Effective January 1, 2008
The Rates for Pilotage on the Houston Ship Channel to or from Sea or Bolivar Roads and other Charges for Special Instances are as follows commencing January 1, 2008.

I. ZONE DRAFT RATES

a. ZONES

40 Feet & Under

Over 40 feet
1. Sea - To and Including Barbours Cut
2. Baytown - To and Including Lynchburg
3. Above Lynchburg - To and Including Shell
4. Above Shell - To and Including Targa
5. Above Targa - To and Including U.S. Gypsum
6. Above U.S. Gypsum - To and Including Turning Basin
$61.25
62.32
63.39
64.43
65.56
66.61
66.45
148.10
153.64
159.17

-

-

b.   Deeper drafted ships loaded beyond 40 ft. draft will be charged at the higher rate           than in effect. Ships inadvertently loaded beyond 40 ft. by only an inch or so will             receive the lower rate.

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.

Units Cost per Unit   Units

Cost per Unit

   Units Cost per Unit
0-200
.000
1101-1150
3.283
1651-1700
4.999
201-300
.636
1151-1200
3.297
1701-1750
5.069
301-400
.800
1201-1250
4.367
1751-1800
5.139
401-500
.956
1251-1300
4.438
1801-1850
5.209
501-600
1.117
1301-1350
4.509
1851-1900
5.279
601-700
1.312
1351-1400
4.579
1901-over
5.349
701-800
1.509
1401-1450
4.649
801-900
1.708
1451-1500
4.719
901-1000
2.095
1501-1550
4.789
1001-1050
2.483
1551-1600
4.859
1051-1100
2.998
1601- over
4.929

MINIMUM CHARGE - DRAFT ZONE RATE PLUS UNITS $1,592.99 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 $858.45
Using (2) Zones 944.24
Using (3) Zones 1,030.90
Using (4) Zones 1,115.95
Using (5) Zones 1,201.79
Using (6) Zones 1,287.60

b.   UNITS In addition to the SHIFTING RATE PER ZONE

Units Cost per Unit   Units

Cost per Unit

   Units Cost per Unit
0-200
.000
701-800
1.373
1301-1400
2.732
201-300
.230
801-900
1.600
1401-1500
2.958
301-400
.461
901-1000
1.826
1501-1600
3.185
401-500
.689
1001-1100
2.053
1601-1700
3.411
501-600
.916
1101-1200
2.279
1701-1800
3.638
601-700
1.148
1201-1300
2.505
1801-over
3.864

MINIMUM CHARGE - SHIFTING ZONE RATE PLUS UNITS $1064.94 per pilot

IV. DEAD SHIPS

Double the Regular Pilotage Charge or Shifting Fees.

V. ANCHORING IN BOLIVAR ROADS

Anchorage Fee of $566.07 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 1/2 hour, weather excluded................ $339.63 per hour
ON BAR After 1 hour, weather excluded.......................... $339.63 per hour

VII. HOLDING TIME

STANDARD RATE for holding.....................................................$339.63 per hour

a.   Holding (Transit) time shall be billed to all vessels requesting or requiring a Pilot             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 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 $339.63 per hour shall be charged in                           addition to normal pilotage fee.

        SHIPS - When requiring over 7 hours of transit time (boarding to first line; last line                       to pilot off), a pilotage rate of $339.63 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 $339.63
ON BAR With less than four (4) hours notice $566.07

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 REQUIREMENT

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................................$115.31 Per Movement

XIV. TRANSPORTATION

Includes a fuel factor subject to annual adjustment based on actual costs incurred for preceding year.

$91.15 per Movement                 When shifting in the same zone, or to an adjacent                                                            zone. One transportation fee will be charged.

$160.00 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 6% increase after certain revenue neutral structural adjustments and become effective per contractual agreement commencing January 1, 2008.

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.