such insurance policies,
or (ii) required by this Agreement to be insured, to the extent any recovery
would be collectible if such insurance policies were obtained and maintained as
required by this Agreement, whether or not such loss or damage is caused by the
negligence of such other Party or such other Party’s agents, employees or
contractors or of any other person or persons for whose actions such other Party
may be responsible or liable.  SMEP and SemMaterials each agree to
obtain from the insurance companies providing its insurance applicable hereto
permission to allow SMEP and SemMaterials to waive their respective insurance
companies’ rights of subrogation.  SMEP and SemMaterials shall each
provide to the other written proof of the waiver of said claims by said
insurance companies.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d) Blanket
Policies.  Nothing in this Agreement shall be construed to
prevent either Party from satisfying its insurance obligations pursuant to this
Agreement under a blanket policy or policies of insurance that meet or exceed
the requirements of this Article.

     

    (e) Diligent
Pursuit of Claims.  In the event coverage is denied or
reimbursement of a properly presented claim is disputed by the carrier for
insurance required by this section, the Party carrying such coverage shall make
commercially reasonable efforts to pursue such claim with its
carrier.

     

    20. Reserved.

     

    21. Reserved.

     

    22. Default.  A
Party shall not be in default under this Agreement unless and until the
non-defaulting Party provides it written notice of such default and the
defaulting Party fails to cure the same within thirty (30) calendar days after
receipt of such notice (or, with respect to monetary defaults, within ten (10)
business days after receipt of such notice); provided, however, that where
a non-monetary default cannot reasonably be cured within such thirty (30) day
period, if the defaulting Party proceeds promptly to cure the default with due
diligence, the time for curing such default shall be extended for such period of
time as may be reasonably necessary to complete such curing.  Any
event of default may be waived at the non-defaulting Party’s
option.  Upon the failure of a Party to timely cure any such default
after notice thereof from the other Party and expiration of the above cure
periods, then the non-defaulting Party may pursue any legal remedies it may have
under applicable law or principles of equity relating to such
default.  Either Party may seek equitable remedies prior to expiration
of the above cure period to prevent irreparable harm.

     

    23. Reserved.

     

    24. Force
Majeure.  No Party shall be in default under this Agreement
with respect to any delay in its performance caused by any of the following
conditions (each a “Force Majeure
Event”):  (a) act of God; (b) fire; (c) flood; (d) material
shortage or unavailability not resulting from the responsible Party’s failure to
timely place orders or take other necessary actions therefor; (e) war or civil
disorder; or (f) any other cause beyond the reasonable control of such
Party.  The Party claiming relief under this Article shall
promptly notify the other in writing of the existence of the Force Majeure Event
relied on, the expected duration of the Force Majeure Event, and the cessation
or termination of the Force Majeure Event.  The Party claiming relief
under this Article shall exercise commercially reasonable efforts to
minimize the time for any such delay.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    25. Notice.  Unless
otherwise provided in this Agreement, all notices and communications concerning
this Agreement shall be in writing and addressed to the other Party as
follows:

     

    
      	
              If
      to SMEP:

            	
              SemMaterials
      Energy Partners, L.L.C.

              Attn:  President

              6120
      South Yale, Suite 500

              Tulsa,
      OK 74136

              Facsimile
      No. (918) 524-5805

            
	 
      	 
      
	
              With
      a copy to:

            	
              Baker
      Botts L.L.P.

              Attn:  Doug
      Rayburn

              2001
      Ross Avenue

              Suite
      600

              Dallas,
      Texas 75201

              Facsimile
      No.:  (214) 661-4634

            
	 
      	 
      
	
              If
      to SemMaterials:

            	
              SemMaterials,
      L.P.

              Attn:  President

              6502
      South Yale Avenue

              Tulsa,
      OK 74136

              Facsimile
      No. (918) 524-8920

            
	 
      	 
      
	
              With
      a copy to:

            	
              Weil,
      Gotshal & Manges, LLP

              Attn:  Michael
      A. Saslaw, Esq.

              200
      Crescent Court, Suite 300

              Dallas,
      TX 75201-6950

              Facsimile
      No.:  (214) 746-7777

            
	 
      	 
      

    

    or at
such other address as may be designated in writing to the other
Party.

     

    Unless
otherwise provided herein, notices and invoices shall be hand delivered, sent by
registered or certified U.S.  Mail, postage prepaid, or by commercial
overnight delivery service, or transmitted by electronic mail or facsimile, and
shall be deemed served or delivered to the addressee or its office when received
at the address for notice specified above when hand delivered, upon confirmation
of sending when sent by electronic mail or facsimile, on the day after being
sent when sent by overnight delivery service, or three United States Postal
Service business days after deposit in the mail when sent by
U.S.  mail.

     

    26. Reserved.

     

    27. Miscellaneous.

     

    (a) Headings.  The
headings of the sections and subsections of this Agreement are for convenience
only and shall not be used in the interpretation of this Agreement.

     

    (b) Standards
of Performance.  Except as otherwise set forth herein, for the
purpose of this Agreement the normal standards of performance within the asphalt
storage and manufacturing industry in the relevant market shall be the measure
of whether a Party’s performance is reasonable and timely.

     

    (c) Section
References.  Except as the context otherwise indicates, all
references to Exhibits, Sections, and Subsections refer to provisions of this
Agreement.  The words hereof, herein, hereunder or similar words refer
to this Agreement as a whole and not to any particular provision, paragraph or
Section.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d) Amendment
or Waiver.  This Agreement may not be amended, modified or
waived except by written instrument executed by officers or duly authorized
representatives of the respective Parties.  The Parties hereby
acknowledge and agree that a material amendment to this Agreement requires the
approval of the Bankruptcy Court prior to the effective date of the plan of
reorganization in the Bankruptcy Cases.  No waiver or failure of
enforcement by any Party of any default by any other Party in the performance of
any provision, condition or requirement herein shall be deemed to be a waiver
of, or in any manner a release of the defaulting Party from, performance of any
other provision, condition or requirement herein, nor deemed to be a waiver of,
or in any manner a release of the defaulting Party from, future performance of
the same provision, condition or requirement; nor shall any delay or omission of
any non-defaulting Party to exercise any right hereunder in any manner impair
the exercise of any such right or any like right accruing to it
thereafter.

     

    (e) Severability.  Any
provision of this Agreement that is prohibited or not enforceable in any
jurisdiction shall, as to that jurisdiction, be ineffective only to the extent
of the prohibition or lack of enforceability without invalidating the remaining
provisions of this Agreement, or affect the validity or enforceability of those
provisions in another jurisdiction or the validity or enforceability of this
Agreement as a whole.

     

    (f) Assignment.                                No
Party hereto may assign this Agreement, in whole or in part, except with the
prior written approval of each other Party, which approval shall not be
unreasonably withheld; provided, however, that a Party
may assign this Agreement to an Affiliate or any purchaser of or successor to
all or substantially all of the asphalt assets or business of such Party; provided, further that
SemMaterials has pledged, and may continue to pledge, its ownership interest in
the Existing Asphalt Inventory for the benefit of its creditors to the extent
permitted by Applicable Law.  This Agreement shall inure to the
benefit of, and shall be binding upon, the Parties and their respective
permitted successors and assigns, including with respect to SemMaterials, any
reorganized debtor entity appointed pursuant to the plan of reorganization of
SemMaterials.

     

    (g) Entire
Agreement and Conflict with Attachments.  This Agreement
(including Attachments) contains the entire and exclusive agreement between the
Parties with respect to the subject matter hereof, and there are no other
promises, representations, or warranties affecting it.  The terms of
this Agreement may not be contradicted, explained or supplanted by any usage of
trade, course of dealing or course of performance and any other representation,
promise, statement or warranty made by either Party or their agents that differs
in any way from the terms contained herein will be given no force or
effect.  In the case of any conflict between the body of this
Agreement and any of its Attachments, the terms contained in the Attachments
will govern.

     

    (h) Governing
Law.  THIS AGREEMENT, THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT, AND ANY CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY), INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, SHALL IN ALL RESPECTS BE
GOVERNED BY AND INTERPRETED, CONSTRUED, AND DETERMINED IN ACCORDANCE WITH, THE
APPLICABLE PROVISIONS OF THE BANKRUPTCY CODE AND THE INTERNAL LAWS OF THE STATE
OF OKLAHOMA (WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION THAT WOULD REQUIRE
THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (i) Jurisdiction.

     

    (i) Without
limiting any Party’s right to appeal any Order of the Bankruptcy Court, (i) the
Bankruptcy Court shall retain exclusive jurisdiction to enforce the terms of
this Agreement and to decide any claims or disputes which may arise or result
from, or be connected hereby, and (ii) any and all Actions related to the
foregoing shall be filed and maintained only in the Bankruptcy Court, and the
Parties hereby consent to and submit to the jurisdiction and venue of the
Bankruptcy Court and shall receive notices at such locations as indicated in
Section 25;
provided, however, that if a
plan of reorganization has become effective in the Bankruptcy Cases, the Parties
agree to unconditionally and irrevocably submit to the exclusive jurisdiction of
the federal or state courts in Oklahoma City, Oklahoma for the resolution of any
such claim or dispute.

     

    (ii) The
Parties hereby unconditionally and irrevocably waive, to the fullest extent
permitted by Applicable Law, any objection which they may now or hereafter have
to the laying of venue or any dispute arising out of or relating to this
Agreement or any of the transactions contemplated hereby brought in any court
specified in paragraph (a) above, or any defense of inconvenient forum of the
maintenance of such dispute.  Each of the Parties hereto agrees that a
judgment in any such dispute may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law.

     

    (iii) Each of
the Parties hereto consents to process being served by any Party to this
Agreement in any suit, Action or proceeding by the mailing of a copy thereof in
accordance with the provisions of Section
25.

     

    (j) Counterparts.  This
Agreement may be executed in any number of counterparts each of which, when so
executed and delivered (including by facsimile or electronic mail transmission),
will be deemed original but all of which together will constitute one and the
same instrument.

     

    (k) Further
Assurances.  Subject to the terms and conditions of this
Agreement, each of the Parties hereto will use commercially reasonable efforts
to take, or cause to be taken, all action, and to do, or cause to be done, all
things necessary under applicable laws and regulations to consummate the
transactions contemplated by this Agreement.

     

    (l) No
Third-Party Beneficiaries.  Except as provided in Section 17, nothing
contained in this Agreement, expressed or implied, is intended or shall be
construed to confer upon or give to any Person (including any limited partners
of SGLP) other than the Parties hereto and their successors or permitted
assigns, any rights or remedies under or by reason of this
Agreement.

     

    (m) No Strict
Construction.  The Parties to this Agreement have participated
jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises with respect to this
Agreement, this Agreement shall be construed as if drafted jointly by the
Parties, and no presumption or burden of proof shall arise favoring or
disfavoring a Party by virtue of the authorship of any of the provisions of this
Agreement.

     

    

     

    

     

    [REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    IN
WITNESS WHEREOF, duly authorized representatives of SemMaterials and SMEP have
executed this Agreement as of the date hereof to be effective as of the
Effective Date.

     

    

     

    SEMMATERIALS
ENERGY PARTNERS, L.L.C.

     

    

     

    By:/s/ Alex G.
Stallings                                                                           

     

     Name:
Alex G.
Stallings                                                                           

     

    Title:    Chief Financial Officer and
Secretary

     

    

     

    SEMMATERIALS,
L.P.

     

    By:  SemOperating
G.P., L.L.C.,

            its
general partner

    

    By:/s/ Terrence
Ronan                                                                           

     

    Name:
Terrence
Ronan                                                                           

     

    Title:   President &
CEO                                                                           

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
1(i)

     

    DESCRIPTION OF TERMINALS,
SMEP OWNED REAL

     

    PROPERTY AND SMEP LEASED
REAL PROPERTY

     

    
      	
              TERMINAL

            	
              Street
      Address

            	
              Land

              Owned

              or
      Leased

            
	
              Ardmore,
      OK

            	
              2500
      Refinery Road

            	
              L

            
	
              Austin,
      TX

            	
              8803
      North Mopac Expressway

            	
              O

            
	
              Bay
      City, MI

            	
              309
      Woodside Avenue

            	
              O

            
	
              Billings,
      MT

            	
              7315
      Mossmain Lane

            	
              O

            
	
              Boise,
      ID

            	
              4303
      Gekeler Lane

            	
              O

            
	
              Catoosa,
      OK (Emulsion plt)

            	
              5850
      Arkansas Road

            	
              L

            
	
              Catoosa,
      OK (Port 33)

            	
              100 N.
      321st E. Avenue

            	 
      
	
              Port
      of Catoosa

            	
              5645 E.
      Channel Road

            	 
      
	
              Chicago,
      IL Marine Oil

            	
              4950 W.
      41st Street

            	
              L

            
	
              Columbus,
      OH

            	
              3737
      Fisher Road

            	
              O

            
	
              Denver
      C, CO

            	
              4310 E.
      60th Avenue

            	
              O

            
	
              Denver
      K, CO

            	
              4308 E.
      60th Avenue

            	
              L

            
	
              Dodge
      City, KS

            	
              2600
      Butter & Egg Road

            	
              O

            
	
              El
      Dorado, KS

            	
              800 E.
      10th Street

            	
              L

            
	
              Ennis,
      TX

            	
              203
      Cedar Road

            	
              O

            
	
              Fontana,
      CA

            	
              14929
      Slover Avenue

            	
              O

            
	
              Garden
      City Plant PMAC/CB

            	
              14
      Fountain Drive

            	
              O

            
	
              Gloucester
      City, NJ

            	
              King
      Street & Jersey Avenue

            	
              O

            
	
              Grand
      Island, NE

            	
              4112
      Academy Road

            	
              L

            
	
              Grand
      Jct, CO

            	
              202
      Fourth Avenue

            	
              O

            
	
              Halstead,
      KS

            	
              300
      Industrial Road

            	
              O

            
	
              Las
      Vegas, NV

            	
              3901 W.
      Ponderosa Way

            	
              O,L

            
	
              Lawton,
      OK

            	
              9301
      SW Koch Street

            	
              O

            
	
              Little
      Rock, AR

            	
              601
      Shamburger Lane

            	
              O

            
	
              Lubbock,
      TX

            	
              1611
      Marshall Street

            	
              O,L

            
	
              Memphis
      Emulsion, TN

            	
              1430
      Channel Avenue

            	
              O,L

            
	
              Memphis
      TN

            	
              1285
      Channel Avenue

            	
              O

            
	
              Morehead
      City, NC

            	
              105
      Arendale Street

            	
              L

            
	
              Muskogee,
      OK

            	
              2501
      Port Place

            	
              L

            
	
              New
      Madrid, MO

            	
              #297
      Hwy 61 South

            	
              O

            
	
              Newport
      News, VA

            	
              801
      Terminal Avenue

            	
              O

            
	
              Northumberland,
      PA

            	
              4th
      & Duke

            	
              O

            
	
              Parsons,
      TN

            	
              5445
      Hwy 412 East

            	
              L

            
	
              Pasco,
      WA

            	
              3152
      Selph Landing

            	
              L

            
	
              Pekin,
      IL

            	
              201 S.
      Levee Road

            	
              O

            
	
              Pueblo,
      CO

            	
              510
      West D Street

            	
              O

            
	
              Reading,
      PA

            	
              3847
      Pottsville Pike

            	
              O

            
	
              Saginaw,
      TX

            	
              600
      Minton Road

            	
              O,L

            
	
              Salina,
      KS

            	
              1100 W.
      Grand Avenue

            	
              O

            
	
              Salt
      Lake City, UT

            	
              95
      West, 1100 North

            	
              O

            
	
              Sedalia,
      MO

            	
              1414
      West Morgan Street

            	
              O

            
	
              Spokane,
      WA (Hillyard)

            	
              4327
      North Thor Street

            	
              L

            
	
              Spokane,
      WA (Valley)

            	
              E
      16710 Euclid Avenue

            	
              O

            
	
              St.
      Louis, MO

            	
              201
      East Nagel Avenue

            	
              O

            
	
              Warsaw,
      IN

            	
              2820 E.
      Durbin Street

            	
              O

            
	
              Woods
      Cross, UT

            	
              991 W.
      1500

            	
              O

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1(k)

     

    DESCRIPTION OF SMEP’S
TERMINAL ASSETS

     

    Land and
Land Improvements

     

    Buildings

     

    Furniture
and Fixtures

     

    Machinery
and Equipment

     

    Storage
Tanks – AC and Residual Fuels

     

    Piping,
Electrical, Boilers and related Equipment

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