K-Sea Transportation Partners LP (KSP)

Note 10: Fair Value of Financial Instruments

As of June 30, 2008, the fair value of long-term debt was approximately $445,851 based on the borrowing rates currently available to the Partnership for bank loans with similar terms and average maturities. The fair value of the Partnership’s other financial instruments approximated their cost bases as such instruments are short-term in nature or were recently negotiated.

Note 11: Fair Value of Financial Instruments

        As of June 30, 2008, the fair value of long-term debt was approximately $445,851 based on the borrowing rates currently available to the Partnership for bank loans with similar terms and average maturities. The fair value of the Partnership's other financial instruments approximated their cost bases as such instruments are short-term in nature or were recently negotiated.

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Table of Contents

K-SEA TRANSPORTATION PARTNERS L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(dollars in thousands, except unit and per unit amounts)

Note 11: Fair Value of Financial Instruments

        As of June 30, 2008, the fair value of long-term debt was approximately $445,851 based on the borrowing rates currently available to the Partnership for bank loans
with similar terms and average maturities. The fair value of the Partnership's other financial instruments approximated their cost bases as such instruments are short-term in nature or
were recently negotiated.

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HREF="#fa72001a_main_toc">Table of Contents

K-SEA TRANSPORTATION PARTNERS L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(dollars in thousands, except unit and per unit amounts)

Note 11:   Fair Value of Financial Instruments

As of June 30, 2007, the fair value of long-term debt was approximately $243,685 based on the borrowing rates currently available to the Partnership for bank loans with similar terms and average maturities. The fair value of the Partnership’s other financial instruments approximated their cost bases as such instruments are short-term in nature or were recently negotiated.

Note 12:   Fair Value of Financial Instruments

As of June 30, 2006, the fair value of long-term debt was approximately $193,353 based on the borrowing rates currently available to the Partnership for bank loans with similar terms and average maturities. The fair value of the Partnership’s other financial instruments approximated their cost bases as such instruments are short-term in nature or were recently negotiated.

As of June 30, 2005, the fair value of long-term debt was approximately $118,200 based on the borrowing rates currently available to the Partnership for bank loans with similar terms and average maturities. The fair value of the Partnership’s other financial instruments approximated their cost bases as such instruments are short-term in nature or were recently negotiated.

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