Document:

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                                                                   EXHIBIT 10.16

                               EXECUTIVE AGREEMENT

         This Executive Agreement ("Agreement") between Oil States
International, Inc., a Delaware corporation (the "Company"), and Jay Trahan (the
"Executive") is made and entered into effective as of March 8, 2002 (the
"Effective Date").

         WHEREAS, Executive is a key executive of the Company or a subsidiary;
and

         WHEREAS, the Company believes it to be in the best interests of its
stockholders to attract, retain and motivate key executives and ensure
continuity of management; and

         WHEREAS, it is in the best interest of the Company and its stockholders
if the key executives can approach material business development decisions
objectively and without concern for their personal situation; and

         WHEREAS, the Company recognizes that the possibility of a Change of
Control (as defined below) of the Company may result in the departure of key
executives to the detriment of the Company and its stockholders; and

         WHEREAS, the Board of Directors of the Company has authorized this
Agreement and certain similar agreements in order to retain and motivate key
management and to ensure continuity of key management;

         THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and Executive agree as
follows:

1.       TERM OF AGREEMENT

         A.       This Agreement shall commence on the Effective Date and,
                  subject to the provisions for earlier termination in this
                  Agreement, shall continue in effect through the third
                  anniversary of the Effective Date; provided, however,
                  commencing on the Effective Date and on each day thereafter,
                  the term of this Agreement shall automatically be extended for
                  one additional day unless the Board of Directors of the
                  Company shall give written notice to Executive that the term
                  shall cease to be so extended in which event the Agreement
                  shall terminate on the third anniversary of the date such
                  notice is given.

         B.       Notwithstanding anything in this Agreement to the contrary,
                  this Agreement, if in effect on the date of a Change of
                  Control, shall automatically be extended for the 24-month
                  period following the Change of Control.

         C.       Termination of this Agreement shall not alter or impair any
                  rights of Executive arising hereunder on or before such
                  termination.

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2.       CERTAIN DEFINITIONS

         A.       "Cause" shall mean:

                  (i)      Executive's conviction of (or plea of nolo contendere
                           to) a felony, dishonesty or a breach of trust as
                           regards the Company or any subsidiary;

                  (ii)     Executive's commission of any act of theft, fraud,
                           embezzlement or misappropriation against the Company
                           or any subsidiary that is materially injurious to the
                           Company or such subsidiary regardless of whether a
                           criminal conviction is obtained;

                  (iii)    Executive's willful and continued failure to devote
                           substantially all of his business time to the
                           Company's business affairs (excluding failures due to
                           illness, incapacity, vacations, incidental civic
                           activities and incidental personal time) which
                           failure is not remedied within a reasonable time
                           after written demand is delivered by the Company,
                           which demand specifically identifies the manner in
                           which the Company believes that Executive has failed
                           to devote substantially all of his business time to
                           the Company's business affairs; or

                  (iv)     Executive's unauthorized disclosure of confidential
                           information of the Company that is materially
                           injurious to the Company.

                           For purposes of this definition, no act, or failure
                  to act, on Executive's part shall be deemed "willful" unless
                  done, or omitted to be done, by Executive not in good faith
                  and without reasonable belief that Executive's action or
                  omission was in the best interest of the Company.

         B.       "Change of Control" shall mean any of the following:

                  (i)      any "person" (as such term is used in Section 13(d)
                           and 14(d) of the Securities Exchange Act of 1934, as
                           amended (the "Exchange Act")), (other than a trustee
                           or other fiduciary holding securities under an
                           employee benefit plan of the Company or any
                           affiliate, SCF III, L.P., SCF IV, L.P., or any
                           affiliate of SCF-III, L.P. or SCF-IV, L.P. or any
                           corporation owned, directly or indirectly, by the
                           stockholders of the Company in substantially the same
                           proportions as their ownership of stock of the
                           Company), acquires "beneficial ownership" (within the
                           meaning of Rule 13d-3 under the Exchange Act) of
                           securities of the Company representing 35% or more of
                           the combined voting power of the Company's then
                           outstanding securities; provided, however, that if
                           the Company engages in a merger or consolidation in
                           which the Company or surviving entity in such merger
                           or consolidation becomes a subsidiary of another
                           entity, then references to the Company's then
                           outstanding securities shall be deemed to refer to
                           the outstanding securities of such parent entity;

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                  (ii)     a change in the composition of the Board, as a result
                           of which fewer than a majority of the directors are
                           Incumbent Directors. "Incumbent Directors" shall mean
                           directors who either (i) are directors of the Company
                           as of the Effective Date, or (ii) are elected, or
                           nominated for election, to the Board with the
                           affirmative votes of at least two-thirds of the
                           Incumbent Directors at the time of such election or
                           nomination, but Incumbent Director shall not include
                           an individual whose election or nomination occurs as
                           a result of either (1) an actual or threatened
                           election contest (as such terms are used in Rule
                           14a-11 of Regulation 14A promulgated under the
                           Exchange Act) or (2) an actual or threatened
                           solicitation of proxies or consents by or on behalf
                           of a person other than the Board of Directors of the
                           Company;

                  (iii)    the consummation of a merger or consolidation of the
                           Company with any other corporation, other than a
                           merger or consolidation which would result in the
                           voting securities of the Company outstanding
                           immediately prior thereto continuing to represent
                           (either by remaining outstanding or by being
                           converted into voting securities of the surviving
                           entity (or if the surviving entity is or shall become
                           a subsidiary of another entity, then such parent
                           entity)) more than 50% of the combined voting power
                           of the voting securities of the Company (or such
                           surviving entity or parent entity, as the case may
                           be) outstanding immediately after such merger or
                           consolidation;

                  (iv)     the stockholders of the Company approve a plan of
                           complete liquidation of the Company; or

                  (v)      the sale or disposition (other than a pledge or
                           similar encumbrance) by the Company of all or
                           substantially all of the assets of the Company other
                           than to a subsidiary or subsidiaries of the Company.

         C.       "Date of Termination" shall mean the date the Notice of
                  Termination is given unless such termination is by Executive
                  in which event the Date of Termination shall not be less than
                  30 days following the date the Notice of Termination is given.
                  Further, a Notice of Termination given by Executive due to a
                  Good Reason event that is corrected by the Company before the
                  Date of Termination shall be void.

         D.       "Good Reason" shall mean:

                  (i)      a material reduction in Executive's authority, duties
                           or responsibilities from those in effect immediately
                           prior to the Change of Control or the assignment to
                           Executive duties or responsibilities inconsistent in
                           any material respect from those of Executive in
                           effect immediately prior to the Change of Control;

                  (ii)     a material reduction of Executive's compensation and
                           benefits, including, without limitation, annual base
                           salary, annual bonus, and equity incentive

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                           opportunities, from those in effect immediately prior
                           to the Change of Control;

                  (iii)    the Company fails to obtain a written agreement from
                           any successor or assigns of the Company to assume and
                           perform this Agreement as provided in Section 9
                           hereof; or

                  (iv)     the Company requires Executive, without Executive's
                           consent, to be based at any office located more than
                           50 miles from the Company's offices to which
                           Executive was based immediately prior to the Change
                           of Control, except for travel reasonably required in
                           the performance of Executive's duties.

                  Notwithstanding the above however, Good Reason shall not exist
                  with respect to a matter unless Executive gives the Company
                  written notice of such matter within 30 days of the date
                  Executive knows or should reasonably have known of its
                  occurrence. If Executive fails to give such notice timely,
                  Executive shall be deemed to have waived all rights Executive
                  may have under this Agreement with respect to such matter.

         E.       "Notice of Termination" shall mean a written notice delivered
                  to the other party indicating the specific termination
                  provision in this Agreement relied upon for termination of
                  Executive's employment and shall set forth in reasonable
                  detail the facts and circumstances claimed to provide a basis
                  for termination of Executive's employment under the provision
                  so indicated.

         F.       "Protected Period" shall mean the 24-month period beginning on
                  the effective date of a Change of Control.

         G.       "Target AICP" shall mean the targeted value of Executive's
                  annual incentive compensation plan bonus for the year in which
                  the Date of Termination occurs or the fiscal year immediately
                  preceding the Change of Control, whichever is a greater
                  amount.

         H.       "Termination Base Salary" shall mean Executive's base salary
                  at the rate in effect at the time the Notice of Termination is
                  given or, if a greater amount, Executive's base salary at the
                  rate in effect immediately prior to the Change of Control.

3.       NO EMPLOYMENT AGREEMENT.

         This Agreement shall be considered solely as a "severance agreement"
         obligating the Company to pay Executive certain amounts of compensation
         and to provide certain benefits in the event and only in the event of
         Executive's termination of employment for the specified reasons and at
         the times specified herein. The parties agree that this Agreement shall
         not be considered an employment agreement and that Executive is an "at
         will" employee of the Company.

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4.       REGULAR SEVERANCE BENEFITS.

         Subject to Section 13, if the Company terminates Executive's employment
         (i) other than for Cause and (ii) not during the Protected Period,
         Executive shall receive the following compensation and benefits from
         the Company:

         A.       Within 15 days of the Date of Termination the Company shall
                  pay to Executive in a lump sum, in cash, an amount equal to
                  one times the sum of Executive's (i) Termination Base Salary
                  and (ii) Target AICP.

         B.       Notwithstanding anything in any Company stock plan or grant
                  agreement to the contrary, all restricted shares and
                  restricted stock units of Executive shall become 100% vested
                  and all restrictions thereon shall lapse as of the Date of
                  Termination and the Company shall promptly deliver such shares
                  to Executive.

         C.       For the 24-month period following the Date of Termination (the
                  "Regular Severance Period"), the Company shall continue to
                  provide Executive and Executive's eligible family members,
                  based on the cost sharing arrangement between the Company and
                  similarly situated active employees, with medical and dental
                  health benefits and disability coverage and benefits at least
                  equal to those which would have been provided to Executive if
                  Executive's employment had not been terminated or, if more
                  favorable to Executive, as in effect generally at any time
                  during such period. Notwithstanding the foregoing, if
                  Executive becomes eligible to receive medical, dental and
                  disability benefits under another employer's plans during this
                  Regular Severance Period, the Company's obligations under this
                  Section 4C shall be reduced to the extent comparable benefits
                  are actually received by Executive during such period, and any
                  such benefits actually received by Executive shall be promptly
                  reported by Executive to the Company. In the event Executive
                  is ineligible under the terms of the Company's health and
                  other welfare benefit plans or programs to continue to be so
                  covered, the Company shall provide Executive with
                  substantially equivalent coverage through other sources or
                  will provide Executive with a lump sum payment in such amount
                  that, after all taxes on that amount, shall be equal to the
                  cost to Executive of providing Executive such benefit
                  coverage. The lump sum shall be determined on a present value
                  basis using the interest rate provided in Section
                  1274(b)(2)(B) of the Internal Revenue Code of 1986, as amended
                  (the "Code") on the Date of Termination.

CHANGE OF CONTROL SEVERANCE BENEFITS

5.       SEVERANCE BENEFITS. Subject to Section 13, if either (a) Executive
         terminates his employment during the Protected Period for a Good Reason
         event or (b) the Company terminates Executive's employment during the
         Protected Period other than for Cause, Executive shall receive the
         following compensation and benefits from the Company:

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         A.       Within 15 days of the Date of Termination the Company shall
                  pay to Executive in a lump sum, in cash, an amount equal to
                  two times the sum of Executive's (i) Termination Base Salary
                  and (ii) Target AICP.

         B.       Notwithstanding anything in any Company stock plan or grant
                  agreement to the contrary, (i) all restricted shares and
                  restricted stock units of Executive shall become 100% vested
                  and all restrictions thereon shall lapse as of the Date of
                  Termination and the Company shall promptly deliver such shares
                  to Executive and (ii) each then outstanding stock option of
                  Executive shall become 100% exercisable and, excluding any
                  incentive stock option granted prior to the Effective Date,
                  shall remain exercisable for the remainder of such option's
                  term.

         C.       Executive shall be fully vested in Executive's accrued
                  benefits under all qualified pension, nonqualified pension,
                  profit sharing, 401(k), deferred compensation and supplemental
                  plans maintained by the Company for Executive's benefit,
                  except to that the extent the acceleration of vesting of such
                  benefits would violate any applicable law or require the
                  Company to accelerate the vesting of the accrued benefits of
                  all participants in such plan or plans, in which event the
                  Company shall pay Executive a lump sum amount, in cash, within
                  15 days following the Date of Termination, equal to the
                  present value of such unvested accrued benefits that cannot
                  become vested under the plan for the reasons provided above.

         D.       For the 36-month period following the Date of Termination (the
                  "COC Severance Period"), the Company shall continue to provide
                  Executive and Executive's eligible family members, based on
                  the cost sharing arrangement between Executive and the Company
                  on the Date of Termination, with medical and dental health
                  benefits and disability coverage and benefits at least equal
                  to those which would have been provided to Executive if
                  Executive's employment had not been terminated or, if more
                  favorable to Executive, as in effect generally at any time
                  during such period. Notwithstanding the foregoing, if
                  Executive becomes eligible to receive medical, dental and
                  disability benefits under another employer's plans during this
                  COC Severance Period, the Company's obligations under this
                  Section 5D shall be reduced to the extent comparable benefits
                  are actually received by Executive during such period, and any
                  such benefits actually received by Executive shall be promptly
                  reported by Executive to the Company. In the event Executive
                  is ineligible under the terms of the Company's health and
                  other welfare benefit plans or programs to continue to be so
                  covered, the Company shall provide Executive with
                  substantially equivalent coverage through other sources or
                  will provide Executive with a lump sum payment in such amount
                  that, after all taxes on that amount, shall be equal to the
                  cost to Executive of providing Executive such benefit
                  coverage. The lump sum shall be determined on a present value
                  basis using the interest rate provided in Section
                  1274(b)(2)(B) of the Code on the Date of Termination.

         E.       Throughout the term of the COC Severance Period or until
                  Executive accepts other employment, including as an
                  independent contractor, with a new employer, whichever occurs
                  first, Executive shall be entitled to receive outplacement

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                  services, payable by the Company, with an aggregate cost not
                  to exceed 15% of Executive's Termination Base Salary, with an
                  executive outplacement service firm reasonably acceptable to
                  the Company and Executive.

6.       PARACHUTE TAX GROSS UP.

         If any payment (including without limitation any imputed income) made,
         or benefit provided, to or on behalf of Executive pursuant to this
         Agreement, including any accelerated vesting or any deferred
         compensation or other award, in connection with a "change in control"
         of the Company (within the meaning of Section 280G of the Code) results
         in Executive being subject to the excise tax imposed by Section 4999 of
         the Code (or any successor or similar provision) the Company shall
         promptly pay Executive an additional amount in cash (the "Additional
         Amount") such that the net amount of all such payments and benefits
         received by Executive after paying all applicable taxes (including
         penalties and interest) on such payments and benefits, including on
         such Additional Amount, shall be equal to the net after-tax amount of
         the payments and benefits (excluding the Additional Amount) that
         Executive would have received if Section 4999 were not applicable to
         such payments and benefits. Such determinations shall be made by the
         Company's independent certified public accountants.

7.       ACCELERATED VESTING OF OPTIONS UPON A CHANGE OF CONTROL.

         Notwithstanding any provisions of any Company stock option plan or
         option agreement to the contrary, upon a Change of Control all
         outstanding unvested stock options, if any, granted to Executive under
         any Company stock option plan (or options substituted therefor covering
         the stock of a successor corporation) shall be fully vested and
         exercisable as to all shares of stock covered thereby effective as of
         the date of the Change of Control.

8.       MITIGATION.

         Executive shall not be required to mitigate the amount of any payment
         provided for in this Agreement by seeking other employment or otherwise
         nor, except as provided in Section 4C and Section 5D, shall the amount
         of any payment or benefit provided for in this Agreement be reduced by
         any compensation earned or benefit received by Executive as the result
         of employment by another employer or self-employment, by retirement
         benefits, by offset against any amount claimed to be owed by Executive
         to the Company or otherwise, except that any severance payments or
         benefits that Executive is entitled to receive pursuant to a Company
         severance plan or program for employees in general shall reduce the
         amount of payments and benefits otherwise payable or to be provided
         under this Agreement.

9.       SUCCESSOR AGREEMENT.

         The Company will require any successor (whether direct or indirect, by
         purchase, merger, consolidation or otherwise) to all or substantially
         all of the business and/or assets of the Company to assume expressly
         and agree to perform this Agreement in the same manner and to the same
         extent that the Company would be required to perform if no succession

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         had taken place. Failure of the successor to so assume shall constitute
         a breach of this Agreement and entitle Executive to the benefits
         hereunder as if triggered by a termination by the Company other than
         for Cause.

10.      INDEMNITY.

         In any situation where under applicable law the Company has the power
         to indemnify, advance expenses to and defend Executive in respect of
         any judgements, fines, settlements, loss, cost or expense (including
         attorneys fees) of any nature related to or arising out of Executive's
         activities as an agent, employee, officer or director of the Company or
         in any other capacity on behalf of or at the request of the Company,
         then the Company shall promptly on written request, indemnify
         Executive, advance expenses (including attorney's fees) to Executive
         and defend Executive to the fullest extent permitted by applicable law,
         including but not limited to making such findings and determinations
         and taking any and all such actions as the Company may, under
         applicable law, be permitted to have the discretion to take so as to
         effectuate such indemnification, advancement or defense. Such agreement
         by the Company shall not be deemed to impair any other obligation of
         the Company respecting Executive's indemnification or defense otherwise
         arising out of this or any other agreement or promise of the Company
         under any statute.

11.      NOTICE.

         For the purpose of this Agreement, notices and all other communications
         provided for in this Agreement shall be in writing and delivered by
         United States certified or registered mail (return receipt requested,
         postage prepaid) or by courier guaranteeing overnight delivery or by
         hand delivery (with signed receipt required), addressed to the
         respective addresses set forth below, and such notice or communication
         shall be deemed to have been duly given two days after deposit in the
         mail, one day after deposit with such overnight carrier or upon
         delivery with hand delivery. The addresses set forth below may be
         changed by a writing in accordance herewith.

         Company:                                  Executive:

         Oil States International, Inc.            Jay Trahan
         333 Clay Street, Suite 3460               20202 Atascocita Lake Drive
         Houston, Texas 77002                      Humble, TX  77346
         Attn: Chairman of the Board

12.      ARBITRATION.

         The parties agree to resolve any claim or controversy arising out of or
         relating to this Agreement, including but not limited to the
         termination of employment of Executive, by binding arbitration under
         the Federal Arbitration Act before one arbitrator in Houston, Texas,
         administered by the American Arbitration Association under its
         Commercial Arbitration Rules, and judgment on the award rendered by the
         arbitrator may be entered in any court having jurisdiction thereof. The
         fees and expenses of the arbitrator shall be borne solely by the
         non-prevailing party or, in the event there is no clear prevailing
         party,

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         as the arbitrator deems appropriate. Except as provided above, each
         party shall pay its own costs and expenses (including, without
         limitation, attorneys' fees) relating to any mediation/arbitration
         proceeding conducted under this Section 12.

13.      WAIVER AND RELEASE.

         As a condition to the receipt of any payment or benefit under this
         Agreement, Executive must first execute and deliver to the Company a
         binding general release, as prepared by the Company, that releases the
         Company, its officers, directors, employees, agents, subsidiaries and
         affiliates from any and all claims and from any and all causes of
         action of any kind or character that Executive may have arising out of
         Executive's employment with the Company or the termination of such
         employment, but excluding (i) any claims and causes of action that
         Executive may have arising under or based upon this Agreement, and (ii)
         any vested rights Executive may have under any employee benefit plan or
         deferred compensation plan or program of the Company.

         Executive knowingly and voluntarily releases the Company, HWC Energy
         Services, Inc., SCF Partners, their parent and affiliated companies,
         subsidiaries, divisions, successors and assigns, including present and
         former employees, supervisors and other agents or representatives from
         any and all claims Executive may have under the terms of that certain
         letter agreement between Executive and SCF Partners dated November 24,
         1997.

14.      EMPLOYMENT WITH AFFILIATES.

         Employment with the Company for purposes of this Agreement includes
         employment with any entity in which the Company has a direct or
         indirect ownership interest of 50% or more of the total combined voting
         power of all outstanding equity interests, and employment with any
         entity which has a direct or indirect interest of 50% or more of the
         total combined voting power of all outstanding equity interests of the
         Company. For purposes of this Agreement, "Good Reason" shall be
         construed to refer to Executive's positions, duties, and
         responsibilities in the position or positions in which Executive serves
         immediately before the Change of Control, but shall not include titles
         or positions with subsidiaries and affiliates of the Company that are
         held primarily for administrative convenience.

15.      GOVERNING LAW.

         (a)      THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
                  WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO
                  CONFLICTS OF LAW PRINCIPLES.

         (b)      EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE
                  JURISDICTION OF THE STATE AND FEDERAL COURTS IN HARRIS COUNTY,
                  TEXAS, FOR THE PURPOSES OF ANY PROCEEDING ARISING OUT OF THIS
                  AGREEMENT.

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16.      ENTIRE AGREEMENT.

         This Agreement is an integration of the parties' agreement and no
         agreement or representation, oral or otherwise, express or implied,
         with respect to the subject matter hereof have been made by either
         party which are not set forth expressly in this Agreement. This
         Agreement hereby expressly terminates, rescinds and replaces in full
         any prior agreement (written or oral) between the parties relating to
         the subject matter hereof, including, without limitation, that certain
         letter Agreement between Executive and SCF Partners dated November 24,
         1997.

17.      WITHHOLDING OF TAXES.

         The Company shall withhold from all payments and benefits provided
         under this Agreement all taxes required to be withheld by applicable
         law.

18.      BENEFICIARY.

         In the event Executive dies before receiving the lump sum severance
         payment to which Executive was entitled hereunder, Executive's spouse
         or, if there is no spouse, the beneficiary designated by Executive
         under the Company-sponsored group term life insurance plan, shall
         receive such payment. IN WITNESS WHEREOF, the Company and Executive
         have executed this Agreement effective for all purposes as
         of the Effective Date.

                                      OIL STATES INTERNATIONAL, INC.

                                      By: /s/ CINDY TAYLOR
                                         ---------------------------------------
                                      Name:   Cindy Taylor
                                            ------------------------------------
                                      Title:  Senior VP, Chief Financial Officer
                                             -----------------------------------

                                       EXECUTIVE

                                       /s/ JAY TRAHAN
                                       -----------------------------------------
                                       Jay Trahan

                                       10<PAGE>
================================================================================

                          EL PASO ENERGY PARTNERS, L.P.
          EL PASO ENERGY PARTNERS FINANCE CORPORATION, AS THE ISSUERS,

                                       AND

             THE SUBSIDIARIES PARTY HERETO, AS SUBSIDIARY GUARANTORS

                                       AND

           JPMORGAN CHASE BANK, A NEW YORK STATE BANKING CORPORATION,
                                  SUCCESSOR TO
              CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, AS TRUSTEE

                              --------------------

                          SIXTH SUPPLEMENTAL INDENTURE

                           DATED AS OF APRIL 18, 2002

                                       TO

                                    INDENTURE

                            DATED AS OF MAY 27, 1999

                              --------------------

                                  $175,000,000

              10 3/8% SENIOR SUBORDINATED NOTES DUE 2009, SERIES A
              10 3/8% SENIOR SUBORDINATED NOTES DUE 2009, SERIES B

================================================================================

<PAGE>
                          SIXTH SUPPLEMENTAL INDENTURE

         THIS SIXTH SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"),
dated as of April 18, 2002 is by and among El Paso Energy Partners, L.P., a
Delaware limited partnership (formerly Leviathan Gas Pipeline Partners, L.P.),
El Paso Energy Partners Finance Corporation, a Delaware corporation (formerly
Leviathan Finance Corporation), the guarantor parties hereto, and JPMorgan Chase
Bank, a New York state banking corporation, as successor to Chase Bank of Texas,
National Association, a national banking association, as the original trustee.

                                   WITNESSETH:

         WHEREAS, the Issuers (as defined in the Indenture), the Subsidiary
Guarantors (as defined in the Indenture) and the Trustee (as defined in the
Indenture) entered into an Indenture, dated as of May 27, 1999 (as in effect on
the date hereof, the "Indenture"), relating to $175,000,000 of the Company's 10
3/8% Senior Subordinated Notes due 2009;

         WHEREAS, the Partnership (as defined in the Indenture) has acquired
Deepwater Holdings, L.L.C., a Delaware limited liability company ("Deepwater"),
Western Gulf Holdings, L.L.C., a Delaware limited liability company ("Western
Gulf"), East Breaks Gathering Company, L.L.C., a Delaware limited liability
company ("East Breaks"), and High Island Offshore System L.L.C., a Delaware
limited liability company ("HIOS");

         WHEREAS, El Paso Energy Partners Deepwater, L.L.C., a Delaware limited
liability company and a Subsidiary Guarantor merged with Deepwater and Western
Gulf, with Western Gulf as the surviving entity expressly assuming the
obligations of the merged entities and thereafter changing its name to "El Paso
Energy Partners Deepwater, L.L.C." ("EP Deepwater");

         WHEREAS, on March 27, 2002 the Board of Directors of the General
Partner of the Partnership redesignated East Breaks and HIOS as Restricted
Subsidiaries under the Indenture;

         WHEREAS, the Partnership also acquired title to the Chaco Liquids Plant
Trust (the "Trust" and collectively with EP Deepwater, East Breaks and HIOS, the
"New Guarantors"), which will also become a Subsidiary Guarantor under the
Indenture pursuant to the terms of this Supplemental Indenture;

         WHEREAS, this Supplemental Indenture is executed and delivered pursuant
to Sections 4.14, 5.01, 11.01 and 11.04 of the Indenture;

         WHEREAS, the Issuers, the Subsidiary Guarantors (which term includes
the New Guarantors) and the Trustee desire to enter into this Supplemental
Indenture to provide for the New Guarantors' guarantee of payment on the same
terms and conditions as the Guarantees by the other Subsidiary Guarantors;

         WHEREAS, all conditions precedent provided for in the Indenture
relating to this Supplemental Indenture have been complied with; and

<PAGE>
         NOW, THEREFORE, in consideration of the premises herein contained, and
for other good and valuable considerations, the receipt and sufficiency of which
are hereby acknowledged, the Issuers, the Subsidiary Guarantors and the Trustee
mutually covenant and agree for the equal and proportionate benefit of all
Holders (herein defined) of the Notes (herein defined) as follows:

               SECTION 1. Incorporation of Indenture; Definitions

         1.1 INCORPORATION OF INDENTURE. This Supplemental Indenture constitutes
a supplement to the Indenture, and the Indenture and this Supplemental Indenture
shall be read together and shall have effect so far as practicable as though all
of the provisions thereof and hereof are contained in one instrument.

         1.2 DEFINITIONS. All capitalized terms used herein and not otherwise
defined herein shall have the respective meanings assigned to such terms in the
Indenture.

                       SECTION 2. SUPPLEMENTAL PROVISIONS

         2.1 UNCONDITIONAL GUARANTEE. Subject to the provisions of Article 11 of
the Indenture, the New Guarantors shall be Subsidiary Guarantors under the terms
of the Indenture and hereby unconditionally guarantee to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its successors
and assigns, irrespective of the validity and enforceability of the Indenture,
the Notes or the Obligations of the Issuers under the Indenture or the Notes,
that:

         (a)      the principal of, premium, interest and Liquidated Damages, if
                  any, on the Notes shall be promptly paid in full when due,
                  whether at the maturity or interest payment or mandatory
                  redemption date, by acceleration, redemption or otherwise, and
                  interest on the overdue principal of, premium, interest and
                  Liquidated Damages, if any, on the Notes, if any, if lawful,
                  and all other Obligations of the Issuers to the Holders or the
                  Trustee under the Indenture and the Notes shall be promptly
                  paid in full or performed, all in accordance with the terms of
                  the Indenture and the Notes; and

         (b)      in case of any extension of time of payment or renewal of any
                  Notes or any of such other obligations, that same shall be
                  promptly paid in full when due or performed in accordance with
                  the terms of the extension or renewal, whether at Stated
                  Maturity, by acceleration or otherwise. Failing payment when
                  due of any amount so guaranteed or any performance so
                  guaranteed for whatever reason, the Subsidiary Guarantors
                  shall be jointly and severally obligated to pay the same
                  immediately.

         The New Guarantors hereby agree that their obligations hereunder and
under the Indenture shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or the Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions of the Indenture and the Notes, the recovery of
any judgment against the Issuers, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of a Subsidiary Guarantor. The New Guarantors hereby waive diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Issuers,

                                       2
<PAGE>
any right to require a proceeding first against the Issuers, protest, notice and
all demands whatsoever and covenant that the Guarantees shall not be discharged
except by complete performance of the obligations contained in the Notes and the
Indenture.

         If any Holder or the Trustee is required by any court or otherwise to
return to the Issuers or Subsidiary Guarantors, or any custodian, trustee,
liquidator or other similar official acting in relation to either the Issuers or
Subsidiary Guarantors, any amount paid by either to the Trustee or such Holder,
these Guarantees, to the extent theretofore discharged, shall be reinstated in
full force and effect. The New Guarantors agree that they shall not be entitled
to any right of subrogation in relation to the Holders in respect of any
obligations guaranteed under the Indenture until payment in full of all
obligations guaranteed under the Indenture.

         The New Guarantors further agree that, as between the Subsidiary
Guarantors, on the one hand, and the Holders and the Trustee, on the other hand,
(x) the maturity of the Obligations guaranteed under the Indenture may be
accelerated as provided in Article 6 of the Indenture for the purposes of these
Guarantees, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed under the Indenture,
and (y) in the event of any declaration of acceleration of such Obligations as
provided in Article 6 of the Indenture, such Obligations (whether or not due and
payable) shall forthwith become due and payable by the Subsidiary Guarantors for
the purpose of these Guarantees. The New Guarantors agree that the Subsidiary
Guarantors shall have the right to seek contribution from any non-paying
Subsidiary Guarantor so long as the exercise of such right does not impair the
rights of the Holders under these Guarantees.

         2.2 OTHER GUARANTEE TERMS. The New Guarantors hereby confirm, adopt and
acknowledge each of the provisions of the Indenture relating to the Subsidiary
Guarantors and the Guarantees, including, but not limited to, Articles 4 and 11
thereof.

                            SECTION 3. MISCELLANEOUS

         3.1 COUNTERPARTS. This Supplemental Indenture may be signed in
counterparts and by the different parties hereto in separate counterparts, each
of which shall constitute an original and all of which together shall constitute
one and the same instrument.

         3.2 SEVERABILITY. In case any provision in this Supplemental Indenture
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

         3.3 HEADINGS. The headings of the Sections of this Supplemental
Indenture have been inserted for convenience of reference only, are not to be
considered a part hereof and shall not modify or restrict any of the terms or
provisions hereof.

         3.4 SUCCESSORS. All agreements of the Issuers and the Subsidiary
Guarantors in this Supplemental Indenture shall bind their respective
successors. All agreements of the Trustee in this Supplemental Indenture shall
bind its successors.

         3.5 GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE

                                       3
<PAGE>
STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

         3.6 FULL FORCE AND EFFECT. The Indenture, as supplemented by this
Supplemental Indenture, remains in full force and effect and is hereby ratified
and confirmed as the valid and binding obligation of the parties hereto.

         3.7 TRUSTEE. The Trustee accepts the modifications of trusts referenced
in the Indenture and effected by this Supplemental Indenture. Without limiting
the generality of the foregoing, the Trustee assumes no responsibility for the
correctness of the recitals herein contained, which shall be taken as the
statements of the Company and the Subsidiary Guarantors, and the Trustee shall
not be responsible or accountable in any way whatsoever for or with respect to
the validity or execution or sufficiency of this Supplemental Indenture, and the
Trustee makes no representation with respect thereto.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

                                       4
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Supplemental
Indenture as of the date first above written.

EL PASO ENERGY PARTNERS, L.P.                   EL PASO ENERGY PARTNERS
     by its general partner                     FINANCE CORPORATION
     EL PASO ENERGY PARTNERS
     COMPANY

By:    /s/ D. Mark Leland                       By:     /s/ D. Mark Leland
Name:  D. Mark Leland                           Name:   D. Mark Leland
Title: Senior Vice President                    Title:  Senior Vice President
       and Controller                                   and Controller

JPMORGAN CHASE BANK, as successor Trustee

By:    /s/ Mauri J. Cowen
Name:  Mauri J. Cowen
Title: Vice President and Trust Officer

<PAGE>
NEW GUARANTORS:

EL PASO ENERGY PARTNERS DEEPWATER, L.L.C.
(formerly, Western Gulf Holdings, L.L.C.)
EAST BREAKS GATHERING COMPANY, L.L.C.
HIGH ISLAND OFFSHORE SYSTEM, L.L.C.
THE CHACO LIQUIDS PLANT TRUST
(by EL PASO ENERGY PARTNERS OPERATING
COMPANY, L.L.C., solely in its capacity as trustee
of the Chaco Liquids Plant Trust)

By:    /s/ D. Mark Leland
Name:  D. Mark Leland
Title: Senior Vice President of each such entity

<PAGE>
Each of the undersigned hereby ratifies and confirms its respective obligations
under the Indenture, as supplemented by this Supplemental Indenture:

                               ARGO II, L.L.C.
                               CRYSTAL HOLDING, L.L.C.
                               CRYSTAL PROPERTIES AND TRADING COMPANY, L.L.C.
                               DELOS OFFSHORE COMPANY, L.L.C.
                               EL PASO ENERGY PARTNERS OIL TRANSPORT, L.L.C.
                               EL PASO ENERGY PARTNERS OPERATING COMPANY, L.L.C.
                               FIRST RESERVE GAS, L.L.C.
                               FLEXTREND DEVELOPMENT COMPANY, L.L.C.
                               GREEN CANYON PIPE LINE COMPANY, L.P.
                               HATTIESBURG INDUSTRIAL GAS SALES COMPANY, L.L.C.
                               MANTA RAY GATHERING COMPANY, L.L.C.
                               PETAL GAS STORAGE COMPANY, L.L.C.
                               POSEIDON PIPELINE COMPANY, L.L.C.
                               VK DEEPWATER GATHERING COMPANY, L.L.C.
                               VK-MAIN PASS GATHERING COMPANY, L.L.C.

                               By:    /s/ D. Mark Leland
                                   ---------------------------------------------
                               Name:  D. Mark Leland
                               Title: Senior Vice President of each such entity

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