MARKWEST
MarkWest Hydrocarbon Partners, Ltd. PH (303) 290-8700
5613 DTC Parkway, Suite 400 FAX (303) 290-8769
Englewood, CO 80111
SALES ACKNOWLEDGMENT
We hereby confirm sale to:
Ashland Petroleum Company DATE: September 9, 1996
Division of Ashland, Inc. No.____________
PO Box 391
Ashland, KY 41105
Per conversations between Mr. Howard Beverly and our Mr. Fred
Shato
PRODUCT: Isobutane
QUANTITY: Approximately 19,500,000 gallons
PRICE: See attached terms
COSIGNEE:
ORIGIN:
FOB POINT: Siloam, Kentucky
ROUTING:
TERMS OF PAYMENT: Net 10 calendar days via check
TIME OF DELIVERY: September 1, 1996 through August 31, 1999
HOW DELIVERED: Into railcars or barges provided by Buyer via
Rail/Barge
REMARKS: See Attachment "A"
SUBJECT TO TERMS AND CONDITIONS ATTACHED
Void if not returned fully executed to this office within
ten (10) days from the date of the order.
MARKWEST HYDROCARBON PARTNERS, LTD.
Ashland Petroleum Company, By: MarkWest Hydrocarbon, Inc.
Division of Ashland, Inc. General Partner
/S/ Robert Yancey /S/Brian O'Neill
President /S/John M. Fox
Accepted: 12/23/96 Accepted: 9/19/96
ATTACHMENT "A"
ADDITIONAL TERMS AND CONDITIONS
ASHLAND PETROLEUM IC4 PURCHASE AGREEMENT
1) Ashland Petroleum Company, Division of Ashland, Inc., (Buyer)
agrees to purchase from MarkWest Hydrocarbon Partners, Ltd. (Seller) the total
production of Isobutane from Seller's Siloam, KY fractionation plant, estimated
to be approximately 6.5 million gallons per year (approximately 540,000 gallons
per month), with a projected yearly volume increase of approximately 5%.
2) Term of sale shall be September 1, 1996 through August 31, 1999
(3years) with an option to extend year to year thereafter, unless a 90 day
written notice of cancellation is provided by either party.
3) Product to be delivered FOB Seller's Siloam, KY plant loaded into
Buyer provided railcars and/or barges at Buyer's option.
4) The base price for deliveries made during the first through the
fifteenth day of each month shall be the lower of the simple average of the
daily high-low postings for TET spot isobutane at Mt. Belvieu, Texas or Sarnia,
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Canada as reported in Oil Price Information Service (OPIS) during the sixteenth
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through the last day of the month immediately preceding delivery as adjusted
below.
The base price for deliveries made during the sixteenth through the
last day of each month shall be the *simple average of the daily high-low
postings for TET spot isobutane at Mt. Belvieu, Texas or Sarnia, Canada as
reported in OPIS the first through the fifteenth day of the month of delivery,
as adjusted below.
From October through March, if the price is a Mt. Belvieu basis,
subtract $0.005 per gallon, and if the price is a Sarnia basis, subtract $0.022
per gallon. From April through September, if the price is a Mt. Belvieu basis,
subtract $0.0150 per gallon and if the price is a Sarnia basis, subtract $0.017
per gallon.
5) Price re-opener - contract shall be renegotiated in the event
BP/Lima, Ohio or Ashland/Canton, Ohio refineries are closed.
6) Payment terms are net 10 days from date of shipment via check.
7) Truck loading available when needed at the following premium:
Weekday 9:00 A.M. to 5:00 P.M. + $0.0200 per gallon and Weekend 9:00 A.M. to
5:00 p.m. + $0.0800 per gallon. Any loading requiring additional hours will be
billed at an additional $0.0200 per gallon premium.
*lower of the