Each shipper is required to participate in the gravity bank. Each shipper agrees to pay Chevron Pipe Line Company the computed adjustments due from said Shipper in accordance with these rules and regulations.

A description of how the gravity bank is administered is provided below for the benefit of shippers. Actual terms and conditions of the gravity banks are provided in CPL's official tariffs. (See the links for each tariff on the following pages)

I. Common Stream Calculation.

At the end of each month, the weighted average gravity value of the gravity bank will be determined for all crude petroleum being received (Receipt Bank) into the commingled common stream system and similarly for the crude petroleum being delivered (Delivery Bank) out of the system. This value will be determined by dividing the total number of barrels received into the sum total of the products obtained by multiplying each receipt volume in such stream by the gravity value per barrel obtained from the gravity value table. Similar calculations will be make with respect to the deliveries.

II. Shipper Calculation.

At the end of each month, each Shipper's gravity value will be determined by multiplying the quantity of barrels received from such Shipper by the gravity value per barrel obtained from the gravity value table. Similar calculations will be made with respect to the deliveries.

III. Receipt Bank

• If the weighted average gravity value per barrel for a Shipper as determined under II is greater than that determined for the common stream under I, the Shipper will be credited an amount which shall be calculated by multiplying the differences in gravity value per barrel by the total barrels received from such Shipper.
• If the weighted average gravity value per barrel for a Shipper as determined in II is less than that determined for the common stream under I, the Shipper will be debited an amount as calculated in A above.
• The sum of debits and credits for all Shippers is zero.
• Carrier will provide at the end of each month a record of the Shipper's calculation and debit or credit amount.

IV. Delivery Bank

• If the weighted average gravity value per barrel for a Shipper as determined under II is greater than that determined for the common stream under I, the Shipper will be debited an amount which shall be calculated by multiplying the difference in gravity value per barrel by the total barrels delivered.
• If the weighted average gravity value per barrel for a Shipper as determined under II is less than that determined for the common stream under I, the Shipper will be credited an amount which shall be calculated by multiplying the difference in gravity value per barrel by the total barrels delivered.
• The sum of debits and credits for all Shippers is zero.
• Carrier will provide at the end of each month a record of the Shipper's calculation and debit or credit amount.

Chevron Pipe Line Company, 4800 Fournace Pl. Bellaire , TX 77401 Tel.: (713) 432-6000