EMPLOYMENT AGREEMENT



          This is an EMPLOYMENT AGREEMENT ("Agreement"), effective as of January

14, 2004 between K-Sea Transportation Inc., a Delaware corporation (together

with its successors and assigns, the "Company"), and John J. Nicola (the

"Employee").



                                   BACKGROUND



          Employee and the Company desire to enter into this Agreement in order

to secure the services of Employee for the benefit of the Company.



          NOW, THEREFORE, intending to be legally bound, and in consideration of

the mutual promises and representations set forth in this Agreement, the Company

and Employee agree as follows:



                         ARTICLE I - EMPLOYMENT AND TERM



     1.1. EMPLOYMENT AND EMPLOYMENT TERM. The Company agrees to employ Employee,

and Employee accepts employment with the Company, to serve as Chief Financial

Officer of the Company and as an officer or in such other capacity of any of

K-Sea General Partner GP LLC, a Delaware limited liability company ("K-Sea GP"),

K-Sea General Partner L.P., a Delaware limited partnership, K-Sea Transportation

Partners L.P., a Delaware limited partnership (the "Partnership"), K-Sea

Operating Partnership L.P., a Delaware limited liability company (the "Operating

Partnership"), and any other subsidiary formed by any of the foregoing

(collectively, the "Companies"), as determined by the Board of Directors of such

company, for a term commencing on the date hereof and continuing for a period of

one year thereafter, unless earlier terminated pursuant to Article IV of this

Agreement ("Employment Term"). The Employment Term shall be automatically

renewed for successive one-year periods unless either party hereto gives

thirty-days prior written notice to the other party that such party desires not

to renew the Employment Term. During the Employment Term, Employee will render

such services to the Companies as are customary for the position (or positions)

held by Employee. During the Employment Term, Employee shall devote his full

time, ability and attention, and his best efforts, to the business of the

Companies. The Employee shall not directly or indirectly render any services of

a business, commercial, or professional nature to any other person, organization

or other entity, whether for compensation or otherwise, directly or indirectly,

without the prior written consent of the Board of Directors of the Company.



                            ARTICLE II - COMPENSATION



     2.1. BASE SALARY. Subject to Article IV of this Agreement, as compensation

for services hereunder and in consideration of the protective covenants set

forth in Article III of this Agreement, during the Employment Term the Employee

shall be paid an annual base salary of $150,000, subject to increase at the

discretion of the Board of Directors, payable in accordance with the Company's

normal payroll practices.



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     2.2. BONUS AWARDS. Subject to Article IV of this Agreement, during the

Employment Term the Employee shall be eligible to receive an annual bonus award

based upon the financial performance of the Companies during the preceding

fiscal year, the amount of which shall be determined in the sole discretion of

the Board of Directors of K-Sea GP. Employee may also receive additional awards

in the amounts and at such times as determined in the sole discretion of the

Board of Directors of K-Sea GP.



     2.3. EMPLOYEE BENEFITS. Employee shall be entitled to receive such

retirement and welfare benefits as are generally available to officers of the

Company and other employee perquisites and benefits as determined in the sole

discretion of the Board of Directors of the Company.

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