Document:

exv10w11

 

Exhibit 10.11

PIPELINE LEASE AGREEMENT

     THIS PIPELINE LEASE AGREEMENT (“Lease”) is entered into as of the ___day of January, 2007, by
and between TE Products Pipeline Company, Limited Partnership, a Delaware limited partnership,
hereinafter referred to as “Lessor”, and South Texas NGL Pipelines, LLC, a Delaware limited
liability company, hereinafter referred to as “Lessee”. Lessor and Lessee may be referred to
singularly as “Party” or collectively as “Parties”.

     WHEREAS, Lessor is the owner of a certain natural gas pipeline known as the P-8 Pipeline,
located in Harris County, Texas, and related valves and equipment (“Pipeline”), as well as
rights-of-way, easements, licenses, permits and surface sites attributable to the Pipeline
(referred to as the “Rights-of-Way”), all as described in Exhibit “A” attached hereto and made a
part hereof (collectively, the “Property”); and

     WHEREAS, Lessor desires to lease to Lessee and Lessee desires to lease from Lessor
approximately twelve (12) miles of the Property upon the terms set forth herein.

     NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein
contained, the sufficiency of which are hereby acknowledged, the Parties hereto do mutually
covenant and agree as follows:

	1.	 	Property Leased. Lessor leases to Lessee, and Lessee leases from Lessor, the
Property, and Lessor grants to Lessee for the term of this Lease, the non-exclusive right to
use the Rights-of-Way associated with the Property, subject to any approvals required pursuant
to Section 4b. Lessor shall install two interconnects to Lessor’s Property.
	 
	2.	 	Term of Lease. The term of this Lease shall commence on January 1, 2007, (“Effective
Date”) and continue for a period of seven (7) months from the Effective Date (“Primary Term”)
and month to month thereafter until either Party gives the other Party at least sixty (60)
days prior written notice of termination. If, at any time after the Primary Term has
expired, Lessor desires to terminate the Lease due to its desire to lease or sell the Property
to a third party, Lessee shall have the right to match any offer to lease or purchase the
Property.
	 
	3.	 	Consideration for Lease. In consideration for the Lease of the Property, the Parties
agree to the following terms and conditions:

	 	a.	 	Lessee agrees to pay Lessor a pipeline lease fee of $5,000 per month, payable
by the 10th workday of each month during the term of the Pipeline Lease
Agreement. The pipeline lease fee may be waived by Lessor due to other
consideration and value Lessor receives from Lessee.

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	4.	 	Ownership of Property.

	 	a.	 	Lessee shall have no right or interest in the Property except as expressly set
forth in this Lease. Warranties made by the seller or manufacturer of any of the
Property shall be assigned, for the term of this Lease, by Lessor to Lessee.
	 
	 	b.	 	It is understood that Lessor does not own the majority of the land on which the
Pipeline is located in fee, and that Lessor’s rights in the Rights-of-Way may be
subject to conditions imposed by the fee owner of the land on which the Pipeline is
located. Such conditions include, but are not limited to obtaining approval of the
landowner of lease of the Property (the “Approvals”). Lease of the Property to Lessee
is contingent on Lessor successfully obtaining all Approvals, and this Lease is subject
to all conditions set forth in the Rights-of-Way documents.

	5.	 	Use, Care, Operation and Maintenance of Property.

	 	a.	 	Lessee shall use the Pipeline for transporting natural gas liquids (Ngls) that
are of a quality customarily accepted in its Ngl pipeline business. Lessee shall
operate the Pipeline in accordance with customary and then current good operating
practices in the Ngl pipeline industry.
	 
	 	b.	 	Lessee shall comply with all laws, rules, orders and regulations prescribed by
any governmental authority having jurisdiction over the Property, and Lessee agrees to
indemnify Lessor for any violation of any such law, rule, order or regulation pursuant
to the terms of Section 9. In addition, Lessee will maintain all required plans,
procedures and records to ensure compliance with all applicable laws, rules, orders and
regulations. Lessor shall have the right, but not the obligation, to review all plans,
records and other documentation required to be kept by Lessee to (i) maintain
compliance with any federal, state and local laws, regulations and orders, or (ii)
maintain compliance with Lessee’s obligations hereunder.
	 
	 	c.	 	During the term hereof, Lessee shall operate and maintain the Property at its
sole cost, except that Lessor shall be responsible for maintaining rights of way.
During the term hereof, Lessee shall also perform, or cause to be performed, at its
sole risk, cost and expense, any and all maintenance and repair necessary, in Lessee’s
reasonable judgment, to keep the Property in safe operating order and in compliance
with all applicable laws and regulations of any local, state or federal agencies having
jurisdiction thereof. Maintenance and repair costs shall be
subject to the limits contained in Section 14.

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	 	d.	 	Lessee shall bear the full cost of making the Property operational to fit
Lessee’s needs.
	 
	 	e.	 	Lessee will perform at its expense any necessary aerial patrol of the
Rights-of-Way associated with the Property.
	 
	 	f.	 	Lessee will respond to all one-call notifications and all notices of odor,
leaks or possible failures of the Pipeline. Lessee will immediately notify Lessor of
any one-call notification or reported leak or failure (“Failure”). In addition, Lessee
shall make all required notifications to the appropriate federal, state or local
governmental bodies or agencies of any Failures. Lessor shall have the right, but not
the obligation, to respond in cooperation with Lessee to any one-call notification or
to any reported or suspected Failure with Lessor’s personnel and clean-up contractors.
Lessee shall be responsible for and shall direct and control any clean-up and repair of
the Pipeline following any Failure; provided, however, Lessor may respond to any
Failure without Lessee’s direction and control but at Lessee’s cost if Lessor
determines, in its good faith discretion, that Lessee is not properly responding to
such Failure.

	6.	 	Alterations to the Property. Lessee may perform alterations to the Property, at its
sole risk and expense, only upon the prior written consent of Lessor, which consent shall not
be unreasonably withheld. Any tests to the Pipeline made by Lessee, for any reason, shall be
at the sole cost and risk of Lessee. Lessee shall have the right to remove any alteration or
addition installed by Lessee within ninety (90) days of the termination date of this Lease;
provided, however, Lessee shall restore and repair any damage caused to the Property as a
result of the installation, use or removal of Lessee’s alterations or additions. Any of
Lessee’s alterations or additions not removed from the Property within ninety (90) days of the
termination of this Lease shall upon Lessor’s election, in its sole discretion, become the
property of Lessor without compensation or reimbursement of any kind to Lessee.
	 
	7.	 	Damage to or Destruction of Property. In the event of damage to the Pipeline during
the term of this Lease, Lessee agrees to repair the Pipeline at Lessee’s sole cost and expense
as soon as practicable, such repair to be carried out in accordance with industry standards
and in compliance with all applicable local, state and federal regulations.
	 
	8.	 	As Is, Where Is. Notwithstanding any other provision of this Lease or any instrument
executed pursuant hereto, the Property is leased to Lessee “AS IS, WHERE IS” with all faults.
Lessor hereby expressly disclaims and negates to Lessee and all third parties all warranties,
express or implied, as to any matter whatsoever, including without limitation

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	 	 	any implied or express warranty of merchantability; fitness for a particular purpose;
design; performance; condition; class; maintenance or specification; quality of material or
workmanship of the Property; and the conformity of the Property to the provisions and
specifications of any purchase orders, contracts, or any laws or regulations of any
government or governmental agency. Lessee hereby agrees to assume all risks associated with
its operation and maintenance of the Property throughout the term of this Lease.

	9.	 	Release and Indemnification By Lessee. Lessee shall release, indemnify, defend and
hold harmless Lessor, its officers, agents and employees from any and all claims, demands,
causes of action, expenses (including, but not limited to, attorneys fees, court costs and
expenses), losses or liability of any nature resulting from damage to the environment,
property (including, but not limited to, that of the Parties), injuries to or death of persons
(including, but not limited to, employees, contractors and agents of the Parties), or fines
levied by governmental entities where such claim, demand, cause of action, expense, loss,
liability, damage, injury, death or fine arises, directly or indirectly, in connection with
Lessee’s lease, use, operation, maintenance, repair, modification or addition to or of the
Property, except to the extent caused by the sole negligence or willful misconduct of Lessor,
its agents, servants, employees or contractors.
	 
	10.	 	Release and Indemnification By Lessor. Lessor shall release, indemnify, defend and
hold harmless Lessee, its officers, agents and employees from any and all claims, demands,
causes of action, expenses (including, but not limited to, attorneys fees, court costs and
expenses) losses or liability of any nature resulting from damage to the environment, property
(including but not limited to, that of the Parties), injuries to or death of persons
(including but not limited to, employees, contractors and agents of the Parties), or fines
levied by governmental entities where such claim, demand, cause of action, expense, loss,
liability, damage, injury, death or fine arises, directly or indirectly (a) in connection with
Lessor’s ownership and operation of the Property prior to the Effective Date of this Lease,
except to the extent caused by the negligence or willful misconduct of Lessee, its agents,
servants, employees or contractors, and (b) to the extent caused by the sole negligence or
willful misconduct of Lessor, its agents, servants, employees or contractors after the
Effective Date of this Lease.
	 
	11.	 	Taxes and Fees. Lessor shall pay all real property taxes levied against the
Property, as well as all personal property taxes except for any relating to Lessee’s
modifications or additions to the Property (including, without limitation, any compression
facilities) which shall be paid by Lessee. Lessee shall pay any use or occupation tax or
license or permit fees that may be payable because of Lessee’s use of or operations conducted
on the Property. Lessee shall pay any and all applicable taxes (including but not limited to
ad valorem taxes, excise taxes, sales taxes and value added taxes), fees, assessments and
charges with respect to the delivery, ownership, receipt, handling, use, and storage of
product in or moving through the Pipeline. In the event that either Lessor or Lessee fails

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	 	 	to pay the any taxes properly levied against, and such taxes levied upon, assessed against,
collected from or otherwise imposed upon the other Party, the Party responsible for such
taxes shall immediately indemnify, protect, defend and hold the other harmless from and
against all such indemnified taxes, including any interest or penalties associated
therewith.

	12.	 	Insurance.

	 	a.	 	It is expressly understood and agreed that Lessor shall have no obligation to
carry any insurance of any kind with respect to the Property or the commodities carried
therein. Unless the Parties hereto agree otherwise in writing, Lessee will, at all
times during the term of this lease, at is own expense, carry and maintain or cause to
be carried or maintained with reputable insurance companies reasonably acceptable to
Lessor, the following insurance coverages and limits, at minimum:

	 	 	 	 	 	 	 	 	 
	 	 	Type of Insurance	 	 	 	Limits	 	 
	 
	 	 	 	 	 	 	 	 
	I.

	 	Worker’s Compensation
Employer’s Liability
	 	 
	 	Statutory Minimum Limits,

But not less than $500,000
	 	 
	 
	 	 	 	 	 	 	 	 
	II.

	 	Commercial General Liability

including:
	 	 	 	Combined Single Limit

$3,000,000 per occurrence	 	 
	 

	 	(a) Contractual Liability	 	 	 	 	 	 
	 

	 	(b) Property damage arising from

losses resulting from explosion,

collapse or underground damage	 	 	 	 	 	 
	 

	 	(c) Products and completed
operations	 	 	 	 	 	 
	 

	 	(d) Environmental Impairment	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	III.

	 	Comprehensive Auto

Liability
	 	 	 	Combined Single Limit

$3,000,000	 	 
	 
	 	 	 	 	 	 	 	 
	IV.

	 	Property Damage Insurance

For the Leased Pipeline
	 	 	 	Combined Single Limit

$4,000,000	 	 
	 
	 	 	 	 	 	 	 	 
	V.

	 	Umbrella Liability in Excess of
I, II, III and IV above
	 	 	 	Combined Single Limit

$10,000,000	 	 

Prior to the Commencement Date, Lessee shall furnish shall furnish to Lessor a
certificate of insurance evidencing that such insurance is in force and contains all
the required endorsements.

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	 	b.	 	All policies except for worker’s compensation in any way related to this Lease
or the Property shall be unqualifiedly endorsed specifically to name Lessor and its
affiliates as additional insureds and to provide that each underwriter waives its right
of subrogation against Lessor and its affiliates. All of the aforesaid policies shall
be further endorsed: (a) to provide that they are primary coverage and not in excess of
any other insurance available to Lessor and its affiliates, (b) to provide that they
are without rights of contribution from any other insurance available to Lessor and its
affiliates, (c) to contain cross liability and severability of interest provisions, and
to provide that no cancellation or termination thereof or material adverse change
therein, or any termination arising due to a lapse for nonpayment of premium shall be
effective against Lessor or its affiliates unless at least thirty (30) days prior
written notice has been given to Lessor. Evidence of such specific endorsements shall
be furnished with Lessee’s certificate of insurance. Should Lessee fail to procure or
to maintain in force the insurance specified herein, Lessor may secure such insurance,
and the cost thereof shall be borne by Lessee.
	 
	 	c.	 	Lessee’s compliance with the provisions of this Section 12 and the limits of
liability shown for each category of the insurance coverage to be provided by Lessee
shall not be deemed to constitute a limitation of Lessee’s liability for any claims or
actions or in any way limit, modify, or otherwise affect Lessee’s indemnification
obligations pursuant to this Lease. The insolvency, bankruptcy, or failure of any
insurance company carrying insurance for Lessee, for any subcontractor of any tier of
Lessee, or the failure of any insurance company to pay claims occurring shall not be
held to waive any of the provisions of the contract.
	 
	 	d.	 	Lessee shall provide that any contractor or subcontractor performing any work
related to this Lease or the Property, shall obtain insurance which complies in all
aspects with the provisions of this Section 12.

	13.	 	Return of Property. On the expiration or termination of this Lease, Lessee agrees to
peacefully and quietly return and deliver possession to Lessor of the Property and associated
Rights-of-Way, (i) in good repair, condition, and working order, ordinary wear and tear
resulting from proper use excepted, and (ii) free from all liens and encumbrances created by,
through and under Lessee. Lessee shall transfer to Lessor all maintenance records, DOT or FERC
required records, records of spills, releases or environmental incidents, and any and all
other records required to be kept by an operator of a pipeline. Lessee shall promptly remove
from the Pipeline all product owned by it or its shippers. Prior to termination of this Lease
and after purging the Pipeline of all products, Lessee shall fill the Pipeline with nitrogen
or make some other arrangement acceptable to

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	 	 	Lessor. If any such product is not removed within ninety (90) calendar days following the
termination of this Lease, Lessor may have such product removed from the Pipeline and stored
elsewhere at the sole cost and expense of Lessee or otherwise sell such product at a public
or private sale in accordance with the applicable provisions of applicable Texas law, and
all proceeds from such sale after deducting the cost and expense of such sale and any
amounts owing to Lessor shall be given to Lessee, subject to any claims of third parties. No
claim for damages against Lessor or its agents, contractors or employees shall be created or
made on account of such removal or sale.

	14.	 	Limitation of Repair Obligation. Notwithstanding the provisions of Section 5c. and
7, or any other provision of this Lease, Lessee shall have no obligation to repair any damage
to the Property, or replace any portion of the Property, regardless of the cause of the damage
or destruction to the Property, when it reasonably estimates that the cost of the repair or
replacement would exceed $50,000 provided that this limitation shall not apply to the extent
that the damage was caused by the negligence or willful misconduct of Lessee or its
contractor. If Lessee elects not to repair or replace the Property in such event, it may
terminate this Lease upon thirty (30) days written notice to Lessor.
	 
	15.	 	Waiver. No delay or omission to exercise any right of one Party by the other Party
under this Lease shall be construed as a waiver of any such right or as impairing any such
right. Any waiver to one Party by the other Party of a single breach or default shall not be
construed as a waiver of any prior or subsequent breach or default.
	 
	16.	 	Binding Effect. This Lease shall be binding on the Parties and their respective
permitted successors and assigns, and all stipulations, terms, conditions, covenants,
provisions or agreements in the Lease shall be made and hereby are made covenants running with
the land or any and all real property included as part of the Property.
	 
	17.	 	Severability. If any provision of this Lease is held invalid by a court of competent
jurisdiction, it shall be considered deleted from this Lease, but such invalidity shall not
affect the other provisions that can be given effect in the absence of the invalid provisions.
	 
	18.	 	Entire Agreement. This Lease constitutes the entire agreement between the Parties.
This Lease shall not be amended except by written agreement signed by both Parties.
	 
	19.	 	Headings. Headings or titles to sections or paragraphs of this Lease are solely for
the convenience of the Parties and shall have no effect whatsoever on the interpretation of
the provisions of this Lease.
	 
	20.	 	Governing Law. This Lease shall be governed by the laws of the State of Texas,
without regard to principles of conflicts of laws thereof.

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	21.	 	Inspection. Throughout the Term of this Lease, Lessee will permit, during normal
business hours, Lessor and its agents or representatives to inspect and examine the Property
and all records regarding Lessee’s use of the Property.

	22.	 	Assignment.

	 	a.	 	Lessee shall not assign or otherwise transfer its interest and obligations
under this Lease without the express written consent of Lessor.
	 
	 	b.	 	If, for any reason, all or any portion of the right, title or interest of
Lessor in or to all or any portion of the Property is sold, assigned, transferred or
conveyed to any purchaser, assignee or transferee, this Lease shall remain in full
force and effect and the right, title and interest of said purchaser, assignee or
transferee in or to the Property shall be subject to all of the terms of this Lease.

	23.	 	Notices. All notices hereunder must be in and are effective upon receipt
thereof at the following addresses:

	 	 	 	 	 
	 

	 	LESSOR:
	 	TE PRODUCTS PIPELINE COMPANY, LIMITED PARTNERSHIP
1100 Louisiana Street, 13th Floor
	 

	 	 	 	Houston, Texas 77002
	 

	 	 	 	Attention: Vice-President
	 
	 	 	 	 
	 

	 	LESSEE:
	 	SOUTH TEXAS NGL PIPELINES, LLC
	 

	 	 	 	1100 Louisiana Street, 10th Floor
	 

	 	 	 	Houston, Texas 77002
	 

	 	 	 	Attention: Vice-President, NGL Assets

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IN WITNESS WHEREOF, each Party has caused this Lease to be executed on the date indicated above.

	 	 	 	 	 
	LESSOR:	 	 
	 
	 	 	 	 
	TE PRODUCTS PIPELINE COMPANY, LIMITED PARTNERSHIP
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	LESSEE:	 	 
	 
	 	 	 	 
	SOUTH TEXAS NGL PIPELINES, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

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	     STATE OF TEXAS

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.
	     COUNTY OF HARRIS

	 	 	)	 	 	 
	 
	 	 	 	 	 	 

Before me on this                      day of January, 2007, personally appeared                     , known to me to be
the                      of                                         , acting in its capacity as general partner of TE PRODUCTS
PIPELINE COMPANY, LIMITED PARTNERSHIP, a Delaware limited partnership, on behalf of said limited
liability company and acknowledged to me that he executed this Lease for the considerations and
purposes therein set forth.

     Given under my hand and seal of office this                      day of January, 2007.

	 	 	 	 	 	 	 
	MY COMMISSION EXPIRES:

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	NOTARY PUBLIC	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	     STATE OF TEXAS

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.
	     COUNTY OF HARRIS

	 	 	)	 	 	 
	 
	 	 	 	 	 	 

Before me on this                      day of January, 2007, personally appeared                      known to me to be the
                                        , of                     , a                     ,
on behalf of said                      and
acknowledged to me that he/she executed this Lease for the considerations and purposes therein set
forth.

     Given under my hand and seal of office this            day of January, 2007.

	 	 	 	 	 	 	 
	MY COMMISSION EXPIRES:

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	NOTARY PUBLIC	 	 

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EXHIBIT Aexv10w12

 

EXHIBIT
10.12

NGL TRANSPORTATION AGREEMENT

South Texas to Mont Belvieu

     THIS TRANSPORTATION AGREEMENT, (the “Agreement”) is entered into as of the ___day of January,
2007 (“Effective Date”) by and between Enterprise Products Operating L.P., a Delaware limited
partnership (“CUSTOMER”), and South Texas NGL Pipelines, LLC, a Delaware limited liability company
(“SOUTH TEXAS”). The parties agree to the following:

WITNESSETH

     1. NGL Transportation. For and in consideration of the rates and fees to be paid by
CUSTOMER to SOUTH TEXAS as provided herein and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, SOUTH TEXAS hereby agrees to provide
transportation services for Product (as herein defined) received from and delivered to Mont
Belvieu. SOUTH TEXAS represents and warrants that it has full right, power and authority to extend
and deliver the services described in this Agreement. Each of the parties hereto represents and
warrants that it has full power and authority to make, enter and perform its obligations under
this Agreement.

     2. Definitions. For the purpose of this Agreement, the following terms and
expressions shall have the following meanings: 

     “Affiliate” means, of any specified Person, a Person that directly or indirectly,
through one or more intermediaries, Controls or is controlled by, or is under common Control
with, the Person specified.

     “Agreement” shall mean this Transportation Agreement.

     “Barrel” shall mean forty-two (42) U. S. Gallons.

     “Business Day” shall mean a Day on which Federal Reserve member banks in Houston, Texas
are open for business.

     “Control” of a non-natural Person means the power, directly or indirectly, to (i)
elect, appoint or cause the election or appointment of at least a majority of the members of
the board of directors of such Person (or if such Person is a non-corporate Person, Persons
having similar powers), or (ii) direct or cause the direction of the management and policies
of such Person, in either case through beneficial ownership of the capital stock (or similar
ownership interests) of such Person or otherwise.

     “Day or Daily” shall mean a twenty-four (24) hour period commencing 12:01 a.m. local
clock time, and extending until 12:00 midnight local clock time.

     “Fee” shall mean the fees referenced in Section 5 (b) below.

     “Force Majeure” shall have the meaning specified in Section 17 hereinafter.

 

 

     “Gallon” shall mean one U.S. Gallon, which is the unit of volume used for the purpose
of measurement of liquid. One (I) U.S. liquid Gallon contains two hundred thirty-one (231)
cubic inches when the liquid is at a temperature of sixty degrees Fahrenheit (60°F) and at
the Vapor pressure of the liquid being measured.

     “Month” or “Monthly” shall mean a period commencing at 12:01 a.m. local clock time on
the first Day of a calendar Month and extending until 12:00 midnight local clock time on the
first Day of the next calendar Month.

     “Offspec Product” shall have the meaning specified in Section 7 hereinafter.

     “Person” means any individual, Corporation, partnership, limited partnership, limited
liability partnership, limited liability company (whether domestic or foreign), joint
venture, association, joint-stock company, trust, estate, custodian, trustee, executor,
administrator, nominee, entity in a representative capacity, unincorporated, organization,
or governmental agency or authority.

     “Product” shall mean ethane, propane, butane, natural gasoline and any combination
thereof.

     “Transportation Fee” shall mean the fee referenced at Section 4 (b) below.

     “Year” or “Yearly” shall mean a period of 365 consecutive Days’, provided, however that
any Year which contains the date of February 29 shall consist of 366 consecutive Days.

     3. Term. The term of this Agreement shall commence on January 1, 2007 and shall
continue for a term of ten (10) years “Primary Term” and shall continue year to year thereafter
until either party gives the other party at least one-hundred eighty (180) days written notice of
termination.

     4. Transportation of Product.

     (a) SOUTH TEXAS shall receive Product from CUSTOMER at SOUTH TEXAS’ pipeline
interconnect with CUSTOMER’S Shoup and Armstrong Fractionation Plants located in Nueces and
Dewitt Counties, Texas and such other points as may be mutually agreed and shall deliver
such Product to CUSTOMER’S storage facility located in Mont Belvieu, Texas. SOUTH TEXAS
shall have care, custody and control of such Product thereafter until it is returned to
CUSTOMER in accordance with this Agreement. CUSTOMER’S Product may be commingled with
Product from other customers. It is anticipated that SOUTH TEXAS shall receive Product from
CUSTOMER daily however, the actual date of shipments from CUSTOMER to SOUTH TEXAS will
depend on CUSTOMER’S needs. Receipt of Product from CUSTOMER shall be subject to operating
conditions, rates of delivery, delivery pressures, scheduling, etc. of SOUTH TEXAS’
pipeline. CUSTOMER shall give SOUTH TEXAS reasonable notice of deliveries of CUSTOMER’S
Product.

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     (b) CUSTOMER shall pay SOUTH TEXAS a Transportation Fee for all volumes of Product
produced at CUSTOMER’S Shoup and Armstrong fractionation plants, regardless of whether such
Product is delivered to SOUTH TEXAS for transport. In exchange, SOUTH TEXAS shall stand
ready to transport any of CUSTOMER’S Product produced at the Armstrong and Shoup
fractionation plants subject to SOUTH TEXAS’ physical pipeline and pumping limitations. The
Transportation Fee shall initially be $.02 per gallon. Beginning on the first anniversary
and on each anniversary thereafter, the Transportation Fee shall be adjusted based on the
following formula:

     Transportation Fee = ($.0025 x (Electricity/$.08/kwh))+($.005 x (PPI/) + $.0125; where:

     Electricity = SOUTH TEXAS’ actual cost of electricity for the most recent calendar
quarter

     PPI = the Producer Price Index for the most recently available month as published by
the Department of Labor, Bureau of Labor Statistics.

     In no event will any adjusted Transportation Fee be less than $.02 per gallon.

     (c) CUSTOMER shall provide volume information to SOUTH TEXAS on a monthly basis.

     5. Measurement.

     (a) Measurement of Product received or delivered from CUSTOMER’S Shoup or Armstrong
fractionation plants shall be made by SOUTH TEXAS or its designee at SOUTH TEXAS’ meters.
CUSTOMER shall have the right to witness all such measurements.

     (b) All shipments from the Shoup and Armstrong fractionation plants for the CUSTOMER’S
account shall be metered at the time of physical custody transfer between SOUTH TEXAS and the
CUSTOMER.

     (c) The meter and related custody transfer equipment must be designed, operated and
maintained in accordance with applicable chapters of API Manual of Petroleum Measurement
Standards, normal industry practice, and mutual agreement of the Parties.

     (d) SOUTH TEXAS shall furnish to CUSTOMER custody transfer tickets for CUSTOMER’S
Product delivered to SOUTH TEXAS. The ticket will identify the Product and state the net
volume in barrels of Product measured.

     (e) The custody meter measurement tickets, issued on a monthly basis, will be the
documents used for custody transfer.

     (f) Each meter shall be proven when initially placed into service. The meter shall be
proven immediately after any meter maintenance is performed. Subsequent

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provings shall be made every thirty (30) days, unless in accordance with the API – MPMS
the consistency of the meter factor allows the proving interval to be extended, or provings
shall be made when accuracy is in question.

     (g) If the custody transfer meter is not available for use, is inoperable, has failed,
or is measuring in error, the shipment volume shall be determined by the best means available
at the time as determined by the parties. Examples of such alternative means include, but
are not limited to:

	 	a.	 	using data recorded by any check measuring equipment that was accurately
registering;
	 
	 	b.	 	correcting the error if the percentage error can be ascertained by
calibrations, tests, or mathematical calculations; or
	 
	 	c.	 	comparison with deliveries made under similar conditions when the
measurement station was registering accurately, using historical pipeline gain/loss.

     6. Proration. SOUTH TEXAS shall exercise reasonable efforts to receive and deliver
on any one-day the total of each customer’s requests for such day. If, however, all of the receipt
or delivery requests exceed the total capacity of the Pipeline, the Product received or delivered
on each day shall be prorated. Prorations resulting from pipeline delivery limitations will be
separated from prorations resulting from truck loading limitations. Receipt and delivery
limitations resulting from limited pumping capability or brine availability will be allocated
across all delivery requests.

     (a) Proration shall be determined based on daily activity. Should proration become
necessary, CUSTOMER will be notified as timely as possible in advance by phone and/or FAX.

     (b) Proration shall be based on CUSTOMER’S throughput during the previous twelve (12)
months as a percentage of the total throughput. This percentage will then be applied to the
total daily output capacity of the pipeline withdrawal facilities.

     7. Quality.

     (a) All deliveries of Product by and to CUSTOMER hereunder shall meet SOUTH TEXAS’
specifications, as such specifications may change from time to time, pursuant to the mutual
agreement of CUSTOMER and all parties, including CUSTOMER, delivering Product. The
specifications as to the date of this Agreement are set forth in Exhibit “A” attached hereto
and made a part hereof. SOUTH TEXAS or its designee reserves the right to perform an
analysis of CUSTOMER’S Product prior to accepting same , but assumes no responsibility for
doing so, and may refuse to accept delivery of such Product if it is contaminated or
otherwise fails to conform with the applicable specifications (“Offspec Product”). If SOUTH
TEXAS accepts Offspec Product delivered by or on behalf of CUSTOMER, CUSTOMER shall
reimburse SOUTH TEXAS for the reasonable costs and expenses incurred in handling such
Offspec Product. CUSTOMER shall be bound by the testing results obtained from analysis of
CUSTOMER’S Product, if any, performed by or on behalf of SOUTH TEXAS, unless proven to be in
error. If CUSTOMER disagrees with the analysis a referee sample shall

4

 

be taken to a mutually agreed upon testing laboratory, which shall analyze the sample
in accordance with applicable ASTM/GPA methods. This analysis shall be accepted by SOUTH
TEXAS and the CUSTOMER as final and conclusive of the proportions and components contained
in the Product. The Parties will share equally the cost of the referee analysis.

     (b) CUSTOMER may refuse receipt of any Product if it is contaminated or otherwise does
not conform to the applicable specifications.

     (c) CUSTOMER AGREES TO AND DOES INDEMNIFY FULLY AND HOLD HARMLESS SOUTH TEXAS AND ITS
PARENTS, SUBSIDIARIES AND AFFILIATES AND ITS AND THEIR AGENTS, OFFICERS, DIRECTORS,
EMPLOYEES, REPRESENTATIVES, SUCCESSORS AND ASSIGNS FROM AND AGAINST ANY AND ALL LIABILITIES,
LOSSES, DAMAGES, DEMANDS, CLAIMS, PENALTIES, FINES, ACTIONS, SUITS, LEGAL, ADMINISTRATIVE OR
ARBITRATION OR ALTERNATIVE DISPUTE RESOLUTION PROCEEDINGS, JUDGMENTS, ORDERS, DIRECTIVES,
INJUNCTIONS, DECREES OR AWARDS OF ANY JURISDICTION, COSTS AND EXPENSES (INCLUDING, BUT NOT
LIMITED TO, ATTORNEYS’ FEES AND RELATED COSTS) ARISING OUT OF OR IN ANY MANNER RELATED TO
CUSTOMER DELIVERING OR CAUSING TO BE DELIVERED INTO MONT BELVIEU ANY OFFSPEC PRODUCTS.

     8. Invoicing and Payments. Each Month during the term of this Agreement, SOUTH TEXAS
shall invoice CUSTOMER for all amounts owed by CUSTOMER to SOUTH TEXAS hereunder and CUSTOMER
shall pay to SOUTH TEXAS the amounts due no later than ten (10) Days after CUSTOMER’S receipt of
invoice therefore. If the Day on which any payment is due is not a Business Day, then the relevant
payment shall be due upon the immediately preceding Business Day, except if such payment due date
is a Sunday or Monday, then the relevant payment shall be due upon the immediately succeeding
Business Day. Any amounts which remain due and owing after the due date shall bear interest
thereon at a per annum rate of interest equal to the lower of the “Prime Rate” of interest as
quoted from time to time by The Wall Street Journal or its successor, plus two percent per annum,
or the maximum lawful rate of interest (the “Base Rate”). If a good faith dispute arises as to the
amount payable in any statement, the amount not in dispute shall be paid. If CUSTOMER elects to
withhold any payment otherwise due as a consequence of a good faith dispute, CUSTOMER shall
provide SOUTH TEXAS with written notice of its reasons for withholding payment. The parties hereto
agree to use all reasonable efforts to resolve any such disputes in a timely manner. If it is
subsequently determined, whether by mutual agreement of the parties or otherwise, that CUSTOMER is
required to pay all or any portion of the disputed amounts to SOUTH TEXAS, in addition to paying
over such amounts, CUSTOMER also shall pay interest accrued on such amounts at the Base Rate from
the original due date until paid in full. If it is subsequently determined, whether by mutual
agreement of the parties or otherwise, that SOUTH TEXAS is required to return all or any portion
of the disputed amounts to CUSTOMER, in addition to paying over such amounts, SOUTH TEXAS also
shall pay interest accrued on such amounts at the Base Rate from the date paid by CUSTOMER until
paid in full.

5

 

     9. Title to Product. It is understood and agreed that (i) title to the Product
received hereunder shall remain in CUSTOMER, subject to being commingled with like Product
belonging to SOUTH TEXAS and/or other parties, which CUSTOMER hereby grants unto SOUTH TEXAS the
right to do so, and ii) Product redelivered to CUSTOMER by SOUTH TEXAS may not be identical
Product delivered by CUSTOMER.

     10. Limitation of Liability.

          (a) NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, SOUTH TEXAS SHALL NOT BE
RESPONSIBLE FOR ANY PRODUCT LOSSES OR DAMAGES TO THE PRODUCT OR FOR ANY CLAIMS UNDER ANY INDEMNITY
OBLIGATIONS THAT SOUTH TEXAS MAY HAVE AS SET FORTH IN THIS AGREEMENT IN EXCESS OF THE CURRENT
MARKET REPLACEMENT COST. THE FOREGOING SHALL APPLY WHETHER OR NOT SUCH CLAIMS ARE FOUNDED IN WHOLE
OR IN PART UPON THE NEGLIGENCE OF SOUTH TEXAS OR IF LIABILITY WITHOUT FAULT IS IMPOSED ON SOUTH
TEXAS.

          (b) CUSTOMER AGREES TO DEFEND, INDEMNIFY AND HOLD SOUTH TEXAS AND ITS AFFILIATES AND ITS AND
THEIR RESPECTIVE AGENTS, OFFICERS, DIRECTORS, EMPLOYEES, REPRESENTATIVES, SUCCESSORS AND ASSIGNS
HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS WHICH ARISE IN CONNECTION WITH CUSTOMER’S
TRANSPORTATION, STORAGE, USE, OR HANDLING OF PRODUCT AFTER DELIVERY OF CUSTODY, POSSESSION AND
CONTROL OF SUCH PRODUCT TO CUSTOMER.

          (c) SOUTH TEXAS AGREES TO DEFEND, INDEMNIFY AND HOLD CUSTOMER AND ITS AFFILIATES AND ITS AND
THEIR RESPECTIVE AGENTS, OFFICERS, DIRECTORS, EMPLOYEES, REPRESENTATIVES, SUCCESSORS AND ASSIGNS
HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS WHICH ARISE IN CONNECTION WITH SOUTH TEXAS’
TRANSPORTATION, STORAGE, USE OR HANDLING OF PRODUCT WHILE IN THE CUSTODY, POSSESSION AND CONTROL
OF SOUTH TEXAS AND FOR ANY AND ALL CLAIMS WHICH ARISE IN CONNECTION WITH ANY SPILL OR DISCHARGE OF
ANY PRODUCT FROM THE PIPELINE SYSTEM.

          (d) FOR BREACH OF ANY PROVISION FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED
IN THIS AGREEMENT, SUCH EXPRESS REMEDY OR MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE
REMEDY HEREUNDER, AND THE OBLIGOR’S LIABILITY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND
ALL OTHER REMEDIES OR DAMAGES ARE WAIVED. IF NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY PROVIDED
HEREIN, THE OBLIGOR’S LIABILITY SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY, EXCLUDING LOST
PROFITS, AND SUCH DIRECT ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY HEREUNDER, AND ALL
OTHER REMEDIES OR DAMAGES ARE WAIVED. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY
UNDER ANY PROVISION OF THIS AGREEMENT FOR CONSEQUENTIAL, INCIDENTAL,

6

 

PUNITIVE, EXEMPLARY, OR INDIRECT DAMAGES IN TORT, CONTRACT OR OTHERWISE.

     11. Notice of Claim and Filing of Suit. Claims by CUSTOMER and all other persons
claiming, by, through or under CUSTOMER, must be presented in writing to SOUTH TEXAS within a
reasonable time, and in no event later than sixty (60) Days after (i) CUSTOMER’S Product is
delivered or (ii) CUSTOMER is notified by SOUTH TEXAS that loss of or injury to Product has
occurred, whichever is shorter. No action may be maintained by CUSTOMER and any other persons
claiming by, through or under CUSTOMER, against SOUTH TEXAS for loss of or injury to Product,
unless a written claim therefore is received by SOUTH TEXAS within the time periods set forth
herein and such action is commenced within twenty-four (24) Months after (a) CUSTOMER’S Product is
redelivered or (b) CUSTOMER is notified by SOUTH TEXAS that loss of or injury to Product has
occurred whichever is shorter. In the situation where SOUTH TEXAS notifies CUSTOMER of a loss or,
injury to Product, the time limits for making written claims and the maintaining of actions after
notice, as set forth herein, begin on the date such notice is sent by SOUTH TEXAS.

     12. Force Majeure. In the event either party is rendered unable, wholly or in part,
by Force Majeure to carry out its obligations under this Agreement, it is agreed that upon such
party’s giving notice and reasonably full particulars of such Force Majeure in writing to the
other party after the occurrence of the cause relied on, then the obligations (except for the
obligation to pay money due as of the date of Force Majeure) of the party giving such notice, so
far as and to the extent that they are affected by such Force Majeure, shall be suspended during
the continuance of any inability so caused, but for no longer period, and such cause shall so far
as possible be remedied with all reasonable dispatch. The term “Force Majeure” as used herein
shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of the public
enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes,
fires, tornadoes, hurricanes, or storms, tornado, hurricane, or storm warnings which in any
party’s reasonable judgment require the precautionary shutdown of a facility, floods, washouts,
arrests or restraints of the government, either federal or state, civil or military, civil
disturbances, explosions, sabotage, breakage, or accident to equipment, machinery or lines of
pipe, freezing of machinery, equipment or lines of pipe, electric power shortages, inability of
any party to obtain necessary permits and/or permissions due to existing or future rules, orders,
laws or governmental authorities (both federal, state and local), or any other causes, whether of
the kind herein enumerated or otherwise, which were not reasonably foreseeable, and which are not
within the control of the party claiming suspension and which such party is unable to overcome by
the exercise of due diligence. The term “Force Majeure” shall also include those instances in
which either party hereto is delayed in acquiring, at reasonable cost and after the exercise of
reasonable diligence, (i) materials and supplies required for the purpose of constructing and
maintaining facilities, when such party is obligated to do so for the performance of its
obligations under this Agreement, or (ii) permits or permission from any governmental agency
required for the purpose of (a) constructing and maintaining such facilities or (b) acquiring
materials or supplies required for such purpose. It is understood and agreed that the settlement
of strikes or lockouts shall be entirely within the discretion of the party having the difficulty,
and that the above requirement that any Force

7

 

Majeure shall be remedied with all reasonable dispatch shall not require the settlement of
strikes or lockouts by acceding to the demands of opposing Parties when such course is inadvisable
in the discretion of the party having difficulty.

     13. Inspection. CUSTOMER shall have the right to inspect the SOUTH TEXAS pipeline at
all reasonable times on prior written notice to SOUTH TEXAS.

     14. Insurance. SOUTH TEXAS agrees to maintain in full force and effect during the
term of this Agreement the following insurance coverage on the Teppco pipeline, with reputable and
licensed insurance companies:

          (i) worker’s compensation in accordance with the statutory requirements of the State of Texas
and employer’s liability insurance with minimum limits of Five Hundred Thousand Dollars
($500,000);

          (ii) commercial or comprehensive general liability insurance, including bodily injury,
property damage, sudden and accidental pollution, contractual liability and contractors’
protective liability for a limit of $15,000,000; and

          (iii) automobile liability for owned and/or leased automobiles for a limit of $2,000,000.

     Evidence of Insurance – Upon request, SOUTH TEXAS shall have its authorized insurance
representative furnish to CUSTOMER a certificate of insurance. The certificate of insurance is to
certify that all insurance policies and endorsements required by this Agreement have been issued
and shall be in effect during the term of this Agreement. Each and every such policy shall state
that the policy cannot be cancelled, lapsed or materially altered without at least thirty (30)
days prior written notice by SOUTH TEXAS’ insurance representative or insurer.

     15. Environmental Response. In the event of any such escape or discharge or other
environmental pollution from the South Texas pipeline, SOUTH TEXAS shall commence emergency
response and containment or clean-up operations as deemed appropriate or necessary by SOUTH TEXAS
or required by any governmental authorities. SOUTH TEXAS is responsible for any claims,
violations, and fines resulting from spills or contamination and/or groundwater or damage to
natural resources and agrees to indemnify CUSTOMER for the same, except to the extent the escape
or discharge is a result of CUSTOMER’S negligence or breach of this Agreement.

     16. Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and permitted assigns.
Notwithstanding the foregoing, CUSTOMER shall not assign or sublet this Agreement in whole or in
part without the express written consent of SOUTH TEXAS, which consent shall not be unreasonably
withheld; provided, however, SOUTH TEXAS shall have the right to assign this Agreement to any of
its Affiliates without the necessity of obtaining from CUSTOMER any consent thereto. Further
provided, however, CUSTOMER shall have the right to assign this Agreement to any of its
Affiliates, without the necessity of obtaining from

8

 

SOUTH TEXAS any consent thereto, but any such assignment shall in no way relieve or release
CUSTOMER from any obligations hereunder whether accrued before or after any such assignment.
CUSTOMER shall also have the right to assign this Agreement to a successor in the event of a sale
or transfer of all or substantially all of CUSTOMER’S assets.

     17. No Commissions, Fees or Rebates. No director, employee or agent of either party
shall give or receive any commission, fee, rebate gift or entertainment of significant cost or
value in connection with this Agreement. Any representative or representative(s) authorized by
either party may audit the applicable records of the other party for the purpose of determining
whether there has been compliance with this Section.

     18. Severability. This Agreement and the operations hereunder shall be subject to
the valid and applicable federal and state laws and the valid and applicable orders, laws, local
ordinances, rules, and regulations of any local, state or federal authority having jurisdiction,
but nothing contained herein shall be construed as a waiver of any right to question or contest
any such order, laws, rules, or regulations in any forum having jurisdiction in the premises. If
any provision of this Agreement is held to be illegal, invalid, or unenforceable under the present
or future laws effective during the term of this Agreement, (i) such provision will be fully
severable, (ii) this Agreement will be construed and enforced as if such illegal, invalid, or
unenforceable provision had never comprised a part of this Agreement, and (iii) the remaining
provisions of this Agreement will remain in full force and effect and will not be affected by the
illegal, invalid, or unenforceable provision or by its severance from this Agreement.
Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there will be added
automatically as a part of this Agreement a provision similar in terms to such illegal, invalid,
or unenforceable provision as may be possible and as may be legal, valid, and enforceable. If a
provision of this Agreement is or becomes illegal, invalid, or unenforceable in any jurisdiction,
the foregoing event shall not affect the validity or enforceability in that jurisdiction of any
other provision of this Agreement nor the validity or enforceability in other jurisdictions of
that or any other provision of this Agreement.

     19. Governing Law. THIS AGREEMENT AND THE RIGHTS AND DUTIES OF THE PARTIES ARISING
OUT OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED, ENFORCED, AND PERFORMED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF TEXAS, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, WITHOUT GIVING
EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE THAT WOULD CAUSE THE APPLICATION OF THE
LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS.

     20. Entire Agreement Waiver. This Agreement, including, without limitation, all
exhibits hereto, integrates the entire understanding between the Parties with respect to the
subject matter covered and supersedes all prior understandings, drafts, discussions, or
statements, whether oral or in writing, expressed or implied, dealing with the same subject
matter. This Agreement may not be amended or modified in any manner except by a written document
signed by both parties that expressly amends this Agreement. No waiver by either party hereto of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar) nor shall such waiver constitute a

9

 

continuing waiver unless expressly provided. No waiver shall be effective unless made in
writing and signed by the party to be charged with such wavier.

     21. Setoffs and Counterclaims. Except as otherwise provided herein, each party
hereto reserves to itself all rights, set-offs, counterclaims, and other remedies and/or defenses
which it is or may be entitled to arising from or out of this Agreement or as otherwise provided
by law.

     22. No Partnership, Association, etc. Nothing contained in this Agreement shall be
construed to create an association, trust, partnership, or joint venture or impose a trust or
partnership duty, obligation, or liability on or with regard to either party.

     23. Exhibits. All Exhibits attached hereto are incorporated herein by reference as
fully as though contained in the body hereof. If any provision of any Exhibit conflicts with the
terms and provisions hereof, the provisions of this Agreement shall prevail.

     24. Principles or Construction and Interpretation. In construing this Agreement, the
following principles shall be followed:

     (a) no consideration shall be given to the fact or presumption that one party had a
greater or lesser hand in drafting this Agreement;

     (b) examples shall not be construed to limit, expressly or by implication, the matter
they illustrate;

     (c) the word “includes” and its syntactical variants mean “includes, but is not limited
to” and corresponding syntactical variant expressions; and

     (d) the plural shall be deemed to include the singular and vice versa, as applicable.

     25. Default. A party will be in default if it: (a) breaches this Agreement, and the
breach is not cured within thirty (30) days after receiving written notice of such default (or
alleged default) from the other party specifying the nature of the breach; (b) becomes insolvent;
or (c) files or has filed against it a petition in bankruptcy, for reorganization, or for
appointment of a receiver or trustee. In the event of default, the non-defaulting party may
terminate this Agreement upon notice to the defaulting party. For the avoidance of doubt, SOUTH
TEXAS’ failure to perform any of the services for any reason other than Force Majeure will be
deemed a breach of this Agreement to which subsection (a) of this Section 25 applies.

     26. Notice. Any notice or other communication provided for in this Agreement or any
notice which either party may desire to give to the other shall be in writing and shall be deemed
to have been properly given if and when sent by facsimile transmission, delivered by hand, or if
sent by mail, upon deposit in the United States mail, either U.S. Express Mail, registered mail or
certified mail, with all postage fully prepaid, or if sent by courier, by

10

 

delivery to a bonded courier with charges paid in accordance with the customary arrangements
established by such courier, in each case addressed to the parties at the following addresses:

If to SOUTH TEXAS:

SOUTH TEXAS NGL PIPELINES, LLC

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

Attention: Manager, Asset Management

Phone: (713)381-8376

Fax: (713)381-7962

If to CUSTOMER:

Enterprise Products Operating L.P.

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

Attention: Manager, NGL Marketing

Phone: (713) 381-xxxx

Fax: (xxx) xxx-xxxx

or at such other address as either party shall designate by written notice to the other. A notice
sent by facsimile shall be deemed to have been received by the close of the Business Day following
the Day on which it was transmitted and confirmed by transmission report or such earlier time as
confirmed orally or in writing by the receiving party. Notice by U. S. Mail, whether by U. S.
Express Mail, registered mail or certified mail, or by overnight courier shall be deemed to have
been received by the close of the second Business Day after the Day upon which it was sent, or such
earlier time as is confirmed orally or in writing by the receiving party. Any party may change its
address or facsimile number by giving notice of such change in accordance herewith.

11

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	SOUTH TEXAS NGL PIPELINES, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P.,
	 
	 	 	 	 	 	 
	 	 	By: Enterprise Products OLPGP, Inc.,

its general partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

12

 

EXHIBIT “A”

A-1

 

 

EXHIBIT “B”

B-1

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