Crude Oil

Terms and Conditions

Subject to change without notice and to the terms and conditions of its applicable division orders and other contracts, Phillips 66 Company will pay the above applicable prices per barrel for good, settled, marketable crude oil and condensate purchased by it from the areas designated. All prices may be subject to deductions for transportation and other charges where applicable. All prices will be effective at 7 a.m. (Central Time) on date of change.

Phillips 66 reserves the right, without prejudice, to reject and return to Seller any quantities of crude oil and/or condensate which are found (even after delivery to Phillips 66) to be contaminated by chemicals foreign to virgin crude and/or condensate including, but not limited to, chlorinated and/or oxygenated hydrocarbons.

In the event that federal regulations or rulings require adjustments to Phillips 66 Company prices, Phillips 66 reserves the right to amend these postings and recover any excess payments by withholding or invoicing amounts not allowed under subsequent or retroactive limitations.

The prices posted for crude petroleum are based upon computation of volume by the use of 100% tank tables, or by the use of mutually acceptable automatic measuring equipment, corrected for temperature to 60 degrees Fahrenheit with full deduction for basic sediment and water.