Document:

[TRANSLATION]

                     PROMISSORY  SHARE  TRANSFER  AGREEMENT

     PROMISSORY SHARE TRANSFER AGREEMENT EXECUTED ON NOVEMBER 13, 2000, BY PEDRO
PRADO  LUNA,  INDIVIDUALLY  (HEREINAFTER  THE "PROMISOR-SELLER") AND PENN OCTANE
CORPORATION,  REPRESENTED  HEREIN  BY  IAN  BOTHWELL  (HEREINAFTER  THE
"PROMISOR-BUYER"),  IN  ACCORDANCE  WITH  THE  FOLLOWING:

                                    RECITALS

     WHEREAS,  the  PROMISOR-SELLER  is  a  person  of  Mexican nationality that
desires to sign the present preparatory agreement such that in the future he may
sign a final agreement whereby the PROMISOR-BUYER will transfer 1 (one) ordinary
registered share with a $500.00 Peso (Five Hundred and 00/100 Pesos) face value,
representative  of  the  fixed  corporate  capital  of  TERMATSAL,  S.A. DE C.V.
(hereinafter  identified as "TERMATSAL"), of which it is the sole and legitimate
owner;

     WHEREAS,  the  PROMISOR-BUYER is a corporation organized in accordance with
the  laws  of  the  United  States  of America and desires sign this preparatory
agreement  with  regards  to the future purchase of TERMATSAL share of which the
PROMISOR-SELLER  is  owner.

     WHEREAS, as registered in the corporate books of TERMATSAL, the share owned
by  PROMISOR-SELLER  and  that will be transferred by means of a final agreement
executed  between  the  parties  are  totally  subscribed  and  paid.

     BASED  ON  THE  ABOVE,  and  in  consideration of the agreements and mutual
covenants  contained  in  this agreement, the PROMISOR-SELLER and PROMISOR-BUYER
execute  this  agreement  in  accordance  with  the  following:

                                     CLAUSES

1.     Subject  Matter  of  the  Agreement.  Subject to the terms and conditions
       -----------------------------------
established herein, PROMISSOR-SELLER promises to transfer to PROMISOR-BUYER, and
PROMISOR-BUYER promises to buy, 1 (One) ordinary registered share with a nominal
value  of  $500.00  Pesos (Five Hundred and 00/100 Pesos), representative of the
fixed  corporate  capital  of  TERMATSAL, of which it is the sole and legitimate
owner.

2.     Value  of  Transfer.  The  amount  of the individual share value shall be
       -------------------
that determined by PROMISOR-BUYER'S accountants based on the company's financial
records.  This is also the price that will comprise the per share sales price in
the  final  agreement  based  on  prior  approval  from  PROMISOR-BUYER.

                                        1
<PAGE>
3.     Date of Signing Final Agreement.  The final Agreement should be singed by
       -------------------------------
the  parties within 10 (Ten) business days following the date when the per share
value  is  determined  in  accordance with the preceding clause.  Said agreement
should  comply  with the formalities required by law for its validity and should
provide that the transfer of the share be conditioned on the condition precedent
that  if  the  settlement  agreement  between  CPSC  International, Inc., Cowboy
Pipeline  Service Company, Inc. and Penn Octane Corporation is not signed by all
the  named  parties  is  not  signed  and  approved  by  the  appropriate  U.S.
authorities,  the  agreement  is  voided.

4.     Warranties  and  Representations of PROMISOR-SELLER.  The PROMISOR-SELLER
       ---------------------------------------------------
represents  and  warrants to the PROMISOR-BUYER that TERMATSAL is duly organized
in  accordance  with  the  laws  of the Mexican Republic, and that the share the
subject  of the final transfer agreement are free of all liens or limitations of
ownership,  reason  for  which  they  may  be  freely  disposed  of.

     Likewise,  the  PROMISOR-SELLER, obligates himself not to undertake any act
that  could  limit  or prejudice, in any manner, the shares that are the subject
matter  of  the  final  transfer  agreement  or  that  in any way impedes in the
execution  of  the  final  transfer  agreement.

5.     Continuity  of  Agreement.   This  agreement  is  obligatory  for  all
       -------------------------
contracting  parties,  as  well  as  their heirs, assigns, as well as before any
other  third  party with regard to the transfer or the transferring of rights of
same.

6.     Jurisdiction.  The  parties expressly agree to submit to the jurisdiction
       ------------
of  the  tribunals  in Mexico City, Federal District, for the interpretation and
compliance  of  this agreement, for which they will waive any other jurisdiction
by  reason  of  the  present  or  future  domicile.

7.     Counterparts.  This Agreement may be signed simultaneously in two or more
       ------------
counterparts,  each  one being considered as the same original, but collectively
shall  constitute  one  legal  act.

                                        2
<PAGE>
     In  witness hereof, the parties have duly executed this Agreement as of the
date  first  indicated.

PROMISOR-SELLER:

PEDRO  PRADO  LUNA

________________________________________

PROMISOR-BUYER:

PENN  OCTANE  CORPORATION

By:_____________________________________
Name:  IAN  BOTHWELL

Its:____________________________________

WITNESS                                   WITNESS

Name:___________________________          Name:______________________________

________________________________          ___________________________________

                                        3
<PAGE>[TRANSLATION]

                       PROMISSORY SHARE TRANSFER AGREEMENT

     PROMISSORY SHARE TRANSFER AGREEMENT EXECUTED ON NOVEMBER 13, 2000, BY PEDRO
PRADO  LUNA,  INDIVIDUALLY  (HEREINAFTER  THE "PROMISOR-SELLER") AND PENN OCTANE
INTERNATIONAL  L.L.C.,  REPRESENTED  HEREIN  BY  IAN  BOTHWELL  (HEREINAFTER THE
"PROMISOR-BUYER"),  IN  ACCORDANCE  WITH  THE  FOLLOWING:

                                    RECITALS

     WHEREAS,  the  PROMISOR-SELLER  is  a  person  of  Mexican nationality that
desires to sign the present preparatory agreement such that in the future he may
sign a final agreement whereby the PROMISOR-BUYER will transfer 1 (one) ordinary
registered share with a $500.00 Peso (Five Hundred and 00/100 Pesos) face value,
representative  of  the  fixed  corporate  capital  of  TERMATSAL,  S.A. DE C.V.
(hereinafter  identified as "TERMATSAL"), of which it is the sole and legitimate
owner;

     WHEREAS,  the  PROMISOR-BUYER is a corporation organized in accordance with
the  laws  of  the  United  States  of America and desires sign this preparatory
agreement  with  regards  to the future purchase of TERMATSAL share of which the
PROMISOR-SELLER  is  owner.

     WHEREAS, as registered in the corporate books of TERMATSAL, the share owned
by  PROMISOR-SELLER  and  that will be transferred by means of a final agreement
executed  between  the  parties  are  totally  subscribed  and  paid.

     BASED  ON  THE  ABOVE,  and  in  consideration of the agreements and mutual
covenants  contained  in  this agreement, the PROMISOR-SELLER and PROMISOR-BUYER
execute  this  agreement  in  accordance  with  the  following:

                                     CLAUSES

1.     Subject  Matter  of  the  Agreement.  Subject to the terms and conditions
       -----------------------------------
established herein, PROMISSOR-SELLER promises to transfer to PROMISOR-BUYER, and
PROMISOR-BUYER promises to buy, 1 (One) ordinary registered share with a nominal
value  of  $500.00  Pesos (Five Hundred and 00/100 Pesos), representative of the
fixed  corporate  capital  of  TERMATSAL, of which it is the sole and legitimate
owner.

2.     Value  of  Transfer.  The  amount  of the individual share value shall be
       -------------------
that determined by PROMISOR-BUYER'S accountants based on the company's financial
records.  This is also the price that will comprise the per share sales price in
the  final  agreement  based  on  prior  approval  from  PROMISOR-BUYER.

                                        1
<PAGE>
3.     Date of Signing Final Agreement.  The final Agreement should be singed by
       -------------------------------
the  parties within 10 (Ten) business days following the date when the per share
value  is  determined  in  accordance with the preceding clause.  Said agreement
should  comply  with the formalities required by law for its validity and should
provide that the transfer of the share be conditioned on the condition precedent
that  if  the  settlement  agreement  between  CPSC  International, Inc., Cowboy
Pipeline  Service Company, Inc. and Penn Octane Corporation is not signed by all
the  named  parties  is  not  signed  and  approved  by  the  appropriate  U.S.
authorities,  the  agreement  is  voided.

4.     Warranties  and  Representations of PROMISOR-SELLER.  The PROMISOR-SELLER
       ---------------------------------------------------
represents  and  warrants to the PROMISOR-BUYER that TERMATSAL is duly organized
in  accordance  with  the  laws  of the Mexican Republic, and that the share the
subject  of the final transfer agreement are free of all liens or limitations of
ownership,  reason  for  which  they  may  be  freely  disposed  of.

     Likewise,  the  PROMISOR-SELLER, obligates himself not to undertake any act
that  could  limit  or prejudice, in any manner, the shares that are the subject
matter  of  the  final  transfer  agreement  or  that  in any way impedes in the
execution  of  the  final  transfer  agreement.

5.     Continuity  of  Agreement.   This  agreement  is  obligatory  for  all
       -------------------------
contracting  parties,  as  well  as  their heirs, assigns, as well as before any
other  third  party with regard to the transfer or the transferring of rights of
same.

6.     Jurisdiction.  The  parties expressly agree to submit to the jurisdiction
       ------------
of  the  tribunals  in Mexico City, Federal District, for the interpretation and
compliance  of  this agreement, for which they will waive any other jurisdiction
by  reason  of  the  present  or  future  domicile.

7.     Counterparts.  This Agreement may be signed simultaneously in two or more
       ------------
counterparts,  each  one being considered as the same original, but collectively
shall  constitute  one  legal  act.

                                        2
<PAGE>
     In  witness hereof, the parties have duly executed this Agreement as of the
date  first  indicated.

PROMISOR-SELLER:

PEDRO  PRADO  LUNA

________________________________________

PROMISOR-BUYER:

PENN  OCTANE  INTERNATIONAL  L.L.C.,

By:_____________________________________
Name:  IAN  BOTHWELL

Its:____________________________________

WITNESS                                   WITNESS

Name:___________________________          Name:______________________________

________________________________          ___________________________________

                                        3
<PAGE>

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