Page 5 - 01-16-12 BOARDBOOK

FRANCHISE

PORT OF CORPUS CHRISTI AUTHORITY

OF NUECES COUNTY, TEXAS

CITGO REFINING AND CHEMICALS COMPANY, L.P.

CITGO Oil Docks 1 & 2

SECTION 1

The Port of Corpus Christi Authority of Nueces County, Texas (“Authority”), hereby grants to CITGO Refining and Chemicals Company, L.P., a Delaware limited partnership whose business address is 1802 Nueces Bay Boulevard, Corpus Christi, Texas 78407, on behalf of itself and CITGO Petroleum Corporation, a Delaware corporation, and their respective successors and permitted assigns (“Grantee”), for the term specified in this Section 1, the right of access to and use of the Industrial Canal (“Channel”) from Grantee’s Land (hereinafter defined) for all purposes necessary, proper or expedient in connection with the maintenance of the Channel and the use and operation of docks and wharves constructed or to be constructed on Grantee’s Land. The term of this franchise shall begin when Grantee files its written acceptance of it with the Authority in accordance with Section 11 of this franchise and shall end on October 20, 2020. “Grantee’s Land” is that certain 35.86 acres of land situated in Nueces County, Texas, which is shown on the Authority’s Boundary Map attached hereto as Exhibit A and incorporated herein by reference, and being 35.86 acres of the 43.08 acres of land conveyed to H. G. Sherman, S. Gugenheim, Mrs. Anna Cohn, and Joseph A. Cohn by the Nueces County Navigation District No. 1 by that certain Mutual Conveyance described in Section 8 of this franchise.

Grantee may also cross the South Bulkhead Line established by the Authority for the Channel where the Channel is adjacent to Grantee’s Land and may conduct and perform all dredging and excavation operations in, on and under the submerged lands owned by the Authority which lie between the Channel and Grantee’s Land, as may be necessary, proper or expedient in connection with the use of such submerged lands of the Authority as a means of access from the docks and wharves of Grantee to the Channel.

SECTION 3

For the rights granted to it hereunder, Grantee shall pay to the Authority a reasonable rental, based upon all property moving to or from docks and wharves on Grantee’s Land, as follows:

A. For all property transported as by a general cargo business (and by “general cargo business” is meant a business handling the shipment by water of any property or commodity owned by a party, or being purchased or sold by a party, other than the holder of this franchise or