I           ZONE DRAFT RATES         

b.      Deeper-drafted ships loaded beyond 40 ft. draft will be charged at the higher rate then in effect.

c.  Vessels 450 feet and over will be charged for Minimum Draft of 24 feet.

II         UNITS In addition to ZONE DRAFT RATE

a.  The UNITS are determined by the vessel’s length overall (feet) multiplied by the

     vessel’s extreme breadth (feet) divided by 100.

     1.  LENGTH OVERALL shall be the distance between the forward and after

          extremities of the vessel.

     2.  EXTREME BREADTH shall be the maximum breadth between the outside

          of the shell platings of the vessel.

 MINIMUM CHARGE - DRAFT ZONE RATE PLUS UNITS $1,840.86 per pilot.

III        SHIFTING ZONES

1.                  Barbours Cut                           - Baytown

2.                  Baytown                                 - Lynchburg

3.                  Lynchburg                               - Shell

4.                  Shell                                        - Targa

5.                  Targa                                       - U.S. Gypsum

6.                  U.S. Gypsum                          - Turning Basin

a.  SHIFTING RATE PER ZONE

Confined to (1) Zone ...................................................$1,086.45

  Using        (2) Zones ................................................... 1,195.03

  Using        (3) Zones ................................................... 1,303.68

  Using        (4) Zones ................................................... 1,412.54

  Using        (5) Zones ................................................... 1,520.98

  Using        (6) Zones ................................................... 1,629.58

b.  UNITS In addition to the SHIFTING RATE PER ZONE

MINIMUM CHARGE - SHIFTING ZONE RATE PLUS UNITS $1,229.89 per pilot.

IV        DEAD SHIPS

Double the Regular Pilotage Charge or Shifting Fees.

V         ANCHORING IN BOLIVAR ROADS

An Anchorage Fee of $654.15 shall be charged in addition to the:

a.     Regular Pilotage Fee for moving a ship from anchorage to port or from the port to

        anchorage.

b.          Regular Pilotage Fee for moving a ship from the Seabuoy to anchorage in Bolivar Roads or from anchorage in Bolivar Roads to the Seabuoy.

VI        DETENTION

AT DOCK      After first ½ hour, weather excluded.....................$392.47

ON BAR         After 1 hour, weather excluded.............................$392.47

VII      HOLDING TIME

            STANDARD RATE for holding………………………………..$392.47per hour

a. Holding (Transit) time shall be billed to all vessels requesting or requiring a Pilot to

    slow down or hold a vessel for any reason other than weather such as:

* Availability of dock

* Mechanical limitations (difficulties)

    Holding in transit will not be charged when delays are attributable to weather including

    foggy conditions, or waiting on tug boats.

b. Holding (Pilot Away) for arrivals at the dock, any time over thirty (30) minutes after

    first line shall be billed at the standard rate until pilot away.

            c. Holding (Overtime)

TOWS   -   When requiring over 7 hours of transit time (boarding to first line; last line

       to pilot off), a pilotage rate of $392.47 per hour shall be charged in addition

       to normal pilotage fees.

SHIPS   -   When requiring over 7 hours of transit time (boarding to first line; last line to

                   pilot off), a pilotage rate of $392.47 per hour shall be charged in addition to

                   normal pilotage fees.

            The foregoing charges will not apply when delays are attributable to weather.

VIII     CANCELLATION

AT DOCK      With less than two (2) hours notice.....................$392.47

ON BAR         With less than four (4) hours notice....................$654.15

IX        SPECIAL TARIFF CLAUSE

The rates for Pilotage Services for vessels of unusual size or construction or with unusual maneuvering characteristics, or with restricted vision, or other services not covered herein shall be by Specific Agreement made before movement.

X         SECOND PILOT REQUIREMENTS

            Requirements for two pilot jobs are specified in the Houston Pilot Navigational

            Safety Guidelines incorporated herein by reference. For one zone movements by

            ships formerly requiring two pilots, the one pilot shall be charged at 150% of

            prevailing unit and draft charges as the one zone one pilot service initiative is

            phased in.

XI        PROMOTIONAL CRUISE SHIP DISCOUNT

            A 50% promotional discount in pilotage applies for 2008, 2009 and 2010 cruise

            ships over 1,000 units calling at the new Bayport Cruise Terminal.

XII      PILOT CARRIED TO SEA

First class transportation back to Houston, Texas, U.S.A. and all other related expenses incurred by Houston Pilots.

XIII     PORT SAFETY COMMUNICATIONS....................................$133.25   Per Movement

XIV     TRANSPORTATION

Includes a fuel factor reduced for the year 2010 based on actual costs incurred for preceeding year.   

$105.33 Per Movement           Inlcuding Shifting.

$184.90 Fee will be assessed when dispatching a Pilot to Galveston on less than four (4)  hours notice.

XV      EFFECTIVE DATE OF TARIFF AGREEMENT

This tariff and the rates contained therein incorporate a 8% increase after certain revenue

neutral structural adjustments and become effective per contractual agreement commencing January 1, 2010.

XVI     CUSTOMER INQUIRIES

For questions concerning Invoices or Billing Issues, contact Ms. Kyrey Craft,

(713) 645-9620, ext. 506.

Our Business Manager (Mr. T. J. Nelson) is also available at ext. 509 or through Ms. Craft, to discuss Billing Issues where further review is desired.