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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;16. RELATED PARTY TRANSACTIONS&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;We are
   managed by Buckeye GP, which is a wholly owned subsidiary of BGH. BGH is managed by
   its general partner, MainLine Management. MainLine Management is a
   wholly owned subsidiary of BGH GP. Affiliates of each of ArcLight  and Kelso, along with certain members of our senior
   management, own the majority of the outstanding equity interests of BGH GP. In addition to owning
   MainLine Management, BGH GP owns approximately 62% of BGH&amp;#8217;s common units.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Under certain agreements, we are obligated to reimburse Services Company for certain direct
   and indirect costs related to the business activities of us and our subsidiaries. Services Company
   is reimbursed for insurance-related expenses, general and administrative costs, compensation and
   benefits payable to employees of Services Company, tax information and reporting costs, legal and
   audit fees and an allocable portion of overhead expenses. BGH previously reimbursed Services
   Company for the executive compensation costs and related benefits paid to Buckeye GP&amp;#8217;s four highest
   salaried employees. Since January&amp;#160;1, 2009, we are paying for all executive compensation and
   related benefits earned by Buckeye GP&amp;#8217;s four highest salaried officers in exchange for an annual
   fixed payment from BGH of $3.6&amp;#160;million. Total costs incurred by us for the above services totaled
   $27.4&amp;#160;million and $52.7&amp;#160;million for the three months ended June&amp;#160;30, 2010 and 2009, respectively.
   For the six months ended June&amp;#160;30, 2010 and 2009, we incurred $54.9&amp;#160;million and $81.3&amp;#160;million,
   respectively, of such costs. Amounts for the 2009 periods include costs related to our
   organizational restructuring. We reimbursed Services Company for these costs.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Services Company, which is beneficially owned by the ESOP, owned 1.5&amp;#160;million of our LP Units
   (approximately 3.0% of our LP Units outstanding) as of June&amp;#160;30, 2010. Distributions received by
   Services Company from us on such LP Units are used to fund obligations of the ESOP. Distributions
   paid to Services Company totaled $1.4&amp;#160;million and $1.9&amp;#160;million for the three months ended June&amp;#160;30,
   2010 and 2009, respectively. For the six months ended June&amp;#160;30, 2010 and 2009, distributions paid
   to Services Company totaled $3.0&amp;#160;million and $3.8&amp;#160;million, respectively. Total distributions paid
   to Services Company decrease over time as Services Company sells LP Units to fund benefits payable
   to ESOP participants who exit the ESOP.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;We incurred a senior administrative charge for certain management services performed by
   affiliates of Buckeye GP of $0.5&amp;#160;million for the three months ended March&amp;#160;31, 2009. The senior
   administrative charge was waived indefinitely on April&amp;#160;1, 2009 as these affiliates are currently
   not providing services to us that were contemplated as being covered by the senior administrative
   charge. As a result, there were no related charges recorded in the last nine months of 2009 or
   during the six months ended June&amp;#160;30, 2010.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Buckeye GP receives incentive distributions from us pursuant to our partnership agreement and
   incentive compensation agreement. Incentive distributions are based on the level of quarterly cash
   distributions paid per LP Unit. Incentive distribution payments totaled $12.6&amp;#160;million and $11.5
   million during the three months ended June&amp;#160;30, 2010 and 2009, respectively. During the six months
   ended June&amp;#160;30, 2010 and 2009, incentive distribution payments totaled $24.9&amp;#160;million and $22.0
   million, respectively.
   &lt;/div&gt;
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      <ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
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 -Section 04
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher SEC
 -Name Regulation S-X (SX)
 -Number 210
 -Section 08
 -Paragraph k
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 57
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