Document:

Exhibit 10.29

 

Contract No. 11009

 

SPECIFIC
TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR
THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPERATELY FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT
THE APPROPRIATE PLACE WITH TWO ASTERISKS (**).

 

GAS PROCESSING AGREEMENT

 

BY AND BETWEEN

 

MARKWEST JAVELINA COMPANY

 

AND

 

CITGO REFINING AND CHEMICALS COMPANY, L.P.

 

EAST and WEST REFINERIES

 

DATED NOVEMBER 1, 2007

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
  DEFINITIONS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  EXHIBIT(S)

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  DEDICATION OF
  SUPPLY

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  CURTAILMENTS

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  DELIVERY AND
  QUALITY OF SUPPLIER’S OFF-GAS

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  OFF-GAS PROCESSING

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  GAS MEASUREMENT
  AND TRANSMISSION

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  DETERMINATION OF
  PROCEEDS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  RESIDUE GAS PIPELINE

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
  TERM

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
  WARRANTY

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
   

  	
  FORCE MAJEURE

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
   

  	
  NOTICES

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  RESIDUE AND
  EXCESS GAS SPECIFICATIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
   

  	
  ALLOCATION
  STATEMENT EXAMPLE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
   

  	
  EXAMPLE
  CALCULATION OF WEIGHTED AVERAGE SALES PRICE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT D

  	
   

  	
  METHODS OF GAS
  MEASUREMENT, SAMPLING, TESTING AND ANALYSIS

  	
   

  	
   

  

 

2

 

GAS PROCESSING AGREEMENT

 

THIS GAS
PROCESSING AGREEMENT (“Agreement”) is made and entered  into effective November 1, 2007 by and between
MarkWest Javelina Company (“Processor”), a Texas general partnership with its
corporate office in Denver, CO and local office at 5438 Union Street, Corpus
Christi, TX 78407 and CITGO Refining and Chemicals Company, L.P. (“Supplier”),
a Delaware limited partnership with offices at 1802 Nueces Bay Boulevard,
Corpus Christi, TX 78469.

 

W I T N E S S E T H:

 

WHEREAS, Processor
owns and operates the MarkWest Javelina Gas Processing and Fractionation Plant  (the “Plant”), located at 5438 Union Street, Corpus
Christi, Texas, 78407, for the purpose of extracting Liquefiable Hydrocarbons,
hydrogen and impurities from Inlet Gas  delivered to
the Plant from certain refineries and other sources; and

 

WHEREAS, Supplier
desires to deliver, subject to the provisions of this Agreement, Off-Gas from
its Refineries to the Plant for the extraction of Liquefiable Hydrocarbons,
hydrogen and impurities; and

 

WHEREAS,
Processor desires to receive, subject to the provisions of this Agreement,
Supplier’s Off-Gas at the Plant.

 

NOW,
THEREFORE, in consideration of the premises and mutual
covenants set forth herein, the mutual benefits to be derived and other good
and valuable consideration the receipt and sufficiency of which is hereby
acknowledged Supplier and Processor agree as follows:

 

ARTICLE
I

DEFINITIONS

 

The definitions in this Article shall
apply for all purposes to this Agreement:

 

	
  1.1

  	
   

  	
  “Btu” means a
  British Thermal Unit, and “MMBtu” means one million (1,000,000) Btus.

  
	
   

  	
   

  	
   

  
	
  1.2

  	
   

  	
  “Component”
  means an identifiable constituent of Off-Gas which may be extracted by
  Processing at the Plant, including, without limitation, incidental methane,
  ethane, ethylene, propane, propylene, butanes, pentanes-plus, hydrogen, and
  incidental non-hydrocarbon materials.

  

 

3

 

	
  1.3

  	
   

  	
  “Delivery Point”  means Processor’s meter at which Supplier’s Off-Gas is
  initially measured upon delivery into Processor’s, or Processor’s affiliates,
  delivery pipeline(s).

  
	
   

  	
   

  	
   

  
	
  1.4

  	
   

  	
  “East Refinery”
  means Supplier’s East Refinery located at 1802 Nueces Boulevard, Corpus
  Christi, Texas 78469.

  
	
   

  	
   

  	
   

  
	
  1.5

  	
   

  	
  “Energy
  Expenses” means all fuel, power and other utility and energy related expenses
  necessary to operate the Plant including, but not limited to, electricity and
  Plant Fuel.

  
	
   

  	
   

  	
   

  
	
  1.6

  	
   

  	
  “Energy Expense
  Charge” or “EEC” means the proportionate share of the Energy Expenses
  allocated each Month to Supplier as set forth in Section 8.5.

  
	
   

  	
   

  	
   

  
	
  1.7

  	
   

  	
  “Excess Gas”
  means the residue gas attributable to refiners and other sources other than
  Supplier delivering Inlet Gas to the Plant and Gas purchased by Processor for
  use at the Plant but not consumed at the Plant.

  
	
   

  	
   

  	
   

  
	
  1.8

  	
   

  	
  “Gas” means any
  fluid, either combustible or non-combustible, including Off-Gas, which
  maintains a gaseous or rarefied state at a temperature of 60 degrees
  Fahrenheit and at a pressure of 14.65 psia.

  
	
   

  	
   

  	
   

  
	
  1.9

  	
   

  	
  “Inlet Gas”
  means Off-Gas and other Gas that is Processed at the Plant for the extraction
  of Plant Products and certain incidental non-hydrocarbon materials.

  
	
   

  	
   

  	
   

  
	
  1.10

  	
   

  	
  “Liquefiable
  Hydrocarbons” means all Components except hydrogen, incidental methane and
  non-hydrocarbon materials.

  
	
   

  	
   

  	
   

  
	
  1.11

  	
   

  	
  “Mscf” means
  1,000 standard cubic feet of Gas and “MMscf” means 1,000,000 standard cubic
  feet of Gas. A standard cubic foot of gas is one cubic foot of gas at a
  temperature of 60 degrees Fahrenheit and at a pressure of 14.65 psia.

  
	
   

  	
   

  	
   

  
	
  1.12

  	
   

  	
  “Month”
  means the period of time beginning at 7:00 a.m. Central Clock Time in
  Corpus Christi, Texas, on the first day of each calendar month and ending at
  such time on the first day of the next calendar month.

  
	
   

  	
   

  	
   

  
	
  1.13

  	
   

  	
  “Nonaffiliated
  Third Parties” means any corporation, limited liability company, partnership
  (including a limited partnership) or other entity other than an affiliate of
  Processor. For the purposes of this definition, “affiliate of Processor”
  shall mean any person, corporation, limited liability company, partnership
  (including a limited partnership) or other entity which (i) controls,
  (ii) is controlled by, or (iii) is under common control with
  Processor. “Control”, as used in this definition, means the ownership
  directly or indirectly of more than fifty (50) percent of the voting rights
  in a company or other legal entity, or the right, directly or indirectly
  through its ownership position or 

  

 

4

 

	
   

  	
   

  	
  through
  contract, to direct the management and policies of a company or other legal
  entity.

  
	
   

  	
   

  	
   

  
	
  1.14

  	
   

  	
  “Off-Gas” means
  Gas produced as a by-product of refining crude oil and other refinery
  feedstocks.

  
	
   

  	
   

  	
   

  
	
  1.15

  	
   

  	
  “Party” means
  either Processor or Supplier and “Parties” means both Processor and Supplier.

  
	
   

  	
   

  	
   

  
	
  1.16

  	
   

  	
  “Plant Fuel”
  means the quantity of Gas or other hydrocarbons purchased by Processor to
  operate the Plant.

  
	
   

  	
   

  	
   

  
	
  1.17

  	
   

  	
  “Plant Net
  Proceeds Attributable to Supplier’s Off-Gas” means for all Components of
  Plant Products, the sum of the total quantity of each Component of Plant
  Products attributable to Supplier’s Off-Gas multiplied by the Weighted
  Average Sales Price for each such Component of Plant Products. Exhibit B
  includes an example of the calculation of Plant Net Proceeds Attributable to
  Supplier’s Off-Gas.

  
	
   

  	
   

  	
   

  
	
  1.18

  	
   

  	
  “Plant Products”
  means each and all of the Components extracted from the Off-Gas by Processing
  at the Plant.

  
	
   

  	
   

  	
   

  
	
  1.19

  	
   

  	
  “Plant Thermal
  Reduction” or “PTR” means the decrease in the quantity of Supplier’s Off-Gas
  measured in Btus as a result of Processing Supplier’s Off-Gas as further
  defined in Section 6.2.

  
	
   

  	
   

  	
   

  
	
  1.20

  	
   

  	
  “Process”,
  “Processed” or “Processing” means the extraction of Plant Products and
  certain incidental non-hydrocarbon materials from Off-Gas at the Plant.

  
	
   

  	
   

  	
   

  
	
  1.21

  	
   

  	
  “Redelivery
  Point” means Processor’s meter at which Supplier’s Residue Gas will be
  measured following the construction by Processor of the Residue Gas Pipeline,
  and which location shall be immediately prior to Processor’s delivery thereof
  to Supplier.

  
	
   

  	
   

  	
   

  
	
  1.22

  	
   

  	
  “Refineries”
  means the East Refinery and the West Refinery collectively.

  
	
   

  	
   

  	
   

  
	
  1.23

  	
   

  	
  “Residue Gas”
  means the quantity of Gas, measured in Btus, remaining after the Processing
  of Supplier’s Off-Gas as further defined in Section 8.4.

  
	
   

  	
   

  	
   

  
	
  1.24

  	
   

  	
  “Supplier’s
  Percentage” shall be ** of Plant
  Net Proceeds Attributable to Supplier’s Off-Gas.

  
	
   

  	
   

  	
   

  
	
  1.25

  	
   

  	
  “Supplier’s
  Proceeds” means (a) the sum for all Components of (i) the Plant Net
  Proceeds Attributable to Supplier’s Off-Gas for each Component multiplied by
  (ii) Supplier’s Percentage for each such Component; less (b) the
  applicable Energy Expense Charge. Exhibit B includes an example of the calculation
  of Supplier’s Proceeds.

  

 

5

 

	
  1.26

  	
   

  	
  “Weighted
  Average Sales Price” for a Month means the average sales value for each
  Component of Plant Products and shall be equal to the sum of the proceeds the
  Plant receives for each Component of Plant Products during such Month less
  all transportation, storage, marketing and exchange fees paid to
  Nonaffiliated Third Parties for such Component of Plant Products divided by
  the volume of such Component of Plant Products that was sold during such
  Month. Exhibit C includes an example of the calculation of the Weighted
  Average Sales Price for each Component of Plant Products.

  
	
   

  	
   

  	
   

  
	
  1.27

  	
   

  	
  West Refinery”
  means the Supplier’s West Refinery located at 17350 Highway 37 West, Corpus
  Christi, Texas 78408.

  

 

ARTICLE II

EXHIBIT(S)

 

The following Exhibit(s) are
attached to and made a part of this Agreement by reference:

 

	
  2.1

  	
   

  	
  Exhibit A
  sets forth the specifications for Residue Gas and Excess Gas.

  
	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  Exhibit B
  illustrates the allocation statements to be provided monthly to Supplier.

  
	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  Exhibit C
  illustrates the method used to calculate Weighted Average Sales Price for
  each Plant Product.

  
	
   

  	
   

  	
   

  
	
  2.4

  	
   

  	
  Exhibit D
  sets forth the methods of measurement, sampling, testing and analysis of
  Supplier’s Off-Gas.

  

 

ARTICLE III

DEDICATION OF SUPPLY

 

	
  3.1

  	
   

  	
  Subject to the
  terms and conditions of this Agreement, (i) Supplier shall dedicate
  certain streams of Off-Gas from Supplier’s East Refinery and a specified
  volume of Off-Gas from Supplier’s West Refinery to Processor for Processing
  and extraction of Plant Products for the term of this Agreement; and shall
  deliver to the Delivery Point, one hundred percent (100%) of its dedicated
  Off-Gas and the Liquefiable Hydrocarbons and hydrogen contained therein that
  is produced from Supplier’s Refineries, under normal operations, up to the
  Processor’s ability to receive (ii) subject to Section 3.2 below,
  Supplier shall commit to **;
  (iii) Processor shall **; and
  (iv) Supplier shall ** Processor
  shall **. Supplier’s Off-Gas dedicated to
  this Agreement shall include but not be limited to the **.
  Processor understands Supplier’s West Refinery Off-Gas is **.
  Processor 

  

 

6

 

	
   

  	
   

  	
  understands and
  agrees that Supplier is not obligated under this Agreement  to change or modify the operations of its Refineries to
  increase or change the quantity or quality of the Off-Gas produced at its
  Refineries.

  
	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Supplier may
  reduce volumes from its East or West Refinery due to ** (referred to herein
  as a “Temporary Reduction”). In this context, **

  
	
   

  	
   

  	
   

  
	
  3.3

  	
   

  	
  Supplier shall
  not strip Liquefiable Hydrocarbons or hydrogen from Supplier’s Off-Gas prior
  to delivery at the Delivery Point(s) other than by separation methods in
  operation at Supplier’s Refineries as of the effective date of this
  Agreement. Additional separation methods designed to recover Liquefiable
  Hydrocarbons or hydrogen from Supplier’s Off-Gas, including but not limited
  to, solid bed absorption, lean oil absorption, turbo-expansion, membranes,
  mechanical or refrigeration principles shall not be installed by Supplier at
  the Refineries after effective date hereof.

  
	
   

  	
   

  	
   

  
	
  3.4

  	
   

  	
  Subject to
  Sections 3.3 and 3.5, Supplier shall have the right to (i) reduce the
  volume of, or modify the slate of, crude oil and/or other feedstocks refined
  at Supplier’s Refineries; (ii) change the equipment and/or operation of
  Supplier’s Refineries for the purpose of expanding, reducing or improving the
  refining of oil and other hydrocarbon feedstocks; or (iii) fully or
  partially curtail operation of Supplier’s Refineries at any time for routine
  or non-routine maintenance or repairs. Supplier shall be required to provide
  prior written notice to Processor if such changes described above results in a
  reduction or interruption of the volume of Supplier’s Off-Gas, or
  significantly alters the composition of Supplier’s Off-Gas.

  
	
   

  	
   

  	
   

  
	
  3.5

  	
   

  	
  If any
  non-temporary changes made to the Supplier’s refineries materially affect the
  quantity or composition of Supplier’s Off-Gas, the Parties will negotiate in
  good faith a fair and equitable adjustment to Supplier’s Proceeds or other
  appropriate adjustments. For purposes of this Section 3.5, the quantity
  and composition of Supplier’s prior twelve months Off-Gas excluding
  Supplier’s planned outages and Processor’s outages and curtailments shall be
  used as the expected volume of Off-Gas when determining any reduction in the
  volume or change in the composition of Supplier’s Off-Gas.

  
	
   

  	
   

  	
   

  
	
  3.6

  	
   

  	
  If Supplier,
  during the term of this Agreement, installs additional equipment resulting in
  the production of additional Off-Gas from Supplier’s Refineries, such
  additional Off-Gas shall be subject to this Agreement, upon the mutual
  agreement of both Parties.

  

 

ARTICLE
IV

CURTAILMENTS

 

	
  4.1

  	
   

  	
  Processor shall have the right at
  any time to curtail all or a portion of Supplier’s 

  

 

7

 

	
   

  	
   

  	
  Off-Gas Processed at the Plant,
  to the extent reasonably necessary for routine or non-routine maintenance or
  repair of the Plant. In any instance of curtailment, Processor agrees to
  curtail Off-Gas received at the Plant **. Further
  curtailment shall be **

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If Supplier requests that
  Processor not curtail Off-Gas from Supplier’s West Refinery and that all of Supplier’s
  curtailment be applied to Supplier’s East Refinery, Supplier shall pay to
  Processor an amount equal to the difference between the Plant Net Proceeds
  Attributable to Supplier’s Off-Gas from its East Refinery and the Plant Net
  Proceeds Attributable to Supplier’s Off-Gas from its West Refinery for all
  Off-Gas not curtailed and processed from Supplier’s West Refinery in lieu of
  Off-Gas processed from Supplier’s East Refinery **
  provided that such payment amount shall never be less than zero. An example
  of this calculation is included in Exhibit B.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Processor shall notify Supplier
  of the nature and extent of each instance of curtailment due to a non-routine
  event as soon as reasonably practicable. Such notice shall include the
  reasons for the curtailment and an estimate of the amount of time the
  curtailment is expected to last. Processor shall give Supplier no less than
  thirty (30) days prior written notice of scheduled maintenance or repairs
  that are expected to fully or significantly curtail operations at the Plant
  and shall include a general description of such activities and the amount of
  time the curtailment is expected to last. Processor agrees to use
  commercially reasonable efforts to minimize the time of any such curtailments
  and, to the extent practicable, coordinate with Supplier any scheduled
  curtailment with Supplier’s activities at its Refineries.

  
	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Subject to reasonable fees, terms
  and conditions, Processor will assist in transporting Gas between the
  Refineries or to Supplier’s designees, or provide other services in this
  context only during Processor’s total Plant outages.

  
	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Supplier is aware that material
  changes in the quality and quantity of Supplier’s Off-Gas delivered to the
  Plant could adversely affect Plant operations. If, in Processor’s sole but
  reasonable opinion, changes in the composition or volume of Supplier’s
  Off-Gas have an adverse affect on Plant operations, Processor may adjust
  Supplier’s Off-Gas deliveries until such time as the composition and/or volume
  of Supplier’s Off-Gas returns to the original composition, or becomes
  otherwise acceptable to Processor.

  
	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Supplier shall provide Processor
  with no less than thirty (30) days advance written notice of Supplier’s
  planned outages which are anticipated to impact the volume or composition of
  Supplier’s Off-Gas.

  

 

8

 

ARTICLE V

DELIVERY AND QUALITY OF SUPPLIER’S OFF-GAS

 

	
  5. 1

  	
   

  	
  Supplier shall deliver its
  Off-Gas to Processor at the Delivery Point, (a) at a pressure not to
  exceed the lesser of (i) one hundred (100) psig or (ii) the
  Javelina Pipeline MAOP; (b) at a pressure of not less than seventy (70)
  psig; and (c) meeting the following specifications:

  

 

	
  Ammonia

  	
   

  	
  50 ppmv maximum

  
	
  H2S

  	
   

  	
  80 ppmv maximum

  
	
  Total Sulfur

  	
   

  	
  100 ppmv maximum

  
	
  CO2

  	
   

  	
  2 mol% maximum

  
	
  CO

  	
   

  	
  1.5 mol% maximum

  
	
  Oxygen

  	
   

  	
  0.5 mol% maximum

  
	
  H2O

  	
   

  	
  No free water

  
	
  Temperature

  	
   

  	
  Less than 120
  degrees Fahrenheit

  

 

	
   

  	
   

  	
  Processor may
  refuse to accept all or any portion of Supplier’s Off-Gas that does not meet
  the above quality specifications or Supplier’s Off-Gas that contains other
  constituents which neither Supplier nor Processor knows or should have known
  may affect Plant Products quality, Plant operations or damage Plant
  equipment. In the event such otherwise unknown constituent will, does or may
  affect Processor’s Plant Product(s) quality, Plant operations or damage
  Plant equipment, then Processor will provide notice to Supplier that
  Supplier’s Off-Gas is rejected until Supplier has corrected the problem. If
  Supplier’s Off-Gas is rejected, Supplier shall correct the problem before resuming deliveries of
  Supplier’s Off-Gas to the Delivery Point(s). It is Supplier’s option whether or not to take any actions to correct
  said problem and therefore resume delivery of Off-Gas to Processor.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Processor shall have the right to curtail the delivery of Supplier’s
  Off-Gas if a particular constituent of total sulfur in the combined Inlet Gas
  streams from all suppliers is of sufficient concentration that Processor believes
  in its reasonable and sole opinion, may affect product quality, Plant
  operations, or damage Plant equipment, even though the total sulfur in the
  respective Refineries’ Off-Gas streams are within the above specifications.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Additionally, Processor may refuse to accept all or any portion of
  Supplier’s Off-Gas that contains H2S between 50 ppmv and 80 ppmv. If Supplier’s Off-Gas is
  rejected under this subparagraph, Supplier will obtain approval from
  Processor before resuming deliveries of Off-Gas that contains H2S between 50 ppmv and 80 ppmv.

  
	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  Supplier shall
  deliver Off-Gas to the Plant on a daily, pro-rata and continuous basis.

  
	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Processor shall
  have the right at any time to secure supplies of Gas from any other source
  which it, in its sole discretion, chooses, regardless of whether such
  supplies cumulatively exceed the Processing capacity of the Plant. If at any
  time 

  

 

9

 

	
   

  	
   

  	
  during the term
  of this Agreement, the cumulative supply of Inlet Gas, including Supplier’s
  Off-Gas, delivered to the Plant exceeds its operating capacity, Processor
  may, with notice as soon as practicable thereafter to Supplier, reduce the
  volume of Supplier’s Off-Gas Processed based on its economic value to Processor,
  **, when the Plant is operating
  normally and when such quantities of Off-Gas are available from Supplier.
  Processor will use commercially reasonable efforts to **
  when the Plant is operating normally and when such quantities of Off-Gas are
  available from Supplier.

  

 

ARTICLE
VI

OFF-GAS PROCESSING

 

	
  6.1

  	
   

  	
  Subject to the
  other provisions of this Agreement, Processor shall accept possession of and
  title to Supplier’s Off-Gas at Delivery Point(s). Processor shall own and
  have all right, title and interest in and to all Plant Products and
  impurities extracted from such Off-Gas at the Plant in which Processor, in
  its sole discretion, desires to so retain.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  After
  construction of the Residue Gas Pipeline as defined in Section 9.1,
  Processor shall deliver and Supplier shall accept possession of and title to
  Supplier’s Residue Gas at the Redelivery Point.

  
	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  The Plant Thermal Reduction attributable to the Processing of
  Supplier’s Off-Gas to produce the Plant Products shall be determined by using
  the applicable conversion factors for (i) all Plant Products except
  ethylene, propylene and hydrogen as set forth in the Gas Processors
  Association Publication 2145-03 and any subsequent revisions thereof in
  effect at the time such calculation is performed, and (ii) for ethylene,
  propylene and hydrogen, as set forth in the API Technical Data Book –
  Petroleum Refining and any subsequent revisions thereof in effect at the time
  such calculation is performed. All calculations shall be done at a pressure
  base of 14.65 psia to conform to NAESB standards.

  
	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  Processor shall provide Supplier
  with a “Plant Allocation Statement” no later than the last calendar day of
  the Month following the Month of production. An example Plant Allocation
  Statement is attached hereto as Exhibit B.

  
	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  Other than as provided in
  Section 8.2, Processor shall sell all Plant Products on an “arms length”
  basis to Nonaffiliated Third Parties, unless the Parties mutually agree
  otherwise.

  

 

10

 

ARTICLE
VII

GAS MEASUREMENT AND TRANSMISSION

 

	
  7.1

  	
   

  	
  Supplier shall
  provide, install, operate and maintain, or cause to be provided, installed,
  operated and maintained, at its sole cost, risk and expense, all pipelines
  and related facilities (i) upstream of the Delivery Point to enable
  Supplier to deliver its Off-Gas to Processor hereunder and, following the
  construction of the Residue Gas Pipeline, (ii) downstream of the
  Redelivery Point to enable Processor to deliver Supplier’s Residue Gas to
  Supplier, or Supplier’s designee.

  
	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  Processor shall provide, install, operate and maintain, or cause to
  be provided, installed, operated, and maintained, at its sole cost, risk and
  expense all pipelines, instrumentation equipment, including meters, telemetry
  and telecommunications equipment, and related facilities (i) downstream
  of the Delivery Point to enable Processor to receive Supplier’s Off-Gas at
  the Delivery Point and, following the construction of the Residue Gas
  Pipeline, (ii) upstream of the Redelivery Point to enable Processor to deliver Supplier’s Residue Gas to
  Supplier, or its designee, at the Redelivery Point.

  
	
   

  	
   

  	
   

  
	
  7.3

  	
   

  	
  Processor shall operate, or cause to be operated, all facilities to
  transport and meter Supplier’s Off-Gas downstream of the Delivery Point.  Processor shall perform the measurement,
  testing and analysis of Supplier’s Off-Gas in accordance with appropriate
  sections of this Article VII and Exhibit D. Processor’s meters
  shall be the controlling meters regarding all Delivery Point measurements
  hereunder.

  
	
   

  	
   

  	
   

  
	
  7.4

  	
   

  	
  Following the construction of the Residue Gas Pipeline, Processor shall operate, or cause to be
  operated, all facilities to transport and meter Supplier’s Residue Gas,
  Excess Gas, and all other Gas upstream of the Redelivery Point.  Processor shall perform the measurement,
  testing and analysis of Supplier’s Residue and Excess Gas in accordance with
  appropriate sections of this Article VII and Exhibit D. Processor’s
  meter(s) shall be the controlling meter(s) regarding all Redelivery
  Point measurements hereunder.

  
	
   

  	
   

  	
   

  
	
  7.5

  	
   

  	
  Each Party shall
  have the right, upon prior written request, at its own expense and during
  normal business hours, to have a firm of independent certified public
  accountants audit the books, records and other pertinent documents and data
  (collectively, the “Records”) of the other Party relating to this Agreement,
  to the extent necessary to verify the accuracy of any statement, charge,
  computation or demand made under or pursuant to this Agreement, provided,
  however that such accountants shall not disclose to the Party requesting the
  audit any information obtained during the audit and shall only report to such
  Party the results of the audit and whether same shows compliance with the
  terms of this Agreement, or as the case may be, the respects in which the
  terms of this Agreement have not been complied with. If any such examination
  reveals, or if either Party otherwise discovers, any error in its own or the
  other Party’s statements, payments, 

  

 

11

 

	
   

  	
   

  	
  calculations or
  determinations, then proper adjustment thereof shall be made as promptly as
  practical thereafter. It is understood, however, that no adjustment of any
  statement or payment shall be made after the lapse of two (2) year from
  the end of the Month to which such statement or payment pertains.  Each Party shall retain all records for
  four (4) years from the end of the calendar year in which they were
  compiled, unless the statement or payment is subject to dispute, in which
  case the pertinent records shall be retained until the dispute is resolved.

  
	
   

  	
   

  	
   

  
	
  7.6

  	
   

  	
  Each Party shall
  preserve for a period of twenty-four (24) months all test data, charts, and
  other similar records for auditing. 
  Either Party shall have the right, during normal business hours, to
  examine such records of the other Party and the accuracy of any statement,
  charge or computation made pursuant to this Agreement, to the extent
  necessary, to verify the performance of the Agreement.  However, no such examination shall be made
  by a Party more frequently than once each twelve (12) months, and no
  examination may cover any time periods that were the subject of a prior
  examination by that Party.  If any such
  examination reveals any clerical or mathematical inaccuracy in any billing or
  payment, the appropriate adjustment in the billing and payment shall be
  promptly made.  All payments made shall
  be considered final twenty-four (24) Months after they are made, unless disputed
  by either Party prior to the expiration of such twenty-four (24) month
  period.   If the other Party fails to
  have a representative present, the results of the test shall nevertheless be
  considered accurate until the next test as long as such test results are
  within reasonable and customary readings for such meter(s).

  

 

ARTICLE VIII

DETERMINATION OF PROCEEDS

 

	
  8.1

  	
   

  	
  Processor shall
  pay to Supplier the Supplier’s Proceeds by wire transfer with the appropriate
  adjustments made pursuant to this Agreement, within seven (7) business
  days following Processor’s issuance of the “Plant Allocation Statement” as
  set forth in Section 6.3. Payment shall be made in accordance with
  Supplier’s wiring instructions. Processor shall retain the remaining portion
  of such Plant Net Proceeds Attributable to Supplier’s Off-Gas for its own
  account and such amount shall be referred to as “Processor’s Proceeds”.

  
	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  Upon receipt of
  written notice from Processor that Processor has ** Supplier
  agrees to allow Processor or such affiliate or related entity, at Processor’s
  option, to purchase for its own account, **. This provision shall be
  effective for ** from the date of the above
  notice and is not intended to extend the term of this Agreement. If this
  Agreement is extended beyond the Primary Term on a Contract Year to Contract
  Year basis, then with respect to ** this
  section shall continue to be utilized in the determination of Plant Net
  Proceeds Attributable to Supplier’s Off-Gas for each such Contract Year until
  the ** of 

  

 

12

 

	
   

  	
   

  	
  this provision
  has expired. In addition, if for any period between the end of the Primary
  Term and prior to the expiration of the ** period of
  this provision, this Agreement expires or terminates and is not extended, but
  Processor nevertheless processes Supplier’s Off-Gas at the Plant under any
  other agreement or arrangement, the Parties hereby agree that the pricing
  mechanism set forth in this section for the **
  shall be utilized to price ** under such
  other agreements or arrangements.

  
	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  The quantity of each Component of Plant Products allocated to
  Supplier each Month shall be equal to the total quantity of such Component of
  Plant Products recovered by Processor at the Plant during such Month
  multiplied by a fraction, the numerator of which shall be the total quantity
  of each such Component of Plant Products that is contained in Supplier’s
  Off-Gas delivered to the Delivery Point during such Month and the denominator
  of which shall be the total quantity of such Component of Plant Products as
  are contained in all Inlet Gas delivered at all delivery points during such
  Month.

  
	
   

  	
   

  	
   

  
	
  8.4

  	
   

  	
  The theoretical Residue Gas attributable to Supplier during each
  month shall be determined by subtracting the calculated PTR from the
  quantity, in MMbtus, of Off-Gas delivered by Supplier as measured at the
  Delivery Point. The total quantity of Residue Gas due Supplier each Month
  shall be equal to the actual Residue Gas attributable to all Inlet Gas
  delivered to the Plant during such Month multiplied by a fraction, the
  numerator of which shall be the theoretical Residue Gas attributable to
  Supplier’s Off-Gas delivered to the Delivery Point during such Month and the
  denominator of which shall be the total quantity of theoretical Residue Gas
  as is contained in all Inlet Gas delivered at all delivery points during such
  Month. The PTR Calculation will be done monthly and reported in
  Statement 2 of the Plant Allocation Statement. An example of the Plant
  Allocation Statement and PTR Calculation is included in Exhibit B.

  
	
   

  	
   

  	
   

  
	
  8.5

  	
   

  	
  The Energy
  Expense Charge deducted from Supplier’s Proceeds and attributable to
  Supplier’s Off-Gas shall be determined based on the following formula:

  

 

	
  EEC =

  	
   EE times R/T

  
	
   

  	
   

  
	
  Where:

  	
   

  
	
  EEC = 

  	
  The Energy
  Expense Charge allocated each Month to Supplier

  
	
  EE =

  	
  The total amounts paid by
  Processor for all Plant Energy Expenses paid during such Month.

  
	
  R =

  	
  The total
  quantity of Off-Gas, measured in Mscf, delivered by Supplier during the
  Month.

  
	
  T =

  	
  The total quantity of all Inlet
  Gas, measured in Mscf, delivered at all
  delivery points during such Month.

  

 

13

 

ARTICLE IX

RESIDUE GAS PIPELINE

 

	
  9.1

  	
   

  	
  Processor shall construct ** to allow the delivery of Supplier’s Residue Gas to
  Supplier at ** upon commencement of a
  connection agreement for the Residue Gas Pipeline. The Parties shall commit
  to negotiating and executing a connection agreement for the Residue Gas
  Pipeline as soon as reasonably practical. Processor shall commence
  construction of such Residue Gas Pipeline **
  and shall complete the construction of the Residue Gas Pipeline ** The Residue Gas Pipeline shall originate at
  Processor’s existing valve site at the intersection of Buddy Lawrence Drive
  and Interstate Highway 37 and shall terminate at and connect into Supplier’s
  existing twelve (12) inch fuel gas manifold at the inlet to vessel V4 located
  inside Supplier’s East Refinery. The estimated length of the Residue Gas
  Pipeline is 2,725 feet, which includes approximately 600 feet of pipeline to
  be located within Supplier’s East Refinery. Processor shall install, own and
  operate all required measurement equipment at the existing meter station on
  Buddy Lawrence Drive. Processor shall retain ownership of the entire Residue
  Gas Pipeline excluding the 600 feet of pipeline to be located within
  Supplier’s East Refinery. Following the construction, Supplier shall own and
  operate the approximately 600 feet of pipeline to be located within
  Supplier’s East Refinery. Supplier shall be responsible for all costs associated
  with the construction of the approximately 600 feet of pipeline to be located
  within the East Refinery.

  
	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  Until such time
  as the Residue Gas Pipeline has been constructed and operational, Processor
  shall **

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ·

  	
  From the date of
  this Agreement through **

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ·

  	
  Beginning on ** and continuing through **

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ·

  	
  Notwithstanding
  anything to the contrary above, if the Residue Pipeline is not completed and
  in service within **

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ·

  	
  Once the Residue
  Gas Pipeline is operational, **

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  After the
  Residue Gas Pipeline, as set forth in Section 9.1, has been completed
  and is operational, then, from time to time and if available, Supplier may
  have the opportunity to **.  If Supplier and Processor agree in writing that Supplier
  shall **

  
	
   

  	
   

  	
   

  
	
  9.4

  	
   

  	
  Following the
  completion of the Residue Gas Pipeline, Processor shall return to Supplier,
  or its designee, and Supplier shall accept and take title to 100% of 

  

 

14

 

	
   

  	
   

  	
  Supplier’s
  Residue Gas and Excess Gas at the Redelivery Point. The Residue Gas and the
  Excess Gas shall meet the specifications set forth in Exhibit A attached
  hereto, failing which Supplier shall not be obligated to receive such Residue
  Gas or Excess Gas. If, following the completion of the Residue Gas Pipeline,
  Processor (i) delivers Residue Gas or Excess Gas to Supplier, or for the
  account of Supplier, at the Redelivery Point in excess of the quantity of
  Residue Gas or Excess Gas to which Supplier is entitled hereunder, or (ii) fails
  to tender to Supplier all or a portion of the Residue Gas or Excess Gas
  Supplier was entitled to and capable of receiving during a Month (in either
  case “Imbalance Gas”), such over or under deliveries of Imbalance Gas, shall
  be settled by Processor buying from, or selling to, as applicable, Supplier
  such Imbalance Gas at ** Both
  Parties agree this Section is designed to address minor imbalances.

  
	
   

  	
   

  	
   

  
	
  9.5

  	
   

  	
  In the event
  Processor tenders to Supplier and Supplier is unable or refuses to receive
  all or any portion of its Residue Gas and Excess Gas during a Month, unless
  otherwise agreed in writing, Processor shall have the right, but not the
  obligation to otherwise dispose of such quantity of Supplier’s Residue Gas
  and Excess Gas not taken by Supplier during such Month in any reasonable
  manner, with the proceeds thereof less all associated losses, costs and
  expenses suffered or incurred by Processor to be for Supplier’s account in a
  temporary situation not expected to last more than (12) twelve hours after
  Supplier’s notification of their inability to accept Residue Gas. Prior to
  the expiration of the twelve hour period, Supplier shall notify Processor of
  Supplier’s option to (i) curtail deliveries of Supplier’s Inlet Gas to
  Processor, or (ii) have Processor’s Residue Gas delivered to a third
  party, up to available pipeline capacity, or (iii) offer to sell its
  Residue Gas to Processor at Processor’s disposal price.

  
	
   

  	
   

  	
   

  
	
  9.6

  	
   

  	
  Following the
  completion and operation of the Residue Gas Pipeline, Supplier shall have the
  option to ** during the remainder of the
  Primary Term and any subsequent annual extension thereof of this Agreement
  when the following conditions are met: ** Within six
  (6) months of the execution of this Agreement, at Supplier’s option, the
  Parties will negotiate in good faith the terms of an agreement to **

  
	
   

  	
   

  	
   

  
	
  9.7

  	
   

  	
  Except as set forth in Exhibit A and Section 11.1 below,
  PROCESSOR MAKES NO WARRANTY, AND HEREBY DISCLAIMS ALL EXPRESS OR IMPLIED
  WARRANTIES AS TO THE QUALITY OR QUANTITY, OR AS TO THE MERCHANTABILITY OR
  FITNESS FOR A PARTICULAR PURPOSE, OF SUPPLIER’S RESIDUE GAS AND EXCESS GAS
  DELIVERED TO SUPPLIER AT THE REDELIVERY POINT.

  

 

15

 

ARTICLE X

TERM

 

	
  10.1

  	
   

  	
  The primary term
  of this Agreement shall be seven (7) years and shall commence on
  July 1, 2007 (the “Primary Term”). The Agreement shall continue
  thereafter for consecutive one (1) year terms until terminated by either
  Party upon at least two (2) years prior written notice to the other
  Party prior to end of the Primary Term or any subsequent annual extension
  thereof.

  
	
   

  	
   

  	
   

  
	
  10.2

  	
   

  	
  Notwithstanding
  anything to the contrary in Section 10.1, in the sole event that
  Supplier decides, in its sole discretion, that it will permanently cease
  operation of either one or both of Supplier’s Refineries, Supplier shall have
  the right to suspend this Agreement in part for one of Supplier’s Refineries
  or in whole for both of Supplier’s Refineries at any time by giving written
  notice to Processor at least one (1) year in advance of such shutdown
  and suspension (“Shutdown Notice”). A shutdown of one (1) year or
  greater will constitute a permanent cessation hereunder, and a shutdown of
  the FCC Unit shall constitute a shutdown of the entire East Refinery, and a shutdown
  of the Coker Unit shall constitute a shutdown of the entire West Refinery.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If Supplier
  provides such Shutdown Notice to Processor indicating that Supplier will
  shutdown either one or both Refineries, Supplier shall **.  If Supplier shuts down the West Refinery only, Supplier **. If Supplier shuts down the East Refinery, within
  thirty (30) days from the shutdown, Supplier **

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If Processor
  completes the construction of the Residue Gas Pipeline at any time prior to
  Processor’s receipt of Shutdown Notice from Supplier, **

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If Processor
  completes the construction of the ** at any
  time prior to Processor’s receipt of Shutdown Notice from Supplier, **

  

 

ARTICLE XI

WARRANTY

 

	
  11.1

  	
   

  	
  Supplier
  warrants that upon delivery of its Off-Gas to Processor at the Delivery Point
  that (i) Supplier owns the Off-Gas and the Liquefiable Hydrocarbons,
  hydrogen and incidental non-hydrocarbon materials contained therein free and
  clear of all liens, and encumbrances, and (ii) the Off-Gas shall meet
  the specifications set forth in Section 5.1. EXCEPT AS SET FORTH IN THIS
  SECTION 11.1, SUPPLIER MAKES NO WARRANTY, AND HEREBY DISCLAIMS ALL
  EXPRESS OR IMPLIED WARRANTIES AS TO THE QUALITY OR QUANTITY, OR AS TO THE
  MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OF SUPPLIER’S OFF-GAS 

  

 

16

 

	
   

  	
   

  	
  DELIVERED TO
  PROCESSOR AT THE DELIVERY POINT.

  
	
   

  	
   

  	
   

  
	
  11.2

  	
   

  	
  Subject to
  Supplier’s warranty above, Processor warrants that (i) all Supplier’s
  Residue Gas and Excess Gas delivered to Supplier, or its designee at the
  Redelivery Point, shall be free and clear of all liens and encumbrances, and
  (ii) the Residue Gas and Excess Gas shall meet the specifications set
  forth in Exhibit A. EXCEPT AS SET FORTH IN THIS SECTION 11.2, SUPPLIER
  MAKES NO WARRANTY, AND HEREBY DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES AS
  TO THE QUALITY OR QUANTITY, OR AS TO THE MERCHANTABILITY OR FITNESS FOR A
  PARTICULAR PURPOSE, OF THE RESIDUE GAS AND EXCESS GAS.

  

 

ARTICLE XII

FORCE MAJEURE

 

	
   

  	
   

  	
  In the event
  either Party is rendered unable, wholly or in part, by force
  majeure, to carry out its obligations under this Agreement, other
  than the obligation to make any payments or accounting hereunder, then the
  obligations of such Party, insofar as they are affected by such force majeure, shall be suspended during the continuance
  of any inability so caused, but for no longer period, and the Party giving
  such notice shall use good faith efforts to eliminate such force majeure and /or minimize its effects or impacts to
  the other Party, insofar as reasonably possible, with a minimum of delay. The
  term “force majeure” as employed herein
  shall mean any and all cause(s) beyond the reasonable control of the
  Party claiming force majeure, including but
  not limited to acts of God, that render such Party unable to wholly or
  partially carry out its obligations under this Agreement, other than
  obligations to make payment or accounting. 
  It is understood and agreed that the settlement of strikes or lockouts
  shall be entirely within the discretion of the Party having the difficulty,
  and that the above requirement that any force majeure
  shall be remedied with all reasonable dispatch shall not require the
  settlement of strikes or lockouts by acceding to the demands of any opposing
  party, when such course is inadvisable in the discretion of the Party having
  the difficulty.

  

 

ARTICLE XIII

NOTICES

 

	
   

  	
   

  	
  All notices or
  demands required or provided for herein, except for routine communications,
  as hereinafter provided, shall be in writing and shall be considered as duly
  delivered when hand delivered or, if mailed by United States certified mail,
  postage prepaid, three (3) days after mailing or, if sent by facsimile
  transmission, when receipt is confirmed by the equipment of the transmitting
  Party; provided, if receipt of a facsimile transmission is confirmed

  

 

17

 

	
   

  	
   

  	
  after normal
  business hours, receipt shall be deemed to be the next business day.  Such notice shall be given to the other
  Party at the following address, or to such other address as either Party
  shall designate by like written notice to the other Party:

  

 

	
   

  	
  SUPPLIER:

  	
   

  	
  CITGO Refining
  and Chemicals Company, L.P.

  
	
   

  	
   

  	
  Attn: Plant
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Physical and
  Mailing Address:

  
	
   

  	
   

  	
  1802 Nueces
  Boulevard

  
	
   

  	
   

  	
  Corpus Christi,
  TX 78469

  
	
   

  	
   

  	
  Fax number:
  361-844-4853

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to

  
	
   

  	
   

  	
  CITGO Petroleum
  Corporation

  
	
   

  	
   

  	
  P.O. Box
  4689

  
	
   

  	
   

  	
  Houston, TX
  77210

  
	
   

  	
   

  	
  Attention:
  Product Manager - Petrochemicals

  
	
   

  	
   

  	
   

  
	
   

  	
  PROCESSOR:
  MarkWest Javelina
  Company

  
	
   

  	
   

  	
  Attn: Plant Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Physical and Mailing Address:

  
	
   

  	
   

  	
  5438 Union Street

  
	
   

  	
   

  	
  Corpus Christi, TX 78407

  
	
   

  	
   

  	
   

  
	
   

  	
  No legal notice required or permitted hereunder concerning a claim or
  breach arising hereunder or notice of termination shall be valid unless
  provided in the manner described above to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MarkWest Energy Partners, L.P.

  
	
   

  	
   

  	
  1515 Arapahoe Street

  
	
   

  	
   

  	
  Tower 2, Suite 700

  
	
   

  	
   

  	
  Denver, CO 80202

  
	
   

  	
   

  	
  Fax: (303) 925-9308

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  Routine
  communications, including statements, computations and allocations may be transmitted
  by ordinary mail, facsimile,
  email or other generally acceptable electronic means.

  

 

18

 

ARTICLE XIV

MISCELLANEOUS

 

	
  14.1

  	
   

  	
  PROCESSOR AND
  SUPPLIER SHALL EACH INDEMNIFY AND HOLD THE OTHER HARMLESS FROM AND AGAINST
  ANY AND ALL CLAIMS FOR PERSONAL INJURY OR PROPERTY DAMAGE EXCEPT THOSE CAUSED
  BY GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE OTHER PARTY IN THE
  PERFORMANCE OF THIS AGREEMENT (A PARTY RESPONSIBLE FOR “REGULAR” NEGLIGENCE
  SHALL BE AS PROVIDED FOR BY APPLICABLE LAW, SUBJECT TO THE TERMS OF THIS
  AGREEMENT AS APPLICABLE); PROVIDED HOWEVER, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO
  THE OTHER FOR LOSS OF INCOME/REVENUE/PROFITS, INCIDENTAL, CONSEQUENTIAL,
  SPECIAL OR PUNITIVE DAMAGES, NO MATTER HOW ARISING, WHETHER IN CONTRACT, TORT
  OR OTHERWISE.

  
	
   

  	
   

  	
   

  
	
  14.2

  	
   

  	
  Upon execution
  by both Parties, this Agreement shall extend to and be binding upon the
  Parties and their respective successors and assigns. This Agreement and the
  rights and obligations of either Party may not be assigned or otherwise
  conveyed in whole or in part, except with the prior written consent of the
  non-assigning Party, which consent shall not be unreasonably conditioned,
  withheld or delayed. Notwithstanding the forgoing, either Party may assign or
  convey this Agreement without consent to an entity or person who purchases
  100% of the assets of said Party so long as all obligations under this
  Agreement are assumed by said entity or person. No assignment or other
  transfer of interest hereunder shall be effective or bind the other Party
  until such Party shall have been furnished with a copy of the recorded
  instrument under which the permitted assignment or other transfer occurs.

  
	
   

  	
   

  	
   

  
	
  14.3

  	
   

  	
  Any and all taxes, fees, or other charges imposed or assessed by
  governmental or regulatory bodies, the taxable incident of which is the
  transfer of title or the delivery of the product hereunder, or the receipt of
  payment therefore, regardless of the character, method of calculation, or
  measure of the levy or assessment, shall be paid by the Party upon whom the
  tax, fee, or charge is imposed by law. The importer of record shall be
  responsible for and shall pay all custom duties, import fees, environmental
  fund fees, and other assessments pertaining to the importation of the
  products.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If Processor claims exemption from any of the aforesaid taxes, then
  Processor must furnish Supplier with a properly completed and executed
  exemption certificate in the form prescribed by the appropriate taxing
  authority in lieu of payment of such taxes or reimbursement of such taxes to
  Supplier. Notwithstanding anything to the contrary contained herein, each
  Party shall be responsible for its own income and franchise taxes.

  
	
   

  	
   

  	
   

  
	
  14.4

  	
   

  	
  No director, officer, employee, or agent of either Party or its
  direct or indirect parents, subsidiaries, or affiliates shall give or receive
  any commission, fee, rebate, gift, or entertainment of significant value or
  cost in connection with this Agreement. Further, neither Party or its direct
  or indirect parents, subsidiaries, or affiliates shall make any commission,
  fee, rebate, gift, or entertainment of significant value or cost 

  

 

19

 

	
   

  	
   

  	
  to any governmental official or employee in connection with this
  Agreement.

  
	
   

  	
   

  	
   

  
	
  14.5

  	
   

  	
  Each Party hereto agrees to comply with all laws, rules, regulations,
  ordinances and requirements of federal, state and local governmental or
  regulatory bodies which are applicable to this Agreement, including but not
  limited to environmental laws and regulations and the provisions contained in
  Section 18, to the extent that such laws or regulations are applicable
  to this Agreement.

  
	
   

  	
   

  	
   

  
	
  14.6

  	
   

  	
  Any matters not specifically covered in this Agreement shall be dealt
  with in accordance with the custom and practice in the industry.

  
	
   

  	
   

  	
   

  
	
  14.7

  	
   

  	
  This
  Agreement and the respective rights and obligations of the Parties shall be
  construed, interpreted and enforced in accordance with the laws of Texas
  notwithstanding any principles of conflicts of laws which may require the
  application of the laws of another jurisdiction. Any dispute between the
  Parties arising out of or pertaining to this Agreement, not otherwise
  resolved to the mutual satisfaction of both Parties, shall be submitted for
  resolution by either Party to the exclusive jurisdiction of the appropriate
  state or federal court with venue exclusively located in Harris County,
  Texas. This Agreement, and the respective rights and obligations of the
  Parties, is subject to all valid and applicable current and future laws,
  rules and regulations of duly constituted authorities now or hereafter
  having jurisdiction over the Parties, the services contemplated herein and
  the facilities used to provide those services.

  
	
   

  	
   

  	
   

  
	
  14.8

  	
   

  	
  Any failure by
  either Party, whether intentional or unintentional, to enforce any rights
  hereunder shall not act as a waiver of its right to enforce such rights
  thereafter.

  
	
   

  	
   

  	
   

  
	
  14.9

  	
   

  	
  Supplier shall
  have title to, be in full control and possession of and be responsible for
  damage or injury caused by (i) its Off-Gas prior to delivery thereof to
  Processor at the Delivery Point and (ii) its Residue Gas after delivery
  to Supplier, or its designee, at the Redelivery Point, except for injury or
  damage caused by the gross negligence or willful misconduct of Processor.
  Processor shall be in control and possession of the Off-Gas, Liquefiable
  Hydrocarbons, hydrogen and incidental non-hydrocarbon materials to which
  Processor takes title under this Agreement after delivery of Supplier’s Off-Gas
  to Processor, or for its account, at the Delivery Point and until delivery of
  Supplier’s Residue Gas to Supplier, or its designee, at the Redelivery Point
  and shall be responsible for any damage or injury caused thereby, except for
  injury or damage caused by the gross negligence or willful misconduct of
  Supplier.

  
	
   

  	
   

  	
   

  
	
  14.10

  	
   

  	
  Each Party shall
  have the right at its sole cost, risk and expense at reasonable times during
  normal business hours and with reasonable prior written notice to the other
  Party, of access to the Plant, the Refineries, the Delivery Point and

  

 

20

 

	
   

  	
   

  	
  the Redelivery
  Point for the purposes of performing its obligations under this Agreement.

  
	
   

  	
   

  	
   

  
	
  14.11

  	
   

  	
  In the event
  that any of the provisions, or portions, or applications of this Agreement
  are held to be unenforceable or invalid by any court of competent
  jurisdiction, the Parties shall negotiate an equitable adjustment in the
  provisions of this Agreement with a view toward affecting the purpose of this
  Agreement. If the provision cannot be modified so as to be enforceable under
  existing laws, this Agreement shall be construed and enforced as if such
  provision had not been included herein and the validity and enforceability of
  the remaining provisions, or portions or applications thereof, shall not be
  affected.

  
	
   

  	
   

  	
   

  
	
  14.12

  	
   

  	
  The parties
  agree that the rule of construction that a contract be construed against
  the drafter, if any, shall not be applied in the interpretation and
  construction of this Agreement. The titles and section headings contained in
  this Assignment are for reference purposes only and shall not affect the
  interpretation of this Assignment.

  
	
   

  	
   

  	
   

  
	
  14.13

  	
   

  	
  This Agreement
  may be executed in counterparts, each of which shall be deemed an original
  but which together shall constitute one and the same instrument.

  
	
   

  	
   

  	
   

  
	
  14.14

  	
   

  	
  During the term
  of this Contract, Processor and Supplier shall maintain the confidentiality
  of this Contract and not disclose same to any third party except independent
  auditors who are under written obligations of confidentiality with respect to
  this Contract, and as may be required in the opinion of such parties’ counsel
  to comply with orders of any court or governmental agency, or comply with any
  laws, rules and regulations of applicable governmental agencies,
  including, without limitation, federal, state, and local agencies.

  
	
   

  	
   

  	
   

  
	
  14.15

  	
   

  	
  This Agreement
  is intended to give no rights or benefits to anyone other than the Parties
  and, accordingly, has no third-party beneficiaries.

  
	
   

  	
   

  	
   

  
	
  14.16

  	
   

  	
  This Agreement
  contains the complete, final and exclusive agreement of the Parties with
  respect to the matters set forth and supersedes all prior understandings,
  negotiations, representations, discussions, statements, inducements and agreements,
  written or oral, pertaining thereto. This Agreement may not be amended,
  modified or rescinded in any way except by written instrument duly executed
  by both Parties.

  

 

[The remainder of the page is
intentionally left blank]

 

21

 

IN WITNESS WHEREOF, this
Agreement is  executed effective by the Parties as of
the effective date.

 

 

	
  “SUPPLIER”

  	
   

  	
  “PROCESSOR”

  
	
   

  	
   

  	
   

  
	
  CITGO REFINING AND

  	
   

  	
  MARKWEST JAVELINA

  
	
  CHEMICALS COMPANY

  	
   

  	
  COMPANY, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ DOYLE
  DOMMERT

  	
   

  	
  By: 

  	
  /s/ FRANK SEMPLE

  
	
   

  	
   

  	
   

  
	
  Name: Doyle
  Dommert

  	
   

  	
  Name: Frank
  Semple

  
	
   

  	
   

  	
   

  
	
  Title: GM,
  Petrochemicals

  	
   

  	
  Title:
  Pres. & CEO

  
					

 

22

 

EXHIBIT “A” TO THE

GAS PROCESSING AGREEMENT

BETWEEN MARKWEST  JAVELINA COMPANY

 AND CITGO REFINING AND CHEMICAL LP

 

Residue Gas and Excess Gas Specifications

 

Residue
Gas and Excess Gas delivered to the Redelivery Point will meet the following
specifications:

 

	
  Ammonia

  	
   

  	
  50
  ppmv maximum

  
	
  H2S

  	
   

  	
  50
  ppmv maximum

  
	
  Total
  Sulfur

  	
   

  	
  100
  ppmv maximum

  
	
  CO2

  	
   

  	
  2
  mol % maximum

  
	
  CO

  	
   

  	
  1.5
  mol % maximum

  
	
  Oxygen

  	
   

  	
  0.5
  mol % maximum

  
	
  H2O

  	
   

  	
  No
  free water

  
	
  Temperature

  	
   

  	
  Less
  than 120 degrees Fahrenheit

  
	
  Pressure

  	
   

  	
  100
  psig minimum

  
	
  Btu
  content

  	
   

  	
  700
  – 900 Btus per standard cubic foot (see note below)

  

 

NOTE:  Processor expects, when the Plant is in
normal operation, that the Residue Gas and the Excess Gas shall have a Btu
content between 700 and 900 Btus per standard cubic foot.  In the event the combined Btu value of the
Residue Gas and Excess Gas delivered to the Redelivery Point is (i) less
than 700 Btus per standard cubic foot or greater than 1000 Btus per standard
cubic foot, then upon actual knowledge of such event (in any case as soon as
commercially reasonable under the then existing circumstances) the discovering
Party shall notify the other Party of such event.  Within six (6) hours of Processor’s
discovery of such event, or Processor’s receipt of notice from Supplier of such
event, Processor shall take corrective action, as the case may be, to (i) (a) increase
the combined Btu content of the Residue Gas and the Excess Gas delivered to the
Redelivery Point to equal or exceed 700 Btus per standard cubic foot or (b) reduce
the combined Btu content of the Residue Gas and the Excess Gas delivered to the
Redelivery Point to equal or be less than 1000 Btus per standard cubic foot, or
(ii) suspend deliveries of the Residue Gas and the Excess Gas to the
Redelivery Point until such condition (either low Btu content or high Btu
content) is corrected.

 

 

EXHIBIT B

 

Plant Allocation
Statement

Statement 2 of
Exhibit B

 

Statement 2

 

Javelina
Plant Allocation

Plant
Thermal Reduction “PTR”

Month,
Year

 

	
   

  	
   

  	
  Mmbtus

  	
   

  
	
  Residue
  Gas:

  	
   

  	
   

  	
   

  
	
  Theoretical Residue
  Gas Attributable to Supplier’s Off-Gas

  	
   

  	
  **

  	
   

  
	
  Total Quantity
  of Theoretical Residue Gas for all Inlet Gas

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratio of
  Supplier’s Theoretical Residue Gas

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Actual Residue
  Gas attributable to All Inlet Gas

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Residue Gas
  Attributable to Supplier’s Off-Gas

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Plant
  Thermal Reduction “PTR”

  	
   

  	
   

  	
   

  
	
  Inlet 441-207
  and Inlet 441-200

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Residue Gas
  Attributable to Supplier’s Off-Gas

  	
   

  	
  **

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Refiner’s Plant
  Thermal Reduction PTR

  	
   

  	
  **

  	
   

  

 

* All volumes and amounts
are fictional and intended for this example only.

 

 

EXHIBIT “C” TO THE

GAS PROCESSING AGREEMENT

BETWEEN MARKWEST  JAVELINA COMPANY

 AND CITGO REFINING AND CHEMICALS,
LP

 

Calculation of Weighted Average Sales Price for a sample Plant Product

 

Following is an example
of the calculation of the Weighted Average Sales Price for ethane during the
example Month:

 

As set
forth below, the Weighted Average Sales Price for ethane in the following
example would be $665.55 divided by 1,035 gallons or $0.6430 per gallon.

 

	
   

  	
   

  	
  Volume Sold

  (gallons)

  	
   

  	
  Sales Price

  ($ per gallon)

  	
   

  	
  Sum of all

  Transportation,

  Storage,

  Marketing and

  Exchange Fees

  ($ per gallon)

  	
   

  	
  Sales

  Proceeds 

  ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ethane in Ethane
  Stream

  	
   

  	
  1,000

  	
   

  	
  $

  	
  0.62

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  620.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ethane in
  Ethylene Stream

  	
   

  	
  10

  	
   

  	
  $

  	
  2.27

  	
   

  	
  $

  	
  0.065

  	
   

  	
  $

  	
  22.05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ethane in
  Propane Stream

  	
   

  	
  25

  	
   

  	
  $

  	
  0.94

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  23.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Weighted Average
  Sales Price

  	
   

  	
  1,035

  	
   

  	
  .064304

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  665.55

  	
   

  
														

 

*  All volumes
and amounts are fictional and intended for this example exhibit only.

 

 

EXHIBIT “D” TO THE

GAS PROCESSING AGREEMENT

BETWEEN MARKWEST JAVELINA COMPANY

AND CITGO REFINING AND CHEMICALS
COMPANY, L.P.

 

METHODS OF GAS MEASUREMENT AND
SAMPLING

TEST AND ANALYSES

 

Definitions

 

“Report No. 3” shall mean the most current version of AGA Report No. 3, “Orifice
Metering of Natural Gas”, Measurement Committee of the American Gas
Association, as such publication may be revised from time to time.

 

A.           Gas Measurement

 

Processor shall, at its
cost install, operate, and maintain, or shall cause to be installed, operated
and maintained, at the Delivery Point suitable measurement equipment to
accurately measure the Off-Gas delivered for processing.  Processor shall determine the quantity of all
Components and the Btus per cubic foot contained in representative samples of
Off-Gas at the Delivery Point pursuant to Section B of this Exhibit.

 

The measurement equipment
shall consist of electronic flow measurement transmitters measuring
differential and static pressure as well as temperature recorders that shall be
installed, tested and maintained in accordance with the provisions of this
Exhibit. Electronic Flow Measurement (EFM) equipment shall conform to all
provisions of API MPMS, Chapter 21. The measuring equipment should include a
Daniels Senior Fitting or equivalent using concentric, square-edged orifice
meters per API Chapter 14.3, Natural Gas Fluids Measurement.  Volumes shall be measured using a flow
computer with real time flow-weighted average temperatures and pressures applied
to the volumes in the flow computer to generate a batch end report.    A Coriolis type flow meter may be used
instead of an orifice type meter if agreed to by both Supplier and Processor.

 

Installation of all
electrical and instrumentation facilities shall conform to all provisions of
the National Electric Code (NFPA Subpart 70), the American Gas Association “Classification
of Gas Utility Areas for Electrical Installation” XF0277, and ANSI/ISA RPI 12.6
“Installation of Intrinsically Safe Instrument System in Class I Hazardous
Locations”. All electrical equipment installed in a building containing all or
a portion of the Facilities shall be classified and

 

 

designed for Class I,
Division 1 or 2, Group D locations. Any equipment that vents or bleeds natural
gas shall be piped in such a way so as to vent or bleed outside any enclosed
structure in which it may be installed.

 

The unit of volume for the purpose of measurement of
Liquefiable Hydrocarbons, excluding ethylene and propylene, shall be one (1) U.S.
liquid gallon of 231 cubic inches, when said liquid has a temperature of sixty
degrees Fahrenheit (60oF) and is at the equilibrium vapor
pressure of the liquid being measured.

 

Unit of measurement for
ethylene and propylene shall be pounds. Unit of measurement for hydrogen shall
be Mcf.

 

B.             Measurements and Tests

 

1.               Standard of measurements and tests:

 

a.               Except as provided in Section B.1(b) relating to deviation, the
volume of Gas delivered hereunder shall be computed in accordance with the
latest methods prescribed in the Report #3, AGA Report No. 8 “Super
Compressibility” and API Chapter 21.1 “Electronic Gas Measurement Standard”.

 

b.              The deviation of the Gas from the Ideal Gas Laws due to the pressures and
temperatures under which Gas is delivered hereunder, shall be determined by the
methods prescribed by Report #3. Such determination shall be made at the
beginning of and at such times as either Party hereto may reasonably desire
each Month. Results of each determination shall be used in computing the
volumes of Gas measured hereunder until the next determination is made.

 

c.               The specific gravity of the Off-Gas at the Delivery Point shall be
determined by Processor using chromatographic analysis of a composite sample
not less than once each Month.

 

d.              The flowing temperature of the Gas at the point of measurement shall be
determined by means of a recording thermometer of standard make and the
arithmetical average of readings during the time Gas is flowing each day shall
be deemed the Gas temperature and used in computing the volumes of Gas
delivered during such day.

 

e.               The Btus per cubic foot of the Gas delivered hereunder shall be determined
at each measurement point hereunder at least once each Month by means of
chromatographic analysis of composite samples and the factors for pure
Components stated in Article V.

 

f.                 In addition to the Monthly determination of Btus per cubic foot, Processor
shall install a continuous recording chromatograph or other 

 

2

 

industry accepted
equipment to monitor the Delivery Point. The volume weighted average of daily
recorded Btus per cubic foot shall be used in computing the total estimated
quantity of Btus received from each delivery point during that day.

 

2.               Measurements

 

a.               For the purpose of calculating the volume of Gas and in the computation of
such volumes, the atmospheric pressure shall be assumed to be fourteen and
sixty-five hundredths (14.65) pounds per square inch absolute regardless of the
actual atmospheric pressure at which the Gas is delivered and measured unless
otherwise established by governmental authority.

 

b.              Processor shall install, maintain and operate at its own expense the
necessary equipment of a character and design acceptable to Supplier to measure
separately the volume of Off-Gas delivered for Processing and perform all tests
required to accomplish the measurement of volumes, temperatures, specific
gravities and Btus per cubic foot of the Gas measured hereunder. Such volume
measuring equipment shall conform to the specifications contained in Report #3
and API Chapter 21.1, “Electronic Gas Measurement Standards”. Supplier shall
have access to such measuring equipment at all reasonable hours, but the
calibration, adjustment and maintenance thereof shall be done only by Processor
and witnessed by the Supplier. Upon reasonable request of Supplier all volume,
specific gravity, and temperature charts used in measurement of Gas hereunder
shall be mailed or delivered to Supplier for checking and calculating within
twenty (20) days after the last chart for each accounting period is removed
from the recorders. Such chart shall be mailed or returned to Processor within
thirty (30) days after receipt thereof by Supplier.

 

c.               Supplier may install, maintain, operate, calibrate and adjust at its own
expense check measurement equipment, and/or telemetry equipment provided such
equipment does not interfere with the accuracy or operations of the Processor’s
measurement equipment and facilities required by this agreement. Electronic
Flow Measurement (EFM) equipment shall conform to all provisions of API MRMS,
Chapter 21. Installations of all electrical and instrumentation equipment shall
conform to all provisions set forth by this agreement.

 

d.              Supplier and Processor shall each have the right to be present at the time
of installing, testing, cleaning, changing, repairing, inspecting, calibrating
or adjusting done in connection with the measuring equipment of the other which
is used in measurement here under. The Party planning to conduct such
operations shall give the other Party at least ten (10) days prior notice
thereof in order that all necessary parties may be present.

 

3

 

e.               If both EFM and the backup orifice meters are out of service or out of
repair so that the quantity of Gas is not correctly indicated by reading
thereof, the Gas measured during the period shall be estimated and agreed upon
on the basis of the best data available, using the first of the following
methods which is feasible:

 

(1)              By using the registration of any check measuring equipment if  installed and accurately registering; or

 

(2)              By estimating the volume by comparison with volumes during preceding
periods under similar conditions when the recorder was registering accurately;
or

 

(3)              .By correcting the error if the percentage of error is ascertainable by
calibration, tests or mathematical calculation.

 

f.                 The accuracy of the measuring equipment shall be tested at reasonable
intervals and, if requested, in the presence of representatives of the other
party, but such verification shall not be required more frequently than once in
a thirty (30) day period. In the event either party shall notify the other that
it desires a special test of any measuring equipment, the parties shall
cooperate to secure a prompt verification of the accuracy of such equipment.
The expense of such a special test as may be requested by either party shall be
borne by the party requesting such test if the measurement equipment, by such
test, is found to be correct.

 

g.              If upon test, any meter or any related instrument or device the readings
of which are used in the registration, integration, or computation of
quantities which affect the measured 
quantity hereunder is found to be in error to the extent that it
introduces not more than a two percent (2%) measurement error in the
individual  meter or meters affected,
previous records of such equipment shall be considered accurate in computing
deliveries hereunder; but such equipment shall be adjusted at once to function
correctly. If, upon testing, any such measuring equipment shall be found
inaccurate to the extent that is causes the end result measurement of the
individual meter or meters so affected to be in error by an amount exceeding
two percent (2%), at a recording corresponding to the average hourly rate of
flow through the individual meter or meters affected, for the period since the
last preceding test, then any previous registration, integration or recordings
of such meter or meters affected shall be corrected  to zero error for any part of the period
since the last test that such error is known to have existed or which may be
agreed upon in actual practice by the operating representatives of the parties.
In case the period of such error is not known definitely or is not agreed upon,
such correction shall be for a period of one-half (1/2) of the time elapsed
since the date of the last such test, but not exceeding a correction period of
fifteen (15) days.

 

4

 

The records for measuring equipment shall remain the
property of the operator of such equipment, but upon request the operator will
submit to the other party its records, together with calculations therefrom,
for inspection, subject to return within thirty (30) days after receipt
thereof.

 

h.              Gas Sampling and Analysis

 

Processor shall obtain
representative samples of Off-Gas in accordance with GPA Publication 2166,
latest revision, by utilizing continuous sampling techniques designed to obtain
a representative sample over a thirty (30) day period proportional to Gas flow
rates. For Monthly accounting, Processor shall analyze this representative
sample by chromatographic techniques in accordance with GPA Publication 2261 and
2145, latest revision. Suppliers shall have the right to witness the sampling
and analyzing of Off-Gas at Delivery Point. 
Should said representative sample be inadvertently lost or contaminated,
then a mutually agreeable replacement sample or previous analysis will be used.

 

5Exhibit 10.33

 

Execution Version

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE
CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED
MATERIAL HAS BEEN SEPERATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS
(**).

 

NATURAL
GAS LIQUIDS TRANSPORTATION, FRACTIONATION AND 

MARKETING AGREEMENT

 

THIS NATURAL
GAS LIQUIDS TRANSPORTATION, FRACTIONATION AND MARKETING AGREEMENT (this “Agreement”) is made and entered into this 16th day of
November, 2007, by and between EQUITABLE GATHERING, LLC
(herein referred to as “Equitable”),
and MARKWEST ENERGY APPALACHIA, L.L.C.
(herein referred to as “MEA”).

 

RECITALS:

 

A.                                   Equitable
operates and is acquiring that certain existing gas processing plant and
related facilities together with gas compression facilities located in the
vicinity of Langley, Kentucky, known as the “Maytown
Plant”; and

 

B.                                     Equitable
is constructing and installing additional gas processing and gas compression
facilities located in the vicinity of Langley, Kentucky, to operate in
conjunction with the Maytown Plant, said additional facilities referred to
herein as the “Langley Plant”;

 

C.                                     Equitable
desires to deliver to MEA and MEA desires to receive from Equitable, natural
gas liquids recovered at the Plant (as defined herein), and recovered from
other sources, as provided herein, and the parties desire to have such natural
gas liquids transported to the Siloam Facility (as defined herein), fractionated
into commercial components at the Siloam Facility, and to have such
fractionated components marketed and Sold.

 

NOW THEREFORE,
in consideration of the mutual covenants contained herein, the parties hereby
agree as follows:

 

ARTICLE 1

DEFINITIONS

 

The following
definitions shall apply for all purposes of this Agreement unless otherwise
indicated:

 

Accounting Period.  The period commencing at 10:00 a.m.,
Eastern Time, on the first day of a calendar month and ending at 10:00 a.m.,
Eastern Time, on the first day of the next succeeding month.

 

Affiliate.  When used with respect to a Person, means
any other Person that directly or indirectly controls, is controlled by or is
under common control with such first Person, where control, and its derivatives, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a Person (whether through majority 

 

 

ownership of securities or partnership or other ownership interests, by
contract or otherwise, including,
without limitation, through the ownership of the general partner of any
partnership).

 

Delivery Point.  ** provided,
however, until the full or partial Replacement Equitable Pipeline is
constructed, installed, made operational, and capable of delivering natural gas
liquids to the **,  and
for any natural gas liquids delivered hereunder other than through such full or
partial Replacement Equitable Pipeline, the Delivery Point shall be at **

 

Effective Date.  The date upon which MEA has transferred and conveyed
the Maytown Plant to Equitable.

 

Equitable Group.  Equitable Production Company, Equitable
Gathering, LLC, and each current and subsequently created Affiliate of each of
them.

 

Equitable Pipeline.  The existing pipeline running from the Plant
to the interconnection, near Ranger, West Virginia, with the MEA Pipeline,
including any replacement of such pipeline.

 

Fractionated Products.  The component products derived from the
fractionation operations at the Siloam Facility.

 

Gathering Area.  The area of gas production and gathering as
described in Exhibit B.

 

MEA Pipeline.  The pipeline to transport natural gas liquids
running from the point commonly referred to as “Ranger, West Virginia” to the
Siloam Facility.

 

Net Sales Price.  **

 

Person or person.
Any individual, corporation, limited liability company, limited or general
partnership, joint venture, association, joint stock company, trust,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity, or any group comprised of two or more of the
foregoing.

 

Plant Products.  Liquid hydrocarbon components (ethane,
propane, iso-butane, normal butane, iso-pentane, normal pentane, hexanes plus,
any other liquid hydrocarbon product, or any mixtures thereof, and any
incidental methane included in any of the foregoing), which are separated,
extracted or condensed from natural gas at the Plant.

 

Plant.  The Maytown Plant and the Langley Plant,
including (i) any and all gas processing and compression facilities to be
installed to replace any of the foregoing or to expand or alter any of the
foregoing, all located in the vicinity of Langley, Kentucky; (ii) gas
refrigeration and chilling equipment, gas compression and cooling equipment,
product separation and fractionation vessels, product storage vessels, and
associated condensing, heating, compressing, pumping, conveying, and other
equipment and instrumentation; (iii) all existing piping, valves and
fittings; including any refrigeration compression required by plant operations;
(iv) all control systems and equipment; (v) all measurement and
communications equipment; (vi) all utility system; and including all
structures associated with those facilities; and (vii) all easements,
rights-of-way, and other property rights pertaining to the construction and
operation 

 

2

 

of those facilities wherever those facilities, structures, easements,
rights-of-way, and other property rights are located.

 

Siloam Facility.  MEA’s Siloam fractionation facility located
near South Shore, Kentucky, including (i) any treating equipment, products
separation and fractionation vessels; (ii) all above ground products
storage vessels and all below ground products storage caverns and facilities; (iii) all
associated condensing, heating, pumping, conveying, and other equipment and
instrumentation; (iv) all structures associated with those facilities; (v) all
products loading facilities, including railcar loading, truck loading and barge
loading facilities; (vi) all control systems and equipment; (vii) all
measurement and communication equipment; (viii) all utility systems, and
including all structures associated with those facilities; and (ix) all
easements, rights-of-way, and other property rights pertaining to the
construction and operation of those facilities wherever those facilities,
structures, easements, rights-of-way, and other property rights are located.

 

Sold.  
Any physical sale or similar transaction.

 

ARTICLE 2

EQUITABLE COMMITMENTS

 

2.1                                 (a) As of the Effective
Date and subject to the restrictions set forth in this Article 2 and
elsewhere in this Agreement, Equitable commits to deliver ** calculated on an average daily basis
during an Accounting Period.  If the
Plant Products are ** MEA shall
have the right to receive, fractionate and market other natural gas liquids of
the Equitable Group **, if any, if
there is available capacity at the Siloam Facility, and subject to the
following terms:

 

(i)                                    if
the production of Plant Products on an average daily basis during an Accounting
Period is **, Equitable shall
deliver and MEA shall have the right to receive, fractionate and market under
the terms of this Agreement, ** of
natural gas liquids of the Equitable Group **
(inclusive of Plant Products) during such Accounting Period, and Equitable, ** shall deliver or cause to be delivered,
such natural gas liquids to the applicable Delivery Point.  Such rights to natural gas liquids of the
Equitable Group shall be binding upon any successors or transferees of the
Equitable Group; and

 

(ii)                                 if
the production of Plant Products on an average daily basis during an Accounting
Period is **,  MEA shall have the right ** of natural gas liquids produced by
Equitable ** (inclusive of Plant
Products) during such Accounting Period. 
In that event, Equitable shall give MEA at least 30 days advance written
notice of the quantity of such natural gas liquids that will be available.  MEA shall have 15 days following receipt of
that notice in which **

 

(b)                                 In addition, and subject to the
last sentence of this Section 2.1, if MEA’s Share of Plant Products and
natural gas liquids in an Accounting Period falls below the 

 

3

 

level set forth in the “Maximum Daily Plant Products and Natural Gas
Liquids” column of the chart in Section 7.1(b) of this Agreement,
Equitable shall either **  The obligations in this Section 2.1 are
subject to Equitable’s right to reduce or prorate the delivered amount of Plant
Products and natural gas liquids as a result of **

 

2.2                               Nothing herein shall constitute
any guarantee or warranty by Equitable of minimum volumes of natural gas
delivered to the Plant, or the content of hydrocarbon liquids thereof, or the
amount of Plant Products recovered therefrom or that there exists sufficient
trucking capacity and/or pipeline capacity to effectuate delivery of the Plant
Products and natural gas liquids, as set forth in Section 2.1, to the
applicable Delivery Point.

 

2.3                               Equitable will operate the Plant
in accordance with the standard a prudent operator under similar conditions
would operate, and in compliance with applicable laws, rules and
regulations.

 

2.4                               Equitable will provide MEA with
reasonable opportunity to utilize **
on terms that are mutually agreeable to Equitable and MEA, provided that MEA
will be responsible for **

 

2.5                               Equitable commits to use
commercially reasonable efforts to construct the Langley Plant and to put it in
service for use under the terms of this Agreement by **.

 

2.6                               In addition, and as a material
inducement for MEA to expand its Siloam Facility, Equitable commits to cause
itself or an affiliate of Equitable to construct and place into service, within
a commercially reasonable time, the replacement for the current Equitable
Pipeline, ** (the “Replacement Equitable Pipeline”).

 

ARTICLE 3

MEA COMMITMENTS

 

3.1                               Subject to the other provisions
of this Agreement, as of the Effective Date, MEA shall

 

(a)                                Receive the natural gas liquids
(inclusive of Plant Products) delivered by Equitable at the applicable Delivery
Point, fractionate such Plant Products and natural gas liquids at the Siloam
Facility, market (in the manner set forth in Section 7.3 of this
Agreement) the fractionated components derived from the Plant Products and
natural gas liquids and remit payment to Equitable for such Plant Products and
natural gas liquids pursuant to the provisions of Article 7 below.

 

(b)                               As of the Effective Date:

 

(i)                                    MEA
shall arrange for fractionation at the Siloam Facility and pipeline
transportation from the point where the Replacement Equitable Pipeline
interconnects with MEA’s liquid line (collectively, the “Capacity”) of up to a maximum of ** gallons, on any day, of Plant Products
and natural gas liquids delivered by Equitable hereunder; provided, however, MEA
shall 

 

4

 

not be responsible to provide
such pipeline transportation until such time as the Replacement Equitable
Pipeline is placed into service, or at such time that Equitable has the ability
to deliver natural gas liquids (inclusive of Plant Products) to the ** through a partially completed
Replacement Equitable Pipeline, it being understood that any such commitment on
the part of MEA is subject to the terms herein (including but not limited to Article 4
and Article 5) and MEA’s ability to meet any regulatory or safety
requirements with regards to operating the MEA Pipeline.  Equitable will give MEA at least 30 days
advance written notice prior to commencing deliveries to **; provided, however, such deliveries to ** may not commence prior to **.

 

(ii)                                MEA
shall arrange for trucking and provide capacity for truck unloading at the
Siloam Facility of up to a maximum of **
gallons, on any day, of Plant Products and natural gas liquids delivered by
Equitable hereunder.

 

(c)                                  Prior to the commencement of
operations of the Replacement Equitable Pipeline, MEA will arrange truck
transportation, and Equitable will cooperate and coordinate deliveries with
MEA, as to delivery of Plant Products and natural gas liquids to the Siloam
Facility by truck transportation in quantities above the applicable volumes set
forth in Section 3.1(b)(ii) above and Section 3.1(d) below,
as MEA, in its sole and reasonable discretion, determines it can accommodate at
the Siloam Facility.  **  On a
weekly or more frequent basis, each party shall keep the other reasonably
informed as to any expected ** and
as to any expected need to utilize any available ** and shall cooperate and coordinate with each other
regarding the availability and utilization thereof.  Equitable’s first right to use ** 
Equitable shall have the right to make alternate delivery,
transportation, and/or fractionation and related marketing arrangements with third parties
for any portion of Plant Products or natural gas liquids that MEA is unwilling
or unable to accept under this Agreement; provided, such alternate arrangements
shall be for as short a time period as is practicable, and shall not extend
beyond the date that the Replacement Equitable Pipeline is placed into service.

 

(d)                                 Notwithstanding anything to the
contrary herein, MEA will have the following available capacities at the Siloam
Facility for truck unloading and for fractionation of Plant Products and
natural gas liquids by the following dates:

 

(i)                                     ** gallons per day by **; and

 

(ii)                                  ** gallons per day by ** (“First
Expansion Date”).

 

(e)                                  By ** (“Second Expansion Date”),
MEA shall provide Capacity for a total of **
gallons per day of Plant Products and natural gas liquids delivered by
Equitable hereunder through the Replacement Equitable Pipeline.

 

(f)                                    MEA
may accelerate the First Expansion Date to no earlier than **
(and such earlier date shall be referred to as the “Early First
Expansion Date”); and may 

 

5

 

accelerate the
Second Expansion Date to no earlier than ** (“Early Second Expansion Date”).  If either of the foregoing Early Expansion
Dates will become effective, due to MEA providing the capacities required
before the applicable Expansion Date, MEA will give written notice to Equitable
of the completion of the expansion to provide the applicable capacity and the
applicable Early Expansion Date will be effective two days following such
notice.

 

(g)                                 MEA commits to expand the MEA
Pipeline and Siloam Facility as necessary to provide an additional ** gallons per day of Capacity over that
provided pursuant to 3.1(e) above, for Plant Products and natural gas
liquids delivered by Equitable hereunder, on the following terms and
conditions:

 

(i)                                    Equitable
shall have the right to request incremental additional Capacity above the ** gallons per day Capacity by providing
MEA with written notice ** in
advance of the date on which Equitable anticipates the need for any portion of
such requested incremental additional Capacity (“Incremental Capacity Start-Up Date”). The request shall cover
Equitable’s anticipated requirements for additional Capacity for the ** period following the Incremental
Capacity Start-Up Date (“Ramp-Up Period”),
and the request shall include reasonable projections of the need for
incremental additional Capacity on a monthly basis during the Ramp-Up Period,
up to the total of the requested additional Capacity (the “Ramp-Up Schedule”).

 

(ii)                                 MEA
shall have no obligation to provide total Capacity to Equitable for Plant
Products and natural gas liquids delivered by Equitable hereunder in excess of ** gallons per day.

 

(iii)                              Each
request for additional Capacity shall be in increments of ** gallons per day or greater; provided, if
a request for additional Capacity occurs when the difference between ** gallons per day and the then current
Capacity is less than ** gallons
per day, such request may be made for the remaining increment to bring total
capacity to ** gallons per day.

 

(iv)                             MEA
shall acknowledge and confirm, in writing, Equitable’s request(s) for
capacity within twenty (20) days of receipt.

 

(v)                                MEA
shall construct, install and make operational the requested additional Capacity
in increments and with timing that meets the Ramp-Up Schedule submitted by Equitable
for the applicable Ramp-Up Period.

 

(vi)                             **, with respect to the incremental
Capacity increases requested by Equitable under this Section 3.1(g).

 

3.2                                 Notwithstanding anything to the
contrary herein, within ninety (90) days from the date hereof, MEA and
Equitable shall cooperate to identify other options, and the associated costs
for implementing such options, that may be available to increase the available
capacity at the Siloam Facility for truck unloading and for fractionation of
Plant Products and natural gas 

 

6

 

liquids to **
gallons per day, or to identify other options, and costs, to market
unfractionated natural gas liquids to other markets.  The undertaking and implementation of any of
the foregoing options shall be subject to the mutual agreement of the parties
which shall include agreement upon the allocation of any incremental costs
which would be incurred in implementing such option.

 

3.3                                 MEA will operate the MEA
Pipeline and the Siloam Facility in accordance with the standard a prudent
operator under similar conditions would operate, and in compliance with
applicable laws, rules and regulations.

 

3.4                                 Equitable and MEA acknowledge
and agree that, contemporaneous with the execution of this Agreement, the
parties have amended that certain Netting, Financial Responsibility and
Security Agreement by and between Equitable Production Company and MarkWest
Hydrocarbon, Inc., dated September 23, 2004, that certain Netting,
Financial Responsibility and Security Agreement by and between Equitable
Production Company and MEA, dated September 23, 2004 and/or entered into
other agreements to provide for performance assurances by MarkWest Hydrocarbon, Inc.
in the event of a decline in MEA’s financial condition and for certain changes
in the value and volume of fractionated products under this Agreement.

 

ARTICLE 4

QUALITY SPECIFICATIONS

 

4.1                                 The Plant Products, and other
natural gas liquids, delivered by Equitable to MEA from the Plant shall be of a
quality which, when fractionated, meets the applicable specifications set forth
on Exhibit A, attached
hereto.  In particular, but without
limiting the other specifications on Exhibit A,
the Plant Products and other natural gas liquids delivered hereunder shall only
contain such amount of ethane such that the propane products fractionated by
MEA will not exceed the ethane content set forth on Exhibit A.

 

4.2                                 Should any of the Plant Products
or natural gas liquids fail to meet the above specifications, then:

 

(a)                                  MEA may take receipt of the
non-conforming Plant Products or natural gas liquids, and that receipt shall
not be construed as a waiver or change of standards for future Plant Product or
natural gas liquid deliveries; or

 

(b)                                 MEA may, at its sole but
reasonable discretion, cease receiving the non-conforming Plant Products or
natural gas liquids, and shall notify Equitable that it has, or will, cease
receiving the non-conforming Plant Products or natural gas liquids; provided
that such rejection shall not otherwise excuse Equitable from its delivery
obligations pursuant to Section 2.1 of this Agreement for the time period
during which MEA ceases receiving deliveries.

 

4.3                                 All Plant Products and natural
gas liquids delivered to ** shall
be delivered at a pressure sufficient to effect delivery into ** at the pressures at the **. 
Plant Products and natural gas liquids delivered to ** will be delivered at as uniform of flow
rate as is practical.

 

7

 

4.4                                 All MEA deliveries at Equitable
facilities shall comply with Equitable’s safety policies and procedures.

 

ARTICLE 5

MEASUREMENT

 

5.1                                 Truck Measurement.  Until the Replacement Equitable Pipeline has
been constructed, installed and made operational, quantities of Plant Products
and natural gas liquids delivered into trucks at the ** will be determined by weighing each truck, using State
certified scales, both full and after the Plant Products and natural gas
liquids have been unloaded and calculating the weight of the Plant Products and
natural gas liquids delivered.  A sample
of the Plant Products and natural gas liquids will be taken and analyzed, using
means and methods generally acceptable in the gas industry, to determine the
component composition and specific gravity of the delivered Plant Products and
natural gas liquids.  The measured weight
and compositional analysis will be applied in accordance with the ASTM-IP
Petroleum Measurement Tables, American Edition, ASTM designation D 1250, Table No. 24,
to determine the volume of Plant Products and natural gas liquids delivered by
component, corrected to 60°F.

 

5.2                                 Pipeline
Interconnect Measurement.  Equitable shall design and construct a liquid
hydrocarbon metering facility containing meters for both custody transfer
measurement and for check measurement meeting the specifications set forth in
this Agreement and reasonably acceptable to MEA.  The liquid hydrocarbons shall be measured in
pounds (lbm) by coriolis meters mutually acceptable to Equitable and MEA.  Two meters shall be installed in series
(Meter A and Meter B).  Meter A shall be
the first meter in the line of flow and shall be designated as the “Check Meter”.  Meter B shall be the second meter in the line
of flow and shall be the “Accounting Meter”. 
If additional meter runs are required, they shall be configured in the
same manner.  The facility will be
constructed with prover loops and sufficient access for either truck mounted or
trailer mounted provers so that the custody and check meters can be proved on
site with ball provers (if agreed upon by the parties herein).

 

The liquid
stream shall be analyzed with a gas chromatograph mutually acceptable to
Equitable and MEA.  The gas chromatograph
shall be housed in a temperature controlled building.  The natural gas liquid will be vaporized to a
gas state prior to analysis by the chromatograph.  The analysis results shall be used to
calculate the hydrocarbon liquids physical properties.  The calibration gas shall be certified by the
supplier, and shall be stored and used in a temperature-controlled environment
so that condensation of any component does not occur.

 

5.3                                 Btu
Calculation.  The quantity of Btus in the liquid
hydrocarbon stream shall be calculated by using the accumulated mass of the
hydrocarbon liquid stream from the Accounting Meter and the weight percent of
each liquid hydrocarbon component determined by chromatographic analysis.  More specifically, the calculation steps are:

 

(a)                                  Calculate the weight fraction of
each component by multiplying the mole fraction of each component (from
chromatographic analysis) by its molecular weight (from latest approved edition
of GPA standard 2145) to obtain the weight (lbs).  The component weight is then divided by the
total composite weight to obtain the weight fraction of each component.

 

8

 

(b)                                 Calculate the composite total
Btu of each pound (Btu/lbm) of liquid hydrocarbon mixture.  This is obtained by multiplying the weight
fraction of each component from (a) by its standard Gross Heating
Value.  For purposes of this section,
Gross Heating Value is obtained from Gas Processor Association (GPA), Standard
2145, latest edition.  The value used is “Btu/lbm,
fuel as ideal gas”.  Hexanes+ shall
initially be 20,899 subject to subsequent determination by a mutually agreeable
third-party laboratory.  Analysis shall
be conducted at intervals not to exceed one year.

 

(c)                                  Calculate each liquid
hydrocarbon component’s portion of the total Btu of each pound of liquid
hydrocarbon by taking the total Btu of each pound (Btu/lbm) value from (b) and
multiplying by the weight fraction of each component.

 

(d)                                 Calculate the total Btus in the
liquid hydrocarbon stream by multiplying the total mass (lbm) from the
Accounting Meter by the total Btus per pound (Btu/lbm) from (c).

 

5.4                                 Meter
Operation.  MEA shall own and be responsible for the
operation and maintenance and all associated operation and maintenance costs of
the Accounting Meter(s).  Equitable shall
own and be responsible for the operation and maintenance and all associated
operation and maintenance costs of the Check Meter(s).  An online comparison of the difference in
measurements by the two (2) meters shall be maintained.  If the difference between the daily
accumulated total mass flow readings (lbm) at Meter A and Meter B exceeds 1% of
the reading of Meter B, for longer than (10) consecutive days, the meter
with the smaller mass flow reading shall be returned to the factory for repair
and calibration.  The calibration may
also be performed by mutually agreed upon means between Equitable and MEA. The
remaining meter will serve as the Accounting Meter during this period.  After calibration of the meter with the
smaller mass flow reading, if the difference between the meter readings still
exceeds 1% of the meter of Meter B, for longer than ten (10) consecutive
days, then the other meter will be returned to the factory for repair and
calibration or calibrated by means mutually agreed upon between Equitable and
MEA.  Readings during the period where
the difference exceeds 1% shall be adjusted to reflect readings based upon the
meter determined to be more accurate during that period.  If both Meter A and Meter B should fail,
recordings and quantities shall be determined as followed in descending order:

 

(a)                                  Using measurement from other
check meters, if any, which were in operation during the period to be
corrected; or if this cannot be done,

 

(b)                                 By correcting the error if the
percentage of error is ascertainable by calibration or calculation; or if this
cannot be done,

 

(c)                                  By comparison with quantities
flowing under similar conditions when the meter was registering accurately and
by the use of pertinent plant records, including, but not limited to, storage
tank readings.

 

(d)                                 If the preceding methods cannot
be done, an alternate method agreed to by the parties herein shall control.

 

9

 

Any correction
shall be retroactive for any period definitely known or, if not known, it shall
be retroactive for one-half of the volume displaced since the last test of the
measuring equipment affected, not to exceed 50% of the volume displaced.  However, no correction shall be made if the
magnitude of the error is determined to be .0050 (0.50%) or less.  Any corrections shall be debited or credited
on the next subsequent statements for the Accounting Period.

 

5.5                                 Measurement
Accuracy and Testing.  The liquid hydrocarbon measurement equipment
shall be calibrated at least once every 12 month period.  The calibration procedure will be either the
manufacturer’s recommended methods or by other means mutually agreed upon by
Equitable and MEA.  The calibration
frequency may be altered in the future if agreed upon by both parties in
writing.  The Check Meter will serve as
the Accounting Meter during all periods the Accounting Meter is out of service.
When the Accounting Meter is returned, the Check Meter shall be calibrated by
the same method as the Accounting Meter. 
If a meter is calibrated due to differences exceeding 1% of Meter B
before the 12 month period is reached, the period between calibrations will
start at the last completed calibration. 
MEA and Equitable shall share all costs of recalibration.  Each party shall promptly provide the other
the results of all meter calibrations in writing following their receipt of the
results.

 

If field meter
proving equipment is used for calibration, it shall be designed, manufactured,
and tested in accordance with Chapter 4 of the “API Manual of Petroleum
Measurement Standards” as current at the time of such design, manufacture, and
testing.  Proving equipment shall be
recertified to NIST (National Institute of Standards and Technology) at least
annually.  Meter proving shall be done at
least annually by a mutually agreed upon third party meter proving service, in
accordance with Chapters 4 and 5 of the “API Manual Of Petroleum Measurement
Standards”, as amended from time to time. 
The calibration frequency may be altered in the future if agreed upon by
both parties in writing.  Recalibration
of gravitometers, densitometers or such other similar devices, or the
determination of a gravitometer adjustment factor shall be done once per
quarter, by use of a pyonometer to an accuracy of fifty one-hundredths percent
(0.50%).

 

The
chromatographic equipment shall be tested and recalibrated on a monthly
basis.  MEA shall own and be responsible
for the operation and maintenance and all associated operation and maintenance
costs of the chromatograph.  At any time
that inaccuracies in the chromatograph is suspected, MEA shall obtain samples
of the natural gas liquid and calibration gas and shall have a mutually
agreeable third party laboratory analyze the samples.  If inaccuracies are found, the calibration
gas shall be changed to be representative of the natural gas liquid.

 

Both parties
shall have access to the metering equipment at all reasonable times.  Each party must notify the other party a
minimum of twenty four (24) hours in advance of any planned testing,
calibrations, or meter provings.  Each
party may have a representative present during any of the foregoing
activities.   Representatives of both
parties shall have the right to be present during any repairing, inspecting,
testing, calibrating, or adjusting done in connection with the measuring
equipment. Each party reserves the right at a future date to install additional
check meters; such meters shall be of a type mutually agreeable to both parties
and shall not be installed in such a manner as to interfere with the proper
operation of other existing measurement equipment.

 

10

 

If either
party to this Agreement notifies the other party that it desires a special test
of any measuring equipment, the parties shall cooperate to secure a prompt
verification of such equipment, at the expense of the party requesting such
special test.  However, if a meter or
other equipment is found to be in error by more than 1%, MEA shall bear the
expense of such special test.

 

5.6                                 Standards. 
The measurement equipment shall maintained and operated in accordance
with the latest amended and revised edition of (a) “API Manual of
Petroleum Measurement Standards”, Chapters 1, Vocabulary; Chapter 4, Proving
Systems; Chapter 5, Metering; Chapter 12, Calculation of Petroleum Quantities;
and Chapter 14, Section 6, Installing and Proving Density Meters; (b) GPA
Publication 2145-95, “Table of Physical Constants of Paraffin Hydrocarbons and
Other Components of Natural Gas”; (c) GPA Publication 2174, “Methods for
Obtaining Hydrocarbon Fluid Samples Using a Floating Piston Cylinder”; (d) GPA
Publication 2177, “Methods for Analysis of Demethanized Natural Gas Liquid
Mixtures by Gas Chromatography”; (e) GPA Publication 8173, “Standard for
Converting Natural Gas Liquids and Vapors to Equivalent Liquid Volumes”; and (f) GPA
Publication 8182, “Standard for the Mass Measurement of Natural Gas Liquids”,
and any other API and GPA standards and publications that are considered
industry standards that are applicable.

 

5.7                                 Record
Retention.  All records shall be retained for audit
purposes for a period of two (2) years or a longer period if required by
any applicable law and/or regulatory body. 
Each party reserves the right to contract outside services to
participate in any audits or review of data.

 

5.8                                 Flow Computer /
RTU.  The custody transfer flow computer / RTU
shall be mutually agreed upon by both parties. 
MEA shall operate and maintain the custody transfer flow computer / RTU.  Equitable shall have the right to install an
audit flow computer / RTU and share any electronic signals that are necessary
to audit the station.

 

5.9                                 Gallons
Calculation.  For purposes of fees and
compensation, gallons of individual Plant Products and natural gas liquids
shall be calculated in the following manner:

 

Divide the individual Plant Product or
natural gas liquid mass (lbm) by the individual liquid absolute density
(lbm/gal).  The individual liquid
absolute density values shall be taken from the latest edition of GPA Standard
2145, except for the component “Hexanes plus”, for which “pounds per gallon”
shall be analytically determined.

 

ARTICLE 6

TITLE TO PLANT PRODUCTS AND NATURAL GAS
LIQUIDS

 

6.1                                 Title to, and risk of loss for,
and full responsibility for, all Plant Products and natural gas liquids
delivered under this Agreement shall transfer and pass from Equitable to MEA at
the ** Delivery Point or the ** Delivery Point, as applicable.

 

11

 

ARTICLE 7

FEES AND COMPENSATION

 

7.1                                 From and after the Effective Date, for each Accounting
Period during the term of this Agreement, MEA shall pay to Equitable ** delivered to MEA by Equitable at the
applicable Delivery Point during that Accounting Period, less the proceeds
allocable to “MEA’s Share”, as defined below; minus the fees payable to MEA
under Sections 7.4 and 7.5, below (the “Products Proceeds”).  For
purposes of this Article 7, “MEA’s Share” of the proceeds attributable to
Fractionated Products derived from Equitable’s Plant Products and natural gas
liquids shall be as follows:

 

(a)                                  Prior to **,
MEA will be entitled to retain proceeds attributable to ** of the Plant Products and natural gas
liquids delivered by Equitable hereunder.

 

(b)                                 Beginning on **,
and, subject to Section 7.1(c) below, and continuing through the end
of the Term, MEA’s retention of proceeds derived from all Plant Products and
natural gas liquids delivered by Equitable to MEA under this Agreement shall be
determined from the following table:

 

**

 

(c)                                  However, if **,
MEA’s Share will be set at ** and
will not be ** set forth above,
until **.

 

(d)                                 Accounting hereunder shall be on an Accounting Period basis,
and the reference in the foregoing table to daily volumes means the average
daily volume during the month.

 

(e)                                  As used herein, “Third Party Gas” means gas (i) produced
from any Non-Operated Well within the area described on Exhibit C and (ii) delivered
to the Plant.  As used herein, “Non-Operated
Well” means a well not (i) currently operated by Equitable, Equitable Production Company or an Affiliate of either, or a successor
or assign thereto and/or (ii) operated at any time after the date hereof
by Equitable, Equitable Production Company or an Affiliate of either, or a
successor or assign thereto.  “Qualifying
Third Party Gas” means “Third Party Gas” **

 

(f)                                    **  The foregoing will not be subject to the Maximum Daily Plant
Products and Natural Gas Liquids set forth in the table above.   Examples of calculations to determine the
additional retained natural gas liquids under certain scenarios in accordance
with this Section 7.1(f) are set forth in Exhibit D.

 

7.2                                 If the MEA Pipeline is unable to receive and/or transport
Plant Products and natural gas liquids or the Siloam Facility is unable to
fractionate the Plant Products or natural gas liquids, for any reason, MEA
shall use commercially reasonable efforts to  utilize
substitute means of receiving and/or transporting and/or fractionating Plant
Products and natural gas liquids 

 

12

 

for
the ultimate sale of components hereunder so long as such substitute means are
pre-approved by Equitable and Equitable has not elected to exercise its right
to make alternate arrangements under Section 3.1(c).  Any temporary increase in cost of
transporting or fractionating Plant Products and natural gas liquids incurred
as a result of such substitute means approved by Equitable during such
inability shall be ** MEA shall
use all reasonable efforts to remedy the disability and provided further that **

 

7.3                                 All Fractionated Products shall be marketed by MEA in a
commercially reasonable manner.

 

7.4                                 From the applicable proceeds due Equitable under Section 7.1,
above, MEA will deduct the following fees:

 

(a)                                  A ** per gallon
of Plant Products and natural gas liquids as measured at the applicable
Delivery Point; plus

 

(b)                                 A ** of Plant
Products and natural gas liquids **,
averaged over an Accounting Period.

 

(c)                                  The foregoing fees shall be applicable to the portion of
Plant Products and natural gas liquids allocable to the Fractionated Products
for which Equitable receives the proceeds under Section 7.1, i.e., not
applicable to MEA’s Share.

 

(d)                                 **
will be subject to adjustment, beginning on  February 1,
2008, in proportion to the annual percentage change, from the preceding year,
in the Producer Price Index for Support Activities for Oil and Gas Operations
(NAICS 213112), as published by the U.S. Department of Labor.  The adjustment of those fees shall be made
effective upon each  February 1,
and shall reflect the annual average percentage change in the foregoing index
during the immediately preceding calendar year. 
In the event the Producer Price Index ceases to be published, the
parties shall mutually agree to an alternative published price index to carry
out the provisions of this section, and any dispute regarding a replacement
index shall be resolved under the dispute resolution procedures set forth in Section 13.7
below.

 

**

 

a.                                       Equitable shall pay MEA  the ** on the ** as determined below, if any, effective as of the
following dates.  The following shall be
determined on an Accounting Period basis:

 

i.                                          Commencing **, the ** will be
calculated by subtracting the **; provided,
however, that if the ** exceed ** shall be applied to only the **

 

ii.                                       Commencing **, the ** will be
calculated by subtracting the **; provided,
however, that if the ** exceed ** shall be applied to only the **;
and

 

iii.                                    Commencing **, the ** will be
calculated by subtracting the **; provided,
however, that if the ** exceed ** shall be applied to only the **.

 

13

 

iv.                                   If the
calculation of ** is a negative amount, no ** under this Section 7.5(a) shall apply and the
negative amount shall not be carried over to any subsequent Accounting Periods.

 

v.                                      For any
Accounting Period in which ** under this Section 7.5(a) for ** are incurred, Equitable shall pay, or MEA shall deduct
from amounts otherwise due hereunder, such amount.

 

(b)                                 If Equitable requests additional Capacity increases ** under Section 3.1(g), above, then
Equitable shall ** applicable to
the incremental capacity in the following manner:

 

(i)                                    For the then
applicable incremental Capacity requested by Equitable, including incremental Capacity
set forth in the Ramp-Up Schedule, each Accounting Period MEA shall determine ** 
If the difference is a negative amount, no ** under this Section 7.5(b) shall apply  and the
negative amount shall not be carried over to any subsequent Accounting Periods.

 

(ii)                                 For any
Accounting Period in which a ** is
incurred, Equitable shall pay, or MEA shall deduct from amounts otherwise due
hereunder, an amount equal to **

 

(iii)                              The ** under this Section 7.5(b) shall
be applicable to the incremental Capacity **
requested by Equitable, commencing with the
** and continuing for a period of the longer of **. 
Should the Term expire before the period during which the ** under this Section 7.5(b) apply,
as set forth above, then the **

 

7.6                                 Commencing with deliveries through the Replacement Equitable
Pipeline, MEA agrees to **.  The Maximum Pipeline Fee will be subject to
adjustment, beginning on February 1, 2009, in proportion to the annual
percentage change, from the preceding year, in the Producer Price Index for Support
Activities for Oil and Gas Operations (NAICS 213112), as published by the U.S.
Department of Labor.  The adjustment of
that fee shall be made effective upon each  February 1,
and shall reflect the annual average percentage change in the foregoing index
during the immediately preceding calendar year. 
In the event the Producer Price Index ceases to be published, the
parties shall mutually agree to an alternative published price index to carry
out the provisions of this Article, and in the event that the parties cannot
agree, the matter shall be submitted to the dispute resolution procedures under
Section 13.7, below.

 

7.7.                              Examples of calculations to
determine amounts under this Article 7, including Fees under 7.4 and ** under 7.5, under various scenarios are set forth in Exhibit D.

 

7.8                                 In addition, in
consideration of the expanded truck unloading capacity to be installed at the
Siloam Facility by MEA, Equitable shall pay MEA an amount of **.  Such amount
shall be prorated for partial months.  As
used herein, “placed into service”, means the Replacement Equitable Pipeline
has been completed and has commenced deliveries of Plant Products or natural
gas liquids to MEA at the ** Delivery
Point.  If the Replacement Equitable

 

14

 

Pipeline
is not placed into service by **, as
described in Section 7.9, until such time as the Replacement Equitable
Pipeline is placed into service.

 

7.9                                 Until deliveries are made to
the ** Delivery Point through the
Replacement Equitable Pipeline, Equitable and MEA shall **
to cause the Plant Products and natural gas liquids to be delivered from the
Plant to the Siloam Facility.  ** 
Upon the execution of this Agreement, such **.  Within 30 days following the execution of
this Agreement, MEA shall prepare a statement and invoice to Equitable
indicating the amounts due to ** in
accordance with the foregoing provisions. 
Equitable shall pay such invoice within 15 days of receipt.

 

7.10                           To increase marketing efficiencies and opportunities, MEA
may, but is not obligated to, install, acquire or participate in a finished
product pipeline running from the Siloam Facility to other destinations such
as, but not limited to, the Todhunter Terminal point (near Middletown, Ohio) on
the TEPPCO pipeline, approximately 100 miles from the Siloam Facility.  Such pipeline would eliminate third party
trucking expenses. In the event that MEA undertakes such a project, upon
deliveries through such pipeline, MEA may **  Any dispute regarding the ** will be resolved pursuant to the
dispute resolution procedure in Section 13.7 below.  Before MEA proceeds with such a project it
will notify Equitable of the project and of the expected costs and savings of
such a pipeline.

 

7.11                           As a result of this Agreement, MEA shall not be responsible
for or required to pay any royalties, production taxes, severance taxes, ad
valorem taxes, or similar taxes or other taxes based upon or with respect to,
or measured by the production of hydrocarbons attributable to gas delivered to the
Plant or attributable to gas from which other natural gas liquids are delivered
to MEA.

 

ARTICLE 8

STATEMENTS AND PAYMENTS

 

8.1                                 Based on the measurements set forth in this Agreement, MEA
shall provide Equitable with payment on each Payment Date and a detailed
statement explaining fully how all payments due under the terms of this
Agreement were determined not later than the applicable “Payment Date”.  As used herein, the Payment Dates shall be (i) the
last day of each month, covering all deliveries hereunder during the period of
the 1st day through the 15th day of that same month (“First Payment Date”), and (ii) the
15th day of each month, covering all deliveries hereunder during the period of
the 16th day through the last day of the immediately preceding month (“Second Payment Date).

 

8.2                                 It is understood and agreed that the payments made on the
First Payment Date and on the Second Payment Date shall be based upon (x) the
applicable actual Net Sales Price (or MEA’s reasonable estimate of the
applicable actual Net Sales Price to the extent that the actual Net Sales Price
is not known) and (y) the actual volume of Plant Products and natural gas
liquids (or MEA’s reasonable estimate of such volume to the extent actual
volumes are not known) for the Accounting Period in which the Plant Products
and natural gas liquids were delivered to MEA under this Agreement, and (ii) shall
be net of the fees payable to MEA under Article 7, hereof.  Those payments made on the First Payment Date
will also include adjustments, if any, to payments made during any of the
months prior to the month in which the First Payment Date 

 

15

 

occurs,
as necessary to adjust for differences between the estimated Net Sales Price
used in making payments and the actual applicable Net Sales Price, and between
estimated volumes and actual applicable volumes.  Additionally, the payment on the First
Payment Date will reflect ** per
Accounting Period.

 

8.3                                 All payments shall be paid by MEA to Equitable by wire
transfer not later than the applicable Payment Date for which the payments are
due.  If a Payment Date falls on a
Saturday or a Friday bank holiday, payment shall be made on the preceding
banking day.  If the Payment date falls
on a Sunday or a Monday bank holiday, payment shall be made on the succeeding
banking day.  Should MEA fail to make any
payments to Equitable when due, interest shall accrue on the unpaid balance at
the lower of (i) the then effective prime interest rate published in the “Money
Rates” section of The Wall Street Journal, plus two percent (2%), or (ii) the
applicable maximum published rate allowed by law, from the date due until
paid.  If a party, in good faith,
disputes an amount due or any part thereof, it shall provide supporting
documentation fully explaining its basis for the disputed amount.  The assertion of a disputed amount shall not
be a basis for MEA to withhold payment of amounts it concedes to be correct.

 

8.4                                 Subject to the audit provisions in Section 7.1, either
party, on 30 days prior written notice, shall have the right at its expense, at
reasonable times during business hours, to audit the books and records of the
other party to the extent necessary to verify the accuracy of any statement,
allocation, measurement, computation, charge, or payment made under or pursuant
to this Agreement, or to determine if all Plant Products and natural gas
liquids contemplated under this Agreement are being delivered under the terms
of this Agreement.  The scope of any
audit shall be limited to the 24 month period immediately prior to the month in
which the audit is requested; provided, no audit may include any time period
for which a prior audit hereunder was conducted, and no audit may occur more
frequently than once each 12 months.  The
party conducting the audit shall have 60 days after requesting the audit in
which to submit a written claim for adjustments, with supporting detail.  The audited party shall respond to the
written claim in writing within 30 days after receiving the written claim.  All statements, allocations, measurements,
computations, charges, or payments made in any period prior to the 24 month
period immediately prior to the month in which the audit is requested, or made
in any 24 month period for which the audit is requested but for which a written
claim for adjustments is not made within 30 days after the audit is requested,
plus any additional time caused by the unreasonable delays of the party being
audited, shall be conclusively deemed true and correct.

 

ARTICLE 9

TERM

 

9.1                                 This Agreement shall remain in full force and effect until March 31,
2015, unless terminated earlier pursuant to the provisions of this Agreement (“Term”).

 

ARTICLE 10

FORCE MAJEURE

 

10.1                           In the event a party is rendered unable, wholly or in part,
by Force Majeure, to carry out its obligations under this Agreement, other than
the obligation to make any payments due hereunder, the obligations of that
party, so far as they are affected by Force Majeure, shall be 

 

16

 

suspended
during the continuance of the inability, and the cause of the Force Majeure, as
far as possible, shall be mitigated and remedied with all reasonable
dispatch.  The party affected by Force
Majeure shall provide the other party with written notice of the Force Majeure
event, with reasonably full detail of the Force Majeure within a reasonable
time after the occurrence of the Force Majeure event.

 

10.2                           “Force Majeure”
shall mean any act, event or circumstance that is not reasonably within the
control of, does not result from the negligence of, and would not have been
avoided or overcome by the exercise of commercially reasonable diligence by,
the party claiming Force Majeure and that prevents or delays in whole or in
part such party’s performance of any one or more of its obligations under this
Agreement.

 

10.3                           The settlement of strikes, lockouts, and other labor
difficulty shall be entirely within the discretion of the party having the
difficulty and nothing herein shall require the settlement of strikes,
lockouts, or other labor difficulty.

 

ARTICLE 11

DEFAULT, REMEDIES AND LIABILITY

 

11.1                           The following occurrences each shall constitute an “Event of Default”.

 

(a)                                  Failure by a party to make any payment required hereunder
when due if such failure is not remedied within five (5) business days
after receiving written notice of such failure, provided that the payment in
question is not the subject of a good faith dispute.

 

(b)                                 Failure by a party to perform any other material obligation
hereunder, and such failure is not remedied within 30 days after receipt by the
defaulting party of written notice of such failure, provided that so long as a
party has initiated and is diligently attempting to effect a cure, the party’s
cure period shall extend for a period reasonably required to effectuate such
cure, but not to exceed 120 days;

 

(c)                                  Any representation or warranty made by a party in this
Agreement shall have been false in any material respect when made, and is not
remedied within 30 days after receipt by the defaulting party of written notice
of such failure, provided that so long as a party has initiated and is
diligently attempting to effect a cure, the party’s cure period shall extend
for a period reasonably required to effectuate such cure, but not to exceed 120
days.

 

(d)                                 A party (i) makes an assignment for the benefit of its
creditors, (ii) files a petition or otherwise commences, authorizes or
acquiesces in the commencement of a proceeding or cause of action under any
bankruptcy or similar law for the protection of creditors, (iii) has such
petition filed against it and such petition is not withdrawn or dismissed for
sixty (60) days after such filing, (iv) becomes insolvent or, (v) is
unable to pay its debts when due.

 

11.2                           Termination Upon an Event of Default.

 

17

 

(a)                                  Upon the occurrence of, and during the continuation of, an
Event of Default, the non-defaulting party may terminate this Agreement by
written notice to the other party designating the date of termination and
delivered to the defaulting party no less than ten days before such termination
date.

 

(b)                                 In the event of a termination of this Agreement, the parties’
respective obligations under this Agreement shall terminate (other than those
obligations which expressly are to be performed after termination).  Upon an event of default or termination, and
subject to the provisions of Section 13.7, each party shall be free to
pursue any remedies available to it at law or in equity.

 

11.3                           As between the parties hereto, Equitable and any of its
designees shall be in custody, control and possession of the Plant Products and
natural gas liquids hereunder until the Plant Products and natural gas liquids
are delivered to the applicable Delivery Point. 
As between the parties hereto, MEA and any of its designees shall be in
custody, control and possession of the Plant Products and natural gas liquids,
and the Fractionated Products derived therefrom, from and after their delivery
at the applicable Delivery Point.

 

11.4                           MEA hereby covenants and agrees with
Equitable that except to the extent caused by Equitable’s or Equitable’s
Indemnified Parties (as defined below) gross negligence or willful misconduct
or breach hereof, MEA shall protect, defend, indemnify and hold harmless
Equitable, its parents, subsidiaries and affiliates, and each of their
respective officers, employees, shareholders, equity holders, agents, and their
successors and assigns (hereinafter referred to as the “Equitable’s Indemnified
Parties”) from, against and in respect of any and all Losses (as hereinafter
defined) incurred by Equitable or any of Equitable’s Indemnified Parties to the
extent those Losses arise from or are related to:  (a) MEA’s operations or facilities from
and after the applicable Delivery Point, including without limitation, MEA’s
operations or facilities within the Siloam Facility, or (b) MEA’s
possession and control of the Plant Products, natural gas liquids and
Fractionated Products.  Notwithstanding
anything to the contrary herein, MEA assumes all risk of loss to the Plant
Products and natural gas liquids delivered under this Agreement to the extent
any loss occurs as a result of MEA’s or its agent’s faulty equipment or their
negligent acts or omissions or intentional misconduct.

 

11.5                           Equitable hereby covenants and agrees with
MEA that except to the extent caused by MEA’s or MEA’s Indemnified Parties (as
defined below) gross negligence or willful misconduct or breach hereof,
Equitable shall protect, defend, indemnify and hold harmless MEA, its parents,
subsidiaries and affiliates (including, but not limited to MarkWest Hydrocarbon, Inc.),
and each of their respective officers, employees, shareholders, members, equity
holders, agents, and their successors and assigns (hereinafter referred to as
the “MEA’s Indemnified Parties”) from, against and in respect of any and all
Losses (as hereinafter defined) incurred by MEA or any of MEA’s Indemnified
Parties to the extent those Losses arise from or are related to:  (a) Equitable’s operations or facilities
before the applicable Delivery Point or (b) Equitable’s possession and
control of the Plant Products and natural gas liquids.  Notwithstanding anything to the contrary
herein, Equitable assumes all risk of loss to the Plant Products and natural
gas liquids delivered under this Agreement to the extent any loss occurs as a
result of 

 

18

 

Equitable’s or its agent’s faulty equipment or their
negligent acts or omissions or intentional misconduct.

 

11.6                           For the purposes of this Article, “Loss(es)” shall mean any
actual loss, cost, expense, liability, damage, demand, suit, sanction, claim,
settlement, judgment, lien, fine, penalty, interest of every kind and character
(including reasonable fees and expenses of attorneys, technical experts and
expert witnesses reasonably incident to same) which are alleged, asserted or
suffered by the applicable indemnified party, and any expenses incurred in
enforcing this indemnity provision, incurred by, imposed upon or rendered
against one or more of the applicable indemnified party, on account of injuries
(including death) to any person or damage to or destruction of any property,
sustained or alleged to have been sustained in connection with or arising out
of or incidental to the matters for which the indemnifying party has
indemnified the applicable indemnified party, and whether based on contract,
tort or pursuant to any then existing laws, rules or regulations of any
governmental body having jurisdiction with respect thereto.

 

11.7                           Insurance.  Each party shall maintain, either from an
insurance provider or through self insurance, insurance coverage sufficient to
cover its liabilities under this Agreement, but in no case less than the amount
set forth on Exhibit E.

 

11.8                           Indemnification Procedure.  The indemnifications contained in this Article shall
be implemented as follows:

 

(a)                                  Notice of Claim.  The party seeking indemnification under the
terms of this Agreement (“indemnified party”)
shall submit a written “Claim Notice”
to the other party (“indemnifying party”)
which, to be effective, must state:  (i) the
amount, if any, of each payment claimed by an indemnified party to be owing, (ii) the
basis for the claim, with reasonable supporting documentation, and (iii) to
the extent reasonably possible, each separate item of Loss for which payment,
or other performance under the Article, is so claimed.  If the Claim Notice demands payment of money,
the amount claimed shall be paid by the indemnifying party to, and only to, the
extent required herein within 30 days after receipt of the Claim Notice or
after the amount of that payment has been finally established, either
judicially or by mutual agreement, whichever last occurs.

 

(b)                                 Claims Involving Litigation.  Within 30 days after notification to any
indemnified party with respect to any claim or legal action or other matters
that may result in a Loss for which indemnification may be sought under this
Article, but in any event in time sufficient for the indemnifying party to
contest any action, claim, proceeding or other matter that has become the
subject of proceedings before any court or tribunal, the indemnified party
shall give written notice of the claim, legal action or other matter to the
indemnifying party and, at the request of the indemnifying party, shall furnish
the indemnifying party or its counsel with copies of all pleadings and other
information with respect to the claim, legal action or other matter.  If the information includes any matter which
is privileged or otherwise exempt from discovery by an adverse party,
disclosure of that matter may be made contingent upon entering into a joint
defense agreement or taking other reasonable protective measures.  The failure to provide that notice within 

 

19

 

the
time specified shall not relieve an indemnifying party of its indemnity
obligations hereunder except to the extent of any Losses which are attributable
to that failure.  Upon the election of
the indemnifying party made within 60 days after receipt of that notice by the
indemnifying party, indemnifying party shall have the right to assume control
of that claim, legal action or other matter (to the extent only that the claim,
legal action or other matter relates to a Loss for which the indemnifying party
is liable), including the determination of all appropriate actions, the
negotiation of settlements on behalf of the indemnified party, and the conduct
of litigation through attorneys of the indemnifying party’s choice, provided,
however, that no settlement can result in any liability or cost to the
indemnified party for which it is entitled to be indemnified hereunder without
its consent, which consent shall not be unreasonably withheld.  If the indemnifying party elects to assume
control, (i) any expense incurred by the indemnified party thereafter for
investigation or defense of the matter shall be borne by the indemnified party
and (ii) the indemnified party shall give all reasonable information and
assistance, other than pecuniary, that the indemnifying party shall deem
necessary to the proper defense of the claim, legal action, or other matter,
subject to the requirements, if applicable, of a joint defense agreement or
reasonable protective measures as referred to above.  In the absence of an election, the
indemnified party will use good faith efforts to defend, at the indemnifying
party’s expense any claim, legal action or other matter to which the other
party’s indemnification under this Article applies until the indemnifying
party assumes the defense, and, if the indemnifying party fails to assume that
defense within the time period provided above, at the indemnified party’s
election either continue the defense thereof, at the indemnifying party’s
expense, or settle the same in the indemnified party’s reasonable discretion,
and with the consent of the indemnifying party, which consent shall not be
unreasonably withheld, at the indemnifying party’s expense.

 

11.9                           NO BREACH OF THIS AGREEMENT SHALL CAUSE ANY
PARTY HERETO TO BE LIABLE TO THE OTHER PARTIES HERETO FOR, INDIRECT, PUNITIVE,
CONSEQUENTIAL, OR EXEMPLARY DAMAGES.  However, the foregoing does not in any way
limit an indemnifying party’s liability under its indemnification obligation
under this Agreement for indemnification against indirect, punitive,
consequential, or exemplary damages arising out of a claim or award of such
damages to a third party for which indemnification may be sought under this
Agreement.

 

ARTICLE 12

WARRANTIES

 

12.1                           Each party represents and warrants that it is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its formation, and is qualified to conduct its business in all
jurisdictions necessary to perform its obligations hereunder.

 

12.2                           Each party represents and warrants that the execution,
delivery and performance of this Agreement are within its powers, have been
duly authorized by all necessary action and do not violate any of the terms or
conditions in its governing documents or any agreement to 

 

20

 

which
it is a party, or any law, rule, regulation, order, writ, judgment, decree or
other legal or regulatory determination applicable to such party

 

12.3                           Each party represents and warrants that this Agreement
constitutes a legal, valid and binding obligation of such Party, enforceable
against it in accordance with its terms.

 

12.4                           Each party represents and warrants that to such party’s
knowledge, there are no liens, adverse claims or other encumbrances; and no
actions, proceedings, judgments, rulings or orders, issued by or pending before
any court or other governmental body that would materially adversely affect its
ability to perform this Agreement.

 

12.5                           Equitable represents and warrants that it owns, or has the
right to commit, all Plant Products and natural gas liquids committed hereby
and has the right to deliver and sell the Plant Products and natural gas
liquids to MEA for the purposes of this Agreement, free and clear of all liens,
encumbrances and adverse claims. 
Equitable hereby indemnifies MEA against and holds MEA harmless from any
and all damages, claims, actions, losses, and costs, including its court costs
and attorneys fees, arising out of or related to any breach of the foregoing
representation and warranty.

 

12.6                           MEA represents and warrants that it has the right and
ability to turn over proceeds from the sale of Fractionated Products, as
required in Article 7 of this Agreement, free and clear of all liens,
encumbrances and adverse claims.  MEA
hereby indemnifies Equitable against and holds Equitable harmless from any and
all damages, claims, actions, losses, and costs, including its court costs and
attorneys fees, arising out of or related to any breach of the foregoing
representation and warranty.

 

12.7                           OTHER THAN THOSE WARRANTIES EXPRESSLY SET FORTH IN THE TERMS
OF THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY
KIND WHATSOEVER, EXPRESS, IMPLIED, ORAL, WRITTEN OR OTHERWISE, INCLUDING,
WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, ALL OF WHICH REPRESENTATIONS AND WARRANTIES ARE EXPRESSLY DISCLAIMED
AND WAIVED BY THE PARTIES.

 

ARTICLE 13

MISCELLANEOUS

 

13.1                           The failure of any party hereto to exercise any right
granted hereunder shall not impair nor be deemed a waiver of that party’s
privilege of exercising that right at any subsequent time or times.

 

13.2                           This Agreement shall be subject to all applicable state,
federal and local laws, rules and regulations, and the parties hereto
shall be entitled to regard all those laws, rules and regulations as
valid, and may act in accordance therewith until they may be invalidated by
final judgment in a court of competent jurisdiction.

 

13.3                           This Agreement shall be governed by, construed, and enforced
in accordance with the laws of the State of Kentucky without regard to choice
of law principles. It is agreed that 

 

21

 

venue
regarding any action or proceedings with respect to any claim or dispute
arising out of or related to the matters described herein shall lie exclusively
in the Federal Court for the Eastern District of Kentucky, or, if the Federal
Court does not exercise jurisdiction, in the State Court located in Fayette
County, Kentucky.

 

13.4                           This Agreement shall extend to and inure to the benefit of
and be binding upon the parties hereto, and their respective successors and
assigns.  Neither party may assign this
agreement, in whole or in part, without the prior written consent of the other
party which consent shall not be unreasonably withheld or delayed; provided,
however, that without the need for consent: (a) Equitable shall have the
right to assign its rights and obligations under this Agreement to any
wholly-owned Affiliate that owns and operates the Plant; provided, the
foregoing permitted assignment shall not relieve Equitable of its obligations
under this Agreement unless otherwise expressly agreed  to in writing by MEA; and (b) MEA shall
have the right to assign its rights and obligations under this Agreement to any
wholly-owned Affiliate that owns and operates the Siloam Facility; provided,
the foregoing permitted assignment shall not relieve MEA of its obligations
under this Agreement unless otherwise expressly agreed  to in writing by Equitable.  The failure of either party to provide
written consent to a written notice and request for a proposed assignment
within twenty (20) days of receipt of the notice and request, shall be deemed
as approval by such party of the proposed assignment, provided, again the
assignment shall not relieve a party of its obligations under this Agreement
unless otherwise expressly agreed to in writing by the other party.  No assignment of this Agreement or of a Party’s
rights and obligations under this Agreement, shall be binding on either of the
parties hereto, other than the party selling, transferring, assigning or
conveying its interests in this Agreement, until the first day of the
Accounting Period following the date a certified copy of the instrument
evidencing that sale, transfer, assignment or conveyance has been delivered to
the other party.

 

13.5                           Nothing herein contained shall be deemed to create a
partnership, mining partnership, joint venture or an association between or
among the parties hereto and each party shall be deemed to act in connection
with its performance of this Agreement for itself, and not for the other, and
no party hereto shall be liable, or responsible for any acts of the other by
virtue of the relationship created under this Agreement.

 

13.6                           The parties agree to keep the terms of this Agreement, and
any information disclosed during any audits permitted hereunder, confidential
and not disclose the same to any other persons, firms or entities without the
prior written consent of the other party; provided, the foregoing shall not
apply to disclosures compelled by law, rule or regulation, including
without limitation the rules and regulations of a stock exchange or the
Securities Exchange Commission, or court order; or to disclosures to a party’s
financial advisors, consultants, attorneys, banks, and institutional investors;
or to disclosures to prospective purchasers of the Plant, Siloam Facility,
Equitable Pipeline or MEA Pipeline, provided those prospective purchasers
likewise agree to keep this Agreement confidential. No announcement or press
release relating to this Agreement shall be made by either party without the
prior written consent of the other party, which consent shall not be unreasonably
withheld, provided however, either party, with notice to the other, may make
any announcement required by law, rule or regulation including without
limitation the rules and regulations of a stock exchange or the Securities
Exchange Commission.  Notwithstanding
anything herein to the contrary, to the extent a party to this Agreement is 

 

22

 

required
to file this Agreement with a stock exchange or the Securities Exchange
Commission, such party shall (i) notify the other party (the “Notified Party”) in advance of such filing,
(ii) seek confidentiality treatment with regards to any information
contained therein that the Notified Party requests be kept confidential and (iii) provide
the Notified Party adequate opportunity to review any proposed filing of this
Agreement to enable it to seek a protective order if sensitive or confidential
information is to be disclosed.

 

13.7                           Dispute Resolution.  Any dispute, controversy or claim arising out
of or in relation to or in connection with this Agreement, including any
dispute as to the construction, validity, interpretation, enforceability, or
breach of this Agreement, may be resolved by any means available to the parties
at law or equity.  Upon a party’s written
request, the senior executives of the parties shall agree to meet and negotiate
in good faith to attempt to resolve such dispute.  If such executives are unable to resolve the
dispute within thirty (30) days, either party may submit such a dispute to
mediation by a single mediator by providing notice of such election to the
other party.  The mediator shall be
knowledgeable in the field of the dispute, shall have no economic interest in
or economic relationship with the parties, shall not have been employed by any
party or any of their affiliates for at least five (5) years prior to its
appointment as mediator hereunder, and shall be selected unanimously by the
parties.  If the parties are unable to
agree upon a mediator within fifteen (15) days after deciding to refer the
matter to mediation, then, upon request of either party, the American
Arbitration Association shall appoint such mediator.  The mediator, within thirty (30) days after
the mediator’s acceptance of its appointment, the mediator shall schedule a
mediation hearing and each party shall provide the mediator with a report
containing their proposal for the resolution of the matter and the reasons
therefore, accompanied by all relevant supporting information and data.  Each party shall pay one-half the costs for
such mediation.

 

13.8                           All notices, payments, consents or other communications
between the parties given under or in relation to this Agreement shall be as
directed below.  Written notices shall be
delivered by letter, facsimile or other mutually acceptable electronic
means.  Notice by facsimile, overnight
mail, courier or hand delivery shall be deemed to have been received on the
business day on which it was transmitted or hand delivered, unless transmitted
or hand delivered after 5 p.m. local time at the receiving party’s
address, in which case it shall be deemed to have been received on the next
business day.  Notice by U.S. Mail shall
be deemed to have been received upon arrival at the receiving parties address.

 

	
  Payments: 

  Wire Transfers: 

  Equitable Gathering, LLC

  
	
   

  
	
  **

  
	
   

  
	
  Statements: 

  Equitable Gathering, LLC

  
	
   

  
	
  Attn: Accounting
  Department 

  
	
  Telephone:

  	
  (423) 224-3800 

  	
   

  
	
  Facsimile:

  	
  (423) 224-3894

  	
   

  

 

23

 

	
   

  
	
  To Equitable:

  
	
   

  
	
  Equitable Gathering, LLC 

  Attention: Gas Control 

  225 North Shore Drive 

  Pittsburgh, Pennsylvania 15212-5861 

  Phone: 412-395-2587 

  

  With a copy to: 

  

  Equitable Production Company 

  Attention: Vice President & General Counsel 

  1710 Pennsylvania Avenue 

  Charleston, West Virginia 25302 

  Phone: 304-348-3890 

  Facsimile: 304-343-2829

  
	
   

  
	
  To MEA:

  
	
   

  
	
  MarkWest Energy
  Appalachia, LLC 

  1515 Arapahoe Street 

  Tower 2, Suite 700 

  Denver, Colorado 80202 

  Attn: Contract Administration 

  
	
  Telephone:

  	
  (303) 290-8700 

  	
   

  
	
  Facsimile:

  	
  (303)290-8669

  	
   

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  MarkWest Energy
  Appalachia, LLC 

  1515 Arapahoe Street 

  Tower 2, Suite 700 

  Denver, Colorado 80202 

  Attn: General Counsel  

  
	
  Telephone:

  	
  (303) 925-9220

  	
   

  
	
  Facsimile:

  	
  (303) 925-9308

  	
   

  

 

Either party may change its
address for notice purposes by written notice to that effect delivered to the
other party in accordance with this Article.

 

13.9                           Upon a determination by a court of competent jurisdiction
that any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced, then (i) all other conditions and provisions
of this Agreement shall nevertheless remain in full force and effect, (ii) the
parties shall negotiate in good faith to modify this Agreement to give effect
to the original economic and legal intent of the parties as closely as possible
in an acceptable manner to the end 

 

24

 

that
the transactions contemplated by this Agreement are fulfilled to the extent
possible and (iii) if the Parties are unable to agree on such
modifications to this Agreement and the economic or legal substance of the
transactions contemplated by this Agreement is affected in any manner
materially adverse to any Party, then this Agreement shall be interpreted to
give effect to the original economic and legal intent of the Parties as closely
as possible in an acceptable manner to the end that the transactions
contemplated by this Agreement are fulfilled to the extent possible.

 

13.10                     This
Agreement is made solely for the benefit of the parties, and no other person,
including any officer or employee of the parties, shall have any right, claim
or cause of action under or by virtue of this Agreement.

 

13.11                     MEA
and Equitable agree to take all such further actions and to execute,
acknowledge and deliver all such further documents that are reasonably
necessary or useful in carrying out the purpose of this Agreement.

 

(signatures on next page)

 

25

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on the date first written above.

 

	
  EQUITABLE GATHERING, LLC

  	
  MARKWEST ENERGY
  APPALACHIA, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ JOSEPH O’BRIEN 

  	
   

  	
  By: 

  	
  /s/ FRANK M. SEMPLE 

  
	
  Name:  Joseph O’Brien
  

  	
  Name:  Frank M. Semple 

  
	
  Title:    President

  	
  Title:    CEO and President

  
					

 

[Signature
Page to Natural Gas Liquids Transportation, Fractionation and Marketing
Agreement]

 

 

EXHIBIT
A

 

PRODUCTS
QUALITY SPECIFICATIONS

 

PROPANE

 

	
  Product Characteristics

  	
   

  	
  Minimum

  	
   

  	
  Maximum

  	
   

  	
  Test Methods 

  Latest Revision

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Composition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ASTM E-260

  	
   

  
	
  Percent by Liquid Volume:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ethane

  	
   

  	
   

  	
   

  	
  As limited by other components and vapor
  pressure; however in no event more than 5% by volume of the volume of propane

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HD-5 Propane

  	
   

  	
  90

  	
   

  	
  100

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Propylene

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Butanes & Heavier

  	
   

  	
   

  	
   

  	
  2.5

  	
   

  	
  ASTM D-2163

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Vapor Pressure (psig @ 100 degrees F.)

  	
   

  	
   

  	
   

  	
  208

  	
   

  	
  ASTM D-1267

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Corrosion

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Copper Strip @ 100 deg. F.

  	
   

  	
   

  	
   

  	
  1-b

  	
   

  	
  ASTM D-1838

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Total Sulfur (PPM by weight in liquid)

  	
   

  	
   

  	
   

  	
  123

  	
   

  	
  ASTM D-2784

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5. Non-Volatile Residue

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a) Milliliters @ 100 deg. F.

  	
   

  	
   

  	
   

  	
  0.05

  	
   

  	
  ASTM D-2158

  	
   

  
	
  b) Oil Stain

  	
   

  	
   

  	
   

  	
  Pass

  	
   

  	
   

  	
   

  

 

 

NORMAL BUTANE

 

	
  Product Characteristics

  	
   

  	
  Minimum

  	
   

  	
  Maximum

  	
   

  	
  Test Methods 

  Latest Revision

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Composition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ASTM E-260

  	
   

  
	
  Percent by Liquid Volume:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Isobutane and Lighter

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  ASTM D-2163

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Butylene (Percent of N. Butane)

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Normal Butane & Butylene

  	
   

  	
  95

  	
   

  	
  100

  	
   

  	
  GPA 2165

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pentanes & Heavier

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Vapor Pressure (psig @ 100 degrees F.)

  	
   

  	
   

  	
   

  	
  50

  	
   

  	
  ASTM D-1267

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Corrosion

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Copper Strip @ 100 deg. F.

  	
   

  	
   

  	
   

  	
  1-b

  	
   

  	
  ASTM D-1838

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Total Sulfur (PPM by weight in liquid)

  	
   

  	
   

  	
   

  	
  140

  	
   

  	
  ASTM D-3246

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5. Volatile Residue

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  95% Evaporated-Temperature, degrees F.

  	
   

  	
   

  	
   

  	
  plus 36

  	
   

  	
  ASTM D-1837

  	
   

  

 

 

ISOBUTANE

 

	
  Product Characteristics

  	
   

  	
  Minimum

  	
   

  	
  Maximum

  	
   

  	
  Test Methods 

  Latest Revision

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Composition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ASTM E-260

  	
   

  
	
  Percent by Liquid Volume:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Propane, Propylene and Lighter

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  ASTM D-2163

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Isobutane

  	
   

  	
  96

  	
   

  	
  100

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Butylene, Normal Butane & Heavier

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Vapor Pressure (psig @ 100 degrees F.)

  	
   

  	
   

  	
   

  	
  62

  	
   

  	
  ASTM D-1267

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Corrosion

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Copper Strip @ 100 deg. F.

  	
   

  	
   

  	
   

  	
  1-b

  	
   

  	
  ASTM D-1838

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Total Sulfur (PPM by weight in liquid)

  	
   

  	
   

  	
   

  	
  140

  	
   

  	
  ASTM D-3246

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5. Volatile Residue

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  95% Evaporated-Temperature, degrees F.

  	
   

  	
   

  	
   

  	
  plus 16

  	
   

  	
  ASTM D-1837

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6. Dryness

  	
   

  	
   

  	
   

  	
  No free water

  	
   

  	
  Visual

  	
   

  

 

 

NATURAL GASOLINE

 

	
  Product Characteristics

  	
   

  	
  Minimum

  	
   

  	
  Maximum

  	
   

  	
  Test Methods 

  Latest Revision

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Composition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ASTM E-260

  
	
  Percent by Liquid Volume:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Butanes and Lighter

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  GPA 2165

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pentanes & Heavier

  	
   

  	
  97

  	
   

  	
  100

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Vapor Pressure (psig @ 100 degrees F.)

  	
   

  	
   

  	
   

  	
  14

  	
   

  	
  ASTM D-323

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Corrosion

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Copper Strip @ 104 deg. F.

  	
   

  	
   

  	
   

  	
  1-b

  	
   

  	
  ASTM D-130

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Doctor Test

  	
   

  	
   

  	
   

  	
  Negative

  	
   

  	
  GPA 1138

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5. Dryness

  	
   

  	
   

  	
   

  	
  No free water

  	
   

  	
  Visual

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6. Color

  	
   

  	
   

  	
   

  	
  No Color

  	
   

  	
  Field White Cup Method

  
	
  Saybolt No.

  	
   

  	
  plus 25

  	
   

  	
   

  	
   

  	
  Lab-ASTM D-156

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7. Distillation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  End Point, deg. F.

  	
   

  	
   

  	
   

  	
  375

  	
   

  	
  ASTM D-216

  

 

 

EXHIBIT B

 

GATHERING AREA

**

 

 

EXHIBIT C

 

**

 

 

EXHIBIT D

 

EXAMPLES OF CALCULATIONS

 

**

 

 

EXHIBIT E

 

INSURANCE

 

Coverage Required.  At all times
during the Term of this Agreement, MEA and Equitable each shall
carry with insurers reasonably acceptable to the other, at each such party’s
sole expense, insurance of the types and in the minimum coverages set forth
below, subject to standard policy terms, conditions and exclusions.  Any and all deductibles and self-insured
retentions in the insurance policies described below shall be assumed by the
party carrying such insurance.

 

(i)    Workers Compensation Insurance, including,
without limitation, statutory and occupational disease coverage required under
applicable law;

 

(ii)   Employer’s Liability Insurance with limits of
liability of not less than ** dollars ($**) per occurrence covering employee accident, injury and
death;

 

(iii)  Commercial General Liability Insurance,
including, without limitation, premises and operations, products and completed operations,
cross liability and contractual liability coverages, and no endorsements
limiting coverage due to a party’s negligence, with a combined single limit of
not less than ** dollars ($**)
per occurrence;

 

(iv)  Automobile Liability Insurance, covering
owned, hired, and non-owned automobiles with a combined single limit of not
less than ** dollars ($**)
per occurrence; and

 

(v)   Commercial Property and All-Risk Casualty
Insurance, including Boiler and Machinery, in amounts not less than the
replacement amount for the covered property, and covering breakdown of
equipment, pressure vessels, systems, and machinery.

 

(vi)  Excess Liability Umbrella Insurance over that
required in (ii), (iii) and (iv) above, with minimum limits of ** dollars ($**) per
occurrence.

 

Additional Insured Endorsements/ Primary Coverage/Other.  The policies required by
Subsections 1(ii) through 1(vi) above shall be endorsed to name the
other party, its parent compan(ies), subsidiaries and affiliates as additional
insureds.  Each of the policies set forth
above shall be endorsed to waive subrogation against the other party.  To the extent of the liabilities retained or
assumed by each party under this Agreement, each party agrees that all such insurance
policies carried by such party shall be primary and non-contributory to the
other party’s insurance.  All policies
(applying to coverage listed above), unless prohibited under applicable law,
shall contain no exclusion for punitive damages.  The
insurance to be obtained hereunder shall not be construed as limiting a party’s
indemnity liability or other liability and obligations under the Agreement to
the amount of the minimum required insurance coverage.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]