Document:

RIO VISTA GP LLC
            AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

                         DATED AS OF SEPTEMBER 16, 2004

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THE  MEMBERSHIP  INTERESTS  DESCRIBED  IN  THIS  DOCUMENT HAVE BEEN ACQUIRED FOR
INVESTMENT  AND  HAVE  BEEN  ISSUED  PURSUANT  TO  A CLAIM OF EXEMPTION FROM THE
REGISTRATION  OR  QUALIFICATION  PROVISIONS OF THE SECURITIES ACT OF 1933 OR THE
SECURITIES LAWS OF ANY STATE.  EXCEPT AS OTHERWISE PROVIDED HEREIN, WITHOUT SUCH
REGISTRATION,  SAID  MEMBERSHIP  INTERESTS MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED,  EXCEPT  ON  DELIVERY  TO  THE  COMPANY  OF  AN  OPINION OF COUNSEL
SATISFACTORY  TO  THE  BOARD OF MANAGERS OF THE COMPANY THAT REGISTRATION IS NOT
REQUIRED  FOR  THE TRANSFER, OR SUCH OTHER EVIDENCE SATISFACTORY TO THE BOARD OF
MANAGERS  THAT THE TRANSFER IS NOT IN VIOLATION OF THE SECURITIES ACT OF 1933 OR
ANY  APPLICABLE  STATE  SECURITIES  LAWS.  THE SALE, PLEDGE OR OTHER TRANSFER OF
THESE  SECURITIES  IS ALSO SUBJECT TO THE RESTRICTIONS SET FORTH IN ARTICLE 9 OF
                                                                    ---------
THIS  DOCUMENT.

                                RIO VISTA GP LLC

            AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

     THIS  AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT of Rio Vista
GP  LLC  is  dated  as  of  September  16,  2004.

     WHEREAS,  the  Members  wish  to  enter into this Agreement to provide for,
among  other  things, the management of the business and affairs of the Company,
the  allocation  of  profits and losses among the Members, the respective rights
and  obligations  of  the  Members to each other and to the Company, and certain
other  matters.

     NOW, THEREFORE, the Members agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS
                                   -----------

     For purposes of this Agreement, certain capitalized terms have specifically
defined  meanings  that  are  either  set  forth herein or in Exhibit 1 which is
                                                              ---------
attached  hereto  and  incorporated  herein  by  reference.

                                    ARTICLE 2
                              FORMATION AND PURPOSE
                              ---------------------

     2.1  Formation.  The Company was formed pursuant to the Act and the Members
          ---------
hereby  ratify  the  filing  of  the Company's Certificate of Formation with the
Secretary  of  State  of the State of Delaware on July 10, 2003.  This Agreement
amends and restates the Limited Liability Company Agreement of the Company dated
July 10, 2003, in its entirety.  The rights and liabilities of the Members shall
be  determined  pursuant  to the Act and this Agreement.  To the extent that the
rights  or  obligations  of  any Member are different by reason of any provision

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of  this  Agreement  than  they  would be in the absence of such provision, this
Agreement shall, to the extent permitted by the Act, control.

     2.2  Name.  The  name  of the Company is Rio Vista GP LLC.  The business of
          ----
the Company may be conducted under that name or, upon compliance with applicable
laws,  any other name that the Board of Managers deems appropriate or advisable.
The  Board  of Managers shall file, or shall cause to be filed, any assumed name
certificates  and similar filings, and any amendments thereto, that the Board of
Managers  considers  appropriate  or  advisable.

     2.3  Registered  Office  and  Agent.  The  registered office required to be
          ------------------------------
maintained  by  the  Company  in the State of Delaware pursuant to the Act shall
initially  be  located  at  615  South DuPont Highway , City of Dover, County of
Kent,  Delaware  19901.  The  name  and  address  of the registered agent of the
Company pursuant to the Act shall initially be Capitol Services, IncThe Company
may,  upon  compliance  with  the  applicable  provisions of the Act, change its
registered  office  or registered agent from time to time at the sole discretion
of  the  Board  of  Managers.

     2.4  Term.  The  term  of  the  Company  shall continue indefinitely unless
          ----
terminated  as  hereinafter  provided.

     2.5  Purpose.  The Company is formed for the object and purpose of, and the
          -------
nature  of the business to be conducted and promoted by the Company is, engaging
in  any  lawful  act  or  activity  for which limited liability companies may be
formed  under  the  Act  and  engaging  in  any  and  all  activities necessary,
advisable,  convenient  or  incidental  thereto.

     2.6  Specific  Powers.  The  Company  shall have the power and authority to
          ----------------
take  any  and all actions necessary, appropriate, proper, advisable, incidental
or convenient to or for the furtherance of the purpose set forth in Section 2.5.
                                                                    -----------

     2.7  Certificate.  Richard  Shore,  Jr.  and  Ian  T.  Bothwell  are hereby
          -----------
designated  as authorized persons to execute, deliver and file any amendments or
restatements  of  the Certificate, and any other certificates and any amendments
or restatements thereof necessary for the Company to qualify to do business in a
jurisdiction in which the Company may wish to conduct business.

     2.8  Ownership  of  Company  Property;  Waiver  of  Partition.  All Company
          --------------------------------------------------------
property,  both  real and personal, presently owned or hereafter acquired by the
Company,  shall  be  owned  by  the Company and held in the name of the Company.
Each  Member  expressly  waives any right such Member might individually have to
require a partition thereof or a dissolution of the Company, except as otherwise
specifically  provided  herein.

                                    ARTICLE 3
                               COMPANY AND CAPITAL
                               -------------------

     3.1  Members.  The  names  and  addresses of the Members of the Company and
          -------
each  Member's  Capital  Contribution  shall be listed on Schedule I attached to
                                                          ----------
this Agreement, as from time to time amended and supplemented in accordance with
the  provisions  of  this  Agreement.

                                      -2-
<PAGE>
Schedule  I  lists  the  Members  of  the  Company, their Capital Contributions,
-----------
Capital  Accounts  and  the  number  of  Units  held  by  each of them as of the
Effective  Date.

     3.2  Capital Accounts.  A separate account (each a "Capital Account") shall
          ----------------                               ---------------
be  established  and  maintained for each Member which shall be increased by (a)
the  amount  of cash and the Fair Market Value of any other property contributed
by  such  Member  to  the  Company as a Capital Contribution (net of liabilities
secured by such property or that the Company is considered to assume or take the
property  subject to pursuant to Code Section 752), (b) the services rendered by
any  Member  in  the  amount that the Company is entitled to take a compensation
deduction  for  federal  income tax purposes, (c) such Member's share of the Net
Profit  of  the Company and (d) any amount required pursuant to the terms of any
option  or  other  equity  incentive  agreement entered into by the Company, and
shall  be  reduced  by  (y)  the amount of cash and the Fair Market Value of any
other  property  distributed  to such Member (net of liabilities secured by such
property or that the Member is considered to assume or take the property subject
to  pursuant to Code Section 752) and (z) such Member's share of the Net Loss of
the  Company.  It  is  the intention of the Members that the Capital Accounts of
the Company be maintained in accordance with the provisions of Section 704(b) of
the  Code  and the Regulations thereunder and that this Agreement be interpreted
consistently  therewith.

     3.3  Return  of  Capital  Contributions.  No Member shall have the right to
          ----------------------------------
demand  a return of all or any part of its Capital Contributions, and any return
of  the Capital Contributions to any Member shall be made solely from the assets
of  the  Company  and  only  in accordance with the terms of this Agreement.  No
interest  shall be paid to any Member with respect to its Capital Contributions.
Each Member shall look solely to the assets of the Company for the return of its
Capital  Contributions,  and,  if  the assets of the Company are insufficient to
return  its  Capital  Contributions, it shall have no recourse against any other
Member  for  that  purpose.

     3.4  Additional  Members.  Except  to  the  extent  that  the provisions in
          -------------------
Article  10 shall have been complied with in connection with a Transfer pursuant
-----------
to  Article 9, no Person shall be admitted as a Member of the Company unless and
    ---------
until the following conditions have been satisfied:

          (a)  the  Board  of  Managers  shall  have consented in writing to the
               admission  of  such  Person  as  a  Member;  and

          (b)  such  other  instruments, documents, certificates and opinions as
               the  Board of Managers deems necessary or desirable for admission
               for  such Person, including a counterpart of or a joinder to this
               Agreement,  shall  have  been  executed  and  delivered.

     3.5  Units.  The  Interests  of  the  Members  in  the  Company  shall  be
          -----
represented  by Units.  The Board of Managers may, but is not required to, adopt
forms  of, and issue to Members, certificates representing the Units.  The Units
shall  be  deemed  "securities"  within  the  meaning of Section 8-103(c) of the
Uniform  Commercial  Code.

     3.6  Management  Units.  The Board of Managers may from time to time in its
          -----------------
sole discretion (a) issue Units, or reserve Units to be issued upon the exercise
of  options  granted,  to

                                      -3-
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employees,  consultants,  managers  or independent contractors of the Company or
its  Affiliates,  whether  in  connection  with  an investment by such Person or
otherwise,  and  (b)  issue  options to purchase Units pursuant to the Company's
Unit  option  plans  or  otherwise  to  employees,  consultants,  managers  or
independent  contractors  of the Company or its Affiliates, or other Persons the
Board  of Managers deems appropriate, all upon terms, conditions, vesting rights
and consideration, if any, as the Board of Managers deems appropriate; provided,
however,  that  the  aggregate  number  of  Units issued or reserved for options
pursuant to this Section 3.6 shall at no time exceed 10,000 Units.  The terms on
                 -----------
which  any  Units are issued pursuant to this Section 3.6 shall be determined by
                                              -----------
the  Board  of  Managers.

     3.7  Additional Units; Other Securities.  In addition to Units permitted to
          ----------------------------------
be  issued  under  Section  3.6, the Board of Managers, subject to the terms and
                   ------------
conditions  of  this Section 3.7, may issue additional Units after the Effective
                     -----------
Date  to  such  Persons  (including  but  not  limited  to  the Members or their
Affiliates)  and  for  such  consideration  as  the  Board  of  Managers  deems
appropriate  in accordance with and subject to the terms of this Agreement.  The
terms  and  conditions of any Units issued pursuant to this Section 3.7 shall be
                                                            -----------
determined  by  the  Board of Managers and such Units may consist of one or more
classes  of  Units  possessing  unique  rights  and  preferences.  The  Board of
Managers  is also authorized to cause the issuance of any other type of security
of  the  Company  from  time  to time on terms and conditions established at the
discretion  of the Board of Managers.  Such securities may specifically include,
without  limitation, unsecured and secured debt obligations of the Company, debt
obligations  of  the  Company  convertible  into  Units,  options or warrants to
purchase  any  Units  or  any combination of any of the foregoing.  The Board of
Managers  shall do all things necessary to comply with the Act and is authorized
and directed to do all things it deems necessary or advisable in connection with
any  such future issuance of Units, including compliance with any statute, rule,
regulation  or  guideline  of  any  federal, state or other governmental agency.

          3.7.1  Preemptive Rights.  The Company hereby grants to each holder of
                 -----------------
     Units  the  preemptive  right  to  purchase up to its pro rata share of New
     Securities  (as  defined in this Section 3.7.1) which the Company may, from
                                      -------------
     time to time, propose to sell and issue. A Unitholder's pro rata share, for
     purposes  of  this  preemptive  right,  is the ratio of the number of Units
     owned  by  such  Unitholder  immediately  prior  to  the  issuance  of  New
     Securities,  assuming  exercise  of  any  convertible  securities,  rights,
     options or warrants to acquire Units of the Company held by said holder, to
     the  total number of Units outstanding immediately prior to the issuance of
     New  Securities  (minus  any  Units  held  by  Management  Members excluded
     pursuant  to  Section  3.7.1(e)),  assuming  exercise  of  all  outstanding
                   -----------------
     convertible  securities,  rights,  options and warrants to acquire Units of
     the  Company.

          (a)  "New  Securities" shall mean any Units of the Company and rights,
                ---------------
               options or warrants to purchase such Units, and securities of any
               type  whatsoever  that  are convertible into Units; provided that
               the term "New Securities" does not include (i) issuances pursuant
                         --------------
               to  Section  3.6;  (ii)  any  issuance of additional Units to all
                   ------------
               holders  of  Units as a distribution thereon, pro rata; (iii) any
               issuance  of securities pursuant to the acquisition of a business
               entity  or business segment of such business entity, in each case
               not  Affiliated  with  the  Company,  by  the  Company by merger,
               consolidation,

                                      -4-
<PAGE>
               conversion,  reorganization,  purchase  of  shares,  purchase  of
               substantially all of the assets, or similar transaction; (iv) any
               issuance  to  vendors,  customers,  suppliers,  universities,
               consultants,  financial  advisors  or to other persons in similar
               commercial  situations  with  the Company, in each case which are
               not  Affiliated  with the Company; (v) any issuance of securities
               in  connection  with  obtaining  lease or other debt financing or
               other  borrowings,  whether  issued  to  a financial institution,
               lessor,  guarantor  or  any  other  Person (collectively, "Equity
                                                                          ------
               Kickers");  provided, however, with respect to the issuance of an
               -------
               Equity  Kicker  to  a  Member  or  its  Affiliate,  the foregoing
               exclusion  to  the  definition of New Securities shall only apply
               if,  in  connection  with  a  transaction  to which Section 3.7.2
                                                                   -------------
               applies,  Section 3.7.2 has been complied with; (vi) any issuance
                         -------------
               in  connection  with  partnering  transactions,  joint  venture
               arrangements  or  acquiring  a  product  or  service in each case
               involving  a  party not Affiliated with the Company or any of its
               Members;  (vii)  issuance  of  securities  upon  the  exercise or
               conversion of any security issued in compliance with Section 3.7;
                                                                    -----------
               and  (viii)  any right, option or warrant to acquire any security
               convertible  into  the  securities  included  in  subsections (i)
               through  (vii)  above.

          (b)  In the event the Company proposes to undertake an issuance of New
               Securities, the Board of Managers shall give each holder of Units
               written  notice  of  its  intention  describing  the  type of New
               Securities  and  their price and the general terms upon which the
               Company  proposes  to  issue  the same. Each such holder of Units
               shall  have  30  days after any such notice is mailed to agree to
               purchase  all  or any portion of such Unitholder's pro rata share
               of such New Securities for the price and upon the terms specified
               in  the  notice by giving written notice to the Board of Managers
               and  stating  therein  the  quantity  of  New  Securities  to  be
               purchased.

          (c)  In  the  event  such  holder  of  Units  fails  to  exercise  its
               preemptive  right pursuant to Section 3.7.1(b) within said 30 day
                                             ----------------
               period,  the  Company  shall have 120 days thereafter to sell the
               New Securities respecting which the Unitholder's preemptive right
               option  set  forth  in this Section 3.7.1 was not exercised, at a
                                           -------------
               price  and upon terms no more favorable to the purchasers thereof
               than  specified  in  the Board of Managers' notice to Unitholders
               pursuant  to  Section  3.7.1(b). In the event the Company has not
                             -----------------
               sold  the  New Securities within such 120 day period, the Company
               shall  not  thereafter  issue  or sell any New Securities without
               first  again  offering  such securities to the Unitholders in the
               manner  provided  in  Section  3.7.1(b)  above.
                                     -----------------

          (d)  The  preemptive  right  granted under this Agreement shall expire
               upon,  and  shall  not be applicable to, any sale of Units of the
               Company  to  the  public  effected  pursuant  to  a  registration
               statement  filed  with, and declared effective by, the Securities
               and  Exchange  Commission  under  the  Securities  Act.

                                      -5-
<PAGE>
        3.7.2  Loans,  Advances  and  Guarantees.
               ---------------------------------

          (a)  In  the  event  that the Board of Managers determines in its sole
               discretion that the Company requires funds, the Board of Managers
               shall  be authorized, at any time and from time to time, to cause
               the  Company  to  borrow  additional  funds  sufficient  for such
               purposes  and  upon  such terms as the Board of Managers may deem
               appropriate.  Moreover, the Board of Managers shall be authorized
               to permit one or more Members or their Affiliates to guaranty any
               such  borrowed funds. In addition, the Board of Managers shall be
               authorized  to  issue Equity Kickers in connection with borrowing
               of  funds  or  guarantees.

          (b)  Any such loans and guarantees may be provided by third parties or
               by  one or more Members or their Affiliates. Any loan or guaranty
               provided by a Member shall not be considered contributions to the
               capital of the Company and shall not increase the Capital Account
               of  the  lending  or  guarantying  Member.

          (c)  If  the  Board of Managers desires to request a loan or a several
               but  not  joint guaranty from the Members (or any Member or their
               Affiliates),  it  shall  give  the Members written notice of such
               request,  which  notice  shall include, with respect to any loan,
               the  amount,  interest  rate,  priority  and repayment terms with
               respect  to  other  indebtedness  of  the proposed loan and, with
               respect to a several but not joint guaranty, the terms upon which
               such  guaranty  will  be  given (and in both cases details of any
               proposed  Equity  Kicker associated therewith). The Members shall
               have  30 days from receipt of such notice to elect to make all or
               a  portion  of  the  requested  loan  or  a several but not joint
               guaranty (and receive a pro rata portion of the associated Equity
               Kicker)  in  the  amounts  mutually  agreed  upon by the Board of
               Managers  and  the participating Members. Unless otherwise agreed
               by the participating Members, any loan or a several but not joint
               guaranty  made  by  the participating Members to the Company (and
               any  associated  Equity  Kicker)  will be made pro rata among the
               participating  Members  in  accordance  with  their  respective
               ownership  of Units then outstanding. Notice of any such election
               to  participate  shall  be  given to the Board of Managers within
               such  30 day period; failure to timely respond shall be deemed to
               be  a decision by a Member that it does not desire to participate
               in  such  guaranty, loan or advance. The interest accruing on any
               such  resulting  loan  and the expenses of such loan or guaranty,
               including  any  origination  fee, shall be paid and charged as an
               expense of the Company. For each loan made by a lending Member to
               the  Company,  the  Company  shall  execute a note payable to the
               lending  Member,  upon  the terms, priority with respect to other
               indebtedness  and in the principal sum determined by the Board of
               Managers  and  the  lending  Member.  For each guaranty made by a
               guarantying  Member  on  behalf of the Company, the Company shall
               execute  a  reimbursement  agreement  in

                                      -6-
<PAGE>
               favor  of  the guarantying Members on the terms determined by the
               Board  of  Managers  and  the  guarantying  Members.

          (d)  Notwithstanding  the foregoing, Management Members shall not have
               the  right to participate in the loans or guarantees contemplated
               in this Section 3.7.2, unless expressly so permitted by the Board
                       -------------
               of  Managers.

     3.8  Issuance  Notice.  The  Board  of  Managers  shall  promptly prepare a
          ----------------
revised  Schedule  I,  which  shall  be deemed to replace the old Schedule I and
         -----------                                              ----------
constitute  an  amendment  of  this Agreement approved by all of the Members, to
reflect  the  issuance  after the Effective Date of additional Units pursuant to
Section  3.6 or 3.7.  The Board of Managers shall give notice to all the Members
-------------------
promptly  after  the issuance of additional Units pursuant to Section 3.6 or 3.7
                                                              ------------------
informing  the  Members of such issuance or redemption and the revised number of
Units  issued  and  outstanding following such issuance, and enclosing a copy of
Schedule I hereto, as revised to reflect such transaction.  The revised Schedule
----------                                                              --------
I  shall also set forth Capital Contributions, if any, made in consideration for
-
such  Units.

     3.9  Preemptive  Rights.  Other  than  as  set  forth in this Agreement, no
          ------------------
Unitholder  shall  have  any  preemptive  right  with  respect to (a) additional
Capital Contributions to the Company, (b) the issuance or sale of Units or other
interests  in  the  Company,  (c)  the  issuance  of any obligation, evidence of
indebtedness  or  other  interest  of  or  in  the  Company  convertible into or
exchangeable  for, or carrying or accompanied by any rights to receive, purchase
or subscribe to, any Units, (d) the issuance or any right of subscription to, or
right  to  receive,  any warrant or option for the purchase of any Units, or (e)
the  issuance  or sale of any other securities that may be issued or sold by the
Company.

                                    ARTICLE 4
                                STATUS OF MEMBERS
                                -----------------

     4.1  Limited  Liability.  No  Member shall be bound by or personally liable
          ------------------
for  the  expenses,  liabilities,  or  obligations  of  the  Company  arising in
contract,  tort  or  otherwise,  each  of  which  is solely an obligation of the
Company.  The Members shall not be required to make any additional contributions
to the Company.  In no event shall any Member be required to make up any deficit
balance  in such Member's Capital Account upon the liquidation of the Company or
otherwise.  Except as provided in this Agreement, no Members shall be personally
liable,  directly  or  indirectly,  by  way  of  indemnification,  contribution,
assessment,  or  otherwise for an obligation solely by reason of being or acting
as  a  Member.

     4.2  Return  of  Distributions  of  Capital.  Except as otherwise expressly
          --------------------------------------
required  by law, a Member, in its capacity as such, shall have no liability for
obligations  or  liabilities  of  the Company in excess of (a) the amount of its
Capital  Contributions actually made to the Company, (b) its share of any assets
and  undistributed profits of the Company, and (c) to the extent required by the
Act,  the  amount  of any Distributions wrongfully distributed to it.  Except as
required  by  the  Act, no Member shall be obligated by this Agreement to return
any  Distribution  to  the Company or pay the amount of any Distribution for the
account of the Company or to any creditor of the Company.  However, if any court
of  competent  jurisdiction  holds  that, notwithstanding the provisions of this
Agreement,  any  Member  is  obligated  to  return  or  pay  any

                                      -7-
<PAGE>
part  of any Distribution, the obligation shall be that of such Member alone and
not of any Manager or any other Member.  The amount of any Distribution returned
to the Company by a Member or paid by a Member for the account of the Company or
to  a  creditor  of  the  Company shall be added to the account or accounts from
which  it  was  subtracted  when  it  was  distributed  to  the  Member.

                                    ARTICLE 5
                    DESIGNATION, RIGHTS, AUTHORITIES, POWERS,
              RESPONSIBILITIES, AND DUTIES OF THE BOARD OF MANAGERS
              -----------------------------------------------------

     5.1  Management by Board of Managers.  Subject to the provisions of the Act
          -------------------------------
and  any limitations in this Agreement as to action to be authorized or approved
by  the  Members,  all  management  powers  over the business and affairs of the
Company  shall  be  exclusively  vested  in  a  board of managers (the "Board of
                                                                        --------
Managers").  Collectively,  members of the Board of Managers (each, a "Manager")
--------                                                               -------
shall  constitute  "managers" of the Company within the meaning of the Act.  The
Board  of  Managers  on  the  Effective  Date  shall be the Persons set forth in
Exhibit 5.1 hereto.  The Board of Managers may delegate certain of its powers to
-----------
officers  (the "Officers"), who shall be agents of the Company.  The Members, by
                --------
virtue  of their status as members of the Company, shall not have any management
power  over  the  business  and  affairs  of  the  Company or actual or apparent
authority  to  enter  into  contracts  on  behalf  of, or to otherwise bind, the
Company.  Except  as  otherwise  specifically  provided  in  this Agreement, the
authority  and  functions  of the Board of Managers and of the Officers shall be
identical to the authority and functions of the board of directors and officers,
respectively,  of a corporation organized under the Delaware General Corporation
Law.  Thus,  except  as  otherwise  specifically provided in this Agreement, the
business  and affairs of the Company shall be managed under the direction of the
Board  of  Managers,  and  the  day-to-day  activities  of  the Company shall be
conducted  on  the  Company's behalf by the Officers.  In addition to the powers
that  now or hereafter can be granted to managers under the Act and to all other
powers  granted  under  any  other  provision  of  this  Agreement, the Board of
Managers (subject to Section 5.2 of this Agreement) and the Officers (subject to
                     -----------
Section  5.3 of this Agreement and the direction of the Board of Managers) shall
------------
have  full  power and authority to do all things on such terms as they, in their
Sole  Discretion,  may  deem necessary or appropriate to conduct, or cause to be
conducted,  the  business  and  affairs  of  the  Company.

     5.2  Board  of  Managers.
          -------------------

          (a)  Number  and  Term.
               -----------------

          The Board of Managers shall consist of a number of Managers determined
by  a  Majority Interest from time to time; provided; that the Board of Managers
may  not  consists  of  less than three Managers.  Managers need not be Members.
Except as otherwise provided in Section 5.2(d), each Manager shall be elected at
                                --------------
the  annual meeting of the Members, and the individuals receiving the most votes
at  such  meeting shall be elected.  No decrease in the number of Managers shall
have  the  effect  of  shortening  the  term of office of any incumbent Manager.

                                      -8-
<PAGE>
          (b)  Chairman.
               --------

          The  Board  of  Managers  shall  select  one  Manager  to serve as the
     Chairman  of  the  Board of Managers, and the Board of Managers shall elect
     one  other  Manager  to be the Vice Chairman. The Chairman shall preside at
     all  meetings  of  the Members and the Board of Managers. The Vice Chairman
     shall  perform  all the duties of the Chairman in the absence or disability
     of  the  Chairman.  The  Chairman  and  Vice Chairman shall have such other
     powers and perform such other duties as may be prescribed from time to time
     by  the  Board  of  Managers.

          (c)  Quorum  and  Manner  of  Action.
               -------------------------------

          At  all  meetings  of  the  Board of Managers, a majority of the total
     number  of  Managers  shall  constitute  a  quorum  for  the transaction of
     business;  and the act of a majority of the Managers present at any meeting
     at  which  there  is  a  quorum  shall be the act of the Board of Managers,
     except as otherwise provided by Law or this Agreement. If at any meeting of
     the Board of Managers there shall be less than a quorum present, a majority
     of  those  present may adjourn the meeting from time to time until a quorum
     is  obtained,  and  no  further  notice thereof need be given other than by
     announcement  at  such  adjourned  meeting.  Attendance  by  a Manager at a
     meeting  shall constitute a waiver of notice of such meeting except where a
     Manager  attends  a  meeting  for  the express purpose of objecting, at the
     beginning  of the meeting, to the transaction of any business on the ground
     that  the  meeting  is  not  lawfully  called  or  convened.

          (d)  Vacancies.
               ---------

          Except  as otherwise provided by law or this Agreement, in the case of
     any  increase in the authorized number of Managers or of any vacancy in the
     Board  of Managers, however created, the additional Manager or Managers may
     be  elected  or, as the case may be, the vacancy or vacancies may be filled
     by  majority  vote of the Managers remaining on the whole Board of Managers
     although  less  than  a quorum, or by a sole remaining Manager. Any Manager
     elected  or  chosen as provided herein shall serve until the first to occur
     of  (i)  the  expiration  of  the  term to which such Manager is elected or
     appointed,  (ii) the election and qualification of the Manager's successor,
     or  (iii)  the  Manager's  resignation  or  removal.

          (e)  Resignations.
               ------------

          A Manager may resign at any time upon written notice of resignation to
     the  Company.  Any  resignation  shall  be  effective  immediately unless a
     certain  effective  date  is  specified  therein, in which event it will be
     effective  upon  such  date  and acceptance of any resignation shall not be
     necessary  to  make  it  effective.

          (f)  Removals.
               --------

          Any  Manager  or  the entire Board of Managers may be removed, with or
     without  cause,  and  another person or persons may be elected to serve for
     the  remainder  of  his  or  their term by a Majority Interest. In case any
     vacancy  so  created  shall  not  be  filled  by  the

                                      -9-
<PAGE>
     Members,  such  vacancy may be filled by the remaining Managers as provided
     in Section 5.2(d).
     -----------------

          (g)  Annual  Meetings.
               ----------------

          The annual meeting of the Board of Managers shall be held, if a quorum
     be present, for the purpose of organization and transaction of any business
     that  might  be  transacted  at a regular meeting thereof, and no notice of
     such  meeting  shall  be necessary. If a quorum is not present, such annual
     meeting  may  be held at any other time or place that may be specified in a
     notice  given in the manner provided in Section 5.2(i) for special meetings
                                             --------------
     of the Board of Managers or in a waiver of notice thereof.

          (h)  Regular  Meetings.
               -----------------

          Regular  meetings  of the Board of Managers may be held without notice
     at  such  places  and  times  as  shall  be determined from time to time by
     resolution of the Board of Managers. Except as otherwise provided by law or
     this  Agreement,  any  business may be transacted at any regular meeting of
     the  Board  of  Managers.

          (i)  Special  Meetings.
               -----------------

          Special  meetings  of the Board of Managers may be called by the Chief
     Executive  Officer,  or  shall  be  called  by the Secretary on the written
     request  of  any  Manager  stating the purpose or purposes of such meeting.
     Notices  of  special meetings shall be given to each Manager not later than
     three  days  before  the  day  the  meeting is to be held. No notice of any
     meeting  need  be given to any Manager who files a written waiver of notice
     thereof  with the Secretary either before or after the meeting. Neither the
     business  to be transacted at, nor the purpose of, any special meeting need
     be  specified in any notice or written waiver of notice, unless so required
     by  this  Agreement. Except as otherwise provided by Law or this Agreement,
     any  and  all  business  may  be  transacted  at  a  special  meeting.

          (j)  Organization  of  Meetings.
               --------------------------

          At  any meeting of the Board of Managers, business shall be transacted
     in  such  order and manner as the Chairman may from time to time determine.

          (k)  Place  of  Meetings.
               -------------------

          The Board of Managers may hold their meetings at any office or offices
     of  the  Company,  or  at  any other place as they may from time to time by
     resolution  determine.

          (l)  Compensation  of  Managers;  Reimbursement  of  Expenses.
               --------------------------------------------------------

          The  Managers  shall  not receive any compensation for their services.
     Managers shall be reimbursed by the Company for their reasonable traveling,
     food,  lodging  and  other  expenses  incurred  in  attending  meetings  in
     accordance  with  policies  approved  from  time  to  time  by the Board of
     Managers.

                                      -10-
<PAGE>
          (m)  Action  by  Written  Consent.
               ----------------------------

          Unless  otherwise  restricted  by  Law  or  this Agreement, any action
     required  or  permitted to be taken at any meeting of the Board of Managers
     may  be  taken  without  a  meeting if the required number of such Managers
     consent  thereto  in writing and the writing or writings are filed with the
     minutes  of proceedings of the Board of Managers. If any action is taken by
     written  consent to which less than all of the Managers have consented, the
     consenting  Managers  shall  promptly  provide notice of such action to the
     other  Managers.

          (n)  Participation  in  Meetings  by  Telephone.
               ------------------------------------------

          The  Managers may participate in a meeting of the Board of Managers by
     means  of conference telephone or similar communications equipment by means
     of  which all persons participating in the meeting can hear each other, and
     participation  in  a  meeting  in  such manner shall constitute presence in
     person  at  such  meeting.

     5.3  Officers;  Agents.  The Board of Managers by resolution or vote of the
          -----------------
Board of Managers shall have the power to appoint agents (who may be referred to
as  officers)  to  act for the Company with such titles, if any, as the Board of
Managers  deems  appropriate  and to delegate to such officers or agents such of
the  powers  as  are  granted  to the Board of Managers hereunder, including the
power  to  execute  documents on behalf of the Company, as the Board of Managers
may  in  its sole discretion determine.  The officers or agents so appointed may
include  persons  holding  titles  such  as  Chief Executive Officer, President,
Executive  Vice  President,  Vice  President,  Chief  Operating  Officer,  Chief
Financial  Officer,  Treasurer or Controller.  Unless the authority of the agent
designated as the officer in question is limited in the document appointing such
officer  or  is  otherwise  specified  by  the Board of Managers, any officer so
appointed  shall  have  the  same  authority  to  act  for  the  Company  as  a
corresponding officer of a Delaware corporation would have to act for a Delaware
corporation  in  the  absence  of a specific delegation of authority and as more
specifically  set  forth  herein;  provided,  however, that unless such power is
specifically  delegated  to  the  officer  in  question  either  for  a specific
transaction  or  generally,  no  such  officer  shall have the power to lease or
acquire  real property, to borrow money, to issue notes, debentures, securities,
equity  or  other  interests of or in the Company, to make investments in (other
than  the  investment  of surplus cash in the ordinary course of business) or to
acquire  securities  of any Person, to give guarantees or indemnities, to merge,
liquidate  or  dissolve  the  Company or to sell or lease all or any substantial
portion  of  the  assets  of  the  Company.  The  Board of Managers, in its sole
discretion,  may  by  vote or resolution of the Board of Managers ratify any act
previously  taken  by  an  officer  or  agent  acting  on behalf of the Company.

          5.3.1  Officers.  Officers and agents of the Company, if any, shall be
                 --------
     appointed  by the Board of Managers from time to time in its discretion. An
     officer  may  be  but  none  need  be  a Member or Manager. Any two or more
     offices  may be held by the same person. Any officer may be required by the
     Board  of  Managers  to  secure  the  faithful performance of the officer's
     duties  to  the  Company by giving bond in such amount and with sureties or
     otherwise  as  the  Board  of  Managers  may  determine.

                                      -11-
<PAGE>
          5.3.2  Designations  and  Delegations.  Officers  may be designated by
                 ------------------------------
     the  Board  of  Managers  at any time. At any time or from time to time the
     Board  of  Managers  may  delegate  to  any officer their power to elect or
     appoint  any  other  officer  or  any  agents.

          5.3.3  Tenure.  Each  officer  shall  retain  its  authority  at  the
                 ------
     pleasure  of the Board of Managers, or the officer by whom such officer was
     appointed or by the officer who then holds agent appointive power.

          5.3.4  Resignation;  Removal;  Vacancies.  Any  officer  or  agent may
                 ---------------------------------
     resign  by  delivering  a written letter of resignation to the Chairman, if
     any,  the  President,  the  Secretary  or  to  the Board of Managers, which
     resignation shall not require acceptance and, unless otherwise specified in
     the  letter  of  resignation, shall be effective upon receipt. The Board of
     Managers  or  the  officer  appointing  the officer or agent may remove any
     officer or agent at any time without giving any reason for such removal and
     no  officer  or  agent  shall  be entitled to any damages by virtue of such
     officer's  removal  from  office  or  such position as agent. If any office
     becomes  vacant,  the position may be filled by the Board of Managers or in
     such  other  manner  as  the  officer  in  question  was  appointed.

          5.3.5  President  and  Vice  Presidents.  Unless the Board of Managers
                 --------------------------------
     otherwise specifies, the President shall be the chief executive officer and
     shall  have  direct  charge  of all business operations of the Company and,
     subject  to the control of the Board of Managers, shall have general charge
     and  supervision  of the business of the Company. Any vice presidents shall
     have  duties  as  shall  be  designated  from  time to time by the Board of
     Managers  or  the  President.

          5.3.6  Treasurer  and  Assistant  Treasurers.  Unless  the  Board  of
                 -------------------------------------
     Managers  otherwise  specifies,  the Treasurer shall be the chief financial
     officer  of  the  Company  and shall be in charge of its funds and valuable
     papers,  and  shall  have such other duties and powers as may be designated
     from  time to time by the Board of Managers or the President. Any Assistant
     Treasurers  shall  have  such duties and powers as shall be designated from
     time  to  time  by  the  Board of Managers, the President or the Treasurer.

          5.3.7  Secretary  and  Assistant  Secretaries.  The  Secretary  shall
                 --------------------------------------
     record  all  proceedings of the Members and the Board of Managers in a book
     or  series  of books to be kept therefor and shall file therein all actions
     by  written  consent  of  the  Board  of  Managers.  In  the absence of the
     Secretary  from any meeting, an Assistant Secretary, or if there be none or
     no  Assistant  Secretary  is  present,  a temporary secretary chosen at the
     meeting,  shall record the proceedings thereof. The Secretary shall keep or
     cause  to  be  kept  records,  which  shall  contain  the  names and record
     addresses  of  all  Members. The Secretary shall have such other duties and
     powers  as  may from time to time be designated by the Board of Managers or
     the  President. Any Assistant Secretaries shall have such duties and powers
     as  shall  be  designated  from  time to time by the Board of Managers, the
     President  or  the  Secretary.

     5.4  Right  of  Third  Parties  to  Rely on Authority of Board of Managers.
          ---------------------------------------------------------------------
Notwithstanding any other provision of this Agreement to the contrary, no lender
or purchaser of Company assets shall be required to verify any representation by
the  Board  of  Managers  or  any

                                      -12-
<PAGE>
officer of the Company duly authorized by resolution of the Board of Managers as
to  the  extent  of the interest in the assets of the Company which the Board of
Managers  is entitled to encumber, sell or otherwise use, and any such lender or
purchaser  shall  be  entitled to rely exclusively on the representations of the
Board of Managers or any officer of the Company duly authorized by resolution of
the  Board  of  Managers  as  to  its  individual  authority  to enter into such
financing  or  sale arrangements and shall be entitled to deal with the Board of
Managers  or  any  officer  of  the Company duly authorized by resolution of the
Board  of  Managers  as  if  they  were  the sole party in interest therein both
legally  and  beneficially.

     5.5  Certain  Limitations  on  Board  of  Managers  and Members Activities.
          ---------------------------------------------------------------------

          5.5.1  Unanimous  Consent  Required.  Notwithstanding any provision in
                 ----------------------------
     this Agreement to the contrary, the Board of Managers and Members shall not
     do  any  of the following, and none of the following shall be an act of the
     Board  of Managers or the Members, without, in each instance, obtaining the
     consent  of  all  of  the  Members:

          (a)  effect  or  cause  to  be  effected  any  Transfer (including any
               indirect  Transfer  by  way  of  a  Sale  of  the Company) of the
               Incentive  Distribution  Rights  (as defined in the First Amended
               and Restated Agreement of Limited Partnership of Rio Vista Energy
               Partners L.P.) owned or subsequently acquired by the Company; and

          (b)  take  any action to amend or modify any of the provisions of this
               Section 5.5.1 or any other provision of this Agreement that would
               -------------
               affect  the  provisions,  applicability or effect of this Section
                                                                         -------
               5.5.1  in  any  way.
               -----

          5.5.2  Supermajority  Consent  Required.  The  Board of Managers shall
                 --------------------------------
     not  do  any  of  the  following  without,  in each instance, obtaining the
     consent  of  the  Members  holding  75%  of  the  Units:

          (a)  do  any  act  in  contradiction  of  this  Agreement;

          (b)  do  any  act  which  would  make  it  impossible  to carry on the
               ordinary  business  of  the  Company (except for a disposition of
               Company  assets);

          (c)  confess  a  judgment  against  the  Company;  or

          (d)  possess  Company assets, or assign the rights in specific Company
               assets  for  other  than  a  Company  purpose.

     5.6  Transactions with the Members or Affiliates.  The Company is expressly
          -------------------------------------------
permitted  to  enter  into  transactions,  agreements  or  modifications  to
transactions  or  agreements with any Member or any Affiliates thereof or of the
Company,  provided  that  such  transactions,  agreements  or  modifications  to
transactions  or agreements are (a) on terms taken as a whole not less favorable
to  the  Company  than  the  terms  taken  as  a whole which could reasonably be
obtained  (as  determined  in  good  faith  by  the  Board  of Managers) from an
unrelated  party,  or  (b) approved by the affirmative vote of a majority of the
disinterested  members  of  the Board of Managers, even though the disinterested
members  may  not  constitute  a  quorum.

                                      -13-
<PAGE>
     5.7  Specific Limitations.  Except as provided in this Agreement, no Member
          --------------------
shall  have  the  right  or  power  to:  (a)  withdraw  or  reduce  its  Capital
Contribution except as provided by law, (b) make voluntary Capital Contributions
or  contribute  any property to the Company other than cash, (c) bring an action
for  partition  against  the  Company  or  any  Company  assets,  (d)  cause the
termination  and  dissolution  of  the  Company,  or  (e) upon the return of its
Capital  Contribution  require  that  property other than cash be distributed in
return  for its Capital Contribution.  Each Member hereby irrevocably waives any
and  all  rights  that it may have to maintain an action for partition of any of
the  Company's  property.  Except  as  otherwise set forth in this Agreement, no
Member  shall have priority over any other Member either as to the return of its
Capital  Contribution  or  as  to Net Profit, Net Loss, or Distributions.  Other
than  upon  the  termination  and dissolution of the Company as provided by this
Agreement,  there  has been no time agreed upon when or if all or any portion of
the  Capital  Contribution  of  any  Member  will  be  returned.

     5.8  Meetings  of  Members.
          ---------------------

          (a)  Annual  Meetings.
               ----------------

          Annual  meetings  of  the Members may be held on such date and at such
     time  as  shall  be  determined  by  the  Board  of Managers. Notice of the
     establishment  of such annual meeting, and of any amendments thereto, shall
     be  given to each Member at least 10 Days prior to the next annual meeting.
     No  other  notices  of  such  annual  meetings  need  be  given.

          (b)  Special  Meetings.
               -----------------

          Special meetings of the Members may be called by any Member.  Any such
     meeting  shall  be held on such date and at such time as the Member calling
     such  meeting  shall  specify  in the notice of the meeting, which shall be
     delivered  to  each  other  Member  at least 10 Days prior to such meeting.
     Neither  the business to be transacted at, nor the purpose of, such special
     meeting  need  be  specified  in  the  notice (or waiver of notice) of such
     meeting.

          (c)  Quorum.
               ------

          A  Majority  Interest (represented either in person or by proxy) shall
     constitute  a  quorum for the transaction of business at any meeting of the
     Members.  With  respect  to  any  matter,  except  any matter requiring the
     consent  of  all  the  Members  under  Section  5.5.1, an act of a Majority
                                            --------------
     Interest  shall be the act of the Members. Each Member may, with respect to
     any vote, consent or approval that he is entitled to grant pursuant to this
     Agreement,  grant  or  withhold  such vote, consent or approval in his Sole
     Discretion.

          (d)  Place  of  Meeting.
               ------------------

          Any  meeting  of  the  Members shall be held at the principal place of
     business  of  the  Company,  unless  the notice of such meeting specifies a
     different  place.

          (e)  Waiver  of  Notice  Through  Attendance.
               ---------------------------------------

                                      -14-
<PAGE>
          Attendance  of  a  Member  at any meeting shall constitute a waiver of
     notice  of  such  meeting, except where such Member attends the meeting for
     the  express purpose of objecting to the transaction of any business on the
     ground  that  the  meeting  is  not  lawfully  called  or  convened.

          (f)  Proxies.
               -------

          A  Member  may vote at any meeting by a written proxy executed by that
     Member  and  delivered to another Member. A proxy shall be revocable unless
     it  is  stated  to  be  irrevocable.

          (g)  Action  by  Written  Consent.
               ----------------------------

          Any  action  required  or permitted to be taken at such meeting may be
     taken  without  a  meeting,  without  prior notice, and without a vote if a
     consent  or  consents  in  writing,  setting  forth the action so taken, is
     signed by a Majority Interest. The Company shall give prompt written notice
     to  the  non-consenting Members of any action of Members taken by less than
     unanimous  written  consent  of  the  Members.

          (h)  Meetings  by  Telephone.
               -----------------------

          The  Members  may  participate  in  and  hold  any meeting by means of
     conference  telephone, video conference or similar communications equipment
     by  means  of  which all Persons participating in the meeting can hear each
     other.

                                    ARTICLE 6
                     BOOKS, RECORDS, ACCOUNTING AND REPORTS
                     --------------------------------------

     6.1  Books and Records.  The Company shall maintain at its principal office
          -----------------
all  of  the  following:

          (a)  a  current  list  of the full name and last known address of each
               Member together with information regarding the amount of cash and
               a  description  and  the  Book  Value  of  any  other property or
               services  contributed  by  each  Member and which each Member has
               agreed  to  contribute  in the future, and the date on which each
               Member  became  a  Member  of  the  Company;

          (b)  a  copy  of the Certificate and this Agreement, including any and
               all  amendments  to  either  thereof, or any amendments that have
               been  executed;

          (c)  copies  of  the Company's federal, state, and local income tax or
               information  returns  and  reports, if any, for each taxable year
               after  the  Effective  Date,  provided  that the Company need not
               retain  any  such  records  for  more  than  four  fiscal  years;

                                      -15-
<PAGE>
          (d)  the  financial  statements  of  the  Company for each Fiscal Year
               after  the  Effective  Date,  provided  that the Company need not
               retain  any  such  records  for  more than four fiscal years; and

          (e)  the  Company's  books  and records for each Fiscal Year after the
               Effective  Date,  provided  that  the Company need not retain any
               such  records  for  more  than  four  fiscal  years.

     6.2  Delivery  to Member, Inspection, etc.  Upon the request of any Member,
          -------------------------------------
for  any purpose reasonably related to such Member's interest as a Member of the
Company,  the  Board  of  Managers shall cause to be delivered to the requesting
Member,  at the expense of the Company, a copy of the information required to be
maintained  by clauses (a) through (e) of Section 6.1.  A Member upon reasonable
                                          -----------
request  may  inspect  at  the Company's offices the Company's books and records
during  reasonable  business  hours.

     6.3  Financial  Statements.  The  Board  of  Managers  shall cause books of
          ---------------------
account  to  be maintained reflecting the operations of the Company on an annual
basis  and  shall cause to be prepared for and delivered to the Members at least
annually, at the Company's expense, financial statements of the Company prepared
in accordance with generally accepted accounting principles.

     6.4  Filings.  At  the  Company's expense the Board of Managers shall cause
          -------
the  income tax returns for the Company to be prepared and timely filed with the
appropriate  authorities and to have prepared and to furnish to each Member such
information with respect to the Company as is necessary to enable the Members to
prepare  their  federal and state income tax returns.  The Board of Managers, at
the  Company's  expense,  shall also cause to be prepared and timely filed, with
appropriate  federal and state regulatory and administrative bodies, all reports
required  to  be  filed  by  the  Company with those entities under then current
applicable  laws,  rules, and regulations.  The reports shall be prepared on the
accounting or reporting basis required by the regulatory bodies.

     6.5  Nondisclosure.  Each Member agrees that, except as otherwise consented
          -------------
to  by the Board of Managers, all nonpublic information furnished to it pursuant
to  this  Agreement  or  otherwise  with  respect  to  the  Company will be kept
confidential  and will not be disclosed by such Member, or by any of its agents,
representatives,  or  employees,  in any manner whatsoever, in whole or in part,
except  that  (a) each Member shall be permitted to disclose such information to
those of its agents, representatives, and employees who need to be familiar with
such  information in connection with such Member's investment in the Company and
who  are charged with an obligation of confidentiality, (b) each Member shall be
permitted  to  disclose  such  information to financial institutions, investment
bankers  and prospective purchasers and capital investors, (c) each Member shall
be permitted to disclose such information to its partners and stockholders or to
prospective  purchasers  or Assignees of its Units so long as each of them agree
to  keep  such  information confidential on the terms set forth herein, (d) each
Member shall be permitted to disclose information to the extent required by law,
so  long  as such Member shall have first afforded the Company with a reasonable
opportunity  to  contest  the  necessity of disclosing such information, and (e)
each  Member  shall  be  permitted  to  disclose  information  to

                                      -16-
<PAGE>
the  extent  necessary  for  the enforcement of any right of such Member arising
under  this  Agreement.

                                    ARTICLE 7
                DISTRIBUTIONS AND ALLOCATIONS OF PROFIT AND LOSS
                ------------------------------------------------

     7.1  Board  of  Managers'  Determination.  The Board of Managers shall have
          -----------------------------------
the  sole  authority  to  determine  the  timing and the aggregate amount of any
Distributions  to  Members.

     7.2  Distributions.  Subject to Section 7.1, Distributions from the Company
          -------------              -----------
to  its  Members  shall  be  made  as  follows:

          7.2.1  If the Company expects that as of the end of any Tax Estimation
     Period  the  Company  will  have  Adjusted Taxable Income, then the Company
     shall  distribute to each Member on or before the 15th day after the end of
     the Tax Estimation Period cash in an amount equal to the Company's estimate
     of  the  Adjusted  Taxable Income allocable to each such Member during such
     Tax  Estimation  Period  multiplied  by the Combined Effective Marginal Tax
     Rate.  On  or  before  April 15th of each year the Company shall adjust the
     distributions  pursuant  to this Section 7.2.1 with respect to the previous
                                      -------------
     Fiscal  Year  to  conform  with  the  Company's income tax returns for such
     Fiscal  Year.  Tax  Distributions made pursuant to this Section 7.2.1 shall
                                                             -------------
     not  be  deemed to constitute an advance against any distributions provided
     for  in  Section  7.2.2  below.  In  the  event  that the proportion of the
              --------------
     Company's Adjusted Taxable Income allocable to a Member is greater than the
     proportion  of the Company's Net Profit or Net Loss allocable to the Member
     for the same period, the Tax Distributions to such Member shall reflect the
     Adjusted  Taxable Income allocable to that Member and the Tax Distributions
     to the other Members shall be adjusted so that Tax Distributions under this
     Section 7.2.1  are  made  in  proportion  to  Unit  ownership.
     -------------

          7.2.2  The  Company  shall  make  all  remaining  Distributions to the
     holders  of  Units  in  proportion  to  their  Unit  ownership.

     7.3  No Violation.  Notwithstanding any provision to the contrary contained
          ------------
in  this  Agreement,  the  Company,  and  the Board of Managers on behalf of the
Company,  shall  not be required to make a Distribution to any Member on account
of  its  interest  in  the Company if such Distribution would violate applicable
law.

     7.4  Withholding.  All  amounts  withheld  pursuant  to  the  Code  or  any
          -----------
provision  of  any  state, local or foreign tax law with respect to any payment,
distribution,  or  allocation to the Company shall be treated as amounts paid to
the  Company.  Such  amounts  shall  in  turn  be  allocated  to  and treated as
distributed  to the Members for all purposes under this Agreement.  The Board of
Managers  is authorized to withhold from Distributions to the Members and to pay
over  to the appropriate federal, state, local or foreign government any amounts
required  to  be  so  withheld.  The  Board  of Managers shall allocate any such
amounts  to  the  Members in respect of whose Distribution or allocation the tax
was  withheld  and  shall  treat  such  amounts  as actually distributed to such
Members.

                                      -17-
<PAGE>
     7.5  Property  Distributions.  If  any  assets  of  the  Company  shall  be
          -----------------------
distributed in kind pursuant to this Article 7, such assets shall be distributed
                                     ---------
to  the  Members  entitled  thereto in the same proportions as the Members would
have  been  entitled to cash Distributions.  The amount by which the Fair Market
Value  of  any  property  to be distributed in kind to the Members exceeds or is
less  than  the  Book  Value of such property shall, to the extent not otherwise
recognized  by  the Company, be taken into account in determining Net Profit and
Net Loss and determining the Capital Accounts of the Members as if such property
had  been  sold  at its Fair Market Value immediately prior to the Distribution.

     7.6  Allocations  of  Net  Profit  or  Net Loss.  Subject to Section 7.7.2,
          ------------------------------------------              --------------
7.7.3  and  7.7.4  hereof,  the  Net  Profit or Net Loss of the Company shall be
-----------------
allocated  among  the  Members so as to ensure, to the extent possible, that the
Capital  Accounts  of  the Members as of the end of each Fiscal Year reflect the
aggregate  Distributions that the Members would be entitled to receive if all of
the  assets of the Company were sold for their Book Values and the proceeds were
distributed  as of the end of such Fiscal Year in accordance with Section 7.2.2.
                                                                  -------------

     7.7  Other Capital Account and Income Tax Adjustments.  Prior to making the
          ------------------------------------------------
allocations  of  Net  Profit  or Net Loss for the Fiscal Year in accordance with
Section  7.6  hereof,  the  Board of Managers shall allocate income, gain, loss,
------------
deduction  and  credit  (and items thereof) in accordance with the provisions of
this  Section 7.7 to the extent required by the Code and applicable Regulations.
      -----------

          7.7.1  Certain  Contributions  of  Property.  In  the event there is a
                 ------------------------------------
     difference  between  the  Book Value at which any property is accepted as a
     contribution  to the capital of the Company (or deemed accepted pursuant to
     Regulation  Section  1.704-1  (b)(2)(iv)(g))  and the adjusted tax basis of
     such  property  to  the  Company,  the  Board of Managers shall, solely for
     federal  income tax purposes (and not for purposes of allocating Net Profit
     or  Net  Loss  under  Section  7.6  or  computing  Net Profit or Net Loss),
                           ------------
     specially  allocate  the  income,  gain, loss and deduction attributable to
     such  property  to the extent required by Section 704(c) of the Code or any
     applicable  Regulations  under  Code  Section  704(b)  or  704(c) using the
     traditional  method  under  Regulation  Section  1.704-3(b).

          7.7.2  Certain  Adjustments.  To  the extent that an adjustment to the
                 --------------------
     adjusted  tax  basis  of  any Company asset is required pursuant to Section
     732(d),  Section  734(b)  or Section 743(b) of the Code, adjustments to the
     Capital  Accounts  shall be made as required pursuant to Regulation Section
     1.704-1(b)(2)(iv)(m).

          7.7.3  Nonrecourse  Deductions;  Member  Nonrecourse  Deductions;
                 ----------------------------------------------------------
     Qualified  Income  Offset,  etc. There are hereby included in the Agreement
     --------------------------------
     such  provisions  governing  the  allocation of taxable income, gain, loss,
     deduction  and  credit (and items thereof) determined under the Code as may
     be  necessary to provide that the Company's allocation provisions contain a
     so-called "Qualified Income Offset" and comply with all provisions relating
     to  the  allocation  of  so-called  "Nonrecourse  Deductions"  and  "Member
     Nonrecourse  Deductions"  and  the  chargeback  thereof as set forth in the
     Regulations  under  Section 704(b) of the Code; provided, however, that the
     incorporation  of  such  provisions  shall  affect  only the computation of
     taxable  net  income and loss and the allocation thereof as between Members
     and  shall  not  otherwise  affect  the  amount  or

                                      -18-
<PAGE>
     timing  of  any distribution of cash or property to any Member provided for
     in  this  Agreement.  Allocations  of  Nonrecourse Deductions shall be made
     ratably  among  the  Members in accordance with the number of Units held by
     the  Members. Allocations of Member Nonrecourse Deductions shall be made in
     accordance  with  Regulation  Section  1.704-2(i).

          7.7.4  Limitation  on  Loss  Allocation.  Notwithstanding  any  other
                 --------------------------------
     provision  of  this Agreement to the contrary, no item of loss or deduction
     of  the  Company  shall be allocated to any Member if such allocation would
     cause  such  Member  to  have  an Adjusted Capital Account Deficit or would
     increase such Member's Adjusted Capital Account Deficit. Such loss shall be
     allocated  among  the  Members  in  accordance  with  their interest in the
     Company  as  determined  under  Regulation Section 1.704-1(b)(3); provided,
     however, that the Board of Managers will notify the Members of any material
     loss  allocation required under this sentence at least 30 days prior to the
     date  on  which  any  Company  return is filed reporting such loss and will
     provide  the  Members  with  the  proposed  allocation  and  supporting
     calculations,  all  in  reasonable  detail.

     7.8  Changes  in  Members' Units.  If during any Fiscal Year of the Company
          ---------------------------
there  is  a  change in any Member's Units in the Company, the Board of Managers
shall  confer  with the tax advisors to the Company and, in conformity with such
advice,  allocate  the  Net Profit or Net Loss to the Members so as to take into
account  the  varying  interests  of the Members in the Company in a manner that
complies  with  the  provisions  of  Section 706 of the Code and the Regulations
thereunder.

     7.9  Adjustment  of  Capital  Accounts.  Unless the Board of Managers shall
          ---------------------------------
determine  otherwise,  the  Book  Values  of  all  the Company's assets shall be
adjusted  to  equal  their respective gross fair market values, as determined by
the Board of Managers (and the Capital Accounts of the Members shall be adjusted
accordingly), as of the following times: (a) the acquisition of additional Units
by  any new or existing Member in exchange for more than a de minimis additional
Capital  Contribution, services rendered or to be rendered or the exercise of an
option to acquire such Units; (b) the distribution by the Company to a Member of
more  than  a  de  minimis  amount of assets of the Company as consideration for
Units;  and  (c)  the  liquidation  of  the  Company;  provided,  however,  that
adjustments  pursuant  to  clauses  (a)  and (b) above shall be made only if the
Board  of  Managers reasonably determines that such adjustments are necessary or
appropriate  to  reflect  the  relative economic interests of the Members in the
Company.

     7.10 Allocations  for  Tax  and  Section  704(b) Book  Purposes.  Except as
          ----------------------------------------------------------
otherwise  provided  herein, any allocation, for purposes of maintaining Capital
Accounts,  to  a  Member  for  a Fiscal Year or other period of a portion of Net
Profit  or Net Loss (or of a specially allocated item) shall be determined to be
an  allocation  to  that  Member  of the same proportionate part of each item of
income,  gain,  loss,  deduction  or  credit,  as the case may be, as is earned,
realized  or  available  by  or  to the Company for federal income tax purposes.

     7.11 Interpretation.  It  is  the intent of the Members that the provisions
          --------------
hereof  relating  to  each  Member's  distributive  share of income, gain, loss,
deduction  and  credit  (and  items thereof) shall comply with the provisions of
Sections  704(b),  704(c), 706 and other relevant provisions of the Code and the
applicable  Regulations.  In  furtherance  of  the  foregoing,  the

                                      -19-
<PAGE>
Board  of Managers is hereby directed to resolve any ambiguity in the provisions
of  this  Agreement  in  a manner that will preserve and protect the allocations
provided  for  in this Article 7 for federal income tax purposes and, subject to
                       ---------
the last sentence hereof, to adopt such curative provisions to this Article 7 as
                                                                    ---------
the  Board  of  Managers may deem necessary or appropriate.  In the event of any
dispute,  the  decision  of  the independent tax counsel employed by the Company
shall  be  final.  Notwithstanding the foregoing, no Member shall have the right
to  require  or  compel  any  distribution of cash or property not authorized or
provided for by the provisions of this Agreement and the Board of Managers shall
not have the right to alter any distribution of cash or property provided for by
the  provisions of this Agreement on the ground that such action is necessary to
cause  the  provisions  hereof  to conform to the provisions of the Regulations.

                                    ARTICLE 8
                               TAX MATTERS MEMBER
                               ------------------

     8.1  Tax  Matters Member.  Unless and until another Member is designated as
          -------------------
the  tax  matters member by the Board of Managers, Penn Octane Corporation shall
be  the  tax  matters member of the Company as provided in the Regulations under
Code Section 6231 and any analogous provisions of state law and in such capacity
is  referred  to  as  the  "Tax  Matters  Member".
                            --------------------

     8.2  Certain  Authorizations.  The  Tax  Matters Member shall represent the
          -----------------------
Company,  at  the  Company's expense, in connection with all examinations of the
Company's  affairs  by tax authorities including any resulting administrative or
judicial  proceedings.

     8.3  Indemnity  of  Tax  Matters  Member.  The  Company shall indemnify and
          -----------------------------------
reimburse  the  Tax  Matters  Member  for  all  expenses  (including  legal  and
accounting  fees)  incurred  as Tax Matters Member pursuant to this Article 8 in
                                                                    ---------
connection  with  any  administrative or judicial proceeding with respect to the
tax liability of the Members as long as the Tax Matters Member has determined in
good  faith  that  its  course  of  conduct  was in, or not opposed to, the best
interest  of the Company.  The payment of all such expenses shall be made before
any  Distributions  are  made  to the Members.  The taking of any action and the
incurring  of  any expense by the Tax Matters Member in connection with any such
proceeding, except to the extent provided herein or required by law, is a matter
in  the  sole  discretion  of  the  Tax  Matters  Member  and  the provisions on
limitations  of  liability  of  the  Tax Matters Member, and indemnification set
forth  in  Article 12 shall be fully applicable to the Tax Matters Member in its
           ----------
capacity  as  such.

     8.4  Notices  to  Tax Matters Member.  Any Member that receives a notice of
          -------------------------------
an  administrative  proceeding  under  Code Section 6233 relating to the Company
shall  promptly  notify  the  Tax Matters Member of the treatment of any Company
item  on  such Member's federal income tax return that is or may be inconsistent
with the treatment of that item on the Company's return.  Any Member that enters
into  a settlement agreement with the Secretary with respect to any Company item
shall  notify  the  Tax Matters Member of such agreement and its terms within 60
days  after  its  date.

                                      -20-
<PAGE>
                                    ARTICLE 9
                                TRANSFER OF UNITS
                                -----------------

     9.1  Transfer  by  Members.
          ---------------------

          9.1.1  Except  as  permitted  by Section 9.3, no Member shall Transfer
                                           -----------
     all or any part of the economic or other rights that comprise its Units and
     no Assignee shall Transfer any portion of its Economic Interest unless such
     Transfer  is first approved by the Board of Managers, which approval may be
     given  or  refused  in  the  sole  and  absolute discretion of the Board of
     Managers.

          9.1.2  Notwithstanding Section 9.1.1, but subject to the provisions of
                                 -------------
     Sections  9.1.4,  9.1.5  and  9.3,  a  Member who is an individual shall be
     ---------------------------------
     entitled  to  Transfer  all  or any portion of its Units to a trust for the
     benefit  of  such Member or a Member of the immediate family of such Member
     (herein  referred  to  as  a  "Permitted Transferee") so long as the Person
                                    --------------------
     controlling  such  trust is satisfactory to the Board of Managers, provided
     that the Permitted Transferee in question shall not be admitted as a Member
     of  the  Company, but shall remain an Assignee with respect to the interest
     transferred  unless  admitted  as  a  Member  pursuant  to  Article  10.
                                                                 -----------

          9.1.3  Any  holder of Units may pledge such Units to any bank or other
     financial  institution  to  secure  any debt of the Company to such bank or
     financial  institution  for borrowed money; provided, however, that no such
     pledge  may  be  made  unless such pledge is first approved by the Board of
     Managers,  which  approval may be given or refused in the sole and absolute
     discretion  of  the  Board  of  Managers.

          9.1.4  No Transfer (including a Transfer to a Permitted Transferee) of
     all or any part of a Member's Units or an Assignee's Economic Interest may
be made pursuant to Section 9.1 or Section 9.3 hereof unless and until the Board
                    -----------    -----------
of Managers shall have received all of the following (to the extent applicable
to the proposed Transfer):

          (a)  if  requested by the Board of Managers, an opinion of responsible
               counsel  (who  may  be  counsel for the Company), satisfactory in
               form  and  substance to the Board of Managers to the effect that:

               (i)       such  Transfer  would not violate the Securities Act or
                         any state securities or blue sky laws applicable to the
                         Company  or  the  Units  to  be  transferred;

               (ii)      such  Transfer  would  not  cause  the  Company  to  be
                         considered  a publicly traded partnership under Section
                         7704(b)  of  the  Code;

               (iii)     such  Transfer  would not cause the Company to lose its
                         status  as  a  partnership  for  federal  income  tax
                         purposes;

               (iv)      such  Transfer  would  not  require  the Company or the
                         Board  of Managers to register as an investment adviser
                         under  the Investment Advisers Act of 1940, as amended,
                         or  to  register  as  an  investment

                                      -21-
<PAGE>
                         company  under  the  Investment Company Act of 1940, as
                         amended;  and

               (v)       such  Transfer  would  not  cause  a termination of the
                         Company  for  federal  income  tax  purposes;  and

          (b)  the  agreement  in writing of such Assignee to comply with all of
               the  terms  and provisions of this Agreement and the grant of the
               power  of  attorney  set  forth  in  Section  15.4.
                                                    -------------

         9.1.5 Each  Member  hereby  severally  agrees  that:

          (a)  it  will not transfer all or any part of its Units in the Company
               except  as  permitted  by  this  Agreement;

          (b)  in  no  event shall all or any part of a Unit be transferred to a
               minor  or  an  incompetent  except  in  trust  or pursuant to the
               Uniform  Gifts  to  Minors  Act;  and

          (c)  it  will  pay all reasonable expenses, including attorneys' fees,
               incurred  by  the  Company  in  connection  with  such  Transfer.

          9.1.6  A  transferee  of  Units  or  an Economic Interest shall not be
     admitted  as  a  Member  of  the Company, but shall remain an Assignee with
     respect  to  the  Units  or  Economic Interest transferred unless and until
     admitted  as  a  Member  pursuant  to  Article  10.  Unless a transferee is
                                            -----------
     admitted as a Member of the Company pursuant to Article 10, the Transfer of
                                                     ----------
     all  of  a  Member's  interest  in  the  profits, losses and capital of the
     Company shall not cause such Member to cease to be a Member of the Company.

          9.1.7  Any  Transfer in contravention of any of the provisions of this
     Article  9  shall  be  void  and  of  no  effect, and shall not bind nor be
     ----------
     recognized  by  the  Company.

          9.1.8  In  the event of a Transfer or the admission of any Assignee as
     a  Member  of  the  Company, the Board of Managers shall promptly prepare a
     revised Schedule I, which shall be deemed to replace the old Schedule I and
             ----------                                           ----------
     constitute  an  amendment of this Agreement approved by all of the Members,
     to  reflect  such  Transfer  or  admission,  as  the case may be, and shall
     promptly  send  a  copy  of  such  revised  Schedule  I  to  all  Members.
                                                 -----------

     9.2  Assignees.  If  the  provisions  of  this Article 9 have been complied
          ---------                                 ---------
with,  an  Assignee  shall  be  entitled to receive all distributions of cash or
other property from the Company, and to be allocated Net Profit and Net Loss and
items  of  taxable  income,  deduction, gain, loss or credit attributable to the
Economic  Interest assigned to the Assignee from and after the effective date of
the  Transfer;  shall  succeed  to  the  portion  of  the Capital Account of the
transferor as of the effective date of the Transfer attributable to the Economic
Interest  which  was  transferred; and shall have the right to receive a copy of
the  financial  statements and tax information required herein to be provided to
all  Members.  An  Assignee  shall have no rights of a Member, including without
limitation  the  right to vote as a Member on matters set forth herein or in the
Act,  which rights of a Member shall continue to be held by the Member from whom
the

                                      -22-
<PAGE>
Economic  Interest  derives,  unless  and  until  such Assignee is admitted as a
Member  pursuant  to  the provisions of Article 10.  The Economic Interest of an
                                        ----------
Assignee  shall  be  subject to all of the restrictions and limitations to which
the  Units  from  which  the  Economic Interest was transferred and to which the
Member  holding such Units are subject.  The Company and Board of Managers shall
be  entitled to treat the transferor of the Economic Interest transferred to the
Assignee as the absolute owner in all respects, and shall incur no liability for
Distributions,  allocations of Net Profit or Net Loss, or transmittal of reports
and  notices required to be given to the Assignee that are made in good faith to
the  transferor  Member  until  the  effective  date  of  the  Transfer.  Unless
otherwise  agreed  by  the Board of Managers, the effective date of the Transfer
shall  be  the  first day of the calendar month following the month in which the
Board  of  Managers  has  received  all  documents with respect to such Transfer
required by Section 9.1.4 and an executed instrument of assignment in compliance
            -------------
with  this  Article  9  or  the  first  day of a later month if specified in the
            ----------
executed  instrument  of  assignment.

     9.3  Penn  Octane  Units.  Penn  Octane Corporation shall have the right to
          -------------------
sell  25,000  of  its  Units  to each of Shore Capital LLC (or its designee) and
Jerome  B.  Richter  (or his designee) pursuant to purchase rights granted to by
Penn  Octane  Corporation  to  such  Persons.

                                   ARTICLE 10
                         ADMISSION OF ASSIGNEE AS MEMBER
                         -------------------------------

     10.1 Requirements.  An  Assignee  shall not be admitted to the Company as a
          ------------
Member unless all of the following conditions are first satisfied:

          (a)  a  duly  executed and acknowledged written instrument of Transfer
               is filed with the Company, specifying the Units being transferred
               and  setting  forth  the  intention  of  the Member effecting the
               Transfer  that  the  Assignee succeed to a portion or all of such
               Member's  Units  as  a  Member;

          (b)  the  Assignee  qualifies  as  an  Accredited  Investor;

          (c)  if  requested  by the Board of Managers, the Assignee delivers to
               the  Company  an  opinion  of  counsel,  in  form  and  substance
               satisfactory  to the Board of Managers, to the effect provided in
               clause  (a) of Section 9.1.4 with respect to the admission of the
                              -------------
               Assignee  as  a  Member;

          (d)  the  Member  effecting  the  Transfer  and  Assignee  execute and
               acknowledge  any  other  instruments  that  the Board of Managers
               deems  necessary  or  desirable  for  admission  of the Assignee,
               including  the written acceptance and adoption by the Assignee of
               the  provisions  of  this Agreement and execution, acknowledgment
               and  delivery  to  the  Board  of  Managers of a special power of
               attorney  as  provided  in  Section  15.4;
                                           -------------

          (e)  the  Member  effecting  the  Transfer or the Assignee pays to the
               Company  a  transfer  fee  sufficient  to  cover  all  reasonable
               expenses  connected  with  the  admission;

          (f)  Article  9  of  this  Agreement has been or is complied with; and
               ----------

                                      -23-
<PAGE>
          (g)  the Board of Managers approves such admission, which approval may
               be  given  or  refused  in  its  reasonable  discretion.

     10.2 Resignation  of Member; No  Dissolution.  If a Member Transfers all of
          ---------------------------------------
its  interest  in  the  profits,  losses  and capital of the Company pursuant to
Section 9.1 and the transferee of such interest is admitted as a Member pursuant
-----------
to  Section  10.1,  such  Person  shall  be  admitted to the Company as a Member
    -------------
effective  on  the  effective  date of the Transfer or such other date as may be
specified when the Member is admitted, and immediately following such admission,
the  transferor  Member  shall  cease  to  be  a  Member  of  the  Company.

                                   ARTICLE 11
                             DISSOLUTION OF COMPANY
                             ----------------------

     11.1 Termination  of Company.  No  Member shall resign or withdraw from the
          -----------------------
Company  except that, subject to the restrictions set forth in Articles 9 and 10
                                                               -----------------
hereof,  any  Member may Transfer its Units in the Company to an Assignee and an
Assignee  may  become  a Member in place of the Member which assigned its Units.
If  any Member ceases to be a Member for any reason, the business of the Company
shall  be  continued  by  the  remaining  Members.

     11.2 Events  of Dissolution or Liquidation.  The Company shall be dissolved
          -------------------------------------
upon the happening of any of the following events: (a) the written determination
of  the  Board  of  Managers  or  (b)  the  Sale  of  the  Company.

     11.3 Liquidation.  Upon  dissolution  of  the  Company  for any reason, the
          -----------
Company  shall immediately commence to wind up its affairs.  A reasonable period
of  time shall be allowed for the orderly termination of the Company's business,
discharge  of  its liabilities, and distribution or liquidation of the remaining
assets  so  as  to enable the Company to minimize the normal losses attendant to
the liquidation process.  The Company's property and assets or the proceeds from
the liquidation thereof shall be distributed so as not to contravene the Act but
in compliance with Section 7.2; provided, however, that Distributions to Members
                   -----------
shall be made after their Capital Accounts have been adjusted to reflect all Net
Profits  and  Net  Losses  of  the  Company  through  the  date of distribution.

     11.4 No  Action for Dissolution.  The Members  acknowledge that irreparable
          --------------------------
damage would be done to the goodwill and reputation of the Company if any Member
should  bring  an  action  in  court to dissolve the Company under circumstances
where  dissolution  is  not  required  by Section 11.2.  This Agreement has been
                                          ------------
drawn  carefully  to provide fair treatment of all parties and equitable payment
in liquidation of the Units of all Members.  Accordingly, except where the Board
of  Managers has failed to liquidate the Company as required by Section 11.2 and
                                                                ------------
except  as  specifically  provided  in  the  Act,  each Member hereby waives and
renounces  its right to initiate legal action to seek dissolution or to seek the
appointment  of  a  receiver  or  trustee  to  liquidate  the  Company.

     11.5 No Further Claim.  Upon  dissolution, each Member shall look solely to
          ----------------
the  assets  of  the Company for the return of its capital, and if the Company's
property  remaining  after  payment or discharge of the debts and liabilities of
the  Company,  including  debts  and  liabilities

                                      -24-
<PAGE>
owed  to  one  or  more  of the Members, is insufficient to return the aggregate
Capital  Contributions  of  each  Member,  such  Members  shall have no recourse
against  the  Company,  the  Board  of  Managers  or  any  other  Member.

                                   ARTICLE 12
                                 INDEMNIFICATION
                                 ---------------

     12.1 General.  The  Company  shall  indemnify, defend and hold harmless the
          -------
Board  of  Managers  and  each  member  of  the  Board of Managers, each Member,
including  the Tax Matters Member, each Assignee and each such Persons officers,
directors,  shareholders,  members,  partners,  employees  and  agents;  and the
employees,  officers  and  agents  of the Company (all indemnified persons being
referred  to  as  "Indemnified  Persons")  from  any  liability,  loss or damage
                   --------------------
incurred  by the Indemnified Person by reason of any act performed or omitted to
be  performed  by  the Indemnified Person in connection with the business of the
Company  and  from  liabilities  or  obligations  of the Company imposed on such
Person  by  virtue  of  such  Person's  position  with  the  Company,  including
reasonable  attorneys' fees and costs and any amounts expended in the settlement
of  any such claims of liability, loss or damage; provided, however, that if the
liability,  loss,  damage  or  claim  arises out of any action or inaction of an
Indemnified  Person,  indemnification under this Section 12.1 shall be available
                                                 ------------
only  if  (a)  either  (i) the Indemnified Person, at the time of such action or
inaction,  determined  in  good faith that its, his or her course of conduct was
in, or not opposed to, the best interests of the Company, or (ii) in the case of
inaction  by  the Indemnified Person, the Indemnified Person did not intend its,
his  or  her  inaction  to  be  harmful  or opposed to the best interests of the
Company,  and  (b)  the  action  or  inaction  did  not  constitute fraud, gross
negligence  or  willful misconduct by the Indemnified Person or a breach of this
Agreement;  and  provided, further, that indemnification under this Section 12.1
                                                                    ------------
shall be recoverable only from the assets of the Company and not from any assets
of  the  Members.  THE  FOREGOING  INDEMNITY  IS  INTENDED  TO  INDEMNIFY  EACH
INDEMNIFIED  PERSON  FOR HIS OWN ACTS OF NEGLIGENCE AND SHALL APPLY IRRESPECTIVE
OF  ANY  CLAIM  OF  CONCURRENT  OR  CONTRIBUTORY  NEGLIGENCE ON THE PART OF SUCH
INDEMNIFIED  PERSON.  The  Company  may  pay  or reimburse attorneys' fees of an
Indemnified  Person  as  incurred,  if  such  Indemnified  Person  executes  an
undertaking  to  repay  the  amount  so  paid  or reimbursed if there is a final
determination  by a court of competent jurisdiction that such Indemnified Person
is  not  entitled to indemnification under this Article 12.  The Company may pay
                                                ----------
for  insurance  covering  liability of the Indemnified Persons for negligence in
operation  of  the  Company's  affairs.

     12.2 Persons Entitled to Indemnity. Any Person who is within the definition
          -----------------------------
of "Indemnified Person" at the time of any action or inaction in connection with
the business of the Company shall be entitled to the benefits of this Article 12
                                                                      ----------
as  an  Indemnified  Person  with  respect  thereto,  regardless  if such Person
continues  to  be  within  the definition of "Indemnified Person" at the time of
such  Indemnified  Person's  claim for indemnification or exculpation hereunder.

     12.3 Procedure  Agreements.  The  Company  may enter into an agreement with
          ---------------------
any  of  its  officers,  employees  and  agents,  or the members of the Board of
Managers,  setting  forth  procedures  consistent  with  applicable  law  for
implementing  the  indemnities  provided  in  this  Article  12.
                                                    -----------

                                      -25-
<PAGE>
     12.4 Fiduciary  and  Other Duties.  An Indemnified Person acting under this
          ----------------------------
Agreement  shall not be liable to the Company or to any other Indemnified Person
for its good faith reliance on the provisions of this Agreement.  The provisions
of  this  Agreement,  to  the  extent  that  they restrict the duties (including
fiduciary duties) and liabilities of an Indemnified Person otherwise existing at
law  or in equity, are agreed by the parties hereto to replace such other duties
and  liabilities  of  such  Indemnified  Person.

     12.5 Exculpation.  No  Indemnified  Person  shall  be liable, in damages or
          -----------
otherwise,  to  the Company or to any Member for any loss that arises out of any
act  performed or omitted to be performed by it or him pursuant to the authority
granted  by this Agreement if (a) either (i) the Indemnified Person, at the time
of  such  action  or  inaction, determined, in good faith, that such Indemnified
Person's  course of conduct was in, or not opposed to, the best interests of the
Company,  or  (ii)  in  the  case  of  inaction  by  the Indemnified Person, the
Indemnified  Person  did  not  intend  such  Indemnified Person's inaction to be
harmful  or opposed to the best interests of the Company, and (b) the conduct of
the  Indemnified  Person  did not constitute fraud, gross negligence, or willful
misconduct  by  such  Indemnified  Person  or  a  breach  of  this  Agreement.

     12.6  Except  as  otherwise provided by the Act, the debts, obligations and
liabilities  of  the  Company,  whether  arising in contract, tort or otherwise,
shall  be  solely  the debts, obligations and liabilities of the Company, and no
Indemnified  Person  shall be obligated personally for any such debt, obligation
or  liability  of  the  Company solely by reason of being an Indemnified Person.
All  persons  dealing  with  the  Company shall look solely to the assets of the
Company for the payment of the debts, obligations or liabilities of the Company.

                                   ARTICLE 13
                  REPRESENTATIONS AND COVENANTS BY THE MEMBERS
                  --------------------------------------------

     Each  Member  hereby represents and warrants to, and agrees with, the Board
of  Managers,  the  other  Members  and  the  Company  as  follows:

     13.1 Investment  Intent.  It  is  acquiring  its  Units  with the intent of
          ------------------
holding  the same for investment for its own account and without the intent or a
view  of  participating directly or indirectly in any distribution of such Units
within  the  meaning  of  the  Securities Act or any applicable state securities
laws.

     13.2 Securities  Regulation.
          ----------------------

          13.2.1  It acknowledges and agrees that its Units are being issued and
sold in reliance on the exemption from registration contained in Section 4(2) of
the Securities Act and exemptions contained in applicable state securities laws,
and  that  its  Units  cannot  and  will  not be sold or transferred except in a
transaction  that  is  exempt  under  the Securities Act and those state acts or
pursuant  to  an  effective  registration statement under the Securities Act and
those  state  acts  or in a transaction that is otherwise in compliance with the
Securities  Act  and  those  state  acts.

          13.2.2  It understands  that  it  has  no  contractual  right  for the
registration  under  the  Securities  Act of its Units for public sale and that,
unless  its Units are registered or an exemption from registration is available,
its  Units  may  be  required  to  be  held  indefinitely.

                                      -26-
<PAGE>
     13.3 Knowledge  and  Experience.  It  has  such knowledge and experience in
          --------------------------
financial,  tax  and business matters as to enable it to evaluate the merits and
risks  of  its  investment  in  the  Company  and to make an informed investment
decision  with  respect  thereto.

     13.4 Economic Risk.  It is able to bear the economic risk of its investment
          -------------
in  its  Units.

     13.5 Binding Agreement.  It  has all requisite power and authority to enter
          -----------------
into  and  perform this Agreement and that this Agreement is and will remain its
valid  and binding agreement, enforceable in accordance with its terms (subject,
as  to  the enforcement of remedies, to any applicable bankruptcy, insolvency or
other  laws  affecting  the  enforcement  of  creditors  rights).

     13.6 Tax Position.  Unless it provides prior written notice to the Company,
          ------------
it  will  not take a position on its federal income tax return, in any claim for
refund,  or in any administrative or legal proceedings that is inconsistent with
any  information  return  filed  by  the  Company or with the provisions of this
Agreement.

     13.7 Information.  It  has  received  all  documents,  books  and  records
          -----------
pertaining  to  an  investment  in  the  Company  requested by it.  It has had a
reasonable  opportunity  to  ask questions of and receive answers concerning the
Company, and all such questions have been answered to its satisfaction.

     13.8 Amendments  to  Agreement.  This  Agreement may be modified or amended
          -------------------------
with the prior written consent of the Board of Managers; provided; however, that
this  Agreement  may  not  be amended (a) without the approval of each Member or
Assignee  materially  adversely  affected if the amendment would reduce any such
Person's  number  of  Units or would reduce the allocation to such Person of the
amount of any Net Profit, Net Loss or distribution of cash or property from that
which  is  provided  or  contemplated herein, unless (i) such amendment is being
executed  to  reflect  any dilution in such Person's interest resulting from the
issuance of Units as contemplated by Article 3 or to reflect the preference over
                                     ---------
any  such  Units of any new Units issued under Article 3, (ii) such amendment is
                                               ---------
being executed to reflect the acceptance of an Assignee as a new Member pursuant
to  Article  10 or (iii) such amendment adversely affects all Members (and their
    -----------
Assignees)  equally.  Notwithstanding the foregoing sentence, Amendments to this
Agreement  that (a) are necessary or desirable to cure any ambiguity, to correct
or  supplement  any provision herein that would be inconsistent with law or with
any  other  provision  herein,  or  to  make any other provision with respect to
matters  or questions arising under this Agreement that will not be inconsistent
with  law  or  with  the  provisions  of  this  Agreement;  (b) are necessary or
desirable to satisfy any requirements, conditions or guidelines contained in any
opinion,  directive,  order, ruling or regulation of any federal or state agency
or  contained  in  any  federal  or  state  statute; or (c) contemplated by this
Agreement  in  Section 2.2 in respect of the name of the Company, Section 2.3 in
               -----------                                        -----------
respect  of  the  registered office and registered agent of the Company, Section
                                                                         -------
2.7  in  respect  to  persons  authorized  to  act  on behalf of the Company and
---
Schedule  I  of this Agreement, may be made by the Board of Managers without the
-----------
consent  of  any  Members,  and  such amendments and revised Schedule I shall be
                                                             ----------
deemed  to  constitute  an  amendment  of  this Agreement approved by all of the
Members.

                                      -27-
<PAGE>
     All amendments to this Agreement will be sent to each Member and, after the
effective date of the Transfer to such Assignee, to each Assignee promptly after
the  effectiveness  thereof.  Any  modification  or  amendment to this Agreement
pursuant to this Article 13 shall be binding on all Members.
                 ----------

                                   ARTICLE 14
                        RIGHT TO CONVERT FORM OF COMPANY
                        --------------------------------

     14.1 Election.  With the prior written consent of the Supermajority Vote of
          --------
the Board of Managers, but without any need for consent or approval of any other
Member,  the  Board  of  Managers  may  elect at any time and for any purpose to
require  that the Company be converted into a corporation (in connection with an
initial  public  offering  or  otherwise), which conversion shall be effected by
merger or by such other form of transaction as may be available under applicable
law.  No  Member  shall  have  any voting rights with respect to the election to
convert  the Company into a corporation or partnership.  In such conversion, the
Units  of the Members (determined as though such Units included Distributions to
which  the Members would then be entitled under Section 11.3 if the Company were
                                                ------------
liquidated  at  the  value  of  the  Company  determined in connection with such
conversion)  as well as any unvested Units shall be the basis for the allocation
of  shares  or  options  in the corporation.  Upon such an election, the Members
shall  as  soon  as  practicable thereafter execute, acknowledge and deliver, or
cause  to be executed, acknowledged and delivered, all instruments and documents
that may be reasonably requested by the Board of Managers to best effectuate the
conversion  of  the  Company to a corporation while continuing in full force and
effect, to the extent consistent with such conversion, the terms, provisions and
conditions  of  this Agreement, including those provisions granting the Board of
Managers exclusive authority to manage the operations and affairs of the Company
subject  to  the  provisions  hereof,  restricting  the  Transfer  of Units, and
granting  rights  to  repurchase  Units  or  rights  to  participate  in certain
transactions.

                                   ARTICLE 15
                                  MISCELLANEOUS
                                  -------------

     15.1 Additional  Documents.  At  any  time  and from time to time after the
          ---------------------
date  of  this Agreement, upon the request of the Board of Managers, each Member
shall  do  and  perform,  or cause to be done and performed, all such additional
acts  and  deeds,  and  shall  execute,  acknowledge and deliver, or cause to be
executed,  acknowledged  and  delivered,  all  such  additional  instruments and
documents  as  may  be  required  to  effectuate the purposes and intent of this
Agreement.

     15.2 General.  This  Agreement:  (a)  shall  be binding upon the executors,
          -------
administrators, estates, heirs and legal successors of the Members; (b) shall be
governed  by and construed in accordance with the laws of the State of Delaware,
without  regard  to  principles of conflict of laws; (c) may be executed in more
than  one  counterpart  as  of  the  day  and  year first above written; and (d)
contains  the entire contract among the Members as to the subject matter hereof.
The  waiver  of  any  of  the  provisions, terms or conditions contained in this
Agreement  shall  not  be considered as a waiver of any of the other provisions,
terms  or  conditions  hereof.

                                      -28-
<PAGE>
     15.3 Notices,  etc.  All  notices  and  other  communications  required  or
          -------------
permitted  hereunder  shall  be in writing and shall be deemed effectively given
upon personal delivery or receipt (which may be evidenced by a return receipt if
sent  by  registered  mail  or  by signature if delivered by courier or delivery
service) addressed (a) if to any Member, at the address of such Member set forth
in the records of the Company or at such other address as such Member shall have
furnished  to  the  Company in writing as the address to which notices are to be
sent  hereunder,  and  (b) if to the Company or to the Board of Managers, to it.

     15.4 Execution  of Papers.  The  Members agree to execute such instruments,
          --------------------
documents  and papers as the Board of Managers deems necessary or appropriate to
carry  out  the  intent  of this Agreement.  Each Member, including each new and
substituted Member, by the execution of this Agreement or by agreeing in writing
to  be  bound  by  the provisions of this Agreement, irrevocably constitutes and
appoints  each  member  of the Board of Managers and/or any Person designated by
the Board of Managers to act on its behalf for purposes of this Section 15.4 its
                                                                ------------
true  and  lawful  attorney-in-fact  with  full power and authority in its name,
place  and  stead to execute, acknowledge, deliver, swear to, file and record at
the appropriate public offices such documents as may be necessary or appropriate
to  carry  out  the  provisions of this Agreement, including but not limited to:

          (a)  all  certificates  and  other instruments (specifically including
               counterparts  of this Agreement), and any amendment thereof, that
               the  Board  of  Managers deems appropriate to qualify or continue
               the Company as a limited liability company in any jurisdiction in
               which  the  Company  may  conduct  business  or  in  which  such
               qualification  or continuation is, in the opinion of the Board of
               Managers,  necessary  to  protect  the  limited  liability of the
               Members;

          (b)  all  amendments  to this Agreement adopted in accordance with the
               terms hereof and all instruments that the Board of Managers deems
               appropriate to reflect a change or modification of the Company in
               accordance  with  the  terms  of  this  Agreement;  and

          (c)  all  conveyances and other instruments that the Board of Managers
               deems  appropriate  to  reflect  the  dissolution of the Company.

     The  appointment  by  each  Member  of each member of the Board of Managers
and/or  any  Person  designated by the Board of Managers as its attorney-in-fact
shall  be  deemed  to be a power coupled with an interest, in recognition of the
fact  that  each  of  the  Members under this Agreement will be relying upon the
power  of  the Board of Managers to act as contemplated by this Agreement in any
filing  and  other  action by it on behalf of the Company, and shall survive and
shall  not be affected by the subsequent disability, incapacity, the bankruptcy,
dissolution,  death,  adjudication  of  incompetence  or  insanity of any Member
giving  such  power  and  the  transfer or assignment of all or any part of such
Member's  Units;  provided, however, that in the event of a Transfer by a Member
of all of its Units, the power of attorney given by the transferor shall survive
such assignment only until such time as the Assignee shall have been admitted to
the  Company  as a substituted Member and all required documents and instruments
shall  have  been duly executed, filed and recorded to effect such substitution.

                                      -29-
<PAGE>
     15.5 Disputed Matters.  Except as otherwise provided in this Agreement, any
          ----------------
controversy  or dispute arising out of this Agreement, the interpretation of any
of  the  provisions  hereof,  or  the action or inaction of any Member hereunder
shall  be submitted to arbitration in Houston, Texas, pursuant to the provisions
set  forth  in  Exhibit 15.5 hereto.  To the fullest extent permitted by law, no
                ------------
action  at  law  or  in equity based upon any claim arising out of or related to
this  Agreement  shall  be  instituted  in any court by any Member except (a) an
action  to compel arbitration pursuant to this Section 15.5, or (b) an action to
                                               ------------
enforce  an  award obtained in an arbitration proceeding in accordance with this
Section  15.5.
-------------

     15.6  Gender and Number.  Whenever required by the context, as used in this
           -----------------
Agreement the singular number shall include the plural, the plural shall include
the  singular, and all words herein in any gender shall be deemed to include the
masculine,  feminine  and  neuter  genders.

     15.7  Severability.  If  any provision of this Agreement is determined by a
           ------------
court  to  be  invalid or unenforceable, that determination shall not affect the
other provisions hereof, each of which shall be construed and enforced as if the
invalid  or unenforceable portion were not contained herein.  That invalidity or
unenforceability shall not affect any valid and enforceable application thereof,
and  each  said  provision  shall  be  deemed  to be effective, operative, made,
entered  into  or  taken  in the manner and to the full extent permitted by law.

     15.8  Headings.  The  headings  used  in  this  Agreement  are  used  for
           --------
administrative  convenience  only and do not constitute substantive matter to be
considered  in  construing  the  terms  of  this  Agreement.

     15.9  No  Third Party Rights.  The provisions of this Agreement are for the
           ----------------------
benefit  of the Company, the Board of Managers, the Members and Assignees and no
other  Person, including creditors of the Company, shall have any right or claim
against  the  Company,  the  Board  of  Managers or any Member by reason of this
Agreement  or  any  provision  hereof or be entitled to enforce any provision of
this  Agreement.

                  [Remainder of page intentionally left blank.]

                                      -30-
<PAGE>
     IN  WITNESS  WHEREOF,  the  parties  have  executed  this Limited Liability
Company Agreement as of the day and year first set forth above.

MEMBERS:

PENN OCTANE CORPORATION

By:  /s/  Ian T. Bothwell
     ----------------------------
          Ian T. Bothwell
          Chief Financial Officer

                                      -31-
<PAGE>
<TABLE>
<CAPTION>
                                   SCHEDULE I
                                   ----------

Members:                 Capital Contributions    Units   Per Unit Value
-----------------------  ----------------------  -------  --------------
<S>                      <C>                     <C>      <C>
Penn Octane Corporation  $1,000                  100,000  $.01
</TABLE>

                                  Schedule I-1
<PAGE>
                                    EXHIBIT 1
                                    ---------

                                  DEFINED TERMS
                                  -------------

     "Accredited  Investor"  has  the  meaning  assigned  to  such  term  under
      --------------------
Regulation  D  promulgated  pursuant  to  Section  4(2)  of  the Securities Act.

     "Act"  shall mean the Delaware Limited Liability Company Act as amended and
      ---
in  effect  from  time  to  time.

     "Adjusted  Capital  Account Deficit" means, with respect to any Member, the
      ----------------------------------
deficit  balance,  if any, in such Member's Capital Account as of the end of the
relevant  Fiscal  Year  after  giving  effect  to  the  following  adjustments:

     (i)    credit  to  such  Capital  Account  any amounts which such Member is
     obligated  to  restore  pursuant  to  any provision of this Agreement or is
     deemed  to  be  obligated  to  restore  pursuant  to  the  next to the last
     sentences  of  Regulation  Sections  1.704-2(g)(1)  and 1.704-2(i)(5) after
     taking  into  account  any changes during such year in Company minimum gain
     and Member minimum gain (as determined under such Regulations); and

     (ii)   debit to such Capital Account the items described in Section 1.704-1
     (b)(2)(1)(d)(4), (5) and (6) of the Regulations.

     "Adjusted  Taxable  Income"  shall  mean  the Company's cumulative items of
      -------------------------
income  or  gain  less  cumulative  items  of  loss or deduction under the Code,
computed  from  the Effective Date through the date such Adjusted Taxable Income
is being computed, except that gain or loss from a Sale of the Company.

     "Affiliate"  shall  mean,  with respect to any specified Person, any Person
      ---------
that directly or through one or more intermediaries controls or is controlled by
or  is  under  common  control  with  the  specified  Person.  As  used  in this
definition,  the term "control" 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  ownership  of  voting  securities,  by  contract  or
otherwise.

     "Agreement"  shall mean this Amended and Restated Limited Liability Company
      ---------
Agreement of the Company dated as of the Effective Date, as amended from time to
time.

     "Assignee" shall mean a Person that has acquired the right from a Member to
      --------
(i)  share in Net Profit and Net Loss of the Company, (ii) receive Distributions
and  (iii)  receive  the allocation of taxable income, gain, loss, deductions or
credits  (and  items  thereof) of the Company to which the transferor Member was
entitled  in  accordance  with  the  provisions  of  Article 9, but has not been
                                                     ---------
admitted as a Member of the Company in accordance with the provisions of Article
                                                                         -------
10.
--

     "Board of Managers" shall mean the board of managers elected and determined
      -----------------
as  provided  in  Section  5.1.
                  ------------

     "Book  Gain"  or  "Book Loss" shall mean the gain or loss recognized by the
      ----------        ---------
Company for Code Section 704(b) book purposes in any Fiscal Year or other period
by  reason  of  the  sale,

                                  Exhibit 1-1
<PAGE>
exchange or other disposition of any Company asset.  Such Book Gain or Book Loss
shall be computed by reference to the Book Value of such asset as of the date of
such  sale,  exchange  or other disposition, rather than by reference to the tax
basis  of  such  asset  as  of such date, and each and every reference herein to
"gain" or "loss" shall be deemed to refer to Book Gain or Book Loss, rather than
to tax gain or tax loss, unless otherwise expressly provided herein.

     "Book  Value"  of an asset shall mean, as of any particular date, the value
      -----------
at which the asset is properly reflected on the books and records of the Company
as of such date.  The initial Book Value of each asset shall be its cost, unless
such asset was contributed to the Company by a Member, in which case the initial
Book  Value  shall  be  the  Fair  Market  Value  of  such  asset at the time of
contribution,  as  agreed  to  by  the  Members  or  determined  by the Board of
Managers, and such Book Value shall thereafter be adjusted for Depreciation with
respect  to such asset rather than for the cost recovery deductions to which the
Company  is  entitled  for  federal  income  tax  purposes with respect thereto.

     "Capital  Account"  is  defined in Section 3.2.  An Assignee may acquire an
      ----------------                  -----------
interest  in  a  Capital  Account  as  provided  in  Section  9.2.
                                                     ------------

     "Capital Contribution" shall mean with respect to any Member, the amount of
      --------------------
money  plus  the  Fair  Market  Value  of any other property (net of liabilities
assumed  or  to  which  the property is subject) contributed to the Company with
respect  to  the  Units  held  by  such  Member  pursuant  to  the terms of this
Agreement.

     "Certificate"  shall  mean  the Certificate of Formation of the Company and
      -----------
any  and  all amendments thereto and restatements thereof filed on behalf of the
Company  with  the  office  of  the  Secretary of State of the State of Delaware
pursuant  to  the  Act.

     "Code"  shall  mean the Internal Revenue Code of 1986, as amended from time
      ----
to  time,  and  the  corresponding  provisions  of  any  future federal tax law.

     "Combined  Effective  Marginal  Tax  Rate"  shall  mean  the highest single
      ----------------------------------------
combined  rate  (expressed  as a percentage) of United States federal, state and
local  income  taxation  applicable  to  any  individual  residing in California
determined  as  of  the  last  day of each Tax Estimation Period, without giving
effect to any limitation on the deductibility of state and local taxes and other
itemized  deductions  in  computing  United  States  federal  taxable income and
assuming  that  such  individual is subject to the highest United States federal
and  highest  state  and  local marginal ordinary income tax rates on all income
allocated  by  the  Company.

     "Company" shall mean the Limited Liability Company formed by virtue of this
      -------
Agreement  and  the  filing  of  the  Certificate  in  accordance  with the Act.

     "Depreciation"  shall  mean for each Fiscal Year or other period, an amount
      ------------
equal  to  the  depreciation,  amortization  or  other  cost  recovery deduction
allowable  with  respect  to  an asset for such year or other period for federal
income  tax  purposes,  except  if  the  Book Value of an asset differs from its
adjusted basis for federal income tax purposes at the beginning of any such year
or  other  period,  Depreciation  shall  be  an  amount  that  bears  the  same
relationship  to the Book Value of such asset as the depreciation, amortization,
or  other  cost  recovery  deduction  computed

                                  Exhibit 1-2
<PAGE>
for  tax  purposes with respect to such asset for the applicable period bears to
the adjusted tax basis of such asset at the beginning of such period, or if such
asset  has a zero adjusted tax basis, Depreciation shall be an amount determined
under  any  reasonable method selected by the Board of Managers, with the advice
of  its  independent  accountants.

     "Distribution"  shall  mean cash or property (net of liabilities assumed or
      ------------
to  which  the  property  is  subject) distributed to a Member or an Assignee in
respect  of  the  Member's  Units  in  the  Company.

     "Economic  Interest"  shall  mean  all  of  the  rights of an Assignee with
      ------------------
respect  to  an  Interest.

     "Effective  Date"  shall  mean  September  16,  2004.
      ---------------

     "Equity  Kickers"  is  defined  in  Section  3.7.1.
      ---------------                    --------------

     "Fair  Market  Value"  means,  as  of any date, the Board of Managers' good
      -------------------
faith  determination of the fair value of one Unit of the applicable class as of
the  applicable  reference  date.

     "Fiscal Year" shall mean the fiscal year of the Company, which shall be the
      -----------
calendar year, or such other fiscal year as determined by the Board of Managers.

     "Indemnified  Persons"  is  defined  in  Section  12.1.
      --------------------                    -------------

     "Interest"  shall  mean  the  entire  interest  of a Member in the capital,
      --------
profits  and  Distributions  of  the  Company,  including any and all rights and
benefits  to  which  a  Member  may  be  entitled as provided in this Agreement,
together  with  the  obligations of such Member to comply with all the terms and
provisions  of  this  Agreement.

     "Majority Interest" shall mean the vote or consent of the Members holding a
      -----------------
majority  of  the  Units.

     "Management  Members"  shall  mean  such  employees,  managers, independent
      -------------------
contractors  or  consultants of the Company, a Member or its Affiliates, who are
granted  Units  of  the  Company  in connection with such employment or services
rendered  or  to be rendered or who acquired such Units pursuant to the exercise
of  an option granted in connection with such employment or services rendered or
to  be  rendered  or  as  an  investment  in  the  Company.

     "Member  Nonrecourse  Deductions"  shall  have  the  meaning  set  forth in
      -------------------------------
Regulation  Section  1.704-2(i)(1).

     "Members"  shall  mean  the Persons listed as Members on Schedule I to this
      -------                                                 ----------
Agreement and any other Person that both acquires an Interest in the Company and
is  admitted  to  the  Company  as  a  Member  of  the  Company.

     "Net  Profit"  and  "Net  Loss"  shall  mean, for each Fiscal Year or other
      -----------------------------
period,  an  amount equal to the Company's taxable income or loss, respectively,
for  such  year  or  period,  determined

                                  Exhibit 1-3
<PAGE>
in  accordance with Section 703(a) of the Code (taking into account all items of
income,  gain,  loss  or  deduction required to be stated separately pursuant to
Section  703(a)(1)  of  the  Code),  with  the  following  adjustments:

     (i)    any income of the Company that is exempt from federal income tax and
     not  otherwise  taken  into  account  in  computing  Net Profit or Net Loss
     pursuant  to  this provision shall be added to such taxable income or loss;

     (ii)   any expenditures of the Company described in Section 705(a)(2)(B) of
     the  Code  (relating  to  expenditures  which  are  neither  deductible nor
     properly  chargeable  to  capital)  or treated as Code Section 705(a)(2)(B)
     expenditures  pursuant  to Section 1.704-1(b)(2)(iv)(i) of the Regulations,
     and  not  otherwise  taken into account in computing Net Profit or Net Loss
     pursuant to this provision, shall be subtracted from such taxable income or
     loss;

     (iii)  Book  Gain  or  Book  Loss from the sale or other disposition of any
     asset of the Company shall be taken into account in lieu of any tax gain or
     tax  loss  recognized  by  the  Company  by  reason  of  such sale or other
     disposition;  and

     (iv)   in  lieu  of  the depreciation, amortization and other cost recovery
     deductions  taken  into  account  in computing such taxable income or loss,
     there  shall  be  taken  into  account Depreciation for such fiscal year or
     other  period,  computed  as  provided  in  this  Agreement.

     "New Securities" is defined in Section 3.7.1.
      --------------                -------------

     "Nonrecourse  Deductions"  shall  have  the meaning set forth in Regulation
      -----------------------
Section  1.7042(b)(1).

     "Permitted  Transferee"  is  defined  in  Section  9.1.2.
      ---------------------                    --------------

     "Person" shall mean an individual, partnership, joint venture, association,
      ------
corporation,  trust,  estate,  limited  partnership,  limited liability company,
limited  liability  partnership,  or  any  other  legal  entity.

     "Qualified  Income  Offset"  shall have the meaning set forth in Regulation
      -------------------------
Section  1.704-1(b)(2)(ii)(d).

     "Regulations"  shall  mean  the  Treasury  regulations, including temporary
      -----------
regulations, promulgated under the Code, as such regulations may be amended from
time  to time (including the corresponding provisions of any future regulations)
as  such  regulations  are  applicable  to  the  Company  or transactions of the
Company.

     "Sale  of the Company" shall mean, in each case as determined in good faith
      --------------------
by  the Board of Managers, to have been occasioned by, or to have occurred upon,
the  acquisition of the Company by another Person by means of any transaction or
series  of  related  transactions  (including,  without  limitation, any merger,
consolidation,  sale,  assignment,  transfer  distribution

                                  Exhibit 1-4
<PAGE>
or  issuance  of  Units)  that  results in the Members immediately prior to such
transaction  not  holding,  directly  or  indirectly, at least 50% of the voting
power  of  the  surviving  or  continuing  entity.

     "Securities  Act"  shall  mean  the  Securities  Act  of  1933, as amended.
      ---------------

     "Sole Discretion" means, with respect to any Person, that Person's sole and
      ---------------
absolute discretion, with or without cause, and subject to such conditions as he
shall  deem  appropriate.

     "Supermajority  Vote"  shall  mean the vote or consent of a majority of the
      -------------------
Managers  of  the  Board  of  Managers.

     "Tax  Distribution"  is  defined  in  Section  7.2.1.
      -----------------                    --------------

     "Tax  Estimation  Period"  shall  mean (i) January, February and March (ii)
      -----------------------
April  and  May,  (iii)  June,  July  and  August,  and (iv) September, October,
November  and  December  of  each  year during the term of the Company, or other
periods  for  which  estimates  of  individual  federal income tax liability are
required  to  be  made  under  the  Code,  provided that the Company's first Tax
Estimation  Period  shall  begin  on  the  Effective  Date  of  this  Agreement.

     "Tax  Matters  Member"  is  defined  in  Section  8.1.
      --------------------                    ------------

     "Transfer" shall mean a sale, assignment, pledge, encumbrance, abandonment,
      --------
disposition,  contribution,  distribution, exchange or other transfer, including
but  not  limited  to,  any  distribution  to  partners  of  any  partnership,
shareholders of any corporation or members of any limited liability company, and
may  be  used  either  as  a  verb  or  a  noun.

     "Units"  shall  mean  any  of  the  Units  of  the  Company.
      -----

                                  Exhibit 1-5
<PAGE>
                                   EXHIBIT 5.1
                                   -----------

                                BOARD OF MANAGERS
                                -----------------

     The  Members hereby appoint the following individuals as the members of the
Board  of  Managers:

     RICHARD  SHORE,  JR.

     JEROME  B.  RICHTER

     MURRAY  J.  FEIWELL

     RICARDO  RODRIGUEZ  CANNEY

     DOUGLAS  MANNER

                                  Exhibit 5.1-1
<PAGE>
                                  EXHIBIT 15.5
                                  ------------

                               ARBITRATION POLICY
                               ------------------

1.   Disputes Covered.  This Arbitration Policy ("Policy") applies to any claim,
     ----------------                             ------
     dispute  or  controversy  arising  out  of  or  relating  to  the terms and
     conditions  of  any  incentive  plan,  partnership agreement or other plan,
     document  or  agreement that expressly refers to and incorporates the terms
     of  this  Policy;  any such claim, dispute or controversy so covered by the
     terms  of  this  Policy  shall,  except as otherwise expressly provided, be
     settled  by  binding  arbitration  in  accordance  with  the procedures and
     conditions  set  forth  herein.

     The scope of this Policy is intended to be applied broadly so as to include
     any  and  all  disputes,  controversies  and  claims  that  touch  upon any
     incentive  plan, partnership agreement or other plan, document or agreement
     covered  by  this  Policy,  whether  such disputes, controversies or claims
     involve a breach of contract, contract interpretation, tort law, common law
     principles  or  statutes,  rules  or  regulations.

     Any  dispute,  controversy  or  claim  to  which  this  Policy  applies  is
     hereinafter  called  a  "Dispute."  A  person, corporation or entity who is
                              -------
     subject  to  this  agreement  is  hereinafter  called  a  "Party."
                                                                -----

2.   Mediation.  The  Parties  to a Dispute agree to try in good faith to settle
     ---------
     the  Dispute  by  mediation  administered  by  the  American  Arbitration
     Association  ("AAA")  under its Commercial Mediation Rules before resorting
                    ---
     to  binding  arbitration.  The Parties shall split the cost of the mediator
     equally.  To  qualify as a mediator, the mediator must be a lawyer admitted
     to  the  Bar of any State who has practiced for at least ten years. Nothing
     in  this clause shall preclude any Party from initiating arbitration if the
     mediation  does  not  reach a resolution within 30 days after the mediation
     commences.

3.   Arbitration.  Any  Dispute  not  resolved  by  mediation  shall  be finally
     -----------
     resolved  by  binding  arbitration  administered by the AAA pursuant to the
     Commercial  Arbitration  Rules  of the AAA (the "Rules") as in force at the
     time  the  arbitration  is commenced, except as modified by this Policy. In
     the event of any conflict between the Rules and this Policy, the provisions
     of  this  Policy  will  control.

4.   Commencement  of Arbitration.  Subject to prior compliance with paragraph 2
     ----------------------------
     above,  any  Party  may  at  any  time initiate an arbitration hereunder by
     giving  a  written  notice ("Demand for Arbitration") to the other Party at
                                  ----------------------
     any time consistent with any applicable statutes of limitation.

5.   Number  of  Arbitrators.  If  the Dispute involves an amount in controversy
     -----------------------
     less than $500,000, then the arbitration of such Dispute shall be conducted
     before  one  neutral  arbitrator.  If  the  Dispute  involves  an amount in
     controversy  of  $500,000 or more, the arbitration of such Dispute shall be
     conducted  before a tribunal composed of three neutral arbitrators. Whether
     one  or  three  arbitrators  is  required, the arbitral tribunal that is to
     conduct the arbitration is hereinafter called the "Arbitral Panel."
                                                               ---------------

                                 Exhibit 15.5-1
<PAGE>
6.   Appointment  of Arbitral Panel of One.  If an Arbitral Panel of one neutral
     -------------------------------------
     arbitrator  is  to  conduct the arbitration, the arbitrator shall be chosen
     from  a  panel  of  five  proposed arbitrators drawn by the AAA. Each Party
     shall  have  the  right  to exercise unlimited challenges for cause and two
     peremptory  strikes  within ten days of its receipt of the list of proposed
     arbitrators.  If  one  panel  member  remains  after strikes are made, such
     person shall serve as the arbitrator. If more than one panel member remains
     after  strikes  are  made,  the  AAA  shall  choose the arbitrator from the
     remaining  panel  members.  If  all  of the panel members are struck by the
     Parties  pursuant  to  permitted strikes, the AAA shall draw successive new
     panels of five proposed arbitrators and apply the foregoing procedures with
     respect  to  such  panel(s)  until  the  arbitrator  is  selected.

7.   Appointment  of  Arbitral  Panel  of  Three.  If an Arbitral Panel of three
     -------------------------------------------
     neutral  arbitrators is to conduct the arbitration, each Party shall choose
     one  neutral  arbitrator  that  is  chosen  from  a  panel of five proposed
     arbitrators drawn by the AAA. Each Party shall give the other Party written
     notice  of its selection of one neutral arbitrator within 20 days after its
     receipt  of  the  Demand  for  Arbitration. The two arbitrators so selected
     shall choose the third arbitrator from a panel of five proposed arbitrators
     drawn  by  the AAA. If the two arbitrators do not agree on the selection of
     the  third  arbitrator  within  ten days after their receipt of the list of
     proposed  arbitrators,  the  third  arbitrator  shall  be  selected  by the
     Regional  Vice President of the AAA from the panel proposed by the AAA. The
     third  arbitrator  shall serve as the Chairperson of the Arbitral Panel. If
     an  Arbitral  Panel  of  three  conducts the arbitration, all decisions and
     rulings,  as  well as any interim or final awards, shall be pursuant to the
     majority  vote  of  the  Arbitral  Panel.

8.   Place  of Arbitration.  The place of arbitration shall be Houston, Texas or
     ---------------------
     such other location as the Parties may mutually agree.

9.   Limitations  and  Laches.  The  Arbitral  Panel is directed to consider any
     ------------------------
     defense  that all or part of the claim is not timely by reason of laches or
     statute  of  limitations  as  a  preliminary  issue and to render a signed,
     written award determining the merits of such defense before considering the
     substantive  merits  of  the  arbitration  claim, unless the Arbitral Panel
     determines  that  the  merits  of  such  defense  of  laches  or statute of
     limitations  are  so  intertwined  with  the  substantive  merits  of  the
     arbitration  claim  as to make impractical the determination of the defense
     of  laches  or  limitations  as  a  preliminary  matter.

10.  Preliminary Issues of Law.  The Arbitral Panel shall hear and determine any
     -------------------------
     preliminary  issue  of  law  asserted  by  a Party to be dispositive of any
     claim,  in whole or part, in the manner of a federal court hearing a motion
     to  dismiss  for failure to state a claim or for summary judgment, pursuant
     to such terms and procedures as the Arbitral Panel deems appropriate.

11.  Consolidation  of  Disputes.  Any  court  with  jurisdiction  may order the
     ---------------------------
     consolidation  of  any  arbitrable  dispute  with  any  related  arbitrable
     dispute,  controversy or claim not covered by this Policy, as the court may
     deem  necessary  in the interests of justice or efficiency or on such other
     grounds  as  the  court  may  deem  appropriate.

                                  Exhibit 5.1-2
<PAGE>
12.  Time  of  Proceedings.  It  is  the  intent  of  the  Parties that, barring
     ---------------------
     extraordinary  circumstances,  any  arbitration  shall  be  conducted  in a
     reasonably  expeditious manner and shall be concluded, in any event, within
     150  days  of  the  date the Demand for Arbitration is received by the AAA.
     Unless  the Parties otherwise agree, once commenced, hearings shall be held
     four  days  a  week, three weeks a month, with each hearing day to begin at
     9:30  a.m. and to conclude at 4:45 p.m. until the arbitration is completed.
     The  Parties  may  upon agreement extend these time limits, or the Arbitral
     Panel  may  extend  them  if  they  determine that the interests of justice
     otherwise  requires. The Arbitral Panel shall use its best efforts to issue
     the  final  award or awards within a period of 20 days after closure of the
     proceedings. However, failure to do so shall not be a basis for challenging
     the  award.

13.  Pre-Hearing  Conference.  Within  ten  days  after  the  appointment of the
     -----------------------
     Arbitral  Panel,  the Arbitral Panel shall hold a pre-hearing conference to
     discuss  discovery  matters,  to schedule the hearing, to decide procedural
     matters and to address all other questions that may be presented.

14.  Discovery and Evidence. Except as may be modified by the Arbitral Panel for
     ----------------------
     good cause shown, the following procedures shall be followed in addition to
     those  set  forth  within the Rules themselves. At least 20 days before the
     arbitration,  the  Parties must exchange a list of witnesses, including any
     experts, and copies of all exhibits intended to be used at the arbitration.
     Except for good cause, the Arbitral Panel may refuse to allow into evidence
     the  testimony of any witness not timely disclosed. In addition, except for
     good  cause,  the  Arbitral Panel may exclude from evidence any exhibit not
     previously  tendered  to the opposing Party in a timely fashion. Each Party
     may  take  the  deposition  of  three  individuals  and  any  or all expert
     witnesses  designated by another Party. Additional discovery, including but
     not  limited  to  interrogatories and requests for production of documents,
     medical  or  psychological  examinations,  may  be  had,  upon a showing of
     substantial need, where the Arbitral Panel so orders.

15.  Record  of  Hearing.  If  requested  by any Party, the Arbitral Panel shall
     -------------------
     keep records of all proceedings and decisions, and a verbatim record of all
     oral  hearings.  The  cost  of  any  such  transcript  will be borne by the
     requesting  party.

16.  Cross-examination.  It  is  the intent of the Parties that the testimony of
     -----------------
     witnesses  be  subject  to  cross-examination.

17.  Evidence.  Strict  rules  of  evidence  shall  not  apply in an arbitration
     --------
     conducted  pursuant  to this Policy. The Parties may offer such evidence as
     they  desire  and  the  Arbitral  Panel  shall  accept such evidence as the
     Arbitral  Panels  deems relevant to the issues and accord it such weight as
     the  Arbitral  Panel  deems  appropriate.

18.  Affidavits.  The  Parties  may  submit  evidence  in  the  form  of  sworn
     ----------
     affidavits,  provided  that  upon  the  request of another Party, the Party
     submitting  the  affidavit  will  make  the  affiant  available  for
     cross-examination.  If  the  affiant  is  not  made  available  for
     cross-examination, the affidavit shall not be considered as evidence by the
     Arbitral Panel except as to matters relating to authentication of documents
     or signatures and other such nonmaterial facts except if the Arbitral Panel
     finds  that  the  affiant  is  beyond  the  control

                                  Exhibit 5.1-3
<PAGE>
     of  the  Party  offering  the affidavit, the affiant is unavailable and the
     interests of justice require consideration of the evidence submitted by the
     affiant.

19.  Punitive  Damages  Prohibited.  The  Parties  hereby waive any claim to any
     -----------------------------
     damages  in  the  nature  of  punitive,  exemplary, or statutory damages in
     excess  of  compensatory  damages,  or  any  form  of  damages in excess of
     compensatory  damages,  and the Arbitral Panel is specially divested of any
     power  to  award  any  damages  in  the  nature  of punitive, exemplary, or
     statutory damages in excess of compensatory damages, or any form of damages
     in  excess  of  compensatory  damages.

20.  Written  Opinion.  The  arbitration award shall be based on and accompanied
     ----------------
     by a signed, written opinion containing findings of fact and conclusions of
     law. Any arbitrator dissenting from an award or portion thereof shall issue
     a  dissent  stating  the  reasons  for  the  dissent.  The  results  of the
     arbitration,  unless  otherwise agreed by the Parties, are confidential and
     may  not  be  reported  by  any  news agency or legal publisher or service.

21.  Entry  of  Judgment.  A judgment on the arbitration award may be entered in
     -------------------
     any  court  having  jurisdiction  thereof.

22.  Costs.  The  Party  prevailing  on substantially all of its claims shall be
     -----
     entitled  to recover its reasonable costs, including the arbitrators' fees,
     and its attorneys' fees for the arbitration proceedings, as well as for any
     ancillary  proceeding,  including  a  proceeding  to  compel  or  enjoin
     arbitration,  to  request  interim  measures  or to confirm or set aside an
     award.

23.  Confidentiality.  The Parties and Arbitral Panel shall treat all aspects of
     ---------------
     the arbitration proceedings, including without limitation the filing of any
     demand,  discovery,  testimony and other evidence, briefs and the award, as
     strictly  confidential.

24.  Forum  Selection.  The  courts  located  in  the  State of Texas shall have
     ----------------
     exclusive  jurisdiction  over  an  action brought to enforce the rights and
     obligations  created  or  arising  under  this  Policy,  and  each  Party
     irrevocably  submits  to  the  jurisdiction  of  said  courts.

25.  Governing  Substantive Law.  The Arbitral Panel shall apply the substantive
     --------------------------
     law  (and  the law of remedies, if applicable) of the State of Delaware, or
     federal  law  or both, as applicable to the claim(s) asserted. The Arbitral
     Panel  shall  recognize  all applicable privileges recognized by the law of
     the  State  of  Delaware,  or  federal  law  or  both, as applicable to the
     claim(s)  asserted.  The Parties expressly prohibit the Arbitral Panel from
     reaching  decisions  as  amicable  compounder/amiables  compositeur,
     specifically,  an Arbitral Panel is not authorized to abate the application
     of  law  in  favor  of  natural  equity.  The Arbitral Panel shall have the
     authority  to  entertain a motion to dismiss, a motion for summary judgment
     and/or  a  motion  for  judgment  as  a  matter  of law and shall apply the
     standards  governing  such  motions  under  the  Federal  Rules  of  Civil
     Procedure.

26.  Governing  Arbitration  Law.  The  law  applicable  to  the validity of the
     ---------------------------
     arbitration clause, the conduct of the arbitration, including any resort to
     a  court  for  provisional  remedies,  the enforcement of any award and any
     other  question  of  arbitration  law  or  procedure  shall  be the Federal
     Arbitration  Act.  The  Parties agree that this Policy shall be amended if,
     and  to

                                  Exhibit 5.1-4
<PAGE>
     the  extent,  necessary  to cure any defect affecting enforceability of the
     duty to arbitrate under the Federal Arbitration Act, it being the intent of
     the  Parties  to  resolve  any  dispute  by  arbitration.

27.  Binding  Effect.  This  Policy  shall be binding upon the Parties and their
     ---------------
     respective  successors,  assigns,  heirs,  personal  representatives  and
     estates.

28.  Severability.  Should  one or more provisions of this Policy be rendered or
     ------------
     declared  invalid  by  reason  of  any  existing  or  subsequently  enacted
     legislation,  or  by  a  decree  of a court of competent jurisdiction, such
     invalidation  of  such  provision or provisions hereof shall not affect the
     remaining  portions  of  this  Policy.

29.  Entirety  Agreement.  This Policy reflects the entire agreement between the
     -------------------
     Parties  with  regard  to  the subject matter hereof. No Party has made any
     promises,  guarantees  or  assurances  with  respect  to the subject matter
     hereof  except  as  contained  herein.

                                  Exhibit 5.1-5
<PAGE>RIO VISTA GP LLC

                                VOTING AGREEMENT

                              ______________, 2004

<PAGE>
                                VOTING AGREEMENT

     This  Voting  Agreement  (this  "AGREEMENT")  is  entered  into  as  of
____________,  2004, by and among Rio Vista GP LLC, a Delaware limited liability
company  (the  "COMPANY"),  Penn  Octane Corporation, a Delaware corporation and
member of the Company ("PENN OCTANE"), and the members of the Company identified
on  the  signature  page  of  this  Agreement  (collectively, the "MEMBERS" and,
individually,  each  a  "MEMBER").  The Company, Penn Octane and the Members are
sometimes  referred to herein, collectively, as the "parties" and, individually,
as  a  "party"  to this Agreement.  Unless otherwise provided, capitalized terms
used  in  this Agreement have the meanings ascribed to them in Section 5 hereof.
                                                               ---------

                                    RECITALS
                                    --------

     WHEREAS, immediately prior to the date hereof, Penn Octane was the owner of
on  hundred  percent  (100%)  of  the limited liability company interests of the
Company  (the  "PENN  OCTANE  INTEREST").

     WHEREAS,  pursuant  to  option  agreements dated July 10, 2003, Penn Octane
granted  each  Member  the  right (the "PURCHASE RIGHT") to purchase twenty-five
percent  (25%) of the Penn Octane Interest at an exercise price equal to the pro
rata portion of the tax basis capital the Partnership (as defined in Section 1.4
of this Agreement) after the distribution of the common units of the Partnership
to  the  stockholders  of  Penn  Octane.

     WHEREAS,  the  exercise  of  the  Purchase  Right  is  conditioned upon the
execution  and  delivery  of  this  Agreement  by  each  Member.

                                    AGREEMENT
                                    ---------

     NOW,  THEREFORE,  in consideration of the mutual promises, representations,
warranties,  covenants, and conditions set forth in this Agreement, the Purchase
Right and for other good and valuable consideration, the receipt and sufficiency
of  which  is  hereby  acknowledged,  the  Parties  hereby  agree  as  follows:

1.   VOTING  AGREEMENT.
     -----------------

     1.1  Voting  by  Member  for  Managers.  From and after the date hereof and
until the provisions of this Section 1 cease to be effective, at each meeting of
the  members  of the Company, or at any meeting of the members of the Company at
which  members  of  the Board of Managers of the Company (the "BOARD") are to be
elected,  or  whenever  members of the Board are to be elected by the members of
the  Company  by written consent, each Member agrees to vote or act with respect
to all of his, her or its limited liability company interests in the Company and
shall take all other necessary or desirable actions within such Member's control
whether  in  such  capacity  as a Member, manager of the Company, officer of the
Company, or otherwise (including, without limitation, attendance at meetings, in
person  or  by  proxy,  for  purposes  of

<PAGE>
obtaining a quorum and execution of written consents), and the Company agrees to
take  all  necessary  and  desirable  actions  within  its  control,  so  as to:

               1.1.1     fix  the number of members of the Board (the "MANAGERS"
                         and  each,  individually,  a  "MANAGER") at such number
                         designated  by  Penn  Octane;  and

               1.1.2     elect each and every Manager designated by Penn Octane.

     1.2  Removal  and Substitution of Members of the Board.  Each Member agrees
to  vote or act with respect to all of his, her or its limited liability company
interests  in  the  Company  for the removal of any member of the Board upon the
request  of  Penn  Octane  and  for  the  election  to the Board of a substitute
nominated by Penn Octane in accordance with the provisions of Section 1.1.  Each
Member agrees that no Manager may be removed from office without the approval of
Penn  Octane.  Each  Member further agrees to vote or act with respect to all of
his,  her  or  its  limited  liability  company interests in the Company in such
manner  as  shall  be necessary or appropriate to ensure that any vacancy on the
Board  occurring  for  any  reason  shall  be filled only in accordance with the
provisions  of  Section  1.1.

     1.3  Voting by Member on All Other Matters.  From and after the date hereof
and  until  the  provisions  of  this  Section  1 cease to be effective, at each
meeting of the members of the Company, or whenever members of the Company are to
take  action  by written consent, each Member agrees to vote or act with respect
to  all of his, her or its limited liability company interests in the Company as
directed  by Penn Octane and shall take all other necessary or desirable actions
within  such  Member's  control  whether  in such capacity as a Member, Manager,
officer  of the Company, or otherwise (including, without limitation, attendance
at  meetings,  in  person  or  by  proxy, for purposes of obtaining a quorum and
execution of written consents), and the Company agrees to take all necessary and
desirable  actions  within  its  control,  as  directed  by  Penn  Octane.

     1.4  Exceptions.  The  provisions  of  Section 1.3 of this Agreement do not
apply  with  respect to any matter involving (a) the sale, transfer, assignment,
pledge,  hypothecation  or  other  disposal  of  all  or any portion of  (i) any
general  partner  interest  (the "GENERAL PARTNER INTEREST") in Rio Vista Energy
Partners  L.P.,  a Delaware limited partnership (the "PARTNERSHIP"), or (ii) any
Incentive  Distribution  Rights  (as  defined  in the First Amended and Restated
Agreement  of  Limited  Partnership  of  Rio  Vista  Energy  Partners  L.P. (the
"PARTNERSHIP  AGREEMENT"))  or  (b)  the merger, consolidation or sale of all or
substantially  all  of  the  assets  of the Partnership, its subsidiaries or the
Company.

2.   NO  REVOCATION.  The voting agreements contained herein are coupled with an
     --------------
interest and may not be revoked during the term of this Agreement.

3.   LEGEND.  Each certificate evidencing limited liability company interests in
     ------
the Company and each certificate issued in exchange for or upon the Transfer, as
defined  in  Section  5 below, of any limited liability company interests of the
Company  will  be  stamped or otherwise imprinted with a legend in substantially
the  following  form:

<PAGE>
          "THE  SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A
          VOTING  AGREEMENT  DATED AS OF ______________, 2004, ENTERED INTO
          BY  AND  AMONG  THE  COMPANY,  PENN  OCTANE  AND  CERTAIN  OF THE
          COMPANY'S  MEMBERS, AND BY ACCEPTING THESE SECURITIES, THE PERSON
          ACCEPTING  SUCH  INTEREST  SHALL  BE DEEMED TO AGREE TO AND SHALL
          BECOME  BOUND  BY  ALL THE PROVISIONS OF SAID VOTING AGREEMENT. A
          COPY  OF SUCH VOTING AGREEMENT WILL BE FURNISHED, WITHOUT CHARGE,
          BY  THE  COMPANY  TO  THE  HOLDER  HEREOF  UPON WRITTEN REQUEST."

The  Company  will  imprint such legend on all certificates representing limited
liability  company  interests  outstanding  prior  to  the  date  hereof.

4.   TRANSFER.  Prior  to any Transfer of any limited liability company interest
     --------
in  the Company or any interest therein to any Person, which Transfer is subject
to  the  restrictions  set  forth  in  the Agreements, the Member effecting such
Transfer will cause the prospective Transferee(s) to execute and deliver to each
Party  a  counterpart  of  this  Agreement.

5.   DEFINITIONS.  As used in this Agreement, the following terms shall have the
     -----------
meanings  set  forth  below:

     5.1  "PERSON"  means an individual, a partnership, a corporation, a limited
liability  company,  an  association,  a  joint  stock company, a trust, a joint
venture,  an  unincorporated  organization,  and  a  governmental  entity or any
department,  agency,  or  political  subdivision  thereof.

     5.2  "TRANSFER" means the sale, transfer, assignment, pledge, hypothecation
or  other  disposal.

     5.3  "TRANSFEREE"  shall  mean  the  recipient  of  a  transfer.

6.   MISCELLANEOUS.
     -------------

     6.1  Notices.  All  notices  and other communications required or permitted
hereunder  shall  be  in  writing and shall be mailed by registered or certified
mail,  postage  prepaid,  sent  by  facsimile  or  electronic  mail or otherwise
delivered  by  hand  or  by  messenger  addressed  as  follows:

               (1)  if  to  a  Member  or  Penn  Octane, at the Member's or Penn
Octane's, as applicable, address, facsimile number or electronic mail address as
shown  in  the  Company's  records,  as  may  be  updated in accordance with the
provisions  hereof.

               (2)  if to the Company, one copy should be sent to its address or
facsimile number set forth on the signature page of this Agreement and addressed
to  the attention of the President, or at such other address or facsimile number
as  the  Company  shall  have  furnished  to  the  Members.

<PAGE>
Each such notice or other communication shall for all purposes of this Agreement
be  treated  as  effective  or  having  been  given  when delivered if delivered
personally, or, if sent by mail, at the earlier of its receipt or 72 hours after
the same has been deposited in a regularly maintained receptacle for the deposit
of  the  United  States  mail,  addressed and mailed as aforesaid or, if sent by
facsimile,  upon  confirmation  of  facsimile  transfer.

     6.2  Successors  and  Assigns.  Except  as  otherwise  provided herein, the
terms  and  conditions  of  this  Agreement shall inure to the benefit of and be
binding  upon  the respective successors and assigns of the parties.  Nothing in
this  Agreement,  express or implied, is intended to confer upon any party other
than  the  parties hereto or their respective successors and assigns any rights,
remedies,  obligations  or  liabilities  under  or  by reason of this Agreement,
except  as  expressly  provided  in  this  Agreement.

     6.3  Severability.  In  the  event  that  any  provision  of this Agreement
becomes  or  is  declared  by  a  court of competent jurisdiction to be illegal,
unenforceable  or  void,  this Agreement shall continue in full force and effect
without  said  provision,  and  the parties agree to negotiate, in good faith, a
legal  and  enforceable  substitute  provision  which  most  nearly  effects the
parties'  intent  in  entering  into  this  Agreement.

     6.4  Amendments and Waivers.  Any term of this Agreement may be amended and
the  observance of any term of this Agreement may be waived (either generally or
in  a  particular instance and either retroactively or prospectively), only with
the  written consent of (i) the Company, (ii) each Member and (iii) Penn Octane.
Any such amendment, waiver, discharge or termination effected in accordance with
this  paragraph  shall  be  binding upon each holder of any securities purchased
under  this  Agreement  at the time outstanding (including securities into which
such  securities  have  been converted or exchanged or for which such securities
have been exercised) and each future holder of all such securities.

     6.5  Governing  Law.  This  Agreement  shall  be  governed by and construed
under  the laws of the State of Delaware as applied to agreements among Delaware
residents entered into and to be performed entirely within Delaware.

     6.6  Specific  Performance.  The rights of the parties under this Agreement
are  unique  and,  accordingly,  the  parties  shall,  in addition to such other
remedies  as may be available to any of them at law or in equity, have the right
to  enforce  their  rights  hereunder by actions for specific performance to the
extent  permitted  by  law.

     6.7  Counterparts.  This  Agreement  may  be  executed  in  any  number  of
counterparts,  each  of which, when so executed and delivered, will be deemed an
original,  and  all  such counterparts together will constitute one and the same
instrument.

     6.8  Conflict.  In  the  event  of  any  conflict between the terms of this
Agreement and the Company's Limited Liability Company Agreement, the Partnership
Agreement  or  any other agreement to which the Company, Penn Octane or a Member
is  bound,  the  terms  of  this  Agreement  will  control.

     6.9  Attorney's Fees. In the event that any suit or action is instituted to
enforce  any  provision  in this Agreement, the prevailing party in such dispute
shall  be  entitled  to  recover  from

<PAGE>
the  losing  party  all  fees, costs and expenses of enforcing any right of such
prevailing  party  under  or  with  respect to this Agreement, including without
limitation,  such  reasonable  fees  and  expenses of attorneys and accountants,
which  shall  include,  without  limitation,  all  fees,  costs  and expenses of
appeals.

     6.10 Titles and Subtitles.  The titles and subtitles used in this Agreement
are  used  for  convenience  only  and are not to be considered in construing or
interpreting  this  Agreement.  All  references  in  this Agreement to sections,
paragraphs,  exhibits  and  schedules shall, unless otherwise provided, refer to
sections  and  paragraphs  hereof  and  exhibits  and schedules attached hereto.

     6.11  Entire  Agreement.  This  Agreement  constitutes  the full and entire
understanding  and agreement among the parties with regard to the subject matter
hereof  and  supercedes and replaces any prior verbal or written understandings,
communications,  or  representations  between  the  Parties  in  relation to the
subject  matter  of  this  Agreement.

     6.12  Construction.  The  parties  hereto  have participated jointly in the
negotiation  and  drafting  of  this  Agreement.  In  the  event an ambiguity or
question  of  intent or interpretation arises, this Agreement shall be construed
as  if  drafted  jointly  by  the parties hereto and no presumption or burden of
proof  shall  arise  favoring  or  disfavoring any party hereto by virtue of the
authorship  of  any  of  the provisions of this Agreement.  Any reference to any
federal,  state,  local, or foreign statute or law shall be deemed also to refer
to all rules and regulations promulgated thereunder, unless the context requires
otherwise.

     6.13 Delays or Omissions.  Except as expressly provided herein, no delay or
omission  to  exercise  any right, power or remedy accruing to any party to this
Agreement  upon  any  breach  or default of any other party under this Agreement
shall  impair  any such right, power or remedy of such non-defaulting party, nor
shall  it  be  construed  to  be  a  waiver of any such breach or default, or an
acquiescence  therein,  or  of  or  in  any similar breach or default thereafter
occurring,  nor  shall  any  waiver  of any single breach or default be deemed a
waiver  of  any other breach or default theretofore or thereafter occurring. Any
waiver,  permit, consent or approval of any kind or character on the part of any
party  of  any breach or default under this Agreement, or any waiver on the part
of  any  party  of  any  provisions  or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such
writing.  All  remedies,  either  under  this  Agreement  or by law or otherwise
afforded  to  any  party  to  this  Agreement,  shall  be  cumulative  and  not
alternative.

     6.14  Telecopy  Execution  and  Delivery.  A  facsimile,  telecopy or other
reproduction  of  this  Agreement may be executed by one or more parties hereto,
and  an  executed copy of this Agreement may be delivered by one or more parties
hereto  by facsimile or similar electronic transmission device pursuant to which
the  signature of or on behalf of such party can be seen, and such execution and
delivery  shall  be considered valid, binding and effective for all purposes. At
the request of any party hereto, all parties hereto agree to execute an original
of  this  Agreement  as  well  as  any facsimile, telecopy or other reproduction
hereof.

<PAGE>
     6.15  Jurisdiction;  Venue.  With respect to any disputes arising out of or
related to this Agreement, the parties consent to the exclusive jurisdiction of,
and  venue  in,  the  state  or  federal courts in Harris County in the State of
Texas.

     6.16  Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO
THE  FULLEST  EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL  PROCEEDING  (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT
OF  OR  RELATED  TO  THIS  AGREEMENT.

     6.17 Further Assurances; Instruments.  Each of the Members, Penn Octane and
the  Company  agree  not  to  vote  any  of  their  respective limited liability
interests in the Company, or to take any other actions, that would in any manner
defeat,  impair,  be  inconsistent  with  or  adversely affect the rights of the
parties under Section 1 of this Agreement.  From time to time, each party hereto
shall  execute  and  deliver such instruments and documents as may be reasonably
necessary  to  carry  out  the  purposes  and  intent  of  this  Agreement.

                         (Signatures on following page.)

<PAGE>
     IN  WITNESS  WHEREOF,  the  undersigned  or  each  of their respective duly
authorized  officers  or representatives have set their hands hereunto effective
upon  the  date  first  above  written.

COMPANY:                                     PENN OCTANE:

RIO VISTA GP LLC                             PENN OCTANE CORPORATION
a Delaware limited liability company         a Delaware corporation

By:                                          By:
   ---------------------------------            --------------------------------
     Richard Shore, Jr.                            Jerome B. Richter
     President                                     Chief Executive Officer
820 Gessner Road
Suite 1250
Houston, Texas  77024                        THE MEMBERS:

                                             SHORE CAPITAL LLC

                                             By:
                                                --------------------------------
                                                   Richard Shore, Jr., President

                                             -----------------------------------
                                             Jerome B. Richter

                      [Signature Page to Voting Agreement]

<PAGE>

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