Document:

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                                                                   Exhibit 10.67

                               SECURITY AGREEMENT

           SECURITY AGREEMENT, dated as of August 31, 2001, made by HANOVER
EQUIPMENT TRUST 2001A, a Delaware business trust (the "Lessor"), in favor of
WILMINGTON TRUST FSB, as Collateral Agent (in such capacity, the "Collateral
Agent") under the Indenture dated as of the date hereof (as amended,
supplemented or otherwise modified from time to time, the "Indenture") among the
Lessor, Indenture Trustee and the Subsidiary Guarantors, and under the
Participation Agreement (as defined below), for the first priority benefit of
the Securityholders and the second priority benefit of the Certificate Holders.

                              Preliminary Statement
                              ---------------------

           A. Pursuant to the Indenture, the Securityholders have agreed to make
an advance to the Lessor in an aggregate amount not to exceed $300,000,000 upon
the terms and subject to the conditions set forth therein, to be evidenced by
the Securities issued by the Lessor under the Indenture.

           B. Pursuant to the Trust Agreement and the Participation Agreement,
the Certificate Holders have agreed to make the Certificate Holder Contribution
to the Lessor in an aggregate amount not to exceed $9,300,000, upon the terms
and subject to the conditions set forth therein, to be evidenced by the
Certificates issued by the Lessor under the Trust Agreement.

           C. It is a condition, among others, to the obligations of the
Securityholders to purchase the Securities and the Certificate Holders to make
the Certificate Holder Contribution to the Lessor that the Lessor shall have
executed and delivered this Security Agreement for the ratable benefit of,
first, the Securityholders and, thereafter, the Certificate Holders, as provided
in the Indenture.

           NOW, THEREFORE, in consideration of the premises and to induce the
Indenture Trustee to enter the Indenture and the Securityholders to purchase the
Securities and the Certificate Holders to make the Certificate Holder
Contributions to Lessor, the Lessor hereby agrees with the Collateral Agent, for
the ratable benefit of first, the Securityholders and, thereafter, the
Certificate Holders, as follows:

     1.    Defined Terms.

           1.1.  Definitions. Unless otherwise defined herein, capitalized terms
used herein shall have the respective meanings, and this Agreement shall be
interpreted in accordance with the rules of usage, set forth in Annex A attached
to the Participation Agreement dated as of the date hereof among the Lessee, the
Lessor, the Certificate Holders, the Guarantors, the Indenture Trustee, the
Collateral Agent and the Trust Company, and the following terms shall have the
following meanings:
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                                                                               2

           "Agreement": this Security Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

           "Code": the Uniform Commercial Code as from time to time in effect in
the State of Delaware.

           "Collateral": as defined in Section 2.

           "Equipment": the equipment set forth on Schedule 1 annexed hereto,
any Replacement Equipment which is made subject to the Lien granted by this
Agreement pursuant to a Security Agreement Supplement, and all other tangible
personal property now or hereafter acquired by the Lessor, together with any and
all accessions, additions, improvements, substitutions and replacements thereto
and therefor.

           "Obligations": shall mean the Guaranteed Obligations.

           "Proceeds": as defined in the Code.

           "Security Agreement Supplement": the form attached as Exhibit A.

     2.    Grant of Security Interest. As collateral security for the prompt and
complete payment and performance when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligations, the Lessor hereby grants to the
Collateral Agent for the ratable benefit of, first, the Securityholders, and
thereafter, the Certificate Holders, a security interest in all of its
respective right, title and interest, whether the same be goods, fixtures,
equipment, general intangibles, accounts or chattel paper, in and to (a) the
Equipment, (b) rights and interests of the Lessor pursuant to the Lease, the
rents thereunder and the Hanover Guarantee, (c) all books and records pertaining
to the foregoing, (d) all warranties and guarantees given by any Person with
respect to any of the foregoing, as well as all choses in action, claims, and
causes of action arising from any breach thereof, and (e) to the extent not
otherwise included, all Proceeds and products of the foregoing, in each case
whether now existing or hereafter acquired (collectively, the "Collateral"),
subject to the rights of the Lessee under the Lease, so long as no Lease Event
of Default has occurred and is continuing.

     3.    Representations and Warranties.

     3.1.  Equipment. The Lessor hereby represents and warrants that, the
Equipment will be kept at the locations listed on Schedule 1 subject only to the
Lessee's rights to relocate the Equipment as provided for in the Operative
Agreements.

     3.2.  Chief Executive Office, etc. The Lessor hereby represents and
warrants that (i) the Lessor's chief place of business, chief executive office
and office where the documents, accounts and records related to the Collateral
are kept is located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890, Attention: Corporate Trust Administration, (ii) the
Lessor is organized in the State of Delaware, (iii) the Lessor's legal name is
Hanover Equipment Trust 2001A and (iv) the Lessor is organized as a Delaware
business trust.
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     3.3.  Farm Products. The Lessor hereby represents and warrants that none of
the Collateral constitutes, or is the Proceeds of, Farm Products.

     4.    Covenants. From and after the date of this Agreement until the
Obligations shall have been paid in full:

     4.1.  Further Documentation. At any time and from time to time, upon the
written request of the Collateral Agent, and at the sole expense of the Lessor,
the Lessor will promptly and duly execute and deliver such further instruments
and documents and take such further actions as the Collateral Agent may
reasonably request for the purpose of obtaining or preserving the full benefits
of this Agreement and of the rights and powers herein granted, including,
without limitation, the filing of any financing or continuation statements under
the Uniform Commercial Code in effect in any jurisdiction with respect to the
security interests created hereby.

     4.2.  Changes in Locations. (a) Except with respect to the rights of the
Lessee under the Operative Agreements, the Lessor will not permit any of the
Equipment to be kept at a location other than those listed on Schedule 1; and

           (b) The Lessor will not change the location of its chief executive
offices from that specified in Section 3.2.

     4.3.  Change in Name, etc. The Lessor will not change its name, identity,
type of organization or structure, unless the Lessor shall have given the
Collateral Agent at least 30 days' prior written notice of such change.

     4.4.  Equipment Modifications and Improvements. In the event any
modifications or additions are made the title to which becomes vested in the
Lessor, such modifications or additions shall be deemed to be a part of the
Equipment and covered by the security interest of the Security Documents. Any of
the modifications or additions which were constructed by or on behalf of the
Lessor shall be deemed to be a part of the Equipment and covered by the security
interest of the Security Documents.

     5.    Remedies.

     5.1.  Code Remedies. If an Indenture Event of Default shall occur and be
continuing, the Collateral Agent, on behalf of the Securityholders and the
Certificate Holders, may exercise, in addition to all other rights and remedies
granted to them in this Agreement and in any other instrument or agreement
securing, evidencing or relating to the Obligations, all rights and remedies of
a secured party under the Code. Without limiting the generality of the
foregoing, the Collateral Agent, without demand of performance or other demand,
presentment, protest, advertisement or notice of any kind (except any notice
required by law or as referred to below) to or upon the Lessor, the Lessee or
any other Person (all and each of which demands, defenses, advertisements and
notices are hereby waived to the extent permitted by law), may in such
circumstances forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
an option or options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker's
board or office of the Collateral Agent or any Securityholder or Certificate
Holder or elsewhere
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upon such terms and conditions as it may deem advisable and at such prices as it
may deem best, for cash or on credit or for future delivery without assumption
of any credit risk, but subject to the rights of the Lessee under the Lease so
long as no Lease Event of Default shall have occurred and be continuing. The
Collateral Agent and/or any Securityholder and/or Certificate Holder shall have
the right upon any such public sale or sales, and, to the extent permitted by
law, upon any such private sale or sales, to purchase the whole or any part of
the Collateral so sold, free of any right or equity of redemption in the Lessor,
which right or equity is hereby waived or released to the extent permitted by
law. Subject to the Lessee's rights under the Lease, if any, the Lessor further
agrees, at the Collateral Agent's request, to assemble the Collateral and make
it available to the Collateral Agent at places that the Collateral Agent shall
reasonably select. The Collateral Agent shall apply the net proceeds of any
action taken by it pursuant to this subsection, after deducting all reasonable
costs and expenses of every kind incurred in connection therewith or incidental
to the care or safekeeping of any of the Collateral or in any way relating to
the Collateral or the rights of the Collateral Agent, the Securityholders and
the Certificate Holders hereunder, including, without limitation, reasonable
attorneys' fees and disbursements, to the payment in whole or in part of the
Obligations, in accordance with Section 7.13 of the Indenture, and only after
such application and after the payment by the Collateral Agent of any other
amount required by any provision of law, including, without limitation, Section
9-615(a) of the Code, need the Collateral Agent account for the surplus, if any,
to the Lessor. To the extent permitted by applicable law, the Lessor waives all
claims, damages and demands it may acquire against the Collateral Agent or any
Securityholder or Certificate Holder arising out of the exercise by them of any
rights hereunder. If any notice of a proposed sale or other disposition of
Collateral shall be required by law, such notice shall be deemed reasonable and
proper if given at least 10 days before such sale or other disposition. The
Collateral Agent agrees that if it shall proceed to foreclose the Lien of this
Agreement, it shall, to the extent that it is entitled to do so hereunder and
under the other Operative Agreements, and is not then stayed or prevented from
doing so by law or otherwise, proceed (to the extent it has not already done so)
to exercise one or more of the significant possessory remedies referred to in
the Lease (as it shall determine in its sole good faith discretion).

     6.    Collateral Agent's Appointment as Attorney-in-Fact; Collateral
Agent's Performance of Obligations.

     6.1.  Powers. The Lessor hereby irrevocably constitutes and appoints the
Collateral Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of the Lessor and in the name of the
Lessor or in its own name, for the purpose of carrying out the terms of this
Agreement, to take any and all appropriate action and to execute any and all
documents and instruments which may be necessary or desirable to accomplish the
purposes of this Agreement, and, without limiting the generality of the
foregoing, the Lessor hereby gives the Collateral Agent the power and right, on
behalf of the Lessor, without notice to or assent by the Lessor, to do any or
all of the following:

           (a) pay or discharge taxes and Liens levied or placed on or
     threatened against the Collateral, effect any repairs or any insurance
     called for by the terms of the Lease and pay all or any part of the
     premiums therefor and the costs thereof;
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                                                                               5

           (b) execute, in connection with any sale provided for in Section 5.1,
     any indorsements, assignments or other instruments of conveyance or
     transfer with respect to the Collateral; and

           (c) sign and indorse any invoices, freight or express bills, bills of
     lading, storage or warehouse receipts, drafts against debtors, assignments,
     verifications, notices and other documents in connection with any of the
     Collateral; (2) commence and prosecute any suits, actions or proceedings at
     law or in equity in any court of competent jurisdiction to collect the
     Collateral or any portion thereof and to enforce any other right in respect
     of any Collateral; (3) defend any suit, action or proceeding brought
     against the Lessor with respect to any Collateral; (4) settle, compromise
     or adjust any such suit, action or proceeding and, in connection therewith,
     to give such discharges or releases as the Collateral Agent may deem
     appropriate; and (5) generally, sell, transfer, pledge and make any
     agreement with respect to or otherwise deal with any of the Collateral as
     fully and completely as though the Collateral Agent were the absolute owner
     thereof for all purposes, and do, at the Collateral Agent's option and the
     Lessor's expense, at any time, or from time to time, all acts and things
     which the Collateral Agent deems necessary to protect, preserve or realize
     upon the Collateral and the Collateral Agent's and the Securityholders' and
     Collateral Holders' security interests therein and to effect the intent of
     this Agreement, all as fully and effectively as the Lessor might do.

     Anything in this subsection to the contrary notwithstanding, the Collateral
Agent agrees that it will not exercise any rights under the power of attorney
provided for in this subsection unless a Indenture Event of Default shall have
occurred and be continuing.

     6.2.  Performance by Collateral Agent of Lessor's Obligations. If the
Lessor fails to perform or comply with any of its agreements contained herein,
the Collateral Agent, at its option, but without any obligation so to do, may
perform or comply, or otherwise cause performance or compliance, with such
agreement.

     6.3.  Lessor's Reimbursement Obligation. The expenses of the Collateral
Agent incurred in connection with actions undertaken as provided in this
Section, together with interest thereon after an Indenture Event of Default at
the Overdue Rate from the date of payment by the Collateral Agent to the date
reimbursed by the Lessor, shall be payable by the Lessor to the Collateral Agent
on demand.

     6.4.  Ratification; Power Coupled With An Interest. All powers,
authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the security
interests created hereby are released.

     7.    Duty of Collateral Agent. The Collateral Agent's sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral
in its possession, under Section 9-207 of the Code or otherwise to the extent
permitted by law, shall be to deal with it in the same manner as the Collateral
Agent deals with similar property for its own account. None of the Collateral
Agent, any Securityholder, any Certificate Holder nor any of their respective
officers, directors, employees or agents shall be liable for failure to demand,
collect or realize upon any of the Collateral or for any delay in doing so or
shall be under any obligation to sell or otherwise dispose of any Collateral
upon the request of the Lessor or any other Person or to take any other
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                                                                               6

action whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Collateral Agent, the Securityholders and the Certificate
Holders hereunder are solely to protect the Collateral Agent's, the
Securityholders' and the Certificate Holders' interests in the Collateral and
shall not impose any duty upon the Collateral Agent, any Securityholder or any
Certificate Holder to exercise any such powers. None of the Collateral Agent,
the Securityholders, the Certificate Holders nor any of their officers,
directors, employees or agents shall be responsible to the Lessor for any act or
failure to act hereunder, except for the negligence or willful misconduct of the
Collateral Agent, any Securityholder, any Certificate Holder or any of their
officers, directors, employees or agents.

     8.    Execution of Financing Statements. Pursuant to and to the extent
permitted by Section 9-502 of the Code, the Lessor authorizes the Collateral
Agent to file financing statements with respect to the Collateral without the
signature of the Lessor in such form and in such filing offices as the
Collateral Agent reasonably determines appropriate to perfect the security
interests of the Collateral Agent under this Agreement.

     9.    Authority of Collateral Agent. The Lessor acknowledges that the
rights and responsibilities of the Collateral Agent under this Agreement with
respect to any action taken by the Collateral Agent or the exercise or
non-exercise by the Collateral Agent of any request, judgment or other right or
remedy provided for herein or resulting or arising out of this Agreement shall,
as between the Collateral Agent and the Securityholders and the Certificate
Holders, be governed by the Indenture, the Participation Agreement and by such
other agreements with respect thereto as may exist from time to time among them,
but, as between the Collateral Agent and the Lessor, the Collateral Agent shall
be conclusively presumed to be acting as agent for the Securityholders and the
Certificate Holders with full and valid authority so to act or refrain from
acting, and the Lessor shall not be under any obligation, or entitlement, to
make any inquiry respecting such authority.

     10.   Notices. Unless otherwise specifically provided herein, all notices,
requests and demands required or permitted by the terms hereof to be given to
any person shall be given pursuant to and in accordance with Section 14.3 of the
Participation Agreement.

     11.   Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     12.   Amendments in Writing; Cumulative Remedies.

     12.1. Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the Lessor and the Collateral Agent, provided
that any provision of this Agreement imposing obligations on the Lessor may be
waived by the Collateral Agent in a written instrument executed by the
Collateral Agent.

     12.2. Remedies Cumulative. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any
other rights or remedies
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                                                                               7

provided by law. The failure of the Collateral Agent to exercise the rights
granted hereunder upon any Indenture Event of Default shall not constitute a
waiver of any such right upon the continuation or reoccurrence of any such
Indenture Event of Default.

     13.   Section Headings. The Section headings used in this Agreement are for
convenience of reference only and are not to affect the construction hereof or
be taken into consideration in the interpretation hereof.

     14.   Successors and Assigns. This Agreement shall be binding upon the
successors and assigns the Lessor and shall inure to the benefit of the
Collateral Agent, the Securityholders, the Certificate Holders and their
successors and permitted assigns.

     15.   Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE.

     16.   Obligations Are Without Recourse. Anything in this Agreement to the
contrary notwithstanding, the Lessor's liability hereunder shall be limited as
provided in Section 9.8 of the Indenture.

     17.   Counterparts. This Agreement may be executed in any number of
separate counterparts, each of which shall be an original, but all of which
shall together constitute one and the same instrument.
<PAGE>

     IN WITNESS WHEREOF, the undersigned has caused this Security Agreement to
be duly executed and delivered as of the date first above written.

                                       HANOVER EQUIPMENT TRUST 2001A

                                       By: Wilmington Trust Company, not
                                       individually but solely as Trustee

                                       By: ____________________________
                                           Name:
                                           Title:
<PAGE>

                                   Schedule 1

                                    EQUIPMENT
<PAGE>

                                    EXHIBIT A

                      SECURITY AGREEMENT SUPPLEMENT NO. __

         THIS SECURITY AGREEMENT SUPPLEMENT NO. _ (the "Security Agreement
Supplement") dated as of _________ __, 2001, to the Security Agreement, dated as
of _________ __, 2001 (as the same may be further amended, supplemented or
otherwise modified from time to time, the "Security Agreement") made by HANOVER
EQUIPMENT TRUST 2001A, a Delaware business trust, (the "Lessor"), in favor of
WILMINGTON TRUST FSB, as Collateral Agent (in such capacity, the "Collateral
Agent") under the Indenture dated as of the date hereof (as amended,
supplemented or otherwise modified from time to time, the "Indenture") among the
Lessor, Indenture Trustee and the Subsidiary Guarantors, and under the
Participation Agreement (as defined below), for the first priority benefit of
the Securityholders and the second priority benefit of the Certificate Holders

         WHEREAS, the Lessor has previously executed and delivered the Security
Agreement to grant to the Collateral Agent, for the ratable benefit of, first,
the Securityholders and, thereafter, the Certificate Holders, a security
interest in the collateral described therein; and

         WHEREAS, pursuant to the Security Agreement, the Lessor has agreed to
execute and deliver this Security Agreement Supplement No. _ for the ratable
benefit of the Securityholders and the Certificate Holders.

         NOW, THEREFORE, in consideration of the premises and to induce the
Securityholders to make their respective Advances to the Lessor and the
Certificate Holders to make the Certificate Holder Contribution to Lessor, the
Lessor hereby agrees with the Collateral Agent, for the ratable benefit of,
first, the Securityholders and, thereafter, the Certificate Holders, as follows:

     1.  Definitions; Rules of Usage. For purposes of this Security Agreement
Supplement, capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in the Security Agreement.

     2.  Grant of Security Interest in the Replacement Equipment. As collateral
security, in addition to that referred to in the Security Agreement, for the
prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations, the Lessor hereby
grants to the Collateral Agent for the ratable benefit of, first, the
Securityholders and, thereafter, the Certificate Holders, a security interest in
all of its respective right, title and interest, whether the same be goods,
fixtures, equipment, general intangibles, accounts or chattel paper in and to
(a) the Equipment listed on Schedule I hereto (the "Replacement Equipment"), (b)
rights and interests of the Lessor pursuant to Lease Supplement No. _, (c) all
books and records pertaining to the foregoing, (d) all warranties and guarantees
given by any Person with respect to any of the foregoing, as well as all choses
in action, claims, and causes of action arising from any breach thereof, and (e)
to the extent not otherwise included, all Proceeds and products of the
foregoing, in each case whether now existing or hereafter acquired
(collectively, the "Collateral"), subject to the rights of the Lessee under the
Lease, so long as no Lease Event of Default has occurred and is continuing.
Effective upon the execution and delivery of this Security Agreement Supplement
by the Lessor, the Replacement
<PAGE>

Equipment shall be subject to the terms and provisions of the Security Agreement
and shall be deemed to constitute Equipment for all purposes with respect to the
Security Agreement.

     3.  Ratification. Except as specifically modified hereby, the terms and
provisions of the Security Agreement are hereby ratified and confirmed and
remain in full force and effect.

     4.  GOVERNING LAW. THIS SECURITY AGREEMENT SUPPLEMENT HAS BEEN DELIVERED
IN, AND SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THIS STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE.

     5.  Counterpart Execution. This Security Agreement Supplement may be
executed in any number of counterparts and by each of the parties hereto in
separate counterparts, all such counterparts together constituting but one and
the same instrument.

         IN WITNESS WHEREOF, the undersigned has caused this Security Agreement
Supplement No. _ be duly executed and delivered as of the date first above
written.

                                       HANOVER EQUIPMENT TRUST 2001A

                                       By: Wilmington Trust Company, not in its
                                           individual capacity but solely as
                                           Trustee

                                           By: ___________________________
                                               Name:
                                               Title:
<PAGE>

                                JOINDER OF LESSEE

         HANOVER COMPRESSION LIMITED PARTNERSHIP, a Delaware corporation
("Lessee") hereby joins in the Security Agreement dated as of August 31, 2001
made by HANOVER EQUIPMENT TRUST 2001A, as the Lessor in favor of WILMINGTON
TRUST FSB, as the Collateral Agent for, first, the Securityholders, and
thereafter, the Certificate Holders (the "Security Agreement") in order to, and
HEREBY GRANTS TO THE COLLATERAL AGENT FOR THE RATABLE BENEFIT OF FIRST, THE
SECURITYHOLDERS AND, THEREAFTER, THE CERTIFICATE HOLDERS, A SECURITY INTEREST IN
all of its right, title and interest, if any, in and to the Collateral for the
purpose of securing the Guaranteed Obligations. Lessee acknowledges and agrees
that, upon the occurrence of an Indenture Event of Default and subject to the
terms of the Lease, the Collateral Agent on behalf of, first, the
Securityholders and, thereafter, the Certificate Holders, shall have the right
to exercise any and all of its remedies hereunder as against the Collateral.

         Lessee expressly agrees that the rights of the Collateral Agent, the
Securityholders and the Certificate Holders under the Security Agreement shall
in no way be affected or impaired by reason of the occurrence of any of the
following events: (i) the waiver by the Collateral Agent, the Securityholders or
the Certificate Holders of the performance or observance by the Lessor, Lessee
or any other party of any terms of the Operative Agreements; (ii) the extension,
in whole or in part, of the time for payment by the Lessor of any sums owing or
payable under the Operative Agreements; (iii) any failure, delay or inability of
the Collateral Agent, the Securityholders or the Certificate Holders in
enforcing any remedies or any other provisions under the Operative Agreements;
(iv) the occurrence of any event described in Section 5.1 of the Indenture; or
(v) the inability of the Lessor to perform (or the release of the Lessor's
performance) under the Operative Agreements due to any Legal Requirement.
Notwithstanding the foregoing, Lessee shall not have any personal liability
under this Security Agreement and Joinder in excess of its personal liability
under the Guaranty and the other Operative Agreements.

         This Joinder shall be considered part of the Security Agreement to
which it is attached, and all references in the Operative Agreements to the
Security Agreement shall mean the Security Agreement together with this Joinder.
<PAGE>

         All capitalized terms used herein and not otherwise defined herein
shall have the meaning ascribed to such terms in the Security Agreement.

         This Joinder has been duly executed by Lessee as of August 31, 2001.

                                       HANOVER COMPRESSION LIMITED PARTNERSHIP

                                       By: ____________________________
                                           Name:
                                           Title:<PAGE>

                                                                   Exhibit 10.68

                    ASSIGNMENT OF LEASE, RENTS AND GUARANTEE

                                      from

                     HANOVER EQUIPMENT TRUST 2001A, Assignor

                                       to

               WILMINGTON TRUST FSB, as Collateral Agent, Assignee

                                 August 31, 2001
<PAGE>

                    ASSIGNMENT OF LEASE, RENTS AND GUARANTEE

         THIS ASSIGNMENT OF LEASE, RENTS AND GUARANTEE dated as of August 31,
2001 (this "Assignment"), made by HANOVER EQUIPMENT TRUST 2001A, a Delaware
business trust (the "Assignor"), to WILMINGTON TRUST FSB, a federal savings
bank, in its capacity as Collateral Agent (in such capacity, "Assignee") under
the Indenture dated as of the date hereof (as amended, supplemented or otherwise
modified from time to time, the "Indenture") among the Assignor, Wilmington
Trust FSB, as Indenture Trustee, and the Hanover Guarantors, and under the
Participation Agreement (as defined below), for the first priority benefit of
the Securityholders and the second priority benefit of the Certificate Holders.

                              Preliminary Statement
                              ---------------------

         A.  On the date hereof, the Assignor and Hanover Compression Limited
Partnership (the "Lessee") entered in a Lease whereby the Assignor agreed to
lease certain Equipment to the Lessee. Simultaneously with the execution of the
Lease, the Guarantors entered into the Hanover Guarantee which, among other
obligations, guarantees all of the Lessee's obligations under the Lease.

         B.  Pursuant to the Indenture, the Securityholders have agreed to
advance to the Assignor in an aggregate amount not to exceed $300,000,000 upon
the terms and subject to the conditions set forth therein, to be evidenced by
the Securities issued by the Assignor under the Indenture.

         C.  Pursuant to the Trust Agreement and the Participation Agreement,
the Certificate Holders have agreed to make the Certificate Holder Contributions
to the Assignor in an aggregate amount not to exceed $9,300,000 upon the terms
and subject to the conditions set forth therein, to be evidenced by Certificates
issued by Assignor under the Trust Agreement.

         D.  It is a condition, among others, to the obligation of the
Securityholders to purchase Securities and the Certificate Holders to make
Certificate Holder Contributions to the Assignor that the Assignor shall have
executed and delivered, and the Lessee and the Guarantors shall have consented
to, this Assignment to the Assignee for the ratable benefit of, first, the
Securityholders and thereafter the Certificate Holders.

         NOW, THEREFORE, in consideration of the foregoing, the parties hereto
agree as follows:

         1.  Defined Terms. Capitalized terms used but not otherwise defined in
this Assignment shall have the respective meanings specified in Annex A to the
Participation Agreement dated as of the date hereof among the Lessor, the
Lessee, the Certificate Holders, the Hanover Guarantors, the Indenture Trustee
and the Trust Company, as such Participation Agreement may be amended,
supplemented or otherwise modified from time to time. A copy of the
Participation Agreement or of the other agreements referenced herein or therein
may be obtained from any of the parties hereto at the addresses set forth
herein.
<PAGE>

                                                                               2

         2.  Assignment. The Assignor hereby irrevocably assigns, transfers,
sets over and conveys to the Assignee, all the following-described property
relating to or arising in connection with the Equipment, whether now owned or
held or hereafter acquired, exclusively and without any reservation thereof unto
the Assignor:

         (a) Subject to Section 7 hereof, all of the estate, right, title,
interest, benefits, powers and privileges of the Assignor, as lessor, under the
Lease, as the Lease is supplemented from time to time pursuant to one or more
Lease Supplements, including, without limitation, (i) the immediate and
continuing right to make claim for, receive, collect and receipt for all rents,
income, revenues, issues, profits, insurance proceeds, sales proceeds and other
sums payable to or receivable by the Assignor under the Lease, or pursuant to
any provisions thereof, whether as rent or as the purchase price or termination
payment for any interest in the Equipment or otherwise (including, without
limitation, the Final Rent Payment, the Purchase Option Price, Equity Proceeds
Purchase Price, Control Purchase Price, Excess Proceeds Purchase Price,
Termination Value, Basic Rent, Supplemental Rent, Certificate Holder Yield and
any sales proceeds payable to the Assignor pursuant to the Lease) (collectively,
the "Lease Rents"), including all cash, securities or letters of credit, if any,
delivered or deposited pursuant thereto to secure performance by the Lessee of
its obligations thereunder, (ii) the right and power (which right and power are
coupled with an interest) upon the purchase by the Lessee of the interest of the
Assignor in the Equipment in accordance with the Lease to execute and deliver as
irrevocable agent and attorney-in-fact of the Assignor an appropriate instrument
necessary to convey the interest of the Assignor therein, or to pay over or
assign to the Assignee those sums to which it is entitled if the Lessee becomes
obligated to purchase the interest of the Assignor in the Equipment and to
perform all other necessary or appropriate acts as said agent and
attorney-in-fact with respect to any such purchase and conveyance, (iii) the
right to perform all other necessary or appropriate acts as said agent and
attorney-in-fact with respect to any purchase or conveyance referred to in
clause (ii) above, (iv) the right to declare the Lease to be in default under
Section 17.1 thereof, (v) the right to exercise remedies under or with respect
to the Lease, (vi) the right to make all waivers and agreements on behalf of the
Assignor under the Lease provided for or permitted under the Lease, (vii) the
right to give all notices, consents, releases and other instruments provided
under the Lease, (viii) the right to give all notices of default and to take all
action upon the happening of a Lease Default or a Lease Event of Default,
including the commencement, conduct and consummation of proceedings as shall be
permitted under any provision of the Lease, or by law or in equity, (ix) the
right to receive all notices, certificates, financial statements and other
documents sent to the Assignor under the Lease, (x) the Assignor's interest
under the Lease in the Lessee's tangible and intangible property used or arising
in connection with the Equipment, including, but not limited to, permits,
licenses, contract rights and prepaid expenses, (xi) the grant of lien and
security interest by the Lessee pursuant to the Lease; and (xii) the right to do
any and all other things whatsoever which the Assignor is or any lessor or
mortgagor or secured party is, or may be entitled to do under the Lease;
provided that the Assignor shall retain, and the Lease Rents shall not include,
the Excepted Payments and the Lessor shall retain, and the rights and powers
assigned herein shall in no event include, the Excepted Rights and shall be
subject to the Shared Rights.

         (b) All of the estate, right, title, interest, benefits, powers and
privileges of the Assignor in, to and under all other leases, subleases or
licenses of the Equipment, any license,
<PAGE>

                                                                               3

concession, management or other agreements of a similar kind that permit the use
or occupancy of the Equipment or any part thereof for any purpose in return for
any payment, now or hereafter entered into by the Assignor (collectively, the
"Other Leases" and, together with the Lease, the "Leases"), together with all
estate, rights, title, interest, benefits, powers and privileges of the
Assignor, as lessor, under the Other Leases including the immediate and
continuing right to make claim for, receive, collect and receipt for all
charges, fees, income, issues, profits, receipts, rents, revenues or royalties
payable under any of the Other Leases (collectively, the "Other Lease Rents")
and all estate, right, title and interest of the Assignor thereunder, including
all cash, securities or letters of credit, if any, delivered or deposited
thereunder to secure performance by the lessees under Other Leases of their
obligations thereunder; provided that the Assignor shall retain, and the Lease
Rents shall not include, the Excepted Payments and the Lessor shall retain and
the rights and powers assigned herein shall in no event include the Excepted
Rights and shall be subject to the Shared Rights.

         (c) All of the estate, right, title, interest, benefits, powers and
privileges of the Assignor, to and under all agreements or contracts for the
sale or other disposition of all or any part of the Equipment, now or hereafter
entered into by the Assignor (collectively, the "Contracts"), together with all
estate, rights, title, interest, benefits, powers and privileges of the Assignor
under the Contracts including, without limitation, the immediate and continuing
right to make claim for, receive, collect and receipt for all charges, fees,
income, issues, profits, receipts, rents, revenues or royalties payable under
any of the Contracts (collectively, the "Contract Rents" and, together with the
Lease Rents and the Other Lease Rents, the "Rents" ) and all right, title and
interest of the Assignor thereunder, including all cash, securities or letters
of credit, if any, deposited thereunder to secure performance by the obligors of
their obligations thereunder; provided that the Assignor shall retain, and the
Lease Rents shall not include, the Excepted Payments and the Lessor shall retain
and the rights and powers assigned herein shall in no event include the Excepted
Rights and shall be subject to the Shared Rights.

         (d) All of the estate, right, title, interest, benefits, powers and
privileges of the Assignor under the Hanover Guarantee including, without
limitation, (i) the immediate and continuing right to make claim for, receive,
collect and receipt for all Guaranteed Obligations and other sums payable to or
receivable by the Assignor under the Hanover Guarantee, or pursuant to any
provisions thereof, (ii) the right to exercise remedies under or with respect to
the Hanover Guarantee, (iii) the right to make all waivers and agreements on
behalf of the Assignor under the Hanover Guarantee provided for or permitted
under the Hanover Guarantee, (iv) the right to give all notices, consents,
releases and other instruments provided under the Hanover Guarantee, and (v) the
right to give all notices of default and to take all action as shall be
permitted under any provision of the Hanover Guarantee or by law or in equity;
provided that the Assignor shall retain the Excepted Payments and the Lessor
shall retain, and the rights and powers assigned herein shall in no event
include, the Excepted Rights and shall be subject to the Shared Rights.

         (e) All of the right, title and interest of the Assignor in and to all
claims and rights to the payment of money at any time arising in connection with
any repudiation, rejection or breach of the Lease by the Lessee or a trustee or
receiver of the Lessee (whether pursuant to the Lease, the Hanover Guarantee or
any Other Lease by any lessee thereunder, trustee or
<PAGE>

                                                                               4

receiver of any such lessee) under any insolvency statute, law or regulation,
including all rights to recover damages arising out of such breach or rejection,
all rights to charges payable by the Lessee or such trustee or receiver (or by
such lessee, trustee or receiver) in respect of the Equipment or any portions
thereof following rejection, repudiation or disaffirmance of the Lease or
following the entry of an order for relief under any insolvency statute, law or
regulation in respect of the Lessee (or such lessee) and all rentals and other
charges outstanding under the Lease (or Other Lease) as of the date of entry of
such order for relief; provided that the Assignor shall retain and the Lease
Rents shall not include, the Excepted Payments and the Lessor shall retain and
the rights and powers assigned herein shall in no event include, the Excepted
Rights and shall be subject to the Shared Rights.

The Assignor hereby agrees that any action taken by Assignee (or its designee)
pursuant to this Assignment shall be exclusive, and no party relying on such
action of the Assignee (or such designee) pursuant hereto shall be required to
obtain the concurrence or consent of the Assignor to such action or to a request
for such action. The Assignor further agrees that this Agreement shall not
relieve Assignor from any obligations it may have as lessor under the Lease.

         3.  Receipt of Payments. The Assignor hereby irrevocably designates the
Assignee (or its designee) to receive all payments of (i) the Lease Rents, the
Other Lease Rents and the Contract Rents and any other sums payable to the
Assignor under the Lease, any Other Lease or any Contract and (ii) all
Guaranteed Obligations and any other sums payable to the Assignor under the
Hanover Guarantee. The Assignor agrees to direct (and hereby directs) the
Lessee, any other lessees and any contracting parties to deliver to the Assignee
(or its designee), at its address provided herein or at such other address or to
such other Person as the Assignee shall designate, all such payments and sums on
account of the Rents, and no delivery thereof by the Lessee, such other lessee
or such contracting party shall be of any force or effect unless made to the
Assignee (or its designee), as herein provided. The Rents shall for all purposes
be considered the property of the Assignee and not of the Assignor, whether
before or after the occurrence of an Event of Default.

The Assignor shall at all times retain the right, but not to the exclusion of
the Assignee, (A) to receive from the Lessee all notices, certificates and other
documents and all information that the Lessee is permitted or required to give
or furnish to the "Lessor" pursuant to the Lease, the Participation Agreement or
any other Operative Document, (B) to inspect the Equipment, (C) to retain all
rights with respect to insurance that Section 14 of the Lease specifically
confers upon the "Lessor", (D) to provide such insurance as the Lessee shall
have failed to maintain or as the Assignor may desire and (E) to enforce
compliance by the Lessee with the provisions of Section 8, 9, 10, 11 and 14 of
the Lease.

         4.  Receipt of Notices. The Assignor hereby designates the Assignee (or
its designee) to receive (in addition to, and not to the exclusion of, the
Assignor) duplicate originals or copies of all notices, undertakings, demands,
statements, documents, financial statements and other communications which the
Lessee, the Guarantors, any other lessee or any contracting party is required or
permitted to give, make, deliver to or serve pursuant to the Lease, the
<PAGE>

                                                                               5

Hanover Guarantee, any Other Lease or any Contract. The Assignor agrees to
direct (and hereby directs) the Lessee, the Guarantors, and such other lessees
and contracting parties to deliver to the Assignee (or its designee), at its
address provided herein or at such other address or to such other Person as the
Assignee shall designate, duplicate originals or copies of all such notices,
undertakings, demands, statements, documents, financial statements and other
communications, and no delivery thereof by the Lessee, the Guarantors, such
other lessee or such contracting party shall be of any force or effect unless
made to the Assignor and also made to the Assignee (or its designee), as herein
provided. The Assignor further agrees that upon receipt by the Assignor of any
such notices, undertakings, demands, statements, documents, financial statements
and other communications, the Assignor shall promptly deliver copies thereof to
the Assignee unless the Assignor shall reasonably believe that the Assignee has
already received such copies.

         5.  Irrevocability; Supplemental Instruments. The Assignor agrees that
this Assignment and the designation and direction to the Lessee set forth in
Sections 3 and 4 of this Assignment are irrevocable and that it will not take
any action as lessor under the Lease, or under the Hanover Guarantee, or
otherwise which is inconsistent with this Assignment and that any action,
assignment, designation or direction inconsistent herewith shall be void. The
Assignor will from time to time execute and deliver all instruments of further
assurance and do such further acts as may be necessary or proper to carry out
more effectively the purpose of this Assignment.

         6.  Validity. The Assignor represents and warrants and covenants to the
Assignee that (i) the Assignor has not assigned or executed any assignment of,
and will not assign or execute any assignment of its interest in the Lease, of
the Hanover Guarantee, of any Other Lease, of any Contract or of any Rents or of
any other subject matter of this Assignment to anyone other than the Assignee
and any assignment, designation or direction by the Assignor inconsistent
herewith shall be void, (ii) no Lease Event of Default has occurred and is
continuing and (iii) the Assignor has not done any act or executed any document
that impairs the rights of the Assignee to the Lease or the Lease Rents or to
the Hanover Guarantee under this Assignment.

         7.  The Assignor Remains Liable. While the assignment made hereby is
present, direct, absolute and continuing, it has been made for the purpose of
providing the Assignee with security for the performance of the Assignor's
obligations under the Indenture, the Securities, the Participation Agreement and
the other Operative Agreements to which it is a party and the execution and
delivery hereof shall not impair or diminish in any way the obligations of the
Assignor under the Lease or impose any of such obligations on the Assignee.
Neither the Assignee nor its designee shall be responsible or liable for
performing any of the obligations of the Assignor under the Lease, any Other
Lease or any Contract, for any waste by the Lessee or others, for any dangerous
or defective conditions of the Equipment, for negligence in the management,
upkeep, repair or control of the Equipment or any other act or omission by any
other Person. Nothing contained herein shall operate or be construed to (i)
obligate the Assignee (or its designee) to assume the obligations of the
Assignor under the Lease, any Other Lease or any Contract, to perform any of the
terms and conditions contained in the Lease, any Other Lease or any Contract or
otherwise to impose any obligation upon the Assignee with respect to the Lease,
any Other Lease or any Contract or (ii) place upon the Assignee (or its
designee) any
<PAGE>

                                                                               6

responsibility for the operation, control, care, management or repair of any of
the Equipment or any part thereof. Subject at all times to the terms and
conditions of this Assignment, the Assignor will at all times promptly and
faithfully perform in all respects, or cause to be performed in all respects,
all of its covenants, conditions and agreements contained in the Lease, any
Other Lease or any Contract now or hereafter existing on the part of the
Assignor to be kept and performed.

         8.  Amendments; Lessee's Consent. The Assignor will not enter into any
agreement subordinating, amending, extending or terminating the Lease or the
Hanover Guarantee, or any waiver of the terms thereof, without the prior written
consent thereto of the Assignee, which consent may be withheld in Assignee's
sole discretion, and any such attempted waiver, subordination, amendment,
modification, extension or termination without such consent shall be void. If
the Lease, the Hanover Guarantee, any Other Lease or any Contract shall be
amended, it shall continue to be subject to the provisions hereof without the
necessity of any further act by any of the parties hereto. The Assignor and the
Assignee hereby consent to the provisions of Lessee's and Guarantor's Consent
attached to this Assignment and agree to be bound thereby.

         9.  Absolute Assignment. The Assignor has, subject to and in accordance
with the terms and conditions of this Assignment, assigned and transferred unto
the Assignee all of the Assignor's right, title and interest in and to Rents now
or hereafter arising from (i) the Lease, any Other Lease or any Contract
heretofore or hereafter made or agreed to by the Assignor and (ii) the Hanover
Guarantee, it being intended to establish an absolute transfer and assignment,
subject to and in accordance with the terms and conditions of this Assignment,
of all such Rents, Guaranteed Obligations, the Lease, the Hanover Guarantee, the
Other Leases and the Contracts to the Assignee and not merely to grant a
security interest therein. Subject to the terms of the Lease and Lessee's rights
thereunder, the Assignee (or its designee) may in the Assignor's name and stead
operate the Equipment and rent, lease or let all or any portion of the Equipment
to any party or parties at such rental and upon such terms as the Assignee (or
its designee) shall, in its discretion, determine.

         10. Ongoing Right to Collect Rents; Receivers. If notwithstanding the
terms of this Assignment, a petition or order for sequestration of rents, or the
appointment of a receiver or some similar judicial action or order is deemed
required under applicable state law to allow the Assignee to continue to collect
the moneys described in paragraphs 2 (a), (b), (c), (d) and (e) of this
Assignment, then it is agreed by the Assignor that any proof of claim or similar
document filed by the Assignee in connection with the breach or rejection of the
Lease by the Lessee thereunder or the trustee of any lessee under any federal or
state insolvency statute shall for the purpose of perfecting the Assignee' s
rights conferred in said paragraph 2(e) and to the extent permitted under
applicable law be deemed to constitute action required under such state law.
Upon the occurrence and during the continuance of an Event of Default, the
Assignor hereby consents to the appointment of a receiver for any or all of the
Equipment as a matter of right and without any requirement for notice to the
Assignor and without regard to the solvency of the Assignor or to the collateral
that may be available for the satisfaction of the Securities and all other
obligations under the Indenture and the other Operative Agreements.
<PAGE>

                                                                               7

         11. Amendment. This Assignment may not be amended or otherwise modified
except by a writing signed by the Assignor and the Assignee in accordance with
the terms of the Indenture and the Participation Agreement.

         12. Notices. All notices, demands, requests, consents, approvals and
other instruments under this Assignment shall be made in accordance with the
notice provisions of the Participation Agreement.

         13. Successors and Assigns. All covenants, agreements, representations
and warranties in this Assignment by the Assignor and the Assignee shall bind,
and shall inure to the benefit of and be enforceable by, their respective
successors and permitted assigns.

         14. Severability. If any provision or provisions, or if any portion of
any provision or provisions, in this Assignment is found by a court of law of
competent jurisdiction to be in violation of any local, state or Federal
ordinance, statute, law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions to be
illegal, invalid, unlawful, void or unenforceable as written, then it is the
intent of the parties hereto that such portion, provision or provisions shall be
given force to the fullest possible extent that they are legal, valid and
enforceable, that the remainder of this Assignment shall be construed as if such
illegal, invalid, unlawful, void or unenforceable portion, provision or
provisions were not contained therein, and that the obligations of the Assignor
under the remainder of this Assignment shall continue in full force and effect.

         15. Governing Law. THIS ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS TO
MATTERS RELATING TO THE CREATION OF LIENS AND THE EXERCISE OF REMEDIES WITH
RESPECT THERETO, WHICH SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE IN WHICH THE EQUIPMENT IS LOCATED.

         16. Obligations Are Without Recourse. Anything to the contrary herein
notwithstanding, the Assignor's liability for any sums due hereunder shall be
limited in accordance with Section 9.8 of the Indenture.

         17. Counterparts. This Assignment may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one and the same instrument.
<PAGE>

                                                                               8

         IN WITNESS WHEREOF, the Assignor has caused this Assignment to be duly
executed as of the day and year first above written.

                                       HANOVER EQUIPMENT TRUST 2001A

                                       By: Wilmington Trust Company,
                                       not in its individual capacity but
                                       solely as Trustee

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:
<PAGE>

                                                                               9

         By execution of this Assignment, the Certificate Holders hereby
irrevocably assign, transfer, set over and convey to the Assignee all of the
estate, right, title, interest, benefits, powers and privileges of the
Certificate Holders under the Hanover Guarantee, which transfer shall be in
accordance with all of the terms and provisions of this Assignment (provided,
however, that the Certificate Holders shall not be liable for any of the
obligations of the Assignor under this Agreement).

                                       GENERAL ELECTRIC CAPITAL
                                       CORPORATION, as a Certificate Holder

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:
<PAGE>

                        LESSEE'S AND GUARANTOR'S CONSENT

         As of this 31st day of August, 2001, HANOVER COMPRESSOR COMPANY, a
Delaware corporation, HANOVER COMPRESSION LIMITED PARTNERSHIP, a Delaware
limited partnership ("Lessee"), and certain of their Subsidiaries listed on the
signature pages hereto (collectively the "Guarantors", individually a
"Guarantor"), hereby consent and agree to all of the terms of the Assignment of
Lease, Rents and Guarantee dated as of the date hereof (the "Assignment") made
by HANOVER EQUIPMENT TRUST 2001A, a Delaware business trust ("Assignor"), and
joined in by the Certificate Holders, in favor of Wilmington Trust FSB, as
Collateral Agent under the Indenture and the Participation Agreement, and
further agree as follows:

         1.  Definitions. Each capitalized term used herein and not otherwise
defined herein shall have the respective meanings ascribed thereto in the
Assignment, as such Assignment may be amended, supplemented or otherwise
modified from time to time.

         2.  Acknowledgments, Confirmations and Agreements. (a) The Lessee
acknowledges, confirms and agrees that: (i) the Lessee has the right, power and
authority to enter into this consent (this "Consent"); (ii) the Lease is in full
force and effect and enforceable in accordance with its terms; (iii) neither the
Lessee nor, to the Lessee's knowledge, the Assignor is in default in the
observance or performance of any condition or agreement to be observed or
performed by the Lessee or the Assignor, respectively, thereunder; (iv) no Lease
Rents have been paid by the Lessee except as provided in the Lease; (v) no Rent
has been waived, released, reduced, discounted or otherwise discharged or
compromised by the Assignor; and (vi) the Lessee has not received notice of any
other assignment of the Lessor's interest in the Lease.

         (b) The Guarantors acknowledge, confirm and agree that: (i) the
Guarantors have the right, power and authority to enter into this Consent; and
(ii) the Hanover Guarantee is in full force and effect and enforceable in
accordance with its terms.

         3.  Consent. (a) The Lessee, as lessee under the Lease, consents to the
Assignment and each of the terms thereof, and agrees to pay and deliver to the
Assignee (or its designee) all Lease Rents and other sums payable under the
Lease without any offset, deduction, defense, abatement, deferment, diminution
or counterclaim, and the Lessee will not assert any offset, deduction, defense
(other than the defense of payment to the Assignee (or its designee)),
abatement, deferment, diminution or counterclaim in any proceeding brought under
the Assignment or with respect to the transactions contemplated therein or
herein. The Lessee will not, for any reason whatsoever, seek to recover from the
Assignee (or its designee) any moneys paid to the Assignee (or its designee) by
virtue of the Assignment. Lessee agrees (i) to deliver to the Assignee (or its
designee) and the Assignor, at their addresses provided in the Participation
Agreement or at such other addresses as the Assignee or the Assignor, as the
case may be, may designate, duplicate original or copies of all notices,
undertakings, demands, statements, documents and other communications which the
Lessee is required or permitted to deliver pursuant to the Lease or the
Assignment; (ii) that, subject to the Excepted Rights, any notice delivered or
declaration made to the Lessee by the Assignee (or its designee) pursuant to the
Lease shall be effective as a notice given or declaration made to the Lessee by
the Assignor
<PAGE>

                                                                               2

as lessor under the Lease; (iii) that the Assignee (and its designee) shall not
by reason of the Assignment be subject to any liability or obligation under the
Lease; and (iv) that, subject to the Excepted Rights, any waiver, consent or
approval by the Assignor under the Lease shall not be valid unless approved in
writing by the Assignee (or its designee).

         (b) The Guarantors consent to the Assignment and each of the terms
thereof, and agrees to pay and deliver to the Assignee (or its designee) the
Guaranteed Obligations, subject to the Excepted Rights, and other sums payable
under the Hanover Guarantee without any offset, deduction, defense, abatement,
deferment, diminution or counterclaim, and the Guarantors will not assert any
offset, deduction, defense (other than the defense of payment to the Assignee
(or its designee)), abatement, deferment, diminution or counterclaim in any
proceeding brought under the Assignment or with respect to the transactions
contemplated therein or herein. The Guarantors will not, for any reason
whatsoever, seek to recover from the Assignee (or its designee) any moneys paid
to the Assignee (or its designee) by virtue of the Assignment.

         (c) Subject to the Excepted Rights, the Lessee shall cause the Lease
Rents and other sums payable to the Assignor under the Lease to be delivered to
the Assignee (or its designee), as Collateral Agent under the Indenture, as an
absolute net sum, in such manner that the Assignee (or its designee) shall have
"collected funds" on the date and at the time payments are due under the Lease.

         (d) The Guarantors shall cause the Guaranteed Obligations, subject to
the Excepted Rights, and other sums payable to the Assignor under the Hanover
Guarantee to be delivered to the Assignee (or its designee), as Collateral Agent
under the Indenture, at its address set forth in Section 14.3 of the
Participation Agreement.

         (e) The Lessee hereby agrees to remain obligated under the Lease and
this Consent in accordance with their respective terms, and to take no action to
terminate (except in accordance with the express terms of the Lease), annul,
rescind or avoid the Lease or this Consent or to abate, reduce, offset, suspend
or defer or make any counterclaim or raise any defense (other than the defense
of payment to the Assignee (or its designee)) with respect to the Lease Rents
payable thereunder or to cease paying such Lease Rents to the Assignee (or its
designee) as provided herein.

         (f) The Guarantors hereby agree to remain obligated under the Hanover
Guarantee and this Consent in accordance with their respective terms, and to
take no action to terminate (except in accordance with the express terms of the
Hanover Guarantee), annul, rescind or avoid the Hanover Guarantee or this
Consent or to abate, reduce, offset, suspend or defer or make any counterclaim
or raise any defense (other than the defense of payment to the Assignee (or its
designee)) with respect to the Guaranteed Obligations payable thereunder.

         (g) The Lessee and the Guarantors hereby agree that upon the occurrence
of a Default or an Event of Default, the Assignee (or its designee) shall have
the right to deliver a notice of such default and make demand for payment under
the Hanover Guarantee, which shall be effective for all purposes as if sent by
the Assignor.
<PAGE>

                                                                               3

         (h) The Lessee shall notify the Assignee (or its designee) at its
address specified in the Participation Agreement, or such other address as the
Assignee may designate, of any Lease Event of Default and agrees that no such
default shall entitle the Lessee to terminate, annul, rescind or avoid the Lease
or reduce or abate the Lease Rents or other sums payable thereunder.

         4.  Amendment or Termination; Assignee's Designation. (a) The Lessee
agrees that it will not, unilaterally or by agreement, subordinate, amend,
supplement, modify, extend (except in accordance with the express terms of the
Lease), discharge, waive or terminate (except in accordance with the express
terms of the Lease) the Lease or this Consent or any provision of any thereof
without the Assignee' s prior written consent, which consent may be withheld in
the Assignee's sole discretion, and that any attempted subordination, amendment,
supplement, modification, extension, discharge, waiver or termination without
such consent shall be null and void. In the event that the Lease shall be
amended or supplemented as herein permitted, the Lease, as so amended or
supplemented, shall continue to be subject to the provisions of the Assignment
and this Consent without the necessity of any further act by any of the parties
hereto. Nothing in this Section 4 shall be construed as limiting or otherwise
affecting in any way the Assignor's Excepted Rights or Shared Rights.

         (b) The Guarantors agree that they will not, unilaterally or by
agreement, subordinate, amend, supplement, modify, extend (except in accordance
with the express terms of the Hanover Guarantee), discharge, waive or terminate
(except in accordance with the express terms of the Hanover Guarantee) the
Hanover Guarantee or this Consent or any provision of any thereof without the
Assignee's prior written consent, which consent may be withheld in the
Assignee's sole discretion, and that any attempted subordination, amendment,
supplement, modification, extension, discharge, waiver or termination without
such consent shall be null and void. In the event that the Hanover Guarantee
shall be amended or supplemented as herein permitted, the Hanover Guarantee, as
so amended or supplemented, shall continue to be subject to the provisions of
the Assignment and this Consent without the necessity of any further act by any
of the parties hereto. Nothing in this Section 4 shall be construed as limiting
or otherwise affecting in any way the Assignor's Excepted Rights or Shared
Rights.

         5.  Continuing Obligations of the Assignor and the Lessee. Neither the
execution and delivery of the Assignment, nor any action or inaction on the part
of the Assignee shall impair or diminish any obligations of the Assignor or the
Lessee under the Lease or the Guarantors under the Hanover Guarantee, and shall
not impose on the Assignee (or its designee) any such obligations, nor shall it
impose on the Assignee (or its designee) a duty to produce Rents or cause the
Assignee to be a mortgagee in possession for any purpose.

         6.  Severability. If any provision or provisions, or if any portion of
any provision or provisions, in this Consent is found by a court of law of
competent jurisdiction to be in violation of any local, state or Federal
ordinance, statute, law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions to be
illegal, invalid, unlawful, void or unenforceable as written, then it is the
intent of the Lessee that such portion, provision or provisions shall be given
force to the fullest possible extent that
<PAGE>

                                                                               4

they are legal, valid and enforceable, that the remainder of this Consent
shall be construed as if such illegal, invalid, unlawful, void or unenforceable
portion, provision or provisions were not contained herein, and that the
obligations of the Lessee under the remainder of this Consent shall continue in
full force and effect.

         7.  Governing Law. THIS CONSENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS TO
MATTERS RELATING TO THE CREATION OF LIENS AND THE EXERCISE OF REMEDIES WITH
RESPECT THERETO, WHICH SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE IN WHICH THE EQUIPMENT IS LOCATED.
<PAGE>

                                                                               5

         IN WITNESS WHEREOF, the Lessee and the Guarantors have caused this
Consent to be duly executed as of the date first written above.

                                       HANOVER COMPRESSION LIMITED PARTNERSHIP,
                                       as Lessee

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       HANOVER COMPRESSOR COMPANY, as a
                                       Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       HANOVER APPLIED PROCESS SOLUTIONS,
                                       INC., as a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       EUREKA ENERGY LIMITED PARTNERSHIP,
                                       as a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       HANOVER ACQUISITION LIMITED
                                       PARTNERSHIP, as a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:
<PAGE>

                                                                               6

                                       HANOVER COMPRESSOR LIMITED HOLDINGS
                                       LLC, as a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       HANOVER LAND LIMITED PARTNERSHIP, as
                                       a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       HANOVER MAINTECH LIMITED
                                       PARTNERSHIP, as a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       HANOVER/SMITH LIMITED PARTNERSHIP, as
                                       a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       HANOVER OEC COMPRESSION
                                       CORPORATION, as a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       PRODUCTION OPERATORS CORPORATION,
                                       as a Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:
<PAGE>

                                                                               7

                                       PRODUCTION OPERATORS, INC., as a
                                       Guarantor

                                       By: ____________________________________
                                           Name:
                                           Title:

For purposes of Section 5 hereof:

HANOVER EQUIPMENT TRUST 2001A

By: Wilmington Trust Company, not in
its individual capacity but solely
as Trustee

By: ______________________________
    Name:
    Title:

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