Document:

Exhibit 10.10

    
      

    

    Exhibit
      10.10

     

    Form
      of 

    “LPG
      TRANSPORTATION AGREEMENT”

     

    This
      LPG
      Transportation Agreement (“Agreement”),
      is
      made and entered into this ___
      day
      of
      _________ 2006 (the “Effective
      Date”),
      by
      and between Rio
      Vista Operating Partnership, L.P.,
      a
      Delaware limited partnership (“Rio”)
      and
Penn
      Octane International, LLC, a
      Delaware limited liability company (“International”)
      (collectively “Carrier”),
      and
TransMontaigne
      Product Services Inc.,
      a
      Delaware corporation (“Shipper”).
      Carrier and Shipper are sometimes hereinafter referred to individually as a
      “Party” and collectively as the “Parties”.

     

    RECITALS:

     

    A.    Carrier
      owns the Carrier System as defined below. Carrier and Shipper entered into
      a
      Purchase and Sale Agreement, dated August 15, 2005, as amended and restated
      on
August
      15,
      2006
      (“Purchase
      Agreement”),
      pursuant to which Shipper purchased certain Brownsville Terminal Assets (as
      defined in the Purchase Agreement).

     

    B.    
Shipper
      requires Carrier to ship LPG from the Brownsville Terminal Site to the Mexican
      Terminal Site using the Carrier System and have Carrier cause its wholly owned
      subsidiaries, Termatsal S. de R.L. de C.V. (“Termatsal”),
      and
      Penn Octane de Mexico,
      S.
      de R.L.
      de C.V.
      (“POM”)
      and
      its affiliate, Tergas, S. de R.L. de C.V. (“Tergas”),
      of
      which each Termatsal, POM and Tergas are
      limited
      liability companies
      duly
      incorporated and existing under the laws of Mexico all
      of which
      Carrier controls, to transport on the Mexican portion of the Carrier System
      and
      deliver the LPG to designated customers of Shipper or PMI at the Mexican
      Terminal Site.

     

    C.    
This
      Agreement, being a condition to the closing pursuant to the Purchase Agreement,
      requires that Carrier will provide LPG transportation and delivery services
      to
      Shipper pursuant to the terms and conditions of this Agreement.

     

    NOW,
      THEREFORE, in consideration of the undertakings of each Party to the other
      Party
      contained in this Agreement, the Parties agree as follows:

     

    ARTICLE
      1

     

    DEFINITIONS
      AND INTERPRETATION

    

    1.1   Definitions.  In
      this
      Agreement, including the schedules attached hereto, the following terms shall
      have the meanings assigned to them below:

     

     

    “Additional
      Rate”
has
      the
      meaning given in Section 3.1.

     

    “Affiliate”
means,
      in reference to a Person, any other Person which directly or indirectly controls
      or is controlled by the first Person or is directly or indirectly controlled
      by
      a Person which also directly or indirectly controls the first Person, excepting
      from the foregoing TransMontaigne Partners L.P. or any of its affiliates. For
      the purposes of this definition, a Person shall be deemed to control another
      Person if the first Person controls the other Person in fact, whether by
      ownership of shares of a corporation, by contract, by being the sole general
      partner of a limited partnership or otherwise.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Applicable
      Laws”
means
      all laws and statutes (including regulations enacted thereunder), judgments
      and
      orders of courts of competent jurisdiction, regulations and orders issued by
      Governmental Authorities applicable to (i) the ownership, operation,
      maintenance, improvement, and use of the Carrier System and (ii) the Parties’
performance of their respective obligations hereunder.

     

    “Arbitration
      Notice”
has
      the
      meaning indicated in Section 9.5.

     

    "ASTM"
      shall
      mean the American Society for Testing and Materials.

     

    “Brownsville
      Terminal Site”
means
      the plot of land, and associated equipment and improvements, which is leased
      by
      Shipper from the Brownsville Navigation District, where LPG is stored and is
      located on Brownsville Navigation District Lease No. 2823, dated October 5,
      1993, as amended.

     

    “Carrier”
is
      defined in the preamble of this Agreement.

     

    “Carrier
      System”
means
      Carrier’s Owned Pipelines and the Mexican Terminal Site, as such pipelines and
      terminal facilities exist on the Service Commencement Date. 

     

    “Contract
      Year”
means
      a
      twelve (12) Month period commencing on and including the Service Commencement
      Date and each consecutive twelve (12) Month period thereafter, for the Term
      of
      this Agreement. 

     

    “Compliance
      Procedures”
has
      the
      meaning given in Section 4.3.1.

     

    “Day”
means
      the twenty-four (24) hour period (as adjusted for daylight savings time)
      commencing at 12:00 a.m., local time, on one calendar day, and ending at 12:00
      a.m., local time, on the next calendar day.

     

    “Delivery
      Point”
means
      the outlet flange of the loading racks located in the Mexican Terminal Site
      at
      which Carrier will cause Tergas
      to make
      redeliveries of LPG, for the account of Shipper, to the customer designees
      of
      PMI or other designees of Shipper.

     

    “Dispute”
has
      the
      meaning indicated in Section 9.1.

    

    “Dispute
      Notice”
has
      the
      meaning indicated in Section 9.2.

     

    “Environmental
      Laws”
      means
      any Applicable Law or Order relating to protection of the environment,
      including, persons or the public welfare from actual or potential exposure
      (or
      the effects of exposure) to any actual or potential Release or regarding the
      manufacture, processing, production, gathering, transportation, generation,
      use,
      treatment, or storage of any Hazardous Materials.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Effective
      Date”
is
      defined in the preamble of this Agreement.

     

    “FERC”
means
      the Federal Energy Regulatory Commission.

     

    “Force
      Majeure Event”
is
      defined in Section 6.11.

    

    "Gallon(s)"
      shall
      mean one (1) U.S. standard gallon of two hundred and thirty one (231) cubic
      inches at sixty degrees Fahrenheit (60F).

    

    “Good
      Industry Practice”
      means
      the practices and methods, normally employed by a prudent operator of a
      petroleum products pipeline in the U.S. as well as in accordance with (i)
      applicable American Petroleum Institute (API) standards; (ii) applicable U.S.
      Department of Transportation (“DOT”) rules and regulations, including DOT Part
      195; and ASME Code B.31.4. Consistent with the foregoing, Good Industry Practice
      shall include compliance with Applicable Laws and the easements and other
      property rights related to the Carrier System, as well as practices recommended
      by Governmental Authorities having jurisdiction over the Carrier System or
      by
      relevant industry advisory bodies or organizations.

    

    “Governmental
      Authority”
means
      any court, tribunal, arbitrator, authority, agency, commission, official, or
      other instrumentality of the United States, Mexico,
      or
      any
      state or political subdivision thereof, and including any governmental,
      quasi-governmental, or non-governmental body administering, regulating, or
      having jurisdiction over the transportation of LPG and other petrochemical
      products, including, without limitation, the FERC.

    

    "GPA"
      shall
      mean the Gas Processors Association.

    

    “Hazardous
      Materials”
      means
      any substance, whether solid, liquid, gaseous, or any combination of the
      foregoing or any other substance not expressly mentioned herein: (a) that is
      listed, defined, or regulated as a “hazardous material,” “hazardous waste,”
“solid waste,” “hazardous substance,” “toxic substance,” “contaminant,” or
“pollutant” or otherwise classified as hazardous or toxic, in or pursuant to any
      Environmental Laws or otherwise prohibited, limited or regulated under any
      Environmental Laws; (b) that is or contains asbestos, polychlorinated biphenyls,
      radon, urea formaldehyde foam insulation, or explosive or radioactive materials,
      and (c) that is or contains petroleum hydrocarbons, petroleum products, natural
      gas, crude oil, or any components, fractions, or derivatives
      thereof.

     

    “Inspector”
means
      an independent inspector that will be appointed by the mutual agreement between
      Shipper, PMI and Carrier.

     

    “LPG”
means
      the liquefied petroleum gas product conforming to the
      Specifications.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “LPG
      Variance”
has
      the
      meaning provided in Section 6.5.

     

    “Mediation
      Notice”
has
      the
      meaning indicated in Section 9.4.

     

    “Mexican
      Terminal Site”
means
      the plot of land and associated equipment,
      LPG
      tankage
      and
      improvements owned by Tergas, where the LPG or other petroleum products are
      stored, which is located at Carretera Sendero Nacional Km. 9, desviacion
      Carretera La Risita-Lucio Blanco Km. 3.4 desviacion brecha 22 s/n (a 500
      metros), Ejido La Gloria, C.P. 87560, Matamoros, Tamaulipas,
      Mexico.

     

    “Month”
means
      the period beginning with 12:00 a.m., local time, on the first Day of each
      calendar month and ending at 12:00 a.m., local time, on the first calendar
      Day
      of the next month.

    

    “Order”
      means
      any order, judgment, injunction, ruling, or decree of any U.S. court or other
      Governmental Authority.

    

    “Owned
      Pipelines”
means
      the approximately 23-mile 6-inch and 8-inch pipelines and associated equipment
      and improvements connecting the Brownsville Terminal Site to the Mexican
      Terminal Site

     

    “Parties”
and
      “Party”
are
      defined in the preamble of this Agreement.

     

    “Person”
means
      an individual, partnership, corporation, limited liability company, business
      trust, joint stock company, trust, unincorporated association, joint venture
      or
      other business entity, or a government or any political subdivision or agency
      thereof.

    

    "PGPB"
      shall
      mean Pemex-Gas y Petroquimica Basica.

     

    “PMI”
means
      P.M.I. Trading Limited, a corporation organized under the Laws of Ireland,
      having the administration of its business and place of address in Mexico City,
      Mexico.

     

    “PMI
      Contract”
means
      the Matamoros LPG Mix Purchase and Sales Agreement, dated April 28, 2006, by
      and
      between Rio and PMI, for the purchase of LPG for the period through March 31,
      2007.

     

    “Purchase
      Agreement”
has
      the
      meaning given in the Recitals.

     

    “Receipt
      Point”
means
      the point at which LPG will be received by Carrier from or for the account
      of
      Shipper hereunder, which point shall be defined as the outlet flange which
      connects Shipper’s Brownsville Terminal Site with the Carrier’s
      System.

    

    “Release”
      means
      any releasing, depositing, spilling, leaking, pumping, pouring, placing,
      emitting, discarding, abandoning, emptying, discharging, migrating, injecting,
      escaping, leaching, dumping or disposing.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Service
      Commencement Date”
is
      defined in Section 2.2.

     

    “Specifications”
means
      the specifications for LPG set out in Section 5.1 of this
      Agreement.

    

    “Tergas”
has
      the
      meaning given in the Recitals.

     

    “Termatsal”
has
      the
      meaning given in the Recitals.

     

    “Term”
has
      the
      meaning given in Section 2.1.

     

    “Transportation
      Rate”
means:
      (i) the rate set forth in Section 3.1, (ii) a rate mandated by Applicable Law
      with respect to transportation within the United States, or (iii) any other
      rates agreed to in writing by the Parties.

     

    1.2   Severability.  If
      any
      Article, Section, subsection or other provision of this Agreement is deemed
      to
      be or becomes void, illegal, invalid or unenforceable, then, to the extent
      of
      such voidability, illegality, invalidity or unenforceability, such provision
      or
      part thereof shall be considered ineffective and separate and severable from
      the
      balance of this Agreement and such provision shall not invalidate, affect or
      impair the remaining provisions of this Agreement and any such void, illegal,
      invalid, or unenforceable provision or part thereof shall be replaced with
      a
      mutually agreed new provision which will allow the Parties to restore the
      economic equilibrium
      of the Parties as agreed in the prior arrangement in a legally valid and
      effective manner; provided, however, that a Party may terminate this Agreement
      if that Party suffers material detriment as a result of such voidance,
      illegality, invalidity or unenforceability and the Parties
      have not been able to mutually agree on alternate or substitute contractual
      provisions to address said material detriment and restore economic equilibrium
      by not later than ninety (90) days after the effective date of such
      event.

     

    1.3   Interpretation
      of this Agreement.  In
      interpreting this Agreement, the following rules of construction shall be
      followed:

     

    1.3.1  the
      headings of Articles and Sections are for convenience only and shall not be
      taken into account in the interpretation of this Agreement;

     

    1.3.2  unless
      otherwise specified, a reference to an Article, Section, Subsection or Paragraph
      is a reference to an article, section, subsection or paragraph of this
      Agreement;

     

    1.3.3  words
      importing the singular include the plural and vice versa; words importing the
      masculine gender include the feminine and vice versa;

     

    1.3.4  “herein,”
      “hereto,” “hereof,” and similar expressions refer to this Agreement;
      and

     

    1.3.5  “include,”
      “including,” “included,” and similar expressions shall be interpreted as if such
      expressions were followed with the phrase “without limitation.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      2

     

    TERM
      AND TERMINATION

    

    2.1   Term.  The
      term
      of this Agreement shall, unless terminated under the provisions of Section
      1.2.,
      commence on the Effective Date and remain in full force and effect for the
      term
      of the PMI Contract, as extended from time to time thereafter. 

    

    2.2   Service
      Commencement Date.  Carrier
      shall be required to commence performance under this Agreement with respect
      to
      the receipt, transportation and terminal delivery of Shipper’s LPG as soon as
      commercially practicable after the Effective Date.

     

    ARTICLE
      3

    

    TRANSPORTATION
      RATE AND REGULATION

    

    3.1   Transportation
      Rate. 

    

    3.1.1    Shipper
      shall pay Carrier the
      rate
      described in Exhibit “A”
      for
      movements of Shipper’s LPG from the Receipt Point through the Delivery Point,
      which rate shall be inclusive of all fees for transportation, truck weighing,
      mercaptan
      injection, testing and inventory control (the “Transportation
      Rate”).
      

    

    3.1.2    To
      the
      extent that Carrier (i) is requested to carry LPG volumes in excess of the
      King
      Ranch Plant production (ii) has to construct any additional facilities or (iii)
      is requested to perform services which are in addition to the services being
      performed and compensated for under the Transportation Rate, then the Parties
      will mutually agree upon a rate per Gallon to be charged by Carrier (the
“Additional
      Rate”).
      If
      the Parties cannot reach an agreement with respect to the Additional Rate,
      then
      the matter shall be resolved pursuant to the procedures set out in Article
      9
      herein. 

    

    3.2   Delivery
      Expense Reimbursement. 

     

    3.2.1    Shipper
      acknowledges that Carrier and its Affiliates will incur certain
      expenses in
      providing services to PMI or PGPB, which
      expenses include telephone, telefax, cleaning and secretarial services.
      The
      Parties agree that such expenses are not intended to be borne by Carrier or
      its
      Affiliates, as their expense, under the Transportation Rate. Therefore, Shipper
      agrees to pay Carrier the additional
      amount
      of
      $2,500.00 per month during the Term
      of this
      Agreement to cover such
      services and expenses, as reimbursed to Shipper by PMI. Any
      extraordinary services
      and expenses
      will be
      mutually agreed upon by the Parties beforehand. 

     

    3.2.2    For
      the
      Term of this Agreement and subject to his continued employment by Carrier,
      Shipper shall pay Carrier the additional amount of $7,500 per month for the
      services provided by Vicente Soriano for the mutual benefit of both
      Parties.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    3.3   Regulation.  The
      Parties recognize that the interstate or foreign transportation of LPG on the
      portion of Carrier’s System located in the United States is subject to the
      Interstate Commerce Act and common carrier regulation by the FERC or any
      successor regulatory agency having jurisdiction. Carrier shall comply with
      all
      Applicable Laws respecting the provision of service by Carrier hereunder. The
      Parties agree to exercise their commercially reasonable efforts with all due
      diligence to support the justness and reasonableness, and continuance, without
      alteration, of the Transportation Rate specified herein and all other service
      terms and provisions of this Agreement, in any and all proceedings before any
      Governmental Authority in which any such provisions are subject to regulatory
      review.

     

    ARTICLE
      4

    

    TRANSPORTATION
      QUANTITY; DELIVERY; RECEIPT

    

    4.1   Transportation
      Quantity.  Subject
      to the terms of this Agreement, (a) Carrier shall accept at the Receipt Point,
      transport, store and redeliver at the Delivery Point LPG owned or controlled
      by
      Shipper and (b) the LPG tendered shall be accepted and redelivered by Carrier
      at
      the times and in quantities as directed from time to time by Shipper or
      Shipper’s designee in accordance with this Agreement.
      Shipper
      acknowledges the Carrier System is a flowing system with limited storage
      capacity of not more than 48 hours.

     

    4.2   Product
      Dedication.  Shipper
      commits to exclusively transport on the Carrier System, pursuant to the terms
      of
      this Agreement, all quantities of LPG which it owns or controls and which
      Shipper or
      its
      Affiliates (including TransMontaigne Partners L.P.) is
      required to deliver to the Delivery Point pursuant to the PMI
      Contract
      or to
      north eastern Mexico including, without limitation, the geographic region served
      by the Pipeline Assets or the Matamoros Terminal Site;
      provided, however, that neither Party shall be obligated by the foregoing to
      either build or pay for any additional facilities that are required to connect
      LPG sources or markets to Carrier’s System not connected thereto as of the
      Service Commencement Date nor increase the throughput capacity of the Carrier
      System. Should Shipper obtain a payment, penalty payment, or “take or pay”
payment from PMI related to the PMI’s failure purchase the contractually
      required amount of LPG from Shipper, then any such payment recovered by Shipper
      shall be divided between Shipper and Carrier as both Parties shall mutually
      agree
      in good
      faith.
      If the
      Parties cannot agree upon a mutually acceptable division of such payment, then
      the matter shall be resolved pursuant to the procedures set out in Article
      9
      herein.

     

    4.3   Product
      Quantity Inspection.  The
      Inspector shall determine the quantity of LPG to
      be
      delivered at the Delivery Point
      as
      provided in this Section and his findings shall be binding in the absence of
      fraud, bad faith or gross error.

    

    4.3.1.  Each
      empty tank truck shall be weighed on the platform scale at the Delivery Point,
      or an alternative independent platform scale mutually acceptable to the Parties.
      Once LPG is completely loaded onto the tank trucks, such tank truck will be
      weighed at the same platform scale upon its departure. The weight obtained
      by
      the differential between these two measurements shall be converted into volume
      in Gallons and corrected at 60oF
      in
      accordance with the latest version of the ASTM procedures (“Compliance
      Procedures”),
      through the determination of the specific gravity through a gas chromatograph
      provided by Shipper or by the Inspector. The Inspector shall take samples at
      the
      Delivery Point (at the Micromotion measurement device installed at the Delivery
      Point) for every 50,000 Gallons received at the Delivery Point. The gas
      chromatograph utilized shall be calibrated in accordance with the latest ASTM
      and GPA procedures.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4.3.2.  The
      terminal platform scale at the Delivery Point will be tested and adjusted for
      accuracy at least once every sixty (60) Days. Carrier will be required to comply
      with the calibration and certification procedures adopted by Mexican authorities
      in accordance with Official Standards (NOM-010-SCFI-1994 (1999)). PMI’s
      representatives and the
      Inspector
      may witness the calibration and certification procedures. Shipper or Carrier
      shall provide PMI via fax a copy of the above-mentioned certificates. If the
      terminal platform scale at the Delivery Point is used or any claim is received
      by Shipper from PGPB, Shipper
      and PMI
      reserves the right to execute evaluation procedures on a random basis sending
      tank trucks to an independent scale to test the accuracy of such scale and
      recover damages from Carrier for any discrepancy found.

    

    4.3.3.  If
      the
      terminal platform scale at the Delivery Point is not suitable for the service
      due to non-compliance with the above-mentioned Official Standards and an
      independent platform scale is used, the Parties will share equally the cost
      of
      weighing the tank trucks before and after loading,

    

    4.3.4.  If
      at any
      time the platform scales at the Delivery Point are replaced, such new scales
      shall be used to weigh all tank trucks receiving LPG at the Delivery Point,
      and
      shall be operated and maintained in accordance with the above provisions.

    

    4.3.5.  Until
      such time as the measuring facilities at the Receipt Point and the Delivery
      Point are installed and calibrated pursuant to Section 6.3 and 6.4, for customs
      and inventory-management purposes, LPG pumped through Carrier’s System from the
      Receipt Point to the Delivery Point shall be measured on a daily basis at the
      Micromotion measurement device installed at the Delivery Point. Readings by
      such
      device shall be registered by the Inspector, Mexican authorities, PGPB's customs
      broker, PMI's representative and Shipper's or Carrier’s representatives. A
      reading of the quantity of LPG pumped will be calculated on the basis of the
      differential between the readings taken at 00:00 hrs. and the reading taken
      the
      previous Day at 00:00 hrs., converted to volume in Gallons and corrected at
      60oF,
      through the determination of the specific gravity by samples taken at the
      Delivery Point (at the Micromotion measurement device installed at the Delivery
      Point) for every 50,000 Gallons received at the Delivery Point through the
      gas
      chromatograph.

    

    4.3.6.  Additionally,
      for verification and customs purposes, LPG pumped through Carrier’s System from
      the Receipt Point to the Delivery Point shall be measured on a weekly basis
      every Monday at the Micromotion measurement device installed at the Delivery
      Point. Readings by such device shall be witnessed by the Inspector, Mexican
      authorities, PGPB's customs broker, PMI's representative and Shipper's or
      Carrier’s representatives. A reading of the quantity of LPG pumped will be
      calculated on the basis of the differential between the current reading and
      the
      reading taken the previous Monday at the same time converted to volume in
      Gallons and corrected at 60oF,
      through the determination of the specific gravity by samples taken at the
      Delivery Point (at the Micromotion measurement device installed at the Delivery
      Point) for every 50,000 Gallons received at the Delivery Point during the
      immediate preceding five (5) Days through the gas chromatograph. The Inspector
      shall take line samples and shall test the batch pumped at the time of the
      readings.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.3.7.  Carrier
      and
      Shipper shall
      not
      and will not be required to verify or monitor the (i) qualifications or
      competence of any drivers of any tank trucks receiving LPG at the Delivery
      Point
      or (ii) the qualification or condition of any tank trucks receiving LPG at
      the
      Delivery Point.
      Both
      Parties acknowledge that it is the responsibility of
      PMI to
      verify that all its designees who accept delivery of LPG at the Delivery Point
      shall be fully in conformance with all Mexican laws and regulations and that
      Carrier shall not be required to provide this service.

     

    ARTICLE
      5

     

    QUALITY
      SPECIFICATIONS

    

    5.1   Receipt
      Point Specifications.  All
      LPG
delivered
      by
      Shipper at the Receipt Point and all LPG delivered by Carrier at the Delivery
      Point must meet the quality specifications required for delivery of LPG to
      PMI
      under the terms of the PMI Contract (“Specifications”).

    

    5.2   Enforcement
      of Specifications.  No
      LPG
      will be delivered by Shipper at the Receipt Point for transportation hereunder
      unless its kind and quality meets the applicable Specifications. Shipper shall
      be required, at Carrier’s reasonable request, to furnish Carrier with certified
      laboratory results that show that the composition of the LPG to be transported
      in Carrier’s System meets the Specifications. Carrier reserves the right to
      sample or test any such shipment prior to acceptance or during receipt and,
      in
      the event of a variance between Shipper’s certificate and the results of
      Carrier’s test, the latter shall prevail. All costs associated with Carrier’s
      testing shall be for the account of Carrier.

    

    5.3   Product
      Quality Inspection.  All
      LPG
      shall be monitored to ensure compliance with the Specifications. Determination
      of quality shall follow the procedures set forth in the Compliance Procedures.
      A
      sample of LPG will be drawn in accordance with the Compliance Procedures prior
      to delivery. A gas chromatography analysis shall be performed by Carrier on
      the
      sample in accordance with the ASTM D-2163 method to assess the sample’s
      compliance with the Specifications. The gas chromatograph utilized shall be
      calibrated in accordance with the latest ASTM and GPA procedures.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      6

     

    OPERATIONAL
      MATTERS

     

    6.1   Deliveries.  Shipper
      shall furnish a written nomination to Carrier at least ten (10) days prior
      to
      the Month in which Shipper desires transportation and terminal services
      hereunder, which date can be amended at any time by Shipper or its designee.
      Such written nomination shall specify the quantity of the LPG. 

     

    6.2   Minimum
      Injection Rate at Receipt Point.  Shipper
      shall deliver the LPG
      for
      transportation at an
      injection rate necessary to maintain Carrier’s
      normal
      operating pressures of
      no
      less than 300 psi.

     

    6.3   Receipt
      Measurement Facilities.  Shipper
      shall install, at its sole cost and expense, a custody control flow meter at
      the
      Receipt Point, and, at its option, at the inlet
      flange at the Mexican Terminal Site,
      which
      meters, absent fraud or manifest error, will measure the volume of LPG that
      is
      injected into Carrier’s System or delivered to the inlet
      flange at the Mexican Terminal Site.

     

    6.4   Measurement.

     

    6.4.1 
        General

     

    A.   Unit
      of Measurement:  The
      unit of measurement
      of the LPG stream shall be a Gallon.

     

    B.    Delivery
      Pressure:  The
      measurement station
      located at the Receipt Point shall be capable of measuring the volume of LPG
      delivered hereunder at pressures up to 500 psi or
      at
      such other pressure(s) as the Parties may mutually agree.

     

    C.    Flow
      Metering:  Each
      measurement station
      shall be operated, tested, and maintained and the mass of hydrocarbon streams
      calculated in accordance with standard industry practices.

     

    D.   Receipt
      Point:  Receipt
      of LPG shall be
      at Shipper’s meter station at the Receipt Point.

     

    E.    Flow
      Meter Calibration:  All
      calibrations,
      adjustments, and calculations shall be adjusted to Standard Conditions. Standard
      Conditions shall mean 60 degrees Fahrenheit and 14.696 psia. All flow
      measurement will be made utilizing temperature and pressure at flowing line
      conditions.

     

    F.    Check
      Meters:  Carrier,
      or its
      representative, may at its option and expense, install and maintain check
      measurement equipment which shall not interfere with the use of Shipper’s
      measurement equipment at the Receipt Point.

     

    G.    Access
      to Equipment:  Carrier,
      or its
      representative, shall have access at all reasonable times to the equipment
      of
      Shipper’s measurement station, but the calibrating and adjusting thereof shall
      be done solely by the employees, agents, representatives or designees of
      Shipper. Similarly, Shipper shall have access at all reasonable times to the
      equipment of Carrier’s check meter measurement stations, but the calibrating and
      adjusting thereof shall be done solely by the employees, agents or
      representatives or designees of Carrier.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    H.   Meter
      Ticket:  A
      meter ticket will be
      generated for the Receipt Point each Day and a copy will be promptly provided
      to
      Carrier. The billing period is from 00:00 hours on the first Day of each Month
      to 00:00 hours on the first day of the following Month.

     

    I.    Review
      of Measurement Data:  Shipper’s
      and Carrier’s
      personnel shall exchange measurement data on a timely basis in order to detect
      measurement discrepancies as they arise. In the event that Shipper’s and
      Carrier’s measurement differ more than one (1.0%) percent for two (2) or more
      Days in succession, both metering facilities will be examined and calibrated
      to
      determine whether or not either or both metering facilities are conforming
      to
      good measurement practice and/or operation.

     

    J.    
Flow
      Meter Calibration Frequency:  On
      a scheduled Day of
      each Month, or at other mutually agreeable intervals, Shipper or Shipper’s
      designee shall test and verify the accuracy of its measurement equipment in
      accordance with the appropriate industry standards. Shipper or its designee
      shall give Carrier notice of the date and time of each test sufficiently in
      advance (but no less than 48 hours in advance) to permit Carrier to have a
      representative present to witness such test result. The calibration records
      of
      Shipper’s or Carrier’s measurement equipment shall be made available for review
      by either Party.

     

    K    Certification
      of Test Equipment:  The
      certification and
      calibration records of either Party’s applicable test equipment shall be
      maintained and made available for review by the other Party.

     

    L.    Special
      Tests:  Either
      Party may request
      a special test of any measurement equipment of the other Party at its sole
      cost
      and expense. In such event, the Parties shall cooperate to secure prompt
      verification of accuracy of said equipment.

     

    6.4.2 
        Meter
      Calibration

     

    A.   Meter
      Calibrations:  The
      meter instrumentation
      and chart recorders (if applicable) shall be calibrated and inspected at the
      beginning of the delivery of the LPG at a minimum of every ninety (90) days
      thereafter. Necessary repairs to or replacement of the metering equipment shall
      be made when the equipment does not meet the required standards provided in
      the
      latest addition of the appropriate industry manual.

     

    B.    Errors
      less than 0.25%:  If
      the meter calibration
      deviates less than or equal to +
      0.25%
      from one scheduled calibration to the next, the effective date of the new factor
      shall be the date of the calibration and shall remain in effect until the next
      calibration.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    C.    Errors
      equal to or more than 0.25% and less than 0.50%:  If
      the meter calibration
      deviation is equal to or more than +
      0.25%,
      but less than +
      0.50%,
      then the effective date of the factor shall be the date on which an event
      occurred which is known to have changed the factor, or if such date is not
      known, then the effective date is determined as defined in Section 6.4.3.

     

    D.   Errors
      equal to or more than 0.50%:  Any
      deviation equal to or
      greater than +0.50%
      is
      not acceptable, and immediate steps shall be taken to effect the required
      maintenance or repairs.

     

    6.4.3 
        Volume
      Corrections

     

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

     

    6.4.4 
        Correction
      of Errors

     

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

     

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

     

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

     

    6.5   Overages
      and Shortages.  At
      the
      end of each Month, Carrier will calculate and Shipper shall confirm the
      difference, if any, between the volume of LPG delivered by Shipper at the
      Receipt Point and the volume of LPG delivered by Carrier to Shipper’s designated
customer
      together
      with the amount of inventory held at the Matamoros Terminal (the “LPG
      Variance”).
      If the
      LPG Variance results in a shortage of more than one (1.0%) percent, Carrier
      will
      reimburse Shipper for the shortage of volume outside measurement tolerance
      in
      accordance with Section 6.12
      quarterly.
      If the
      LPG Variance results in an overage of more than one (1.0%) percent, then
      such volume
      shall be the property of Carrier. These procedures shall be in addition to,
      and
      not in lieu of, any other provisions of this Agreement requiring Carrier to
      account to Shipper for all volumes delivered hereunder, but in no event shall
      the foregoing procedure result in Carrier accounting to Shipper more than once
      for the same volume.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.6   LPG
      Involved in Litigation.  When
      any
      LPG delivered
      by Shipper to Carrier
      for
      transportation is involved in litigation, disputed ownership or encumbrance
      by
      lien or charge of any kind, Shipper shall so advise Carrier in writing. Carrier
      may refuse to accept receipt of such LPG unless Shipper provides an indemnity
      bond or other form of financial undertaking to reasonably protect Carrier
      against any and all loss associated with such disputed title. Shipper shall
      indemnify Carrier against any and all loss or damages suffered by Carrier
      associated with such disputed ownership.

     

    6.7   Delivery
      at Destination.  The
      LPG will
      be delivered, for the account of Shipper, to the designated customers of
      PMI,
      PGPB,
      or others.

     

    6.8   Scheduling
      and Special Transit Conditions.  For
      each
      Month, Carrier will establish a sequence for transporting LPG and will schedule
      the approximate time when LPG tendered for shipment will be received by Carrier
      at the Receipt Point and delivered by Carrier at the Delivery Point. Carrier
      will inform Shipper of the time within each Month when the LPG will be received
      from Shipper at the Receipt Point. Carrier will also then inform Shipper of
      the
      approximate time within each Month when the LPG will be re-delivered to
      Shipper’s consignee at the Delivery Point.

     

    6.9   Payment
      of Transportation and Other Charges.  Transportation
      charges will be computed and paid
      by
      Shipper
      at the
      applicable Transportation Rate on the quantity of delivered LPG as determined
      pursuant to Section 6.19. Shipper shall be responsible for all charges
      applicable to the particular shipment
      of
      LPG.

     

    6.10 
         Liability
      of Parties.  AS
      A
      CONDITION TO CARRIER’S ACCEPTANCE OF LPG UNDER THIS AGREEMENT, EACH PARTY AGREES
      TO HOLD HARMLESS, INDEMNIFY AND DEFEND THE OTHER PARTY AGAINST CLAIMS OR ACTIONS
      FOR INJURY OR DEATH OF ANY AND ALL PERSONS AND FOR DAMAGE TO PROPERTY OF THE
      OTHER PARTY OR ANY THIRD PARTY RESULTING FROM OR ARISING OUT OF (1) ANY BREACH
      OF OR FAILURE BY THE PARTY OR ITS AGENTS, EMPLOYEES OR REPRESENTATIVES TO ADHERE
      TO ANY PROVISION OF THIS AGREEMENT; OR (2) THE NEGLIGENT ACT(S) OR FAILURE(S)
      TO
      ACT OF THE PARTY OR ITS AGENTS, EMPLOYEES OR REPRESENTATIVES IN CONNECTION
      WITH
      ITS HANDLING OF LPG. NOTWITHSTANDING THE FOREGOING, (I) CARRIER SHALL NOT
      INDEMNIFY SHIPPER WITH RESPECT TO LOSSES ARISING FORM SHIPPER’S ACTS OR
      OMISSIONS AND (II) SHIPPER SHALL NOT INDEMNIFY CARRIER WITH RESPECT TO LOSSES
      ARISING FROM CARRIER ’S ACTS OR OMISSIONS.

     

    6.11  
        Force
      Majeure Events.  Neither
      Party shall be liable hereunder for any failure to perform its obligations
      (other than the obligation to pay amounts due hereunder and to indemnify) or
      for
      any loss, damage, or delay caused by acts of God, war, natural disasters
      (including, but not limited to, epidemics, landslides, lightning, earthquakes,
      fires, storms, or floods), act of the public enemy, terrorism, quarantine,
      the
      authority of law, strikes, lockouts of employees, explosions, breakage or
      accident to machinery or pipe, riots, civil disorder, requisition or necessity
      of any Governmental Authority, default by the other Party or its agents,
      employees or representatives, or, whether similar or dissimilar to the
      foregoing, from any cause not reasonably within the control of the affected
      Party and which such Party was not able to reasonably anticipate and avoid
      (each
      of the foregoing events or occurrences, a “Force
      Majeure Event”).
      If
      there is a strike or lockout, the affected Party is not required to resolve
      the
      labor dispute by acceding to the demands of employees if this is inadvisable
      in
      the sole discretion of that Party. A Party claiming a Force Majeure Event shall
      be obligated to give prompt written notice of such event to the other Party
      and
      to use reasonable commercial efforts to overcome such Force Majeure Event as
      soon as possible. The foregoing shall apply (i) in the case of Shipper, to
      any
      deliverer of Shipper’s LPG before and at the Receipt Point, or to any receiver
      thereof at and after the Delivery Point and (ii) in the case of Carrier, to
      Shipper with respect to its operation of Brownsville Terminal Site or to any
      deliverer of Shipper’s LPG before and at the Receipt Point or to any receiver
      thereof at and after the Delivery Point.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.12 
        Carrier
      Liability for LPG Losses.  As
      between the Parties, Carrier accepts custody, control and responsibility for
      LPG
      accepted for shipment hereunder at the Receipt Point; provided, however, that
      Carrier shall have no responsibility or liability with respect to the operation
      of the Brownsville Terminal Site operated by Shipper. On a quarterly basis,
      if
      there is an LPG loss for which Carrier is liable, as calculated under Section
      6.5, Carrier will compensate Shipper for such loss in United States currency
      based upon the price as defined in the PMI Contract.

     

    6.13
         Warranty
      Disclaimer.  Carrier
      operates solely as a provider of transportation services and not as an owner,
      manufacturer or seller of LPG. EXCEPT AS EXPRESSLY STATED HEREIN, EACH PARTY
      EXPRESSLY DISCLAIMS ANY LIABILITY FOR ANY EXPRESSED OR IMPLIED WARRANTY FOR
      LPG
      TRANSPORTED HEREUNDER INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS
      FOR
      INTENDED USE.

     

    6.14 
        Limitation
      of Liability.  NOTWITHSTANDING
      ANY PROVISIONS OF THIS AGREEMENT THAT MIGHT OTHERWISE SAY OR SUGGEST THE
      CONTRARY, NEITHER PARTY SHALL BE LIABLE TO THE OTHER, OR ITS AGENTS, EMPLOYEES
      OR REPRESENTATIVES, FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE,
      EXEMPLARY OR INDIRECT DAMAGES (INCLUDING LOST PROFITS OR OTHER BUSINESS
      INTERRUPTION DAMAGES) BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY
      PROVISION OR OTHERWISE, OR SIMILAR DAMAGES, EVEN IF SUCH DAMAGES ARE
      FORSEEABLE.

     

    6.15  
        Intentionally
      deleted.

     

    6.16 
        Claims,
      Time for Filing.  Claims
      for loss or damage must be made in writing with Carrier within nine (9) months
      after delivery of the LPG, or in case of an alleged failure by Carrier to make
      delivery, then within one (1) year after the delivery was scheduled to occur.
      Where claims for loss or damage are not timely filed thereon in accordance
      with
      this Section 6.16, the claims will not be paid and Carrier shall have no
      liability associated directly or indirectly with the claims. In the event of
      a
      dispute, the matter shall be resolved pursuant to the procedures set out in
      Article 9 herein. 

     

    6.17    Transportation
      Inventory.  Quantities
      of LPG
      accepted for transportation for redelivery to the Delivery Point will constitute
      Shipper’s transportation inventory prior to delivery. Line fill will be owned by
      Carrier. Upon termination of this Agreement, Carrier will, at its sole cost
      and
      expense, push the LPG line-fill remaining in the Carrier System back up the
      Carrier System to Shipper’s facility located behind the Receipt Point, at which
      point Shipper will become the owner of such line-fill.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.18  
        Intentionally
      Left Blank. 

     

    6.19  
        Billing,
      Accounting, and Reporting.

     

    6.19.1.  Accounting
      Statements.  Carrier
      shall render to
      Shipper, on or about the fifteenth (15th) day and last day of each Month (i)
      a
      statement setting forth, with respect to all LPG received by Carrier during
      the
      preceding billing
      period
      at the
      Receipt Point, the total quantity of said LPG, (ii) a statement setting forth,
      with respect to all LPG redelivered to Shipper during the preceding billing
      period
      at the
      Delivery Point, the total quantity of said LPG, and (iii) a statement setting
      forth the transportation charge therefore and any other charges due Carrier
      under this
      Agreement. Carrier may initially bill on its best reasonably available estimates
      if all actual information is not available at the time the statement is to
      be
      sent. Shipper agrees to make payment to Carrier within a ten (10) day period
      following receipt of Carrier’s statement/invoice
      for all
      LPG delivered by Carrier to Shipper at the Delivery Point during the preceding
      billing period
      and any
      other charges due Carrier under this
      Agreement. The statement/invoice
      presented by Carrier to Shipper will include, among other matters, the following
      information: the period’s beginning inventory, all receipts of LPG by Carrier
      during the period, all deliveries of LPG to Shipper’s designees during the
      period and the period’s ending inventory. 

     

    6.19.2.  Late
      Payment.  In
      the event Shipper
      fails to pay any amount due Carrier when the same is due,
      the
      unpaid balance shall bear interest from the due
      date
      until
      the date when same is paid at a rate
      equal to
      the “prime rate” of interest published by Citibank, N.A. plus one percent
      (1%).
      

     

    6.19.3.  Errors
      and Disputes in Statements.  In
      the event an error is
      discovered in the amount billed in any statement rendered by Carrier, such
      error
      shall be adjusted within thirty (30) days of the discovery of the error. In
      the
      event a dispute arises as to the amount payable in any statement rendered,
      Shipper shall nevertheless pay the amount not in dispute to Carrier under the
      statement rendered pending resolution of the dispute. Such payment shall not
      be
      deemed to be a waiver of the right by either Party to receive correct payment
      or
      to recoup any overpayment, as the case may be, together with interest calculated
      in accordance with the resolution reached by the Parties and the matter shall
      then be resolved pursuant to the procedures set out in Article 9
      herein.

     

    6.19.4.  Examination
      of Books and Records.  Each
      Party shall have the
      right at reasonable hours to examine the books and records of the other Party
      to
      the extent necessary to verify the accuracy of any statement/invoice,
      calculation or determination made pursuant to the provisions contained herein.
      If any such examination shall reveal, or if either Party shall discover, any
      error in its own or the other Party’s statements, calculations or
      determinations, then proper adjustment and correction thereof shall be made
      as
      promptly as practicable thereafter.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.20 
        Additional
      Carrier Responsibilities.  Carrier
      shall provide in a manner consistent with “Good Industry Practices” all
      personnel, materials, goods, and services necessary to receive at Receipt Point
      and deliver to Shipper or Shipper’s designee at the Delivery Point LPG compliant
      with Specifications and the applicable requirements of
      Governmental
      Authorities. Carrier will provide loading services at the Delivery Point seven
      (7) Days per week, twenty-four (24) hours per Day. If the Parties determine
      that
      it is not necessary to have personnel 24 hours per Day based upon operational
      experience developed on site, the hours of service shall be subject to
      availability of PMI's representatives to dispatch LPG from the Delivery Point.
      Carrier will also provide Shipper, in addition to the Inspector's report, with
      a
      daily activity report specifying the quantity (weight and volume) and quality
      of
      LPG delivered to PMI at the Delivery Point, as well as a daily receipt ticket,
      documenting the measurement results obtained under Sections 4.3.5 and
      4.3.6.

     

    6.21 
        Spill
      and Environmental Pollution.  In
      the
      event of a release or spill of LPG from Carrier’s System, Carrier shall
      immediately notify Shipper and Carrier
      shall make a
      determination if pipeline shipments should be interrupted. 

    

    6.21.1.  If
      any
      LPG spill or other environmental polluting discharge occurs in connection with
      or relating to any LPG after acceptance at Receipt Point but prior to delivery
      of such LPG to the Delivery Point, all containment and clean-up operations
      (including those required by any Governmental
      Authority),
      shall
      be at Carrier’s expense.

    

    6.21.2.  If
      such
      spill or environmental polluting discharge occurs after delivery at the Delivery
      Point, Shipper authorizes Carrier to commence containment or clean-up operations
      on behalf of Shipper as deemed appropriate or necessary as may be required
      by
      any Governmental Authority. Carrier will notify Shipper and PMI immediately
      of
      such operations and PMI shall have the right to direct all containment and
      clean-up operations.

    

    6.21.3.  All
      costs
      of containment and clean-up for any spill or environmental pollution will be
      borne by the Party responsible for such spill or environmental pollution, and
      such Party shall indemnify and hold harmless the other Party from any and all
      expenses, claims, liabilities, damages, penalties, fines and other costs
      (including, without limitation, attorney’s fees) resulting from or related to
      such incident.

    

    6.22
        Terminal
      Regulatory Compliance.  Carrier
      warrants and
      covenants that the
      Carrier System currently complies
      with all
      local, state and federal laws, rules or regulations applicable to the
      Carrier System
      including,
      without
      limitation, all such laws, rules or regulations concerning permits and insurance
      required for owning, leasing, using
      or
      operating the Carrier System. Furthermore, Carrier warrants and covenants that
      it will utilize reasonable efforts to remain in material compliance with such
      laws, rules or regulations.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      ARTICLE
        7

       

      INDEMNIFICATION

       

    

    7.1   The
      Carrier shall release, indemnify and hold harmless Shipper and its Affiliates
      and its and their respective officers, directors, agents and employees, from
      and
      against any and all fines, penalties, assessments, claims, demands, damages,
      loss and causes of action, including reasonable attorney's fees, resulting
      from,
      directly or indirectly, the Carrier’s failure to comply with its obligations
and
      responsibilities included
      in this Agreement or the violation or alleged violation of any
      Applicable
      Laws of
      any Governmental Authorities, including, but not limited to, Environmental
      Laws,
      and for injury to or death of any persons or loss or damage to any property,
      in
      any way arising out of, in connection with, or incident to the negligence
willful
      misconduct
      or
      omissions of Carrier or
      its
      Affiliates and its or their respective officers, directors, employees or agents
      in connection
      with
      this
      Agreement.

     

    7.2    The
      Shipper
      shall release, indemnify and hold harmless
      the
      Carrier
      and its Affiliates and its and their respective officers, directors, agents
      and
      employees, from and against any and all fines, penalties, assessments, claims,
      demands, damages, loss and causes of action, including reasonable attorney's
      fees, resulting from, directly or indirectly, Shipper’s failure to comply with
      its obligations and responsibilities included in this Agreement or the violation
      or alleged violation of any Applicable
      Laws
      of
      any Governmental Authorities, including, but not limited to, Environmental
      Laws,
      and for injury to or death of any persons or loss or damage to any property,
      in
      any way arising out of, in connection with, or incident to the negligence,
      willful misconduct or omissions of Shipper or its Affiliates and its or their
      respective officers, directors, employees or agents in connection with
this
      Agreement.

     

    7.3   It
      is not
      the intention of the parties hereto to release from liability any third party
      with which either the Carrier or Shipper may contract in connection with the
      Carrier System or the services provided under this Agreement. The provisions
      of
      this Section are not made for the benefit of any person or entity other than
      the
      Parties, their Affiliates and their respective officers, directors, employees,
      and agents.

     

    ARTICLE
      8

    

    MISCELLANEOUS

    

    8.1   Notices.  All
      notices and other communications given pursuant to or in connection with this
      Agreement shall be given in writing and shall be personally delivered, mailed
      by
      U.S Mail, or sent by overnight courier service, or facsimile transmission (with
      electronic confirmation of receipt) to the intended recipient at the address
      specified below for such recipient or, as to either Party, at such other address
      as shall be designated by such Party in a notice to the other Party. If
      personally delivered to the address herein provided, a notice shall be deemed
      to
      have been received upon delivery or if delivered after regular business hours,
      it shall be deemed to have been received on the following Day. If mailed by
      U.S.
      Mail to the address herein provided, a notice shall be deemed to have been
      received three (3) Days after the mailing thereof, provided that a notice shall
      not be effective if mailed during any period of mail service disruption. If
      sent
      by courier service, or facsimile transmission to the address herein provided,
      a
      notice shall be deemed to have been received on the first (1st) Day following
      the Day it was dispatched.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Shipper:

            	
              TransMontaigne
                Product Services Inc.

            

    

    1670
      Broadway Street, Suite 3100

    Denver,
      Colorado 80202

    Attention:
      President

    Facsimile
      No. (303) 626-8228

    

    
      	
              Carrier:

            	
              Rio
                Vista Operating Partnership L.P. 

            

    

    820
      Gessner
      Road,
      Suite
      1285

    Houston,
      Texas 77024

    Attention:
      President

    Facsimile
      No.: (713) 467-8258

    

    With
      a
      copy (which shall not constitute effective notice) to:

    Ian
      Bothwell

    Penn
      Octane Corporation

    840
      Apollo Street Ste 313

    El
      Segundo, CA 90245

    

    A
      Party
      shall be entitled to change its address for notice hereunder by providing the
      other Party with not less than three (3) Days prior written notice of such
      address change.

     

    8.2   Assignment.  No
      Party
      may assign, sell, exchange, transfer or otherwise dispose to any Person any
      of
      its rights, interests, powers or obligations under this Agreement, unless the
      other Party consents in advance and in writing, which consent shall not be
      unreasonably withheld; provided, however, no such consent shall be required
      in
      connection with the sale of all or substantially all of a Party’s LPG business
      or in the case of any assignment to an Affiliate. The
      foregoing does not apply to Shipper’s assignment of this Agreement to
      TransMontaigne Partners L.P. If
      such
      an assignment occurs, this Agreement shall extend to and be binding upon the
      successors and assigns of the Parties. Each Party shall have the right to pledge
      its interest under this Agreement to a financial institution providing such
      Party with financing.

     

    8.3   Modification
      and Waiver.  No
      amendment, change in, addition to, or waiver of the terms, provisions, or
      conditions of this Agreement shall be effective or binding upon either Party
      unless it is in writing and signed by duly authorized representatives of both
      Parties. A waiver by a Party of any breach by the other Party of a provision
      hereof by a Party shall not be binding upon the first Party unless such waiver
      is in writing, and no such waiver or failure by either Party to insist upon
      the
      strict performance of any covenant, agreement, term or condition of this
      Agreement or to exercise any right or remedy consequent upon a breach thereof,
      shall constitute a waiver of any prior or subsequent breach of such covenant,
      agreement, term or condition. 

     

    8.4   Governing
      Law.  THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF TEXAS EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT WOULD
      OTHERWISE REFER CONSTRUCTION OR INTERPRETATION OF THIS AGREEMENT TO THE
      SUBSTANTIVE LAW OF ANOTHER JURISDICTION.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.5   Entire
      Agreement.  This
      Agreement together with the Purchase Agreement and their appendices, constitutes
      the entire Agreement between the Parties concerning the subject matter hereof
      and supersedes all prior or contemporaneous discussions, negotiations,
      representations, or agreements relating to the subject matter of the Agreement.
      There are no representations, warranties, conditions or collateral agreements,
      express or implied, relating to the subject matter of this Agreement, other
      than
      as contained in this Agreement.

     

    8.6   Survival.  All
      provisions that may reasonably be interpreted as surviving the termination
      or
      non-renewal of this Agreement shall survive such termination or non-renewal,
      including, but not limited to, the provisions relating to indemnification,
      limitation of damages, waiver of warranty and of indirect damages, choice of
      law, and right to audit.

     

    8.7   Relationship
      of the Parties.  This
      Agreement is not intended to and does not (i) create any relationship of
      partnership, joint venture, agency, or employment or (ii) permit either Party
      to
      obligate the other Party. Each Party hereto is and shall remain an independent
      contractor as to the other Party hereto in all respects and in the performance
      of all work and activities under this Agreement. The detailed methods and manner
      of conducting such work and activities by such Party shall be under the complete
      control and direction of such Party unless modified by another provision of
      this
      Agreement. Nothing in this Agreement shall limit or be interpreted as
      conflicting with the independent contractor status of such Party and its
      subcontractors, but in the event of any such conflict, the provisions of this
      Section 8.7 shall govern.

     

    8.8   Third
      Party Beneficiaries.  This
      Agreement is for the sole benefit of the Parties and their respective successors
      and permitted assigns, and shall not inure to the benefit of any other Person
      whomsoever, it being the intention of the Parties that no third Person shall
      be
      deemed a third party beneficiary of this Agreement.

     

    8.9   Confidentiality.  Carrier
      shall faithfully observe all requirements of confidentiality imposed on it
      as a
      common carrier under Applicable Law. Neither Shipper nor Carrier shall disclose
      any commercially sensitive terms or conditions of this Agreement without the
      prior written consent of the other Party, except as required by law or
      regulation. 

     

    8.10
         Conspicuousness.  THE
      PARTIES AGREE THAT ANY PROVISION OF THIS AGREEMENT THAT IS SET FORTH IN THE
      STYLE OF THIS SECTION 8.10 IS CONSPICUOUS.

     

    8.11
         Counterparts.  This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, and all of which shall be deemed one and the same
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      ARTICLE
        9

       

      ALTERNATE
        DISPUTE RESOLUTION

       

    

    9.1   Covered
      Disputes.  Any
      dispute, controversy or claim (whether sounding in contract, tort or otherwise)
      arising out of or relating to this Agreement, including without limitation
      the
      meaning of its provisions, or the proper performance of any of its terms by
      either Party, its breach, termination or invalidity (“Dispute”)
      will
      be resolved in accordance with the procedures specified in this paragraph,
      which
      will be the sole and exclusive procedure for the resolution of any such Dispute,
      except that a Party, without prejudice to the following procedures, may file
      a
      complaint to seek preliminary injunctive or other provisional judicial relief,
      if in its sole judgment, that action is necessary to avoid irreparable damage
      or
      to preserve the status quo. Despite that action the Parties will continue,
      subject to Section 9.6 hereinbelow, to participate in good faith in the
      procedures specified in this Section.

    

    9.2   Initiation
      of Procedures.  Either
      Party wishing to initiate the dispute resolution procedures set forth in this
      paragraph with respect to a Dispute not resolved in the ordinary course of
      business must give written notice of the Dispute to the other Party
      (“Dispute
      Notice”).
      The
      Dispute Notice will include (i) a statement of that Party’s position and a
      summary of arguments supporting that position, and (ii) the name and title
      of
      the executive who will represent that Party, and of any other person who will
      accompany the executive, in the negotiations under next subsection.

    

    9.3   Negotiation
      Between Executives.  If
      a
      Party has given a Dispute Notice under the preceding subparagraph, the Parties
      will attempt in good faith to resolve the Dispute within 45 calendar days of
      the
      notice by negotiation between executives who have authority to settle the
      Dispute and who are at a higher level of management than the persons with direct
      responsibility for administration of this Agreement or the matter in Dispute.
      Within 15 calendar days after delivery of the Dispute Notice, the receiving
      Party will submit to the other a written response. The response will include
      (i)
      a statement of that Party's position and a summary of arguments supporting
      that
      position, and (ii) the name and title of the executive who will represent that
      Party and of any other person who will accompany the executive. Within 45
      calendar days after delivery of the Dispute Notice, the executives of both
      Parties will meet at a mutually acceptable time and place, and thereafter,
      as
      often as they reasonably deem necessary, to attempt to resolve the
      Dispute.

    

    9.4   Mediation.  If
      the
      Dispute has not been resolved by negotiation under the preceding subsection
      within 45 calendar days of the Dispute Notice, and only in such event, either
      Party may initiate the mediation procedure of this subsection by giving written
      notice to the other Party (“Mediation
      Notice”).
      The
      Parties will endeavor to settle the Dispute by mediation within 90 calendar
      days
      of the Mediation Notice under the then current Center for Public Resources
      ("CPR") Model Mediation Procedure for Business Disputes. If the Parties have
      not
      agreed upon a mediator within seven calendar days after the Mediation Notice,
      either Party may request CPR assistance in the selection of a mediator under
      its
      guidelines. The mediator will establish rules for an expedited discovery
      procedure and will resolve all disputes with regard to discovery between the
      Parties. If the mediator has not already done so during the mediation process,
      at least seven calendar days before the end of the ninety day mediation period,
      the mediator, if he or she believes that they are qualified to do so, will
      provide to each Party a written summary of the mediator's conclusions regarding
      the outcome of the Dispute if it is submitted to arbitration under the following
      subsection.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.5   Arbitration.  If
      the
      Dispute has not been resolved by mediation under the preceding subsection within
      90 calendar days of the Mediation Notice, and only in such event, either Party
      may initiate the arbitration procedure of this subsection by giving written
      notice to the other Party (“Arbitration
      Notice”).
      The
      Dispute will be finally resolved by binding arbitration in accordance with
      the
      then current Commercial Arbitration Rules of the American Arbitration
      Association (“AAA”) by a single arbitrator, chosen by mutual agreement of both
      Parties. If the Parties cannot select an arbitrator within 30 calendar days
      of
      the Arbitration Notice, the arbitrator will be selected by the AAA. The
      arbitration will be governed by the United States Arbitration Act, 9 U.S.C.
      Sec.
      1-16, as amended (“the Act”), and to the extent not inconsistent with the Act,
      the Texas arbitration statute. Judgment upon the award rendered by the
      arbitrator may be entered by any court of any state having jurisdiction. The
      statute of limitations of the State of Texas for the commencement of a lawsuit
      will apply to the commencement of an arbitration under this Agreement, except
      that no defenses will be available based upon the passage of time during any
      negotiation or mediation called for by this Section. Each Party will assume
      its
      own costs of legal representation and expert witnesses and the Parties will
      share equally the other costs of the arbitration. The arbitrator will award
      pre-judgment interest in accordance with the law of Texas; however, the
      arbitrator may not award punitive damages. The arbitration will take place
      in
      Houston, Texas.

    

    9.6   Tolling
      and Performance.  Except
      as
      indicated in the preceding subsection with regard to the commencement of
      arbitration, all applicable statutes of limitation and defenses based upon
      the
      passage of time will be tolled while the procedures specified in this paragraph
      are pending. The Parties will take any action required to effectuate that
      tolling. Each Party is required to continue to perform its obligations under
      this Agreement pending final resolution of any Dispute, unless to do so would
      be
      impossible or impracticable under the circumstances.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Parties have executed this Agreement as of the Effective Date.

     

    
      	 	
              TRANSMONTAIGNE
                PRODUCT SERVICES INC.

            
	 	 
	 	
              By:

            	 
	 	
              Name:
                William S. Dickey

            
	 	
              Title:
                President

            
	 	 
	 	 
	 	
              RIO
                VISTA OPERATING PARTNERSHIP, L.P.

            
	 	
              By:
                Rio Vista Operating GP LLC, general partner

            
	 	 
	 	
              By:

            	 
	 	
              Name:
                Charles C. Handly

            
	 	
              Title:
                President

            
	 	 
	 	
              PENN
                OCTANE INTERNATIONAL, LLC

            
	 	 
	 	
              By: 

            	 
	 	
              Name:
                Ian T. Bothwell

            
	 	
              Title:
                ManagerExhibit 10.11

    
      

    

    Exhibit
      10.11

    

    Form
      of

    “U.S.
      PIPELINE SERVICE AGREEMENT”

     

    This
      U.S.
      Pipeline Service & Operating Agreement (the “Agreement”),
      effective as of ___________, 2006
      (“Effective Date”), by and between TransMontaigne Product Services Inc., a
      Delaware corporation, with offices at 1670 Broadway Street, Suite 3100, Denver,
      Colorado 80202 (“Operator”), and Rio Vista Operating Partnership L.P. (“Rio”),
      Operator and Rio being sometimes collectively referred to as “Parties” and
      sometimes individually as a “Party,” is based on the following
      premises:

    

    PREMISES

    

    A.   Rio,
      Penn
      Octane International LLC and the Operator entered into that certain Purchase
      and
      Sale Agreement, dated August 15, 2005, as amended and restated on August
      15, 2006
      (“Purchase
      Agreement”),
      pursuant to which Operator agreed, among other things, to purchase and Rio
      agreed to sell to Operator certain “Brownsville
      Terminal Assets,”
as
      that term is defined in the Purchase Agreement.

    

    B.    Rio
      wishes to contract with the Operator to operate and maintain the U.S. Pipeline;
      and

    

    C.    This
      Agreement, being a condition of the closing under the Purchase Agreement, the
      Operator will so contract with Rio to operate and maintain the U.S. Pipeline
      upon the terms and conditions provided in this Agreement.

    

    Therefore,
      Rio
      and the
Operator,
      in
      consideration of the foregoing premises, which are included in this Agreement
      by
      this reference, and the covenants and promises included in this Agreement,
      and
      intending to be legally bound hereby, agree as follows:

     

    Section
      1.   DEFINITIONS.   In
      addition to those terms defined in the premises, as used in this Agreement,
      the
      terms set forth below shall have the following respective meanings:

    

    “Affiliate”
means,
      with respect to any Person, (a) any Subsidiary of such Person or (b) any other
      Person that, directly or indirectly, controls, is controlled by, or is under
      common control with, such Person, excepting from the foregoing TransMontaigne
      Partners L.P. or any of its affiliates. For the purposes of this definition,
      “control” means the possession of the power to direct or cause the direction of
      management and policies of such Person, whether through the ownership of voting
      securities, by contract, or otherwise.

     

    “Applicable
      Legal Requirements”
      means
      all statutes, laws (including but not limited to Environmental Laws, DOT 49CFR
      Part 195, and laws applicable to petroleum pipelines), treaties, decrees,
      executive orders, rules, regulatory orders, directives, judgments, writs,
      Permits, approvals, ordinances, regulations, franchises, or concessions, as
      in
      effect and as may be amended during the Term of this Agreement and any extension
      thereof, of any court, arbitrator, or Governmental Authority, having
      jurisdiction over the Parties, applicable to the Parties’ respective rights or
      obligations under this Agreement or the U.S. Pipeline.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    “Arbitration
      Notice”
has
      the
      meaning provided in Section 9.15(E).

    

    “Capital
      Expenditure” means
      the
      expenditure of substantial funding for maintenance or repair of the U.S.
      Pipeline involving a non-routine capital project that is deemed, in the
      reasonable opinion of the Operator, to involve a threat or potential threat
      to
      the continued safe, efficient and legally compliant operation of the U.S.
      Pipeline.

    

    “Delivery
      Meter” has
      the
      meaning provided in Section 4.5.

    

    “Dispute”
has
      the
      meaning provided in Section 9.15(A).

    

    “Dispute
      Notice”
has
      the
      meaning provided in Section 9.15(B).

    

    “DOT”
      means
      the U.S. Department of Transportation.

    

    “Easements”
      has the
      meaning given in subsection (ii) of the definition of U.S.
      Pipeline.

    

    “Emergency
      Response Incident” means
      any
      operating condition resulting from fire or explosion occurring near or directly
      involving the U.S. Pipeline, accidental release of hazardous vapors, liquids
      or
      other substance, operational failure causing a hazardous condition, natural
      disaster affecting the U.S. Pipeline or acts of sabotage, or any other condition
      that has the potential to immediately adversely affect human life, property,
      the
      environment or the U.S. Pipeline.

    

    “Environmental
      Laws”
means
      any Law or Order relating to protection of the environment, including, persons
      or the public welfare from actual or potential exposure (or the effects of
      exposure) to any actual or potential Release.

    

    “FERC”
      means
      the
      Federal Energy Regulatory Commission.

    

    "Force
      Majeure",
      means
      acts of
      God, strikes, lockouts or industrial disputes or disturbances, civil
      disturbances, arrest and restraint of rulers or people, interruptions by
      government or court orders, necessity for compliance with any present and future
      valid orders of court, or any law, statute, ordinance or regulation promulgated
      by any governmental or regulatory authority having proper jurisdiction, acts
      of
      the public enemy, wars, riots, blockades, insurrections, including inability
      to
      secure materials by reason of allocations promulgated by authorized governmental
      agencies, epidemics, landslides, lightning, earthquakes, fires, storms, floods,
      washouts, inclement weather which necessitates extraordinary measures and
      expense to construct facilities or maintain operations, explosions, partial
      or
      entire failure of LPG supply, breakage or accident to machinery or lines of
      pipe, the interruption or suspension of the receipt of LPG deliveries hereunder
      by Rio or the Operator due to the declaration of force majeure by third-party
      transporters, or any other cause whether of the kind herein enumerated or
      otherwise, not reasonably within the control of the party claiming "Force
      Majeure".

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    “Good
      Industry Practice”
      means
      the practices and methods, normally employed by a prudent operator of a
      petroleum products pipeline in the U.S. as well as in accordance with (i)
      applicable American Petroleum Institute (API) standards; (ii) applicable DOT
      rules and regulations, including DOT Part 195; and ASME Code B.31.4. Consistent
      with the foregoing, Good Industry Practice shall include compliance with
      Applicable Legal Requirements, as well as practices recommended by Governmental
      Authorities having jurisdiction over the U.S. Pipeline or by relevant industry
      advisory bodies or organizations.

    

    “Governmental
      Authority”
means
      any U.S. federal, state, provincial or local government or governmental
      regulatory body and any of their respective subdivisions, agencies,
      instrumentalities, authorities or tribunals that have jurisdiction over the
      U.S.
      Pipeline.

     

    “Law”
means
      any U.S. federal, state, provincial or local law, statute, rule, ordinance,
      code
      or regulation.

    

    “LPG”
means
      liquefied petroleum gas.

    

    “Manual”
      has the
      meaning indicated in Section 4.1(E).

    

    “Mediation
      Notice”
has
      the
      meaning provided in Section 9.15(D).

    

    “Mexican
      Assets”
means
      those assets and facilities owned or controlled by Rio or its Mexican
      Affiliates, including the Mexican Terminal Site and the Mexican portion of
      the
      Owned Pipelines.

    

    “Mexican
      Terminal Site”
means
      the plot of land and associated equipment and improvements owned by a Mexican
      Affiliate of Rio, where the LPG or other petroleum products are stored, which
      is
      located at Carretera Sendero Nacional Km. 9, desviacion Carretera La
      Risita-Lucio Blanco Km. 3.4 desviacion brecha 22 s/n (a 500 metros), Ejido
      La
      Gloria, C.P. 87560, Matamoros, Tamaulipas, Mexico.

     

    “Non-Routine
      O&M Services”
      has the
      meaning given in Section 4.2.

    

    “Obligations”
has
      the
      meaning provided in Section 3.

    

    “Order”
means
      any order, judgment, injunction, ruling, or decree of any U.S. court or other
      Governmental Authority.

    

    “Owned
      Pipelines” means
      the
      approximately 23-mile 6-inch and 8-inch pipelines and associated equipment
      and
      improvements owned by Rio connecting the Brownsville Terminal Assets to the
      Mexican Terminal Site.

    

    “Permits”
      shall
      mean all permits, authorizations, variances, approvals, registrations,
      certificates of occupancy, orders, waivers, variances or other approvals or
      licenses granted by any Governmental Authority or third Persons.

    

    “Person”
means
      any natural person, corporation, partnership, limited liability company, trust,
      unincorporated organization or economic unit, Governmental Authority, government
      instrumentality or other entity of any kind.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    “Release”
means
      any releasing, depositing, spilling, leaking, pumping, pouring, placing,
      emitting, discarding, abandoning, emptying, discharging, migrating, injecting,
      escaping, leaching, dumping or disposing.

    

    “Right
      of Way”
      means
      the Fee Properties and Easements, as those terms are defined in the definition
      of the U.S. Pipeline.

     

    “Routine
      O&M Services” has
      the
      meaning given in Section 4.1.

     

    “Subsidiary”
means,
      with respect to any Person, any corporation, partnership, limited liability
      company, incorporated in the U.S. or Mexico, or other entity of which a majority
      of the Equity Interests having ordinary voting power to elect a majority of
      the
      board of directors, board of managers or other similar managing body of such
      corporation, partnership, limited liability company, or other entity of any
      kind
      are owned by such Person. 

     

    “U.S.
      Pipeline”
      means
      the following assets of Rio:

    

    (i)
      all
      real property held in fee by Rio used in connection with respect to the U.S.
      portion of the Owned Pipelines (collectively, the “Fee
      Properties”);

    

    (ii)
      all
      easements and real property licenses (including right-of-way permits from
      railroads and road crossing permits or other right of way permits from
      Governmental Authorities) held by Rio with respect to the U.S. portion of the
      Owned Pipelines (collectively, the “Easements”); and

    

    (iii)
      all
      structures, fixtures, facilities, pipelines, pipes, pumping facilities, pumps,
      fittings, cathodic protection ground beds, rectifiers, local supervisory
      protection software (SCADA), machinery, equipment, engines, valves, connections,
      and all other tangible personal property located on or under the Fee Properties
      and the
      Easements.

    

    
      	
              Section
                2

            	
              REPRESENTATIONS
                AND WARRANTIES

            

    

    

    2.1   
        Both
      Parties.  Each
      Party hereby represents and warrants to the other that as of the date of
      execution of this Agreement:

    

    (A)  
         Such
      Party is duly organized, validly existing and in good standing under the laws
      of
      its jurisdiction of organization and is duly qualified to do business under
      the
      laws of the State of Texas and has the requisite power and authority to own
      its
      properties and to carry on its business as now being conducted;

    

    (B)   Such
      Party has full power and authority to enter this Agreement and perform its
      obligations hereunder. The execution, delivery and performance of this Agreement
      have been duly authorized and do not and will not contravene its organizational
      documents or conflict with, result in a breach of, or entitle any party (with
      due notice or lapse of time or both) to terminate, accelerate or declare a
      default under any agreement or instrument to which such Party is a party or
      by
      which such Party is bound. The execution, delivery and performance by such
      Party
      of this Agreement will not result in any violation by such Party of any
      Applicable Legal Requirement applicable to such Party. Such Party is not a
      party
      to, nor subject to, or bound by, any judgment, injunction or decree of any
      court
      or other Governmental Authority which may restrict or interfere with the
      performance of this Agreement by it. This Agreement is such Party’s valid and
      binding obligation, enforceable against such Party in accordance with its terms,
      except as such enforcement may be limited by (1) bankruptcy, insolvency,
      reorganization, moratorium or other similar laws now or hereafter in effect
      relating to creditors' rights generally, or (2) general principles of
      equity;

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (C)   
        All
      consents, waivers, orders, approvals, authorizations, permits or orders of,
      or
      registrations, qualifications or filings with, any court or other governmental
      agency or authority required for the execution, and delivery by such Party
      of
      this Agreement have been obtained by such Party and are in full force and
      effect, and all such consents, waivers, orders, approvals, authorizations,
      permits, orders, registrations, qualifications and filings required for the
      performance by such Party of the obligations contemplated hereby have been
      or
      will be acquired by such Party prior to the time at which its performance of
      such obligations is due. No consent or waiver of any party to any contract
      to
      which such Party is a party or by which such Party is bound is required for
      the
      execution, delivery and performance by such Party of this Agreement; and

    

    (D)  
         There
      is
      no action, suit, grievance, arbitration or proceeding pending or, to the
      knowledge of such Party, threatened against or affecting such Party at law
      or in
      equity before any federal, state, municipal or other governmental court,
      department, commission, board, arbitrator, bureau, agency or instrumentality
      which prohibits or impairs its ability to execute and deliver this Agreement
      or
      to perform any of the obligations contemplated hereby. Such Party has not
      received written notice of any such pending or threatened investigation, inquiry
      or review by any Governmental Authority. 

    

    2.2   
        Operator.  Operator
      warrants and represents that it has the financial means, technical ability,
      and
      qualified staff to operate and monitor the U.S. Pipeline in accordance with
      the
      terms and conditions set forth in this Agreement.

    

    Section
      3.    
EMPLOYMENT
      OF OPERATOR.   Rio
      hereby retains the Operator to operate and maintain the U.S. Pipeline, in
      cooperation with Rio, pursuant to the terms and provisions of this Agreement,
      including, without limitation, Section 4 below (collectively the “Obligations”)
      and
      hereby contracts with the Operator to do and perform those acts and things
      in
      the name and on behalf of Rio which are necessary, requisite, and proper for
      the
      safe and efficient monitoring, preservation, operation, maintenance, upkeep
      and
      repair of the U.S. Pipeline, with
      the
      objective that the U.S. Pipeline will be utilized for the transportation of
      LPG
      in conformity with Good Industry Practice, in accordance with all valid and
      applicable Laws of Governmental Authorities, and pursuant to the terms and
      provisions of this Agreement. Operator covenants and warrants that it shall
      perform its Obligations hereunder in a safe and workmanlike manner.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	
              Section
                4.

            	
              ADDITIONAL
                OBLIGATIONS AND DUTIES OF
                OPERATOR.

            

    

    

    4.1   
        Routine
      Operating and Maintenance Services.  At
      the
      sole cost and expense of Operator, Operator will provide the following routine
      operating and maintenance services (“Routine
      O&M Services”),
      consistent with Good Industry Practice and the Manual, for the U.S.
      Pipeline:

    

    (A)   Personnel.  Employment,
      in its sole and exclusive discretion, of such personnel as it may deem necessary
      to efficiently operate and maintain the U.S. Pipeline and to provide support
      for
      and replacements to such personnel in order to perform its Obligations under
      this Agreement in accordance with the provisions of Section 4. 4
      below.

    

    (B)   Management
      Systems.  Provision
      of management
      and administrative systems and computer software programs designed to support
      all of Operator’s Obligations under this Agreement.

    

    (C)   Tools
      and Supplies.  Provision
      of all tools, specialized equipment and vehicles and purchase or caused to
      be
      purchased materials and supplies necessary for operation, maintenance and repair
      of the U.S. Pipeline.

    

    (D)   Integrity
      and Measurement Equipment.  Maintenance
      and
      monitoring of all leak detection devices and other systems associated with
      the
      U.S. Pipeline, including, without limitation, the SCADA system on a (24) hour,
      (7) day a week basis, and provision of mechanical and equipment integrity and
      calibration, including cathodic protection equipment and LPG measurement
      meters.

    

    (E)   Programs,
      Manuals
      and
      Reports.  Development,
      implementation and management of a formal, comprehensive, and fully documented
      ongoing safety program and operation manuals (“Manual”)
      designed to support all aspects of the safe operation of the U.S. Pipeline
      and
      prepare appropriate surveillance, operating and maintenance reports in such
      form
      and detail as may be reasonably requested by Rio or as may be required by the
      Obligations.

    

    (F)   One-Call.  Provision
      of one-call support (line location) services.

    

    (G)      Easement
      Integrity.  Development
      and
      maintenance of U.S. Pipeline/Easement integrity programs, including annual
      brush
      removal, air or visual patrol, and survey activities.

    

    (H)      Measure
      and Quality.  Provide
      LPG measurement, batch reporting, and quality inspection services described
      in
      Section 4.5
      below.

    

    (I)    Contact
      List.  Provide
      Rio, and update as necessary, an emergency contact list of Operator
      personnel.

    

    (J)       Communication.  Keep
      Rio and its
      authorized representative(s) timely and fully informed at all times with regard
      to the operation and maintenance of the U.S. Pipeline. Make periodic reports
      on
      the condition of the U.S. Pipeline and make recommendations related to any
      Capital Expenditure improvements needed for its continued safe and efficient
      operation. 

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (K)  
         Coordinate
      with Mexico.  Provide
      appropriate
      communication and coordination with the Mexican Assets with respect to the
      performance of Operator’s Obligations.

    

    (L)   Routine
      Pigging.  Provide
      routine pigging
      (not “smart” pigging) operations and support.

    

    (M)  
        Meetings.  Upon
      request of either
      Party, participate in at least semi-annual meetings with Rio in Houston, Texas
      or such other location as mutually agreed in order to discuss the operation,
      maintenance and repair of the U.S. Pipeline.

    

    (N)  
         Routine
      Maintenance and Repairs.  Perform
      routine and minor maintenance and repair activities that do not involve a
      Capital Expenditure.

    

    (O)  
         Records.  Prepare,
      maintain and make available to Rio, at its request, all maintenance records,
      inspection and testing records, operating procedures, custody transfer
      documents, and such other records as may be required by Law, Governmental
      Authorities, the Obligations of Operator, or as may be reasonably requested
      by
      Rio and maintain all records, documents and other materials received from Rio
      or
      its representatives.

    

    (P)   Accounts.  Prepare
      and maintain correct and complete accounts of all receipts, disbursements and
      deposits of monies and other property received in the name of and to the credit
      of Rio, or as may be approved by Rio.

    

    (Q)   
        Permits.  Act
      as
      agent for Rio in contacts with the DOT and Texas Railroad Commission (“TRC”)
      relating to pipeline safety and operational matters, including the acquisition
      and maintenance of the T-4 and P-5 Permits issued by the TRC and Permits that
      may be required by the DOT.

    

    4.2   Non-Routine
      Operating and Maintenance Services.  Operator
      will provide the non-routine operating and maintenance services (“Non-Routine
      O&M Services”)
      listed
      in this Section 4.2, consistent with Good Industry Practice and the Manual,
      for
      the U.S. Pipeline. Rio will reimburse Operator for all costs, plus 15%,
      associated with the following Non-Routine O&M Services:

    

    (A)   Capital
      Expenditures.  Perform
      non-routine and major maintenance and repair activities that involve a Capital
      Expenditure, as approved by Rio. As soon as Operator is aware of any maintenance
      or repair requiring a Capital Expenditure, it will notify Rio of the need for
      such expenditure, including all necessary detail and will not proceed with
      such
      Capital Expenditure until it receives prior written approval from Rio, which
      approval will not be unreasonably withheld and will be provided if required
      for
      compliance with Applicable Legal Requirements.

    

    (B)   Smart
      Pigging.  Provide
      non-routine “smart” pigging operations and support, subject to the prior written
      approval of Rio, which approval will not be unreasonably withheld and will
      be
      provided if required for compliance with Applicable Legal
      Requirements.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (C)   Emergencies.  Perform
      activities in connection with an Emergency Response Incident in accordance
      with
      Section 4.3 below.

    

    (D)   Force
      Majeure.  Perform
      maintenance,
      repair or other remediation activities or operations in response to or
connected
      with a
      Force Majeure event.

    

    (E)    Third
      Party Damages.  Resolve
      third-party damage or other claims in accordance with Section 4. 6
      below.

    

    (F)    DOT
      Requirements.  Perform
      DOT required construction and construction and regulatory audits in connection
      with the U.S. Pipeline.

    

    4.3   Emergency
      Response.  Operator
      will respond to any Emergency Response Incident related to the U.S. Pipeline.
      In
      the event of an Emergency Response incident:

    

    (A)      Operator
      will provide prompt verbal notification to Rio or its designee with written
      notification to follow within 24 hours of discovery and report the incident
      to
      the appropriate Governmental Authorities.

    

    (B)   Operator,
      in its sole discretion, will take such actions and expend such funds deemed
      by
      Operator to be reasonably necessary and consistent with Good Industry Practice
      and the Manual to keep the U.S. Pipeline operating or restore it to operating
      condition and to respond to the Emergency Response Incident in order to minimize
      the potential adverse affect or damage to human life, property or the
      environment and the U.S. Pipeline and begin repair and remediation
      activities.

    

    (C)   Operator
      will provide Rio a daily update of the status of the Emergency Response
      Incident.

    

    (D)   Within
      48
      hours of discovery of the Emergency Response Incident, Operator will provide
      Rio, or its designee, an estimate of the expenditures to date and an estimate
      of
      anticipated expenditures, including but not limited to, the continued emergency
      response activities, pipeline repair and remediation activities at the emergency
      response site.

    

    (E)    In
      case
      the Emergency Response Incident occurs at the US-Mexico border
      or its
      surroundings Operator and Rio will respond jointly.

    

    (F)    Operator
      shall, in the event the U.S. Pipeline becomes inoperable for any reason,
      including any Emergency Response Incident, utilize commercially reasonable
      efforts to repair the U.S. Pipeline to return it to operation as soon as
      possible.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    4.4   Employees
      and Contractors.  All
      personnel supplied by Operator (including those of its Affiliates) or used
      by
      Operator shall be deemed employees or subcontractors of Operator and will not
      be
      considered employees, agents or subcontractors of Rio for any purpose
      whatsoever. Operator accepts full liability for and shall indemnify Rio against
      the payment of any and all contributions, taxes and penalties for unemployment
      insurance or compensation, old age pensions, employee benefits, or otherwise,
      now or hereafter imposed by any Applicable Legal Requirements or enactment
      of
      any Governmental Authority. In
      addition to Operator’s or Operator’s Affiliate’s employees that are either
      full-time or part-time dedicated to operating and maintaining the U.S. Pipeline,
      Operator may utilize from time to time the services of leased employees,
      independent contractors or the services of its Affiliates to perform its
      Obligations in connection with operating and maintaining the U.S. Pipeline.
      Operator will manage and supervise any consultants and outside contractors
      retained by Operator to ensure that they adhere to Good Industry
      Practice.

    

    4.5   Measurement
      and Custody Transfer.  Custody
      transfer of the LPG
      between
      the U.S. Pipeline and Operator’s Brownsville, Texas terminal facility
      (“Brownsville Terminal”) shall take place at the flange connection between the
      Brownsville Terminal delivery equipment and the U.S. Pipeline. LPG volume and
      quality determination for custody transfer purposes shall be performed at the
      Brownsville Terminal metering facility (“Delivery
      Meter”).
      LPG
      measurement and meter proving and calibration shall be conducted by Operator
      in
      accordance with its Manual. Operator shall prove the Delivery Meter, and any
      other meter installed on the U.S. Pipeline. Rio shall have the right to witness
      the proving of any meters. The procedures for performing the meter proving
      and
      witnessing are defined in Exhibit
      “A,” attached
      to this Agreement and included in it for all purposes by this
      reference.

    

    4.6   Third
      Party Claims.  Operator
      shall upon Rio’s specific written request, (i) represent Rio in negotiations of
      any third party claims made against Rio with respect to the operation and
      maintenance of the U.S. Pipeline, (ii) upon learning of any third party claim,
      provide prompt written notice to Rio and (iii) prior to pursuing any
      negotiations or settlement of any such third-party claims, obtain Rio’s prior
      written approval.

    

    Section
      5      
OWNER’S
      RESPONSIBILITIES.   Rio
      will
      retain responsibility for the following requirements related to the U.S.
      Pipeline:

    

    (A)   All
      FERC
      related regulatory activities.

    

    (B)   Legal
      matters involving litigation and except as provided otherwise in Section
4.6
      claims
      of any third party.

    

    (C)   Taxes
      assessed to Rio, including, without limitation, filing all required federal
      and
      state tax returns and other related reports and documents with respect to its
      ownership of the U.S. Pipeline.

    

    (D)   All
      matters relating to maintenance of or encroachment upon or otherwise involving
      the legal rights to the U.S. Pipeline Right of Way, including, without
      limitation, the payment of any fees or other money, the encroachment of any
      other use on such Right of Way, the negotiation of alteration of the location
      of
      U.S. Pipeline facilities located with any Right of Way.

    

    (E)    Media
      (television, radio, newspaper) relations/public relations.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (F)    Collection
      of tariffs, fees and product loss allowances, as applicable and related to
      the
      U.S. Pipeline tariffs.

    

    (G)   Collection
      of sums of money recoverable pursuant to applicable warranties related to U.S.
      Pipeline material and equipment.

    

    (H)   Provide
      or, cause to be provided, to Operator LPG flow, density, temperature and
      pressure data, and meter counts accurate to within 0.5% for the purpose of
      line
      balancing and computational pipeline monitoring within thirty (30) days from
      the
      Effective Date.

    

    (I)    Provide
      Operator all information currently in possession of Rio with
      true and
      correct copies of the recorded Rights of Way instruments which are currently
      in,
      or which may in the future, be delivered into Rio’s possession and control,
      together with all relevant, non-privileged records and correspondence pertaining
      thereto and copies of U.S. Pipeline maps, including “as built” maps, in Rio’s
      possession and control, which may be utilized by Rio to locate the Rights of
      Way.

    

    (J)    Operation
      of the Mexican Assets in a manner consistent with Good Industry Practice,
      including, without limitation, using commercially reasonable efforts to keep
      the
      Mexican Assets continuously operational and responding appropriately to
      emergencies related to the Mexican side of the U.S./Mexico border and the
      Mexican Assets and immediately notifying Operator verbally of such emergencies,
      promptly followed in writing.

    

    (K)   Provide
      prompt notification to Operator of any operational conditions or events that
      cause, may cause, or will cause a shutdown of the U.S. Pipeline.

    

    (L)    Make
      available and deliver to Operator all files and information necessary for
      Operator to perform the services it is required to provide under this
      Agreement.

    

    (M)   
        Retain
      ultimate legal responsibility with respect to the U.S. Pipeline
      ownership.

    

    (N)   Any
      other
      functions or requirements that Operator does not perform under the terms of
      this
      Agreement.

    

    (O)   Maintain
      adequate insurance on the U.S. Pipeline.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	
              Section
                6.

            	
              TERM
                AND TERMINATION.

            

    

    

    6.1.  
        Term.  Unless
      terminated earlier under Section 6.2, this Agreement shall commence effective
      as
      of the Effective Date, and shall continue thereafter for the term
      of
      the agreement with PMI, or any extensions thereof (“Term”),
      or as
      terminated upon the mutual agreement of both Parties.

    

    6.2.     Termination.  This
      Agreement shall immediately terminate if:

    

    (A)   Either
      Party
      becomes
      insolvent, files a petition in bankruptcy or makes an assignment for the benefit
      of creditors, or a petition in bankruptcy is filed against either
      Party
      and is
      not dismissed within (30) days of filing;

    

    (B)   Any
      foreclosure, execution or attachment proceedings are initiated against
either
      Party
      whereby
      all or part of that Party’s
      interest herein may become subject to the lien, interest or authority of a
      creditor, custodian, receiver, trustee or other legal authority;

    

    (C)   The
      corporate existence of either
      Party
      is
      dissolved.;
      or

     

    (D)   If
      the
      LPG Transportation Agreement between the Parties,
      of the
      same date as this Agreement, is terminated.

    

    Section
      7.      COMPENSATION.

    

    7.1   Payment.  Operator
      will provide the Routine O&M Services at its sole cost and expense. For the
      Non-Routine O&M Services to be rendered by Operator under this Agreement and
      all materials and supplies provided in connection with such services, Rio shall
      reimburse
      the
      Operator for
      all
      costs
actually
      incurred
      in performing
      the Non-Routine O&M Services,
      plus
15%.

    

    7.2   Payment
      Schedule.  Rio
      shall
      pay Operator no later than ten (10) days after receipt of an original invoice,
      all undisputed amounts payable according to the invoice received from Operator.
      Any undisputed amount not paid when due shall bear interest at the prime rate
      of
      Wells Fargo Bank, N.A. as in effect from time to time, plus five percent (5%)
      from the due date until paid in full. Payment shall be made by wire transfer
      to
      a bank account designated by Operator. Any disputed amount resolved in
      Operator’s favor shall bear interest at the prime rate of Wells Fargo Bank, N.A.
      as in effect from time to time, plus five percent (5%) from the due date until
      paid in full.

    

    7.3   Tax
      Reimbursement.  Rio
      shall
      reimburse Operator for the actual cost of any documented real and personal
      property taxes, assessment or levies which may be assessed and levied upon
      the
      U.S. Pipeline and its property, real and personal or mixed, related thereto,
      it
      being understood such taxes, assessments or levies shall exclude tankage and
      associated facilities for the receipt and delivery of petroleum products
      constructed for or operated on behalf of shippers in the U.S. Pipeline. Any
      such
      taxes, levies or assessments incurred by Operator under this Agreement shall
      be
      separately identified in any invoice submitted by Operator in accordance with
      this Section.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      	
              Section
                8.

            	
              INDEMNITY.

            

    

    

    8.1    The
      Operator shall release, indemnify and hold harmless Rio and its Affiliates
      and
      its and their respective officers, directors, agents and employees, from and
      against any and all fines, penalties, assessments, claims, demands, damages,
      loss and causes of action, including reasonable attorney's fees, resulting
      from,
      directly or indirectly, the Operator’s failure to comply with the Obligations
      included in this Agreement or the violation or alleged violation of any Laws
      of
      any Governmental Authorities, including, but not limited to, Environmental
      Laws,
      and for injury to or death of any persons or loss or damage to any property,
      in
      any way arising out of, in connection with, or incident to the gross negligence,
      or willful misconduct or omissions of Operator or Affiliates and its or their
      respective officers, directors, employees or agents in the operation or
      maintenance of the U.S. Pipeline in accordance with their Obligations under
      this
      Agreement.

     

    8.2    Rio
      shall
      release, indemnify and hold harmless the Operator and its Affiliates and its
      and
      their respective officers, directors, agents and employees, from and against
      any
      and all fines, penalties, assessments, claims, demands, damages, loss and causes
      of action, including reasonable attorney's fees, resulting from, directly or
      indirectly, Rio’s failure to comply with its obligations and responsibilities
      included in this Agreement or the violation or alleged violation of any Laws
      of
      any Governmental Authorities, including, but not limited to, Environmental
      Laws,
      and for injury to or death of any persons or loss or damage to any property,
      in
      any way arising out of, in connection with, or incident to the gross negligence
      or willful misconduct or omissions of Rio or its Affiliates and its or their
      respective officers, directors, employees or agents in connection with its
      obligations and responsibilities under this Agreement.

     

    8.3.   It
      is not
      the intention of the parties hereto to release from liability any third party
      with which either the Operator or Rio may contract in connection with the U.S.
      Pipeline. The provisions of this Section are not made for the benefit of any
      person or entity other than the parties hereto, their respective parent
      companies, affiliates and subsidiaries and their respective officers, directors,
      employees, and agents. The provisions of this Section 8 shall survive the
      termination of this Agreement.

     

    
      	
              Section
                9.

            	
              MISCELLANEOUS.

            

    

    

    9.1   Entire
      Agreement/Amendments.  This
      Agreement shall be binding upon and inure to the benefit of the Parties, their
      successors and permitted assigns. This Agreement constitutes the entire
      agreement between the Parties, superseding all prior agreements between said
      Parties, whether written or oral, pertaining to the subject matter hereof,
      and
      may not be amended or otherwise altered except by mutual written agreement
      between the Parties. No provision of this Agreement may be changed, modified,
      waived or discharged orally, and no change, modification, waiver or amendment
      of
      any provision will be effective except by written instrument executed and
      approved by the Parties.

    

    9.2   Waiver.  No
      failure or delay on the part of either Party to exercise any right, power or
      remedy under this Agreement or the waiver by either Party of any provision
      or
      portion hereof shall not be deemed to be a waiver of such on any subsequent
      breach of the same or of any other term, covenant or condition herein contained.
      No covenant, term or condition of this instrument shall be deemed to have been
      waived by either Party, unless such waiver is in writing and duly
      executed.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    9.3   Severability.  This
      Agreement shall be enforceable in accordance with the terms and provisions
      contained herein and in accordance with the purposes expressed herein. Wherever
      possible, each provision of this Agreement shall be interpreted in such manner
      as to be effective and valid under applicable law, but if any provision of
      this
      Agreement, or application thereof to any party or circumstance shall be
      prohibited by or modified under such law, or determined by any court of
      competent jurisdiction to be invalid and unenforceable to any extent, then
      the
      remainder of this Agreement, or the application of said provision hereof shall
      be valid and shall be enforced to the fullest extent permitted by
      law.

    

    9.4   Assignment.  The
      Operator may not and shall not assign this Agreement or any part of their rights
      or duties hereunder, in whole or in part, by operation of law or otherwise,
      without the prior written consent of Rio, which consent will not be unreasonably
      delayed or withheld.
      The
      foregoing does not apply to Operator’s assignment of this Agreement to
      TransMontaigne Partners L.P.

    

    9.5   Applicable
      Law.  This
      Agreement shall be governed by the laws of the State of Texas.

    

    9.6   Limitation
      of Damages.  Neither
      Party shall be liable for prospective profits or special, punitive, indirect
      or
      consequential losses or damages of any kind arising out of or in any way
      connected with the performance of or failure to perform this Agreement,
      including, but not limited to losses or damages resulting from shutdown of
      plants or inability to perform sales or any other contracts arising out of
      or in
      connection with the performance or non-performance of this
      Agreement.

    

    9.7   Access.  Rio
      and
      its designees shall have full and complete access at all times to the U.S.
      Pipeline and all records and documents associated therewith prepared and
      maintained by the Operator.

    

    9.8   Force
      Majeure.

    

    (A)   Except
      for Rio’s obligation to make proper payment to the Operator under this
      Agreement, in the event either Rio or Operator is rendered unable, by reason
      of
      an event of force majeure, to perform, wholly or in part, any obligation or
      commitment set forth in this Agreement, then upon such party giving notice
      and
      full particulars (including all supporting documentation) of such event as
      soon
      as practicable after the occurrence thereof, the obligations of both parties
      shall be suspended to the extent and for the period of such force majeure
      provided that the party claiming an event of force majeure shall make all
      reasonable attempts to remedy the same with all reasonable
      dispatch.

    

    (B)   Neither
      Party shall be entitled to the benefit of the provisions of this Section under
      either or both of the following circumstances:

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    (1)    To
      the
      extent that the failure was caused by the Party
      claiming
      suspension having failed to remedy the condition by taking all reasonable acts,
      short of litigation, if such remedy requires litigation, and having failed
      to
      resume performance of such commitments or obligations with reasonable dispatch;
      or,

    

    (2)    If
      the
      failure was caused by lack of funds, or with respect to the payment of any
      amount or amounts then due hereunder.

    

    (C)   Settlement
      of strikes and lockouts shall be entirely within the discretion of the party
      affected, and the duty that any event of force majeure shall be remedied with
      all reasonable dispatch shall not require the settlement of strikes and lockouts
      by acceding to the demands of the parties directly or indirectly involved in
      such strikes or lockouts when such course is inadvisable in the discretion
      of
      the Party
      having
      such difficulty.

    

    9.9   Notices.  Except
      as
      may be otherwise provided in this Agreement, all notices to be given hereunder
      shall be in writing and delivered by (i) confirmed facsimile, (ii) reliable
      private over-night courier service or (iii) by certified mail (return receipt
      requested), and addressed as follows:

    

    
      	 	
              If
                to Operator:

            	
              TransMontaigne
                Product Services Inc.

            

    

    1670
      Broadway Street, Suite 3100

    Denver,
      CO 80202

    Attn:
      President

    Facsimile:
      (303) 626-8228

    

    
      	 	
              With
                copy to:

            	
              TransMontaigne
                Product Services Inc. (Brownsville
                Terminal)

            

    

    10150
      Highway 48

    Brownsville,
      TX 78521

    Attn:
      Terminal Manager

    Facsimile:
      (956) 831-0448

    

    
      	 	
              If
                to Rio:

            	
              Rio
                Vista Operating Partnership L.P.

            

    

    820
      Gessner
      Road,
      Suite
      1285

    Houston,
      Texas 77024

    Attn: President

    Facsimile:
      (713) 467- 8258

    

    or
      at
      such other addresses as the Parties may from time to time designate in writing.
      Unless otherwise specified within this Agreement, any notice required to be
      given shall be deemed to have been given upon receipt.

    

    9.10 
        Headings.  Any
      article headings contained herein are for reference purposes only and will
      not
      in any way affect the meaning or interpretation of this Agreement. Unless the
      contrary clearly appears from the context, for purposes of this Agreement,
      the
      singular number includes the plural number and vice versa; and each gender
      includes the other gender.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    9.11 
        Press
      Releases.  There
      shall be no press releases, press statements, or other announcements or
      statements by Operator concerning or relating to this Agreement and the
      transactions contemplated hereby or other disclosure of any information
      associated with the operation or maintenance of the U.S. Pipeline without the
      prior written consent of Rio, except to the extent required by applicable laws,
      rules or regulations. If Operator determines that a press release or statement
      is required or desired, Rio will be notified in writing and consulted.

    

    9.12
          Liens.  Operator
      shall keep the U.S. Pipeline free of any and all liens, encumbrances and claims
      at all times.

    

    9.13    Direction
      of Employees.  Rio
      shall
      not have power or authority to direct, supervise or control the employees of
      the
      Operator. The Operator shall, in the exercise of their independent employment,
      select the means, manner and method of performance of the services to be
      provided under this Agreement.

    

    9.14
          Counterpart.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which shall constitute but one and the same
      document.

    

    9.15 
         Alternative
      Dispute Resolution.

     

    (A)   Covered
      Disputes.  Any
      dispute, controversy or claim (whether sounding in contract, tort or otherwise)
      arising out of or relating to this Agreement, including without limitation
      the
      meaning of its provisions, or the proper performance of any of its terms by
      either Party, its breach, termination or invalidity (“Dispute”)
      will
      be resolved in accordance with the procedures specified in this paragraph,
      which
      will be the sole and exclusive procedure for the resolution of any such Dispute,
      except that a Party, without prejudice to the following procedures, may file
      a
      complaint to seek preliminary injunctive or other provisional judicial relief,
      if in its sole judgment, that action is necessary to avoid irreparable damage
      or
      to preserve the status quo. Despite that action the Parties will continue,
      subject to subsection (F) hereinbelow, to participate in good faith in the
      procedures specified in this Section.

    

    (B)    Initiation
      of Procedures.  Either
      Party wishing to initiate the dispute resolution procedures set forth in this
      paragraph with respect to a Dispute not resolved in the ordinary course of
      business must give written notice of the Dispute to the other Party
      (“Dispute
      Notice”).
      The
      Dispute Notice will include (i) a statement of that Party’s position and a
      summary of arguments supporting that position, and (ii) the name and title
      of
      the executive who will represent that Party, and of any other person who will
      accompany the executive, in the negotiations under the next
      subsection.

    

    (C)    Negotiation
      Between Executives.  If
      one
      Party has given a Dispute Notice under the preceding subparagraph, the Parties
      will attempt in good faith to resolve the Dispute within 45 calendar days of
      the
      notice by negotiation between executives who have authority to settle the
      Dispute and who are at a higher level of management than the persons with direct
      responsibility for administration of this Agreement or the matter in Dispute.
      Within 15 calendar days after delivery of the Dispute Notice, the receiving
      Party will submit to the other a written response. The response will include
      (i)
      a statement of that Party's position and a summary of arguments supporting
      that
      position, and (ii) the name and title of the executive who will represent that
      Party and of any other person who will accompany the executive. Within 45
      calendar days after delivery of the Dispute Notice, the executives of both
      Parties will meet at a mutually acceptable time and place, and thereafter,
      as
      often as they reasonably deem necessary, to attempt to resolve the
      Dispute.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (D)   Mediation.  If
      the
      Dispute has not been resolved by negotiation under the preceding subsection
      within 45 calendar days of the Dispute Notice, and only in such event, either
      Party may initiate the mediation procedure of this subsection by giving written
      notice to the other Party (“Mediation
      Notice”).
      The
      Parties will endeavor to settle the Dispute by mediation within 90 calendar
      days
      of the Mediation Notice under the then current Center for Public Resources
      ("CPR") Model Mediation Procedure for Business Disputes. If the Parties have
      not
      agreed upon a mediator within seven calendar days after the Mediation Notice,
      either Party may request CPR assistance in the selection of a mediator under
      its
      guidelines. The mediator will establish rules for an expedited discovery
      procedure and will resolve all disputes with regard to discovery between the
      Parties. If the mediator has not already done so during the mediation process,
      at least seven calendar days before the end of the ninety day mediation period,
      the mediator, if he or she believes that they are qualified to do so, will
      provide to each Party a written summary of the mediator's conclusions regarding
      the outcome of the Dispute if it is submitted to arbitration under the following
      subsection.

    

    (E)    Arbitration.  If
      the
      Dispute has not been resolved by mediation under the preceding subsection within
      90 calendar days of the Mediation Notice, and only in such event, either Party
      may initiate the arbitration procedure of this subsection by giving written
      notice to the other Party (“Arbitration
      Notice”).
      The
      Dispute will be finally resolved by binding arbitration in accordance with
      the
      then current Arbitration Rules of the American Arbitration Association (“AAA”)
      by a single arbitrator, chosen by mutual agreement of both Parties. If the
      Parties cannot select an arbitrator within 30 calendar days of the Arbitration
      Notice, the arbitrator will be selected by the AAA. The arbitration will be
      governed by the United States Arbitration Act, 9 U.S.C. Sec. 1-16, as amended
      (“the Act”), and to the extent not inconsistent with the Act, the Texas
      arbitration statute. Judgment upon the award rendered by the arbitrator may
      be
      entered by any court of any state having jurisdiction. The statute of
      limitations of the State of Texas for the commencement of a lawsuit will apply
      to the commencement of an arbitration under this Agreement, except that no
      defenses will be available based upon the passage of time during any negotiation
      or mediation called for by this Section. Each Party will assume its own costs
      of
      legal representation and expert witnesses and the Parties will share equally
      the
      other costs of the arbitration. The arbitrator will award pre-judgment interest
      in accordance with the law of Texas; however, the arbitrator may not award
      punitive damages. The arbitration will take place in Houston,
      Texas.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (F)    Tolling
      and Performance.  Except
      as
      indicated in the preceding subsection with regard to the commencement of
      arbitration, all applicable statutes of limitation and defenses based upon
      the
      passage of time will be tolled while the procedures specified in this paragraph
      are pending. The Parties will take any action required to effectuate that
      tolling. Each Party is required to continue to perform its obligations under
      this Agreement pending final resolution of any Dispute, unless to do so would
      be
      impossible or impracticable under the circumstances.”

    

    The
      Parties, through their undersigned duly authorized representatives, have had
      this Agreement executed on the following page, effective as of the Effective
      Date.

    

    

    RIO
      VISTA OPERATING PARTNERSHIP, L.P.

    (a) 
       By:   Rio Vista Operating GP LLC, its General
      Partner

     

    

    
      	
              By:
                

            	 	 
	 	
              Charles
                Handly

            	 
	 	
              President

            	 
	 	 	 
	 	 	 
	 	 	 
	
              TRANSMONTAIGNE
                PRODUCT SERVICES INC.

            	 
	 	 	 
	 	 	 
	
              By:
                

            	 	 
	 	
              William
                S. Dickey

            	 
	 	
              President

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