Document:

exh10-5.htm

    

     

    Exhibit
10.5

     

     

     

    MEMBERSHIP
INTEREST TRANSFER AGREEMENT

     

    by
and among

     

    SEMMATERIALS,
L.P.,

     

    and

     

    SEMMATERIALS
ENERGY PARTNERS, L.L.C.

     

    

     

    effective
as of

     

    11:59
PM CDT on March 31, 2009

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

    

      

    MEMBERSHIP
INTEREST TRANSFER AGREEMENT

     

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

     

    RECITALS

     

    WHEREAS, pursuant to that
certain Contribution Agreement (the “Original Contribution
Agreement”) by and among K.C. Asphalt, L.L.C., a Colorado
limited liability company (“K.C.
Asphalt”), SemMaterials and SMEP, dated
as of January 28, 2008, K.C. Asphalt and SemMaterials contributed and assigned
the Prior Transferred Assets (as defined herein) to SMEP;

     

    WHEREAS, pursuant to the
Original Contribution Agreement, K.C. Asphalt and SemMaterials retained and
reserved the Prior Retained Assets (as defined herein) and retained and reserved
all of the rights and obligations associated with the Prior Retained
Assets;

     

    WHEREAS, pursuant to a
Purchase Agreement, dated as of January 14, 2008, SemMaterials sold and
transferred 100% of the limited liability company membership interests of SMEP
to SemGroup Energy Partners Operating, L.L.C. on February 20, 2008;

     

    WHEREAS, commencing on July
22, 2008, SemMaterials and certain of their Affiliates (as defined herein) filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (as
defined herein), which cases are pending in the Bankruptcy Court (as defined
herein);

     

    WHEREAS, SemMaterials is a
debtor and debtor in possession in the Bankruptcy Cases (as defined herein) and
is currently authorized to conduct its business under Sections 1107 and 1108 of
the Bankruptcy Code;

     

    WHEREAS, as of the Effective
Date, K.C. Asphalt and SemMaterials (i) terminated the Prior Retained Easements
(as defined herein), (ii) transferred, conveyed and assigned the
interests previously retained in the Prior Retained Leasehold Agreements (as
defined herein) to SMEP and (iii) contributed the Asphalt Processing Assets (as
defined herein) to SGLP Asphalt, L.L.C., a Texas limited liability company
(“SGLP
Asphalt”), each pursuant to a Contribution Agreement (the “Asphalt Contribution
Agreement”);

     

    WHEREAS, SemMaterials is the
sole member of SGLP Asphalt and owns 100% of the Equity Interests (as defined
herein) of SGLP Asphalt (the “Transferred
Interest”); and

     

    WHEREAS, SemMaterials desires
to transfer, convey and assign to SMEP the Transferred Interest, and SMEP
desires to have the Transferred Interest transferred, conveyed and assigned to
it, on the terms set forth in this Agreement.

    
      
         

      

      
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    AGREEMENTS

     

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

     

    ARTICLE
1

     

    

     

    Certain
Definitions

     

    1.01 In this
Agreement, capitalized terms used but not otherwise defined herein shall have
the meaning assigned such term in the Asphalt Contribution Agreement, the terms
defined in the preamble and the Recitals have the meanings indicated and the
following terms will have the meanings indicated below:

     

    “Affiliates” shall
have the meaning given such term in Master Agreement.

    

    “Clawback Notice”
shall have the meaning given such term in Section
4.01(b).

    

    “Clawback Payment”
shall have the meaning given such term in Section
4.01(a).

    

    “Clawback Period”
shall have the meaning given such term in Section
4.01(a).

    

    “Clawback Sale” shall
have the meaning given such term in Section
4.01(a).

    

    “Dispute Notice” shall
have the meaning given such term in Section
4.01(c).

    

    “Disputed Items” shall
have the meaning given such term in Section
4.01(c).

    

    “Equity Interests”
means all limited liability company interests, units, participations or
equivalents of limited liability company interests of SGLP Asphalt, however
designated.

    

    “GAAP” means United
States generally accepted accounting principles as in effect from time to
time.

    

               “Net Proceeds” means
the aggregate cash proceeds received by SMEP or any of its Affiliates in respect
of an asset sale that includes Asphalt Processing Assets, net of (i) the direct
and indirect costs relating to such asset sale, including, without limitation,
legal, accounting and investment banking fees, (ii) Taxes paid or payable as a
result thereof, and (iii) the value of and any reserve for adjustment in respect
of the sale price of such asset or assets established in accordance with GAAP,
including, without limitation, in respect of sales price adjustments,
non-competition agreements and assumed or retained liabilities associated with
the asset or assets disposed of in such transaction, including, without
limitation, liabilities related to environmental matters or against any
indemnification obligations associated with such asset sale.

    

     “Referee” shall have
the meaning given such term in Section
4.01(c).

    

    “Resolution Period”
shall have the meaning given such term in Section
4.01(c).

    

    
      
         

      

      
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    ARTICLE
2

     

    

     

     Conveyance,
Transfer and Assignment

     

    of
the Transferred Interests

     

    2.01 Conveyance
of the Transferred Interests.  For good and valuable
consideration, the sufficiency of which is hereby acknowledged, SemMaterials
hereby transfers, assigns, conveys and delivers to SMEP, the Transferred
Interests free and clear of any and all Liens (other than Permitted
Exceptions).

     

    2.02 Assumed
Liabilities.  As of the Effective Date, SMEP does hereby assume
and thereafter in due course will pay and fully satisfy any Liabilities
associated with the Transferred Interests.

     

    ARTICLE
3

     

    

     

    Further
Assurances

     

    3.01 Further
Assurances of SemMaterials to SMEP.  From time to time after
the Effective Date, and without any further consideration, each of SemMaterials
and SMEP shall execute, acknowledge and deliver such additional assignments and
other conveyance documents, and will do all such other acts and things, all in
accordance with Applicable Law, as may be necessary or reasonably appropriate to
more fully and effectively to vest in SMEP and its successors and assigns
beneficial and record title to the Transferred Interests, and/or to more fully
and effectively carry out the purposes and intent of this
Agreement.

     

    ARTICLE
4

     

    

     

    Covenants

     

    4.01 Sale of
the Asphalt Processing Assets.

     

    (a) If SMEP
or any of its Affiliates (as defined in the Master Agreement) consummates a sale
(other than to SMEP or any of its Affiliates), including by way of merger or
consolidation, of any Asphalt Processing Assets (a “Clawback Sale”)
during the period beginning on the Effective Date and ending on December 31,
2009 (the “Clawback
Period”), then SMEP will pay SemMaterials 20% of the Net Proceeds
received from each such sale attributable to the sold Asphalt Processing Assets
(the “Clawback
Payment”) in accordance with the terms of this Section
4.01.

     

    (b) Within
fifteen (15) days after a Clawback Sale consummated during the Clawback Period,
SMEP shall deliver a schedule (the “Clawback Notice”) to
SemMaterials listing the following in reasonable detail: (i) the Asphalt
Processing Assets that were sold in such Clawback Sale, (ii) the assets other
than Asphalt Processing Assets that were sold in such Clawback Sale, if any,
(iii) an allocation of the Net Proceeds from such sale showing the Net Proceeds
attributable to the Asphalt Processing Assets and the Net Proceeds attributable
to assets other than Asphalt Processing Assets, if any, and (iv) the proposed
Clawback Payment.

    
      
         

      

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

     

    (d) If
SemMaterials does not deliver a Dispute Notice to SMEP within the time period
indicated in Section 4.01(c), then SMEP shall promptly deliver to SemMaterials
the Clawback Payment indicated in the Clawback Notice.  If
SemMaterials delivers a Dispute Notice to SMEP within the time period indicated
in Section 4.01(c), then, after such Dispute has been resolved, SMEP shall
promptly deliver to SemMaterials the Clawback Payment.

     

    ARTICLE
5

     

    

     

    Miscellaneous

     

    5.01 Headings;  References;  Interpretation.  All
article and section headings in this Agreement are for convenience only and
shall not be deemed to control or affect the meaning or construction of any of
the provisions hereof.  The words “hereof,” “herein” and “hereunder”
and words of similar import, when used in this Agreement, shall refer to this
Agreement as a whole, including without limitation, all exhibits and schedules
attached hereto, and not to any particular provision of this
Agreement.  All references herein to articles, sections, exhibits and
schedules shall, unless the context requires a different construction, be deemed
to be references to the articles, sections, exhibits and schedules of this
Agreement, respectively, and all such exhibits and schedules attached hereto are
hereby incorporated herein and made a part hereof for all
purposes.  All personal pronouns used in this Agreement, whether used
in the masculine, feminine or neuter gender, shall include all other genders,
and the singular shall include the plural and vice versa.  The use
herein of the word “including” following any general statement, term or matter
shall not be construed to limit such statement, term or matter to the specific
items or matters set forth immediately following such word or to similar items
or matters, whether or not non-limiting language (such as “without limitation,”
“but not limited to,” or words of similar import) is used with reference
thereto, but rather shall be deemed to refer to all other items or matters that
could reasonably fall within the broadest possible scope of such general
statement, term or matter.

    
      
         

      

      
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    5.02 Binding
Effect; Successors.  The provisions of
this Agreement shall be binding upon and inure to the benefit of the Parties and
the respective successors and assigns of each of the Parties, including, without
limitation, any trustee hereinafter appointed in the Bankruptcy Cases as the
representative of the estates of the SemGroup Parties (as defined in the Master
Agreement), or any other representative of the SemGroup Parties who qualifies in
a case under the Bankruptcy Code or in connection with any other state,
provincial, or federal proceeding.  The terms and conditions of this
Agreement shall survive:

     

    (a) the entry
of any subsequent Order converting any of the Bankruptcy Cases from chapter 11
of the Bankruptcy Code to chapter 7 of the Bankruptcy Code;

     

    (b) the
appointment of any trustee in any of the Bankruptcy Cases in any ensuing chapter
7 cases under the Bankruptcy Code;

     

    (c) the
confirmation of a plan of reorganization for SemMaterials under the Bankruptcy
Code;

     

    (d) the
dismissal of any of the Bankruptcy Cases or an Order withdrawing the reference
from the Bankruptcy Court;

     

    (e) an Order
from the Bankruptcy Court abstaining from handling any of the SemMaterials’
Bankruptcy Cases; or

     

    (f) a sale,
assignment or other disposition of all or part of the Seller’s assets or this
Agreement to any third party and/or assignee.

     

    5.03 No Third
Party Rights.  The provisions of
this Agreement are intended to bind the Parties hereto and their successors and
assigns as to each other and are not intended to and do not create rights in any
other person or confer upon any other person any benefits, rights or remedies
and no person is or is intended to be a third party beneficiary of any of the
provisions of this Agreement.

     

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

     

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

    
      
         

      

      
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    5.06 Submission
to Jurisdiction.

     

    (a)    Without
limiting any Party’s right to appeal any order of the Bankruptcy Court, (i) the
Bankruptcy Court shall retain exclusive jurisdiction to enforce the terms of
this Agreement and to decide any claims or disputes which may arise or result
from, or be connected with, this Agreement, any breach or default hereunder, or
the transactions contemplated hereby, and (ii) any and all actions related to
the foregoing shall be filed and maintained only in the Bankruptcy Court, and
the Parties hereby consent to and submit to the jurisdiction and venue of the
Bankruptcy Court and shall receive notices at such locations as indicated in
Section 5.07;
provided, however, that if a
plan of reorganization in the Bankruptcy Cases has become effective, the Parties
agree to and hereby unconditionally and irrevocably submit to the exclusive
jurisdiction of the federal or state courts of the State of Oklahoma and any
appellate court from any thereof, for the resolution of any such claim or
dispute.

     

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

     

    (c) Each of
the Parties hereto hereby consents to process being served by any Party to this
Agreement in any suit, action or proceeding by the mailing of a copy thereof in
accordance with the provisions of Section
5.07.

     

    5.07 Notices.  All
notices, requests, claims, demands and other communications under this Agreement
shall be in writing and shall be given or made (and shall be deemed to have been
duly given or made upon receipt) by delivery in person, by overnight courier
service, by facsimile or electronic transmission with receipt confirmed
(followed by delivery of an original via overnight courier service) or by
registered or certified mail (postage prepaid, return receipt requested) to the
respective Parties at the following addresses (or at such other address for a
Party as shall be specified in a notice given in accordance with this Section 5.07):

     

    If to
Licensor:

    

    SemGroup,
L.P.

    Two
Warren Place

    6120 S.
Yale Avenue, Suite 700

    Tulsa,
Oklahoma 74136

    Phone:                      (918)
524-8100

    Fax:  (918)
524-8290

    Attention:
Chief Financial Officer

    
      
         

      

      
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    SemMaterials,
L.P.

    Two
Warren Place

    6120 S.
Yale Avenue, Suite 700

    Tulsa,
Oklahoma 74136

    Phone:                      (918)
524-8100

    Fax:  (918)
524-8290

                          Attention:
Chief Financial Officer

     

    With a
copy to:

     

    Weil,
Gotshal & Manges LLP

    200
Crescent Court, Suite 300

    Dallas,
Texas 75201

    Phone:                      214-746-7700

    Fax:  214-746-7777

    Attention:  Michael
A. Saslaw, Esq.

    

    If to
Licensee:

     

    SemGroup
Energy Partners, L.P.

    Two
Warren Place

    6120 S.
Yale Avenue, Suite 500

    Tulsa,
Oklahoma 74136

    Phone:
(918) 524-5500

    Fax:  (918)
524-5805

    Attention:
Chief Financial Officer

     

    With a
copy to:

     

    Baker
Botts L.L.P.

    2001 Ross
Avenue, Suite 700

    Dallas,
Texas 75201

    Phone:                      (214)
953-6500

    Fax:  (214)
953-6503

    Attention:
Doug Rayburn, Esq.

     

    5.08 Severability.  If any of the
provisions of this Agreement are held by any court of competent jurisdiction to
contravene, or to be invalid under, the laws of any political body having
jurisdiction over the subject matter hereof, such contravention or invalidity
shall not invalidate the entire Agreement.  Instead, this Agreement
shall be construed as if it did not contain the particular provision or
provisions held to be invalid, and an equitable adjustment shall be made and
necessary provisions added so as to give effect to the intention of the Parties
as expressed in this Agreement at the time of execution of this
Agreement.

     

    5.09 Amendment
or Modification.  This Agreement
may be amended or modified from time to time only by the written agreement of
all the Parties hereto.

     

    5.10 Integration.  This Agreement
(including the schedules and exhibits), the Master Agreement and the other
Transaction Documents (as defined in the Master Agreement), including the
Asphalt Contribution Agreement and Real Property Transfer Agreement, represent
the entire understanding and agreement between the Parties hereto with respect
to the subject matter hereof; provided, however, that in the
event of any dispute, this Agreement, (including the schedules and exhibits)
shall be interpreted to be consistent with the SGLP Settlement Orders (as
defined in the Master Agreement).

    
      
         

      

      
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    5.11 Representations
and Warranties.  SemMaterials
represents and warrants to SMEP hereto as follows: (i) SGLP Asphalt is a limited
liability company duly organized, validly existing and in good standing under
the Laws of the State of Texas; (ii) upon the transfer, assignment, conveyance
and delivery of the Transferred Interests contemplated by this Agreement, SMEP
will acquire 100% of the issued and outstanding Equity Interests; and (iii) as
of the date hereof, except for obligations or Liabilities incurred in connection
with its formation and the transactions contemplated hereby and in the Asphalt
Contribution Agreement, SGLP Asphalt has not incurred, directly or indirectly
through any Affiliate, any obligations or Liabilities or engaged in any business
or activities of any type or kind whatsoever or entered into any agreements or
arrangements with any Person.

     

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    IN
WITNESS WHEREOF, each party hereto has executed and delivered this Agreement as
of the date first written above to be effective as of the Effective
Date.

     

    

     

    TRANSFEREE:

     

    SEMMATERIALS
ENERGY PARTNERS, L.L.C.

    

    

    By:/s/ Alex G.
Stallings                                                                           

    Name:
Alex G. Stallings

    Title:   Chief
Financial Officer and Secretary

    

     

    

     

    TRANSFEROR:

     

    SEMMATERIALS,
L.P.

     

    By:
SemOperating G.P., L.L.C., its general partner

     

    

    By:/s/ Terrence
Ronan

    Name: Terrence
Ronan
Title:
President and CEOexh10-6.htm

    EXHIBIT 10.6

     

    THROUGHPUT
AGREEMENT

     

    This
Throughput Agreement (the “Agreement”) is entered into on
April 7, 2009, to be effective as of 11:59 PM CDT March 31, 2009 (the “Effective Date”), and is made
by and among SemGroup Energy
Partners, L.L.C. (“Owner”), and SemCrude, L.P. (“Customer”), sometimes referred
to individually as “Party” and collectively as
“Parties”.  In
consideration of the mutual promises contained in this Agreement, the Parties
agree to the following terms and conditions.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    “Cushing Interchange” means the
major pipeline, terminal and storage interchange and facilities located at
Cushing, Oklahoma.

     

    “Cushing Interchange Terminal”
means the Terminal located at the Cushing Interchange.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Custody Transfer Meter” means
a measurement instrument which furnishes quantity and quality information which
can be used as a basis for a change in ownership or a change in responsibility
for crude oil.

     

    “Dispute Notice” has the
meaning assigned to such term in Section 2.5.

     

    “Disputed Items” has the
meaning assigned to such term in Section
2.5.

     

    “Extended Term” has the meaning
assigned to such term in Section 15.1.

     

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

     

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

    
      
         

      

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

     

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

     

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

     

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

     

    “Initial Term” has the meaning
assigned to such term in Section 15.1.

     

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

     

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

     

    “Longview Terminal” means the
Terminal located at Longview, Texas.

     

    “Meter Resolution Period” has
the meaning assigned to such term in Section
8.2.

     

    “Month” means a calendar
month.

     

    “Person” means and includes
natural persons, corporations, limited partnerships, limited liability
companies, general partnerships, joint stock companies, joint ventures,
associations, companies, trusts, banks, trust companies, land trusts, business
trusts or other organizations, whether or not legal entities, and all
Governmental Authorities.

     

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

     

    “Product Loss” means any loss
of Product occurring as a result of any contamination, adulteration,
mislabeling, misidentification or other loss of or damage to Product caused by
the failure of Owner to use reasonable industry procedures in the handling,
testing or storage of Product.  Product Loss shall not include the
result of loss of or damage to Product (i) associated with circumstances
involving Force Majeure, (ii) caused by the act or omission of Customer or (iii)
due to pipeline line loss of no greater than 2/10 of 1% on Barrels owned by
Customer.

     

    “Referee” has the meaning
assigned to such term in Section 2.5.

     

    “Required Compliance Capital
Expenditures” has the meaning assigned to such term in Section
4.5.

    
      
         

      

      
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    “Resolution Period” has the
meaning assigned to such term in Section 2.5.

     

    “Scheduling Notice” has the
meaning assigned to such term in Section 4.2.

     

    “System” has the meaning
indicated in Attachment “A”.

     

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

     

    “Term” has the meaning
indicated in Section
15.1.

     

    “Terminal” means terminals
described in Attachment “A”.

     

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

     

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

     

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

     

    2.1 Owner
will provide to or for Customer on or by means of the System (i) pipeline
gathering and transportation services for Product for delivery to refiners, to
other pipelines or to storage facilities operated by Owner, Customer or by Third
Parties; (ii) truck gathering and transportation services for Product at
wellhead locations within Owner’s current operational areas and at any other
location to which the Parties mutually agree for delivery to Owner’s or
Customer’s pipeline gathering system, to Third Party pipelines or to Owner’s or
Customer’s Cushing Interchange Terminal; (iii) terminalling and storage services
related to the receipt, storage and delivery of Product into and out of storage
tanks at Owner’s Cushing Interchange Terminal, Owner’s Longview Terminal or at
other storage facilities on the System; and (iv) such additional services as may
be provided under this Agreement and Attachment “A”.  For
the services set forth above, Customer shall pay Owner the fees, rates and
charges contained in Attachment “A”
to this Agreement.  The foregoing services will be performed in a
manner consistent with Owner’s current practices on the System and in compliance
with Applicable Law.  Owner may adapt its performance of services
pursuant to this Agreement in order to be consistent with industry practices, in
order to meet the requirements of health and safety laws, rules and regulations
and in order to achieve the efficient utilization of the System.

     

    2.2 Owner
will transmit to Customer receipt and delivery information (i) in the form of an
electronic data feed consistent with the format used as of the Effective Date
from Excalibur and (ii) to the extent such receipt and delivery information is
not available via an electronic data feed, statements of receipts, deliveries
and ending inventory, copies of individual tank gauging documents, pipeline
meter tickets, tank truck unloading and other gauging documents, as
applicable.  Owner will provide all such receipt and delivery
information within two (2) Business Days following the receipt or delivery of
Product.  Owner will allow Customer reasonable access to copies of
individual tank gauging documents, pipeline meter tickets, tank truck unloading
and other gauging documents, as applicable, to the extent requested by
Customer.

     

    2.3 Within
fifteen (15) days following the end of each Month during the Term of this
Agreement, Owner will (i) provide a monthly inventory statement and (ii) submit
to Customer statements recording the volume of Customer’s Product received into
and delivered from the System during the Month, together with an invoice for
amounts due under this Agreement for services provided during the
Month.

    
      
         

      

      
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    2.4 Each
Party will maintain a true and correct set of records pertaining to its
performance of this Agreement and will retain copies of all such records for the
longer of (i) a period of two (2) years following the end of the fiscal year to
which such records pertain or (ii) such longer period as may be necessary to
comply with provisions of Applicable Law.  Upon reasonable prior
notice, a Party or its authorized representative may at its sole cost, during
the Term of this Agreement and thereafter during the aforesaid two (2) year
period, inspect such records of the other Party during normal business hours at
the other Party’s place of business.

     

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

     

    Section
3.   Fees,
Charges and Taxes.

     

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

     

    3.2 All fees
and charges reflected in Owner’s invoices are due and payable within fifteen
(15) Business Days after Customer’s receipt of Owner’s
invoice.  Payment must be made by electronic wire transfer of same day
available federal funds to Owner’s account and bank, both as indicated on
Owner’s invoice.  Invoices may be sent by electronic mail and
telephone facsimile.  If Customer disputes any portion of an invoice,
Customer must pay the undisputed portion of the invoice.  Overdue or
disputed amounts that are resolved in favor of Owner will accrue interest at the
Interest Rate from the date that payment is due until paid in
full.  If overdue or disputed amounts are resolved in favor of Owner,
then Customer will pay Owner’s reasonable, out-of-pocket costs (including
reasonable attorney’s fees) of collecting past due payment and late payment
charges; provided, however, that the
Parties will share the costs of a Referee in accordance with Section
2.5.  If overdue or disputed amounts are resolved in favor of
Customer, then Owner will pay all of Customer’s reasonable, out-of-pocket costs
(including reasonable attorney’s fees) of defending itself; provided, however, that the
Parties will share the costs of a Referee in accordance with Section
2.5.  Any disputed amounts shall be resolved in accordance with
Section 2.5 of
this Agreement.

    
      
         

      

      
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    3.3 Customer
will pay any and all taxes, fees or other charges and assessments imposed on the
services provided under this Agreement, including sales or other excise taxes on
transportation, gathering, storage and terminal services.  Customer
will also pay any ad valorem or property ownership taxes, if any, on Customer’s
Product in the System and Customer’s other property, if any, at the facilities
on the System.  Owner shall be responsible for and pay all other
applicable taxes levied upon Owner, including its own income and franchise taxes
and any ad valorem taxes levied on the System.

     

    3.4 Customer
agrees not to challenge, protest or file a complaint, or cause, encourage or
recommend to any Affiliate or any other person that it challenge, protest or
file a complaint with respect to any rates, tariffs, rules or regulations in
effect during the Term of the Agreement, as the same may be amended from time to
time, provided that such tariffs, regulatory filings or rates do not conflict
with the terms of the Agreement.

     

    Section
4.   Operations,
Receipts and Deliveries.

     

    4.1 Customer’s
Product will be gathered, transported, terminalled and stored using the modes of
transportation and storage facilities, and Customer will pay for such services
based on the charges specified in Attachment “A”.  Receipts
and deliveries of Product will be handled within the normal business hours of
the System as set forth on Attachment “A”.  Owner
may, without Customer’s approval, make temporary changes in business hours or
temporarily close any System asset because of an extraordinary event (a “Temporary
Event”).  Owner will notify Customer of such Temporary Event in
advance, or as soon after implementation as is practicable.  Except as
required pursuant to Section 15 or 18 of this Agreement,
Owner will not be responsible for the payment of any costs incurred by Customer
or its transportation carrier for any delay in receiving or delivering Product
or any other costs or fees.

     

    4.2 Customer
must arrange for and pay all Third Party costs related to the receipt or
delivery of Customer’s Product to and from the System.  Owner is not
responsible for such Third Party costs or any losses of Customer therefrom,
except as required under Section 15 or 18 of this
Agreement.  Unless otherwise provided by Owner in writing, Customer
must provide notice reasonably acceptable to Owner (in accordance with Section 13)
containing all necessary shipping instructions, including without limitation,
the identity and quantity and any other specifications of the Product and the
tentative date of delivery to the System (the “Scheduling
Notice”).  Notwithstanding Section 13, such
communication may be effected, with Owner’s consent, by electronic mail or
facsimile.

     

    4.3 Subject
to the restrictions of Attachment “A”,
Owner will deliver to Customer, or to such Third Parties as Customer may direct,
the Product held by Owner on the System for the account of Customer at the
delivery point requested by Customer.  Customer is responsible for
providing to Owner documentation required to authorize deliveries for or on its
behalf from the System.

    
      
         

      

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

     

    4.5 If any
Governmental Authority requires installation of any improvement, alteration or
addition to any Terminal, tank, truck, pipeline or other equipment on the System
for purposes of compliance with Applicable Law, and if the installation would
require Owner to make substantial and unanticipated capital expenditures, other
than continued maintenance and capital expenditures not affected by such
requirement (“Required
Compliance Capital Expenditures”), and Owner elects not to make such
Required Compliance Capital Expenditure(s) and thus can no longer operate the
affected Terminal, tank, truck, pipeline or other equipment on the System needed
to provide service on that potion of the System to Customer, Owner will be
entitled to terminate service on the affected portion of the System under this
Agreement by providing at least thirty (30) days prior written notice to
Customer.  Such notice will specify the services that Owner will no
longer provide under this Agreement and the date that such affected services
will be terminated.

     

    4.6 Owner
will be responsible for providing all tank bottoms and line fill to ensure
efficient operation of the System at Owner’s sole cost and expense.

     

    4.7 Owner
shall have no liability for not having available capacity in the System to
accommodate all of Customer’s Product as a result of System oversubscription, so
long as to the extent the System is oversubscribed, Owner will accept a pro rata
portion of Customer’s Product on terms which are neither unduly discriminatory
nor preferential to terms offered to other shippers.

     

    Section
5.   Product
Quality Standards and Requirements.

     

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

    
      
         

      

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

     

    5.3 Owner may
commingle fungible Products received from or on behalf of Customer with those
fungible products of other Third Parties using the System.  Each Party
may at all reasonable times conduct appropriate tests to determine whether
Product meets the specifications set forth in the Scheduling
Notice.  Owner will be liable to Customer by reason of contamination
of Product occurring in the System that causes the Product to fail to meet
specifications, but only to the extent such contamination involves a Product
Loss.  In all other cases, Customer shall indemnify Owner for any
Liability incurred by Owner to Parties who purchase Product from
Customer.

     

    Section
6.   Title and
Custody of Product.

     

    6.1 Title to
the Product will remain with Customer at all times subject to any lien in favor
of Owner created under Applicable Law.  Owner will assume custody of
the Product at the time such Product passes into the System at the truck, the
gathering line meter, the pipeline meter or the flange connection between a
Third Party gathering or transportation carrier and that of Owner’s receiving
facilities.  If Product is delivered to Customer by pipeline, custody
of the Product shall pass to Customer when the Product passes the flange
connection between Owner’s delivery facilities and that of the connecting
pipeline.  If Product is delivered to Customer by truck rack, custody
of the Product shall pass to Customer when the Product passes the last permanent
flange connection between the truck of Customer’s transportation carrier and
Owner’s loading assembly.

     

    6.2 Owner
shall not cause any lien of any kind, other than under Applicable Law, to be
fixed upon or against any Barrels of Product owned by Customer or the proceeds
thereof, except as specified in Section 6.1 of this
Agreement.

    
      
         

      

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

     

    Section
7.   Limitation
of Liability and Damages.

     

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

     

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

     

    Section
8.   Product
Measurement.

     

    8.1 Quantities
of Product received into and delivered from the System shall be determined as
follows:  (i) for pipeline deliveries and receipts, volumes shall be
determined by pipeline meters, where applicable, and (ii) for deliveries and
receipts by truck, volumes shall be measured by the following methods in order
of priority:  (x) proven API-approved meters and (y) static
terminal tank gauges.  Absent fraud or manifest error, the quantities
of Product in the System at any time will be determined from System inventory
records of receipts and deliveries, as well as from beginning inventory
balances.  Unless indicated otherwise, quantity determinations will be
based on a Barrel of Product and shall be determined in accordance with the
latest established API/ASTM standards for the method of delivery.  All
volumes shall be temperature corrected to 60°F in accordance with the latest
supplement or amendment to ASTM-IP petroleum measurement tables (ASTM designated
D#1250.table 6(b)).  Gauging of Product received, delivered and in
storage will be taken jointly by representatives of the Parties; provided, that if
Customer does not have representatives present for gauging, Owner’s gauging will
be conclusive, absent fraud or manifest error.  Customer may use an
Independent Inspector at its own expense.

    
      
         

      

      
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    8.2 Custody
Transfer Meters will be calibrated periodically and after each completion of
repair or replacement of a meter at Owner’s expense.  Upon reasonable
request by Customer, Owner will provide Customer the results of the calibration
and will allow Customer to observe the calibration of the meters and
gauges.  Customer may reasonably request Owner to calibrate Custody
Transfer Meters if at least sixty (60) days has passed since the previous
calibration.    Such calibration shall be in accordance with
the latest applicable API/ASTM standards.  If a Custody Transfer Meter
is determined by either Party to be defective or inoperative, such Party shall
immediately notify the other Party in writing, and it will be the responsibility
of the Owner to promptly make repairs or replacements.  In the event
that Product was received into a System facility having a faulty Custody
Transfer Meter, the Parties will determine the correct volume of Product
received.  If the Parties are unable to determine and agree on the
correct volume of Product received during the fifteen (15) day period following
written notice being provided regarding a defective or inoperative Custody
Transfer Meter (“Meter
Resolution Period”), they will appoint a mutually acceptable Independent
Inspector to determine the correct quantity.   If the Parties are
unable to agree on a single Independent Inspector within fifteen (15) days after
the end of the Meter Resolution Period, then the Parties will each appoint one
(1) independent party, who will jointly select a third independent party within
thirty (30) days after the end of the Meter Resolution Period, which will
collectively constitute the Independent Inspector.  The Independent
Inspector shall deliver its determination to the Parties within thirty (30) days
from the date of its engagement.  The Independent Inspector’s report
shall be final and binding upon the Parties, except for fraud or manifest
error.  The cost of the Independent Inspector’s engagement and report
shall be shared fifty percent (50%) by Owner and fifty percent (50%) by Customer
under this Section 8.2.

     

    Section
9.   Product
Loss and Product Gain.

     

    9.1 During
such time as Owner has custody of the Product pursuant to Section 6, Owner
will indemnify Customer against, and is responsible for, any Product Loss that
occurs while the Product remains in the System.  The total Barrels of
Product Loss, if any, will be determined by Owner within fifteen (15) days after
the last day of each calendar quarter.  Any Product Loss will be
promptly replaced by Owner with Product of like grade and quality as that
tendered by Customer to Owner or Owner will reimburse Customer the cost of such
Product on the determination date thereof.

     

    9.2 Each
calendar quarter, Owner will use the measurement procedures set out in Section 8 to
determine the net gain or loss of Product in the System, excluding any loss
resulting in Product Loss.  Owner will notify Customer within fifteen
(15) days after the last day of each calendar quarter whether there was a net
loss or net gain during such calendar quarter.  If Owner notifies
Customer of a net loss or net gain, then the Parties will work collaboratively
to determine if any statements or invoices for the applicable calendar quarter
were inaccurate.  If the Parties determine that inaccuracies exist,
then Owner will prepare adjusted statements and invoices within ten (10)
Business Days after such determination.  Any refund or payment
reflected on the adjusted invoices will be due and payable by Owner or Customer,
as applicable, within fifteen (15) Business Days after receipt of the adjusted
invoice.  Any disputes regarding the amount of any statements or
invoices will be resolved in accordance with Section 2.5 of this
Agreement.

    
      
         

      

      
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    Section
10.   Force
Majeure.

     

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

     

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

     

    10.3 If either
Party is rendered unable to perform by reason of an event of Force Majeure for a
period in excess of thirty (30) days, then the Party not declaring Force Majeure
may immediately terminate this Agreement with respect to the portion of the
System affected by such Force Majeure event upon written notice to the other
Party.

     

    Section
11.   Inspection
of and Access to System.

     

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

     

    11.2 Customer
acknowledges that any grant of the right of access to the System under this
Agreement or under any document related to this Agreement is a grant of a
license only and shall convey no interest in or to the System or any part of
it.

    
      
         

      

      
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    Section
12.   Assignment.

     

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

     

    Section
13.   Notice.

     

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

     

    Section
14.   Compliance
with Law and Safety.

     

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

     

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

     

    Section
15.   Term and
Termination.

     

    15.1 Subject
to earlier termination in accordance with the provisions of Section 15.2 of this
Agreement, the initial term of this Agreement (the “Initial Term”) begins on the
Effective Date and continues for one (1) year.  At the end of the
Initial Term, this Agreement will automatically extend Month-to-Month thereafter
(the “Extended Term”),
unless cancelled by either Party upon at least thirty (30) days prior written
notice .  The Initial Term together with all Extended Terms, if any,
will be deemed the “Term” of this
Agreement.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

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

     

    (a) Either
Party fails to pay any sum owed by it to the other Party under this Agreement
within fifteen (15) Business Days of the Delivery to the defaulting Party of a
notice of default; provided, however that neither
Party shall have a right to terminate this Agreement under this Section 15.2(a) with
respect to any Disputed Items that remain outstanding in accordance with Section 2.5 of this
Agreement

     

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

     

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

     

    (d) Either
Party may terminate this Agreement, in its entirety or with respect to a portion
of the System only, in accordance with the provisions of Sections 4.5 or 10.3 of this
Agreement.

     

    15.3 Each
Party’s obligations to perform its obligations under this Agreement shall end as
of the effective date of its termination in accordance with this Agreement;
provided, however, that each
Party shall remain liable to the other hereunder with respect to (a) any
obligations accruing under this Agreement prior to the effective date of such
termination, including any indemnification obligations provided hereunder or (b)
as otherwise provided in this Agreement.  Notwithstanding anything in
this Agreement to the contrary, Sections 6.3, 7, 15.3,
18 and 19 shall survive the
expiration or termination of this Agreement.  If the Customer is not
then in default, Customer shall be entitled to remove its Product from the
truck, pipeline, tank or Terminal or other System facilities at any
time.  In the event that Customer is unable to immediately remove its
Product, then Owner will replace the Product with Product of like grade and
quality as that originally tendered by Customer to Owner that is immediately
removable or Owner will reimburse Customer the cost of such Product on the date
of such attempted removal.

     

    Section
16.   Insurance.

     

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

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    16.5 Miscellaneous Insurance
Provisions.

     

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

     

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

     

    (c) All
deductibles and self-insured amounts shall be the sole responsibility of the
Party making such election.

     

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

     

    (e) Each
Party will deliver a certificate of insurance to the other party reflecting that
the policies described in this Section 16 are in
full force and effect.  Each Party will provide the other Party with
prompt notification of any cancellation or modification of limits affecting the
policies described in this Section
16.

     

    (f) The
Parties shall use commercially reasonable efforts to ensure that each insurance
policy required under this Section 16, and each
applicable insurance policy which each Party elects to obtain in connection with
this Agreement or the operations and activities contemplated by this Agreement,
contains an endorsement waiving underwriters' rights of subrogation against the
other Party hereto.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

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

     

    Section
17.   Security
and Credit.

     

    If
Customer fails to pay the sums owed by it to Owner pursuant to this Agreement
when due, Owner shall provide Customer with notice of default as provided in
this Agreement and an opportunity to cure such default within a period of
fifteen (15) days from delivery of such notice; provided, however that Owner
may not deliver a notice of default with respect to any Disputed Items that
remain outstanding in accordance with Section 2.5 of this
Agreement.  If Customer has not cured such default within such fifteen
(15) day cure period, Owner may terminate this Agreement in accordance with
Section 15.2
and exercise any of the remedies under Applicable Law to recover its damages,
including, without limitation, all out-of-pocket costs, reasonable attorney
fees, and expenses incurred by Owner in the recovery of fees owed to Owner by
Customer.

     

    Section
18.   Indemnity.

     

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

     

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

     

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

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

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

     

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

     

    Section
19.   Miscellaneous.

     

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

     

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

     

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

     

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

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

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

     

    19.6 Jurisdiction.

     

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

     

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

     

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

     

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

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

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

     

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

     

    

     

    

     

    [REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

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

     

    

     

    SemCrude,
L.P.

     

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

     

    Its
General Partner

     

    By:
 /s/ Terrence
Ronan

     

    Name: Terrence Ronan

     

    Title:   President &
CEO

     

    

     

    SemGroup
Energy Partners, L.L.C.

     

    By: 
 /s/ Alex G.
Stallings

     

    Name: Alex G.
Stallings

     

    Title:             Chief
Financial Officer and Secretary

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ATTACHMENT
“A”

     

    
      	
              1.  

            	
              Customer
      Notice and Billing Address

            

    

     

    SemCrude,
L.P.

     

    Two
Warren Place

     

    6120
South Yale Avenue, Suite 700

     

    Tulsa,
Oklahoma 74136-4216

     

    Email:

     

    With a
copy to:

    

    Weil,
Gotshal & Manges, LLP

    Attn:  Michael
A. Saslaw, Esq.

    200
Crescent Court, Suite 300

    Dallas,
TX 75201-6950

    

    
      	
              2.  

            	
              Owner
      Notice Address

            

    

     

    SemGroup
Energy Partners, L.L.C.

     

    Two
Warren Place

     

    6120
South Yale Avenue, Suite 500

     

    Tulsa,
Oklahoma 74136-4216

     

    Email:

     

    With a
copy to:

    

    Baker
Botts L.L.P.

    Attn:  Doug
Rayburn

    2001 Ross
Avenue, Suite 600

    Dallas,
Texas 75201

    

    
      	
              3.  

            	
              Fees
      for Gathering, Transportation, Delivery, Terminal and Storage Services on
      System

            

    

     

    
      	
              (a)  

            	
              Gathering and
      Transportation:

            

    

     

    
      	
              (i)  

            	
              Pipeline

            

    

     

    
      	
              ·  

            	
              Barrels
      gathered via gathering lines will be charged a gathering rate of $0.75 per
      Barrel.

            

    

     

    
      	
              ·  

            	
              Barrels
      transported to mainline will be
charged:

            

    

     

    Within
Oklahoma, $1.00 per Barrel.

     

    On the
Masterson Mainline, $0.55 per Barrel.

     

    
      	
              (ii)  

            	
              Truck:

            

    

     

    
      	
              ·  

            	
              Pursuant
      to the Mileage Chart attached hereto as Attachment
      “C”.

            

    

     

    
      	
              (b)  

            	
              Fuel
      Surcharge:

            

    

     

    With
respect to the fees charged for transportation of Product by truck, Owner may
add a reasonable surcharge to reflect increased fuel costs.  The fuel
surcharge will be calculated on a monthly basis, using as the base index price,
the April 1, 2009 Weekly Retail On-Highway Diesel Prices-Averages All Types for
Midwest as set out in the Energy Information Administration – DOE public
website, as follows:

     

    the
surcharge will be equal to (x) 0.75% of the base per Barrel charge for each
trucking service set forth above multiplied by (y) the number of full $0.05
increases of the applicable Weekly Retail On-Highway Diesel Prices-Averages All
Types for Midwest as set out in the Energy Information Administration – DOE
public website for the Month of deliver over the April 1, 2009 Weekly Retail
On-Highway Diesel Prices-Averages All Types for Midwest as set out in the Energy
Information Administration – DOE public website.

     

    
      	
              (c)  

            	
              Terminal and Storage
      Services:

            

    

     

    
      	
              ·  

            	
              A
      storage charge of $0.50 per Barrel per Month for Product located in
      storage tanks located in Cushing and a storage charge of $0.44 per Barrel
      per Month for Product not located in dedicated Cushing storage
      tanks.

            

    

     

    
      	
              ·  

            	
              A
      delivery charge of $0.08 per Barrel will be charged for deliveries out of
      the Cushing Interchange Terminal.

            

    

     

    
      	
              (d)  

            	
              Adjustments of
      Fees:

            

    

     

    The
Parties may mutually agree to modify charges under this Agreement from time to
time during the Term to reflect current market rates.

     

    
      	
              4.  

            	
              Operating
      Hours

            

    

     

    24 Hours
per day, 7 days per week.

     

    
      	
              5.  

            	
              System

            

    

     

    System
means and includes all the operating facilities and assets of Owner used to
provide services to Customer pursuant to this Agreement, including all of
Owner’s trucks, gathering and transportation pipelines, storage tanks and
Terminals in Oklahoma, Kansas, Texas and other states where Owner provides
services to Customer which operating facilities and assets are owned or leased
by the Owner as of the Effective Date or will be acquired or constructed by the
Owner to replace such existing operating facilities and assets.

     

    
      	
              6.  

            	
              Terminals

            

    

     

    Terminal
means Owner’s or Customer’s storage facilities, including, in particular, the
Cushing Interchange Terminal and the Longview Terminal, where Product is
transferred from a pipeline, truck or other transportation facility to a
terminal or tank or another pipeline, truck or transportation
facility.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ATTACHMENT
“B”

     

    For
purposes of this Agreement, (i) any Product transferred by Owner on behalf of
Customer in Oklahoma must include crude oil and condensates, the composite of
which must represent a WTI Cushing quality and be Cushing deliverable, and (ii)
any other Product transferred by Owner on behalf of Customer may be any quality
of crude oil.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ATTACHMENT “C”

    
      	
               

              SGLP
      Truck Rates

            
	
              Effective
      03-01-09

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Rate/Barrel

            
	
              Miles

            	
              Oklahoma

            	
              Kansas

            	
              Dumas

            	
              West
      Texas

            	
              Rocky
      Mountain

            
	
              0.0

            	
              -

            	
              10

            	
              1.25

            	
              1.30

            	
              1.52

            	
              1.28

            	
              1.89

            
	
              10.1

            	
              -

            	
              15

            	
              1.33

            	
              1.38

            	
              1.61

            	
              1.34

            	
              1.97

            
	
              15.1

            	
              -

            	
              20

            	
              1.41

            	
              1.47

            	
              1.70

            	
              1.46

            	
              2.04

            
	
              20.1

            	
              -

            	
              25

            	
              1.49

            	
              1.56

            	
              1.80

            	
              1.58

            	
              2.12

            
	
              25.1

            	
              -

            	
              30

            	
              1.57

            	
              1.65

            	
              1.91

            	
              1.70

            	
              2.20

            
	
              30.1

            	
              -

            	
              35

            	
              1.65

            	
              1.74

            	
              2.02

            	
              1.82

            	
              2.29

            
	
              35.1

            	
              -

            	
              40

            	
              1.73

            	
              1.83

            	
              2.13

            	
              1.94

            	
              2.38

            
	
              40.1

            	
              -

            	
              45

            	
              1.81

            	
              1.92

            	
              2.24

            	
              2.06

            	
              2.47

            
	
              45.1

            	
              -

            	
              50

            	
              1.90

            	
              2.01

            	
              2.35

            	
              2.18

            	
              2.57

            
	
              50.1

            	
              -

            	
              55

            	
              1.99

            	
              2.10

            	
              2.41

            	
              2.30

            	
              2.63

            
	
              55.1

            	
              -

            	
              60

            	
              2.08

            	
              2.19

            	
              2.47

            	
              2.42

            	
              2.69

            
	
              60.1

            	
              -

            	
              65

            	
              2.17

            	
              2.28

            	
              2.53

            	
              2.54

            	
              2.77

            
	
              65.1

            	
              -

            	
              70

            	
              2.26

            	
              2.37

            	
              2.59

            	
              2.66

            	
              2.84

            
	
              70.1

            	
              -

            	
              75

            	
              2.35

            	
              2.46

            	
              2.65

            	
              2.78

            	
              2.93

            
	
              75.1

            	
              -

            	
              80

            	
              2.44

            	
              2.55

            	
              2.71

            	
              2.90

            	
              3.02

            
	
              80.1

            	
              -

            	
              85

            	
              2.53

            	
              2.64

            	
              2.77

            	
              3.02

            	
              3.11

            
	
              85.1

            	
              -

            	
              90

            	
              2.62

            	
              2.73

            	
              2.83

            	
              3.14

            	
              3.20

            
	
              90.1

            	
              -

            	
              95

            	
              2.71

            	
              2.82

            	
              2.89

            	
              3.26

            	
              3.30

            
	
              95.1

            	
              -

            	
              100

            	
              2.80

            	
              2.92

            	
              2.95

            	
              3.38

            	
              3.39

            
	
              100.1

            	
              -

            	
              110

            	
              3.00

            	
              3.12

            	
              3.17

            	
              3.62

            	
              3.58

            
	
              110.1

            	
              -

            	
              120

            	
              3.20

            	
              3.32

            	
              3.29

            	
              3.86

            	
              3.79

            
	
              120.1

            	
              -

            	
              130

            	
              3.41

            	
              3.54

            	
              3.49

            	
              4.10

            	
              4.01

            
	
              130.1

            	
              -

            	
              140

            	
              3.63

            	
              3.77

            	
              3.64

            	
              4.34

            	
              4.22

            
	
              140.1

            	
              -

            	
              150

            	
              3.85

            	
              4.01

            	
              3.88

            	
              4.58

            	
              4.43

            
	
              150.1

            	
              -

            	
              160

            	
              4.09

            	
              4.28

            	
              4.11

            	
              4.82

            	
              4.64

            
	
              160.1

            	
              -

            	
              170

            	
              4.38

            	
              4.52

            	
              4.34

            	
              5.06

            	
              4.85

            
	
              170.1

            	
              -

            	
              180

            	
              4.58

            	
              4.76

            	
              4.57

            	
              5.30

            	
              5.06

            
	
              180.1

            	
              -

            	
              190

            	
              4.84

            	
              5.00

            	
              4.81

            	
              5.54

            	
              5.27

            
	
              190.1

            	
              -

            	
              200

            	
              5.10

            	
              5.24

            	
              5.12

            	
              5.78

            	
              5.48

            
	
              200.1

            	
              -

            	
              210

            	
              5.36

            	
              5.48

            	
              5.35

            	
              6.02

            	
              5.69

            
	
              210.1

            	
              -

            	
              220

            	
              5.60

            	
              5.72

            	
              5.58

            	
              6.26

            	
              5.90

            
	
              220.1

            	
              -

            	
              230

            	
              5.86

            	
              5.96

            	
              5.81

            	
              6.50

            	
              6.11

            
	
              230.1

            	
              -

            	
              240

            	
              6.12

            	
              6.20

            	
              6.04

            	
              6.74

            	
              6.34

            
	
              240.1

            	
              -

            	
              250

            	
              6.38

            	
              6.44

            	
              6.27

            	
              6.98

            	
              6.59

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]