Exhibit 4.84






Exhibit 4.84 

NOTE: This form contract is a suggested guide only
  and use of this form or any variation thereof shall be at the sole discretion
  and risk of the use parties. Users of the form contract or any portion or
  variation thereof are encouraged to seek the advice of counsel lo ensure that
  their contract reflects the complete agreement of the parties and applicable
  law. The International Association of Drilling Contractors disclaims any
  liability whatsoever for loss or damages which may result from use of the form
  contract or portions or variations thereof. Computer generated form, reproduced
  under license from IADC.

Revised 
April 2003

INTERNATIONAL ASSOCIATION OF 
DRILLING
CONTRACTORS DRILLING BID PROPOSAL

AND

DAYWORK DRILLING CONTRACT - U.S.

THIS CONTRACT CONTAINS PROVISIONS RELATING TO
INDEMNITY, 
RELEASE OF LIABILITY, AND ALLOCATION OF RISK –
SEE PARAGRAPHS
4.9, 6.3(c), 10, 12, AND 14

This Contract is made and entered into on the date
hereinafter set forth by and between the parties herein designated as 'Operator'
and “Contractor.

	OPERATOR: 	NGP Blue Mountain 1, LLC 
	Address: 	409 Granville St.Suite 900 
	  	Vancouver, BC V6C 1T2 
	CONTRACTOR: 	ThermaSource Inc 
	Address: 	3883 Airway Dr, Suite 340 
	  	Santa Rosa, CA 95403 


IN CONSIDERATION of the
mutual promises, conditions end agreements herein contained and the
specifications and special provisions set forth in Exhibit “A” and Exhibit “B”
attached hereto and made a part hereof (the “Contract”), Operator engages
Contractor as an independent contractor to drill the hereinafter designated well
or wells in search of oil, gas or geothermal resource on a Daywork
Basis.

For purposes hereof, the term “Daywork” or “Daywork
Basis” means Contractor shall furnish equipment, labor, and perform services as
herein provided, for a specified sum per day under the direction, supervision
sod control of Operator (inclusive of any employee, agent, consultant or
subcontractor engaged by Operator to direct drilling operations).
When operating and a Daywork Basis, Contractor shall be
fully paid at the applicable rates of payment and assumes only the obligations and liabilities stated herein.
Except for such obligations and liabilities specifically assumed by Contractor,
Operator shall be solely responsible and assumes liability for all consequences
of operations by both parties while on a Daywork Basis, including results and all other risks or liabilities
Incurred In or incident
to such
operations,

LOCATION OF WELL:

	Well Name 	  
	and Numbered 	25-14, 44-14, 42-14 and any additional wells as directed by
      Operator. 


Parish/
Country:
Humboldt State:
Nevada Field Name:
Blue Mountain

Well location land description: Township 34E, M.D.
B&M. 23 miles West of Winnemucca, NV.

1.1 Additional Well Locations
or
Areas:                                   
As directed by Operator

Locations described above are for well and Contract
identification only and Contractor assumes no liability whatsoever for a proper
survey or location stake on Operator's tease.

2. COMMENCEMENT DATE:
Contractor agrees to use reasonable efforts to commence operations for the
dolling of the well by the 1 day of December,2007 ,

	Or 
	 


3. DEPTH:




3.1 Well
Depth: The well(s) shall be drilled to a depth of
approximately 4,000 feet, or to
the N/A formation, whichever is
deeper, but the Contractor shall not be required hereunder to drill said well(s)
below a maximum depth of 6,000 feel, unless Contractor and Operator mutually agree to drill to a greater
depth.

4. DAYWORK RATES:

Contractor shall be paid at
the following rates for the work
performed hereunder.

     4.1 Mobilization: Operator shall pay Contractor
the lesser of a mobilization fee of $ 120,000
or a mobilization day rate of 113,000 per day. The total mobilization cast
shall include: The flat fee plus the rig mobilization day rate for the actual
days the move requires. The mobilization fee represents the estimated cost of
trucks and cranes needed to move the rig. The rig rate represents the charge for
the rig and 2 crews worth of labor to transport the rig from Fort Bidwell, CA to
Blue Mountain. The Contractor will send third party invoices to the Operator for
the actual cost of trucks and cranes to the Operator. The
fee will be applied to this balance.

4.2
Demobilization: Operator shall pay Contractor the lesser
of a demobilization fee of $190,000 or a demobilization day rate during tear
dawn of $ 18,000 per day, prodded however that no demobilization fee shrill be
payable if the Contract is terminated due to the total loss or destruction at
the rig. The total demobilization fee shall include: The actual costs of trucks,
crane and crews from the time when the rig is released to
the time when the rig is stacked at a location agreed to
by Contractor. The Contractor will send third party invoices to the Operator for
the actual cost of trucks and cranes and will apply the
demobilization fee to this balance, 4.3 Moving
Rate: During the time the rig is in transit to or from a
drill site, or between drill sites, commencing on Release of rig, Operator shall
pay Contractor a sum off 18,000 per twenty four (24) hour clay, to a maximum of
5 days per move from site to site.

4.4 Operating Day
Rate: For work performed per twenty-four (24) hour day
with A minimum of a 5 man crew
the operating day rate shall be:

	       Depth
      Intervals 	 	 	Without Drill
      Pipe 	 	 	With Drill Pipe for
      Drilling with Air 	 
	  	 	  	 	 	  	 	 	  	 	 	or Aerated
      Fluids 	 
	From 	 	To 	 	$	 20,500 	 	 	Per day 	 	$	 20,500 	 	 	Per day 	 
	0 	 	6,000 	 	$	 	 	 	Per day 	 	$	 	 	 	Per day 	 
	  	 	 
    	 	$	 	 	 	Per day 	 	$	 	 	 	Per day 	 


Depth Intervals Using
Operator's drill pipe $ 20,500 per day.

The rate will begin when the drilling unit is rigged
up al the drilling location, or positioned over the location during marine work,
and ready to commence operations; and wig cease when the rig is ready to be
moved off the location.

 

 

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     Revised April, 2003


If under the above column “With Drill Pipe” no rates
are specified, the rate per twenty-four hour day when drill pipe is in use shall
be the applicable rate specified in the column “Without Drill Pipe” plus
compensation for any drill pipe actually used at the rates specified below,
computed on the basis of the maximum drill pipe in use at any time during each
twenty-four hour day.

DRILL PIPE RATE PER 24-HOUR DAY

	 	Straight Hole 	 	Size 	 	 	Grade 	 	 	Directional or 	 	 	Size 	 	 	Grade 	 
	 	  	 	  	 	 		 	 	Uncontrollable
      Deviated  	 	 	  	 	 	  	 
	 	  	 	  	 	 	  	 	 	Hole 	 	 	  	 	 	  	 
	 $	 Per ft 	 	 
    	 	$	 	 	 	Per ft 	 	 	 
    	 	 	 
    	 
	 $	 Per ft 	 	 
    	 	$	 	 	 	Per ft 	 	 	 
    	 	 	 
    	 
	$	 Per ft 	 	 
    	 	$	 	 	 	Per ft 	 	 	 
    	 	 	 
    	 


Directional or uncontrolled deviated hole will be
deemed to exist when deviation exceeds _____ degrees or when the change of angle
exceeds______ degrees per one hundred feet.

     Drill pipe shall be
considered in use out only when in actual use but also while it is being picked
up or laid down. When drill pipe is standing in the derrick, it shall not be
considered in use, provided, however, that if Contractor furnishes. special
strings of drill pipe, drill collars, and handling tools as provided for in
Exhibit “A”, the saran shall be considered in use at all times when on fixation
or until released by Operator. In no event shell fractions of an hour be
considered in computing the amount of time drill pipe is in use but such time
shall be computed to the nearest hour, with thirty minutes or more being
considered a full hour and less than thirty minutes not to be
counted.

     4.5 Repair
Time: In the event it is necessary to shut down
Contractor's rig for repairs, excluding routine rig servicing, Contractor shall
be allowed compensation at the applicable rate for such shut down time up to a
maximum of Four (4)hours for
anyone rig repaid* but not to exceed 24 hours of such compensation for any calendar month. Thereafter, Contractor
shall be compensated at a rate of $ Zero (0)
per twenty-four (24) hour day. Routine rig servicing
shall include, but not be limited to, cutting and slipping drilling line,
changing pump or swivel expendables, testing ROP equipment, lubricating rig, and


     4.6 Standby Time Rate:
$16.000 per twenty-four(24) day.
Standby time shall be defined to include time when the rig is shut down although
in readiness to begin or resume operations but Contractor is waiting on orders
of Operator or on materials, services or other items to be furnished by
Operator.

     4.7 Drilling Fluid
Rates: When drilling fluids of a type and characteristic that increases
Contractor's cost of performance hereunder, including, but not limited to,
oil-based mud or potassium chloride, are in use,
Operator shall pay Contractor in addition to the
operating rate specified above:

(a) $75 per man per day for Contractor's rig-site personnel. 
(b) $1000 per
day additional operating rate; and
(c) Cost of all labor,
material and services plus 24 hours operating rate to clean rig and related equipment.

     4.8 Force Majeure
Rate: $ 11,000 per twenty-four (24) hour clay for any continuous period the normal
operations are suspended or cannot be carried on due 




to conditions of Force Majeure as defined in
Paragraph 17 hereof. It is, however, understood that subject to Subparagraph 6.3
below, Operator can release the rig in accordance With Operator's right to
direct stoppage of the work, effective when conditions will permit the rig to he
moved from the location.

     4.9 Reimbursable
Costs: Operator shall reimburse Contractor for the costs
of material, equipment, work or services which are to be furnished by Operator
as provided for herein but which for convenience are actually furnished by
Contractor at Operators request, plus 5 percent for such cost of handling. When,
at Operator's request and with Contractor's agreement, the Contractor furnishes
or subcontracts for certain items or services which Operator is required herein
to provide, far purposes of the indemnity and release provisions of this
Contract, said Items or services shall be deemed to he Operator furnished items
or services. Any subcontractors so hired shall be deemed to be Operator's
contractor, and Operator shall not be relieved of any its liabilities in
connection therewith.

     4.10 Revision in
Rates: The rates and/or payments herein set forth due to
Contractor from Operator shall be revised to rafted the change in costs if the
costs of any of the items hereinafter listed shall vary by more than
10 percent from the costs thereof
on the date of this Contract or by the same percent alter the date of any
revision pursuant to this Subparagraph:

	 	(a) 	Labor costs, including all benefits, of Contractor's
      personnel; 
	 	 	 
	 	(b) 	Contractors coal of insurance premiums; 
	 	 	 
	 	(c) 	Contractor's cast of fuel, including all taxes and fees;
      the cost per gallon/MCF being $NIA

	 	 	 
	 	(d) 	Contractor's cast of catering, when applicable;
  
	 	 	 
	 	(e) 	If Operator requires Contractor to increase or decrease
      the number of Contractor's personnel; 
	 	 	 
	 	(f) 	Contractor's cost of spare parts and supplies with the
      understanding that such spare parts and supplies constitute
      15 percent of the operating
      rate and that the parties shall use the U.S, Bureau of Labor Statistics
      Oil Field and Gas Field Drilling Machinery Producer Price index (Series ID
      WPU119102) to determine to what extent a price variance has occurred in
      said spare parts and supplies; 
	 	 	 
	 	(g) 	If there is any change in legislation or regulations in
      the wee in which Contractor is working or other unforeseen, unusual event
      that alters Contractors financial burden. 


TIME OF PAYMENT

     Payment is due by Operator
to Contractor as follows:

     5.1 Payment for
mobilization, drilling and other work performed at
applicable rates, and all other applicable charges shall be due, upon
presentation of invoice therefore, upon completion of mobilization,
demobilization, rig release or at the end of each 15 day period in which such
work was performed or other charges are incurred, whichever shall first occur.
All invoices may be mailed to Operator at the address hereinabove shown, unless
Operator does hereby designate that such invoices shall be mailed as follows:
Every 15 days .
An advanced payment of $600,000 shall be made Immediately
upon execution of this Contract.

     5.2 Disputed
Invoices and Late Payment: Operator shall pay all
invoices within 30 days after
receipt by Operator of the original invoice (with all supporting documents)
except that if Operator disputes an invoice or any part thereof, Operator shall,
within fifteen days after receipt of the invoice, notify Contractor of the item
disputed, specifying the reason therefore, and payment of the disputed fern may
be withheld until settlement of the 




dispute, but timely payment shall be made of any
undisputed portion. My sums (including amounts ultimately paid with respect to a
disputed invoice) not paid within the above specified days shall hem interest at
the rate of 6 percent per annum from the due date until paid. If Operator does
not pay undisputed items within the above stated time, Contractor may suspend
operations or terminate this Contract as specified under Subparagraph
6.3.

6. TERM:

     6.1 Duration of
Contract: This Contract shall remain in full force and
effect until drilling operations are completed on the well or wells specified in
Paragraph 1 above commencing on the date specified in Paragraph 2 above or
completion of drilling program.

6.2 Extension of
Term; Operator may extend the term of this Contract for
N/A well(s) for a period of 365 days by giving notice to Contractor at least
10 days prior to completion of
the well then being drilled and with Contractor approval.
The operator will have first right of refusal for the rig within the 10 day time
limit. 

 

 

 

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     6.3 Early
Termination:

     (a) By Either
Party: Upon giving of written notice, either party may
terminate this Contract when total loss or destruction of the rig, or a major
breakdown with indefinite repair time necessitate stopping operations
hereunder.

     (b) By
Operator: Notwithstanding the provisions of Paragraph 3
with respect to the depth to be drilled, Operator shall have the right to direct
the stoppage of the work to be performed by Contractor hereunder at any time
prior to reaching the specified depth, and even though Contractor has made no
default hereunder. In such event, Operator shall reimburse Contractor as net
forth in Subparagraph 8.4 hereof.

     (c) By
Contractor: Notwithstanding the provisions of Paragraph
3 with respect to the depth to be drilled, in the event Operator shelf become
insolvent, or be adjudicated a bankrupt, or file, by way of petition or answer,
a debtor's petition or other pleading seeking adjustment of Operators debts,
under any bankruptcy or debtor's relief laws now or hereafter prevailing, or if
any such be fled against Operator, or in case a receiver be appointed of
Operator or Operators properly, or any part thereof, or Operator's affairs be
placed in the hands of a Creditors Committee, or, following three business days
prior written notice to Operator if Operator does not pay Contractor within the
time specified in Subparagraph 5.2 all undisputed items due and owing,
Contractor may, at its option, (1) elect to terminate further performance of any
work under this Contract and Contractor's right to compensation shall be as set
forth in Subparagraph 8.4 hereof, or (2) suspend operations until payment is
made by Operator in which event the standby time rate contained in Subparagraph
4.0 shall apply until payment is made by Operator and operations are resumed.
In addition to Contractor's rights to suspend operations or
terminate performance under this Paragraph, Operator
hereby expressly agrees to protect, defend and Indemnity Contractor from and
against any claims, demands and causes of action, Including after costs of
defense, in favor of Operator, Operator's co-venturers, co-lessees and joint
owners, or any other parties arising out of any drifting commitments or
obligations contained in any lease, farmout agreement or other agreement, which
may be affected by such suspension of operations or
termination of performance hereunder,

     6.4 Early Termination
Compensation:

     (a) Prior to
Commencement: to the event Operator terminates this
Contract prior to commencement of operations hereunder, Operator shall pay
Contractor as liquidated damages and not as a penalty a sum equal to the standby
time rate (Subparagraph 4.6) for a period of 10
days or a lump sum of $160.000.

     (b) Prior to
Spudding: If such termination occurs after commencement
of operations but prior to the spudding of the well, Operator shall pay to
Contractor the sum of the fallowing: (1) all expenses reasonably and necessarily
incurred and to be incurred by Contractor by reason of the Contract and by
reason of the premature termination of the work, including the expense of
drilling or other crew members and supervision directly assigned to the rig; (2)
ten percent (10%) of the amount of such reimbursable expenses; and (3) a sum
calculated at the standby time rate for all time from the data upon which










Contractor commences any operations hereunder down to such data subsequent to the data of termination as will afford Contractor reasonable time to dismantle its rig and equipment provided, however, if this Contract is for a term of more
than one well or for a period of time, Operator shall pay contractor, in addition to the above, the Force Majeure Rate, less any unnecessary labor, from that date subsequent to termination upon which Contractor completes dismantling its rig and
equipment until the end of the term or for 20 days, whichever is less. 


     (c) Subsequent to spudding: If such termination occurs after the spudding of the well, Operator shall pay Contractor (1) the amount for all applicable rates and all other charges
and reimbursements due to Contractor, but in no event shall such sum, exclusive of reimbursements due, be less than would have been earned for 15 days at the applicable rate “Without Drill
Pipe” and the actual annual due for drill pipe used in accordance with the above roles; or (2) at the election of Contractor and in lieu of the foregoing, Operator shall pay Contractor for all expenses reasonably and necessarily incurred and to
be Married by reason of this Contract and by mason of such premature termination plus a lump sum of $240 000  after drilling In 3000 feet or encountering a suitable production zone there will be no
penalty for early termination.


7. CASING PROGRAM


     Operator shall have the right to designate the points at which casing will be set and the manner of setting, cementing and testing. Operator may modify the casing program, however, any such modification
which materially Increases Contractors hazards or costs can only be made by mutual consent of Operator and Contractor and upon agreement as to the additional compensation to be paid Contractor as a result thereof.


8. DRILLING METHODS AND PRACTICES:


     8.1 Contractor shall maintain well control equipment in good condition at all times and shall use all reasonable means In prevent and control fires and blowouts and to protect the
hole.


     8.2 Subject to the terms hereof, and at Operator's cost, at all times during the drilling of the well, Operator shall have the right to control the mud program, and the drilling
fluid must be of a type and have characteristics and be maintained by Contractor in accordance with the specifications shown in Exhibit “A”.


     8.3 Each party hereto agrees to comply with all laws, ruins, and regulations of any federal, state or local governmental authority which are now or may become applicable to that
party's operations covered by or arising out of the performance of this Contract. When required by law, the terms of Exhibit “13” shall apply to this Contract. In the event any provision of this Contract is inconsistent with of contrary to
any applicable federal, slate or local law, role or regulation, said provision shall be deemed to be modified to the extent required to comply with said law, rule or regulation, and as so modified said provision and this Contract shall continue in
full force and ailed.


     8.4 Contractor shall keep and furnish to Operator art accurate record of the work performed and formations drilled on the IAOC-API Daily Drilling Report Form mother form
acceptable to Operator A legible copy of said form shall be furnished by Contractor to 






Operator.

     8.5 If requested by Operator, Contractor shall furnish Operator with a copy
of delivery tickets covering any material or supplies provided by Operator and
received by Contractor.

9. INGRESS, EGRESS, AND LOCATION:

     Operator hereby assigns
to Contractor all necessary rights of ingress and egress with respect to the
tract on which the well is to be located for the performance by Contractor of
all work contemplated by this Contract Should Contractor be denied free access
to the location for any reason not reasonably within Contractor's control, any
time lost by Contractor as a result of such denial shall be paid for at the
standby time rate. Operator agrees at all times to maintain the road and
location in such a condition that will allow free access and movement to and
from the drilling site in an ordinarily equipped highway type vehicle, If
Contractor is required to use bulldozers, tractors, four-wheel drive vehicles,
or any other specialized transportation equipment for the movement of necessary
personnel, machinery, or equipment over access roads or on the drilling
location, Operator shall furnish the same at its expense and without cost to
Contractor. The actual cost of repairs to any transportation equipment furnished
by Contractor or its personnel damaged as a result of improperly maintained
access roads or location will be charged to Operator. Operator shall reimburse
Contractor for all amounts reasonably expended by Contractor for repairs and/or
reinforcement of roads, bridges and related or similar facilities (public and
private) required as a direct result of a rig move pursuant to performance
hereunder. Operator shall be responsible for any costs associated with leveling
the rig because of location settling,

 

 

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Revised April, 2003

10. SOUND LOCATION:

     Operator shall prepare
a sound location adequate in size and capable of properly supporting the
drilling rig, and shall be responsible for a casing and-cementing program adequate to prevent nail and
subsoil wash out. It is recognized that Operator has superior knowledge of the
location and access routes to the location, and must advise Contractor of any
subsurface conditions, or obstructions (Including, but not limited to, mines,
caverns, sink holes, streams, pipelines, power lines and communication lines)
which Contractor might encounter while en route to the location or during
operations hereunder, In the event subsurface conditions
cause a cratering or shifting of the location surface, or if seabed conditions
prove unsatisfactory to properly support the rig during marine operations
hereunder, and loss or damage to the rig or its associated equipment results
therefrom, Operator shall, without regard to other provisions of ties Contract,
Including Subparagraph 14.1 hereof, reimburse Contractor for all such loss or
damage including removal of debris and payment of Force Majeure Rule during
repair and/or demobilization if applicable.

11. EQUIPMENT CAPACITY

     Operations shall not be
attempted under any conditions which exceed the capacity of the equipment
specified to be used hereunder or where canal or water depths are in excess of
NIA feel. Without
prejudice to the provisions of Paragraph 14 hereunder, Contractor shall time the
right to make the final decision as to when art operation or attempted operation
would exceed the capacity of specified equipment

12. TERMINATION OF LOCATION
LIABILITY:

     When
Contractor has concluded operations at the well
location, Operator shall thereafter be liable for damage to property, personal
injury or death of any person which occurs as a result of conditions of the
location and Contractor shall be relieved of such liability; provided, however,
if Contractor shall subsequently reenter upon the location for any reason,
Including removal of the rig, any term of the Contract relating
to such reentry
activity shall
become applicable during such period.

13. INSURANCE

     During the life of this
Contract, Contractor shall at Contractor’s expense maintain, with an insurance
company or companies authorized to day business in the state where the work is
to be performed or through a self-insurance program, insurance coverages of the
kind and in the amount set forth In Exhibit “A”, insuring the liabilities
specifically assumed by Contractor in Paragraph 14 of this Contract. Contractor
shall procure from the company or companies wilting said insurance a certificate
or certificates that said insurance is in full force and effect end that the
same shall not be canceled or materially changed without ten (10) days prior
written notice to Operator: For liabilities assumed hereunder by Contractor, its
insurance shall be endorsed to provide that the underwriters waive their right
of subrogation against Operator. Operator will, as well, cause its insurer to
waive subrogation against Contractor for liability it assumes and shall
maintain, at Operator's expense, or shall self insure, insurance coverage as set
forth in Exhibit 'A' of the same kind and in the same amount as is required of
Contractor, insuring the liabilities 




specifically assumed by Operator in Paragraph 14 of
this Contract. Operator shall procure from the company or companies wiling said
Insurance a certificate or certificates that said Insurance is in full force and
effect and that the some shall not be canceled or materially changed without ten
(10) days prior written notice to Contractor. Operator and Contractor shall
cause then-respective underwriters to name the other additionally insured but
only to the extend of the indemnification obligations assumed herein.

14. RESPONSIBILITY FOR LOSS OR DAMAGE, INDEMNITY,
RELEASE OF LIABILITY AND ALLOCATION OF RISK:

     14.1 Contractors
Surface Equipment Contractor shall assume liability at all times for damage
to or destruction
of Contractor's surface equipment, regardless of when or how such damage
or destruction
occurs, and Contractor shall release Operator of any liability for any such
loss, except loss
or damage under the provisions of
Paragraph 10 or
Subparagraph 14.3 14.2 Contractor's In-Hole
Equipment: Operator shall assume liability, at all times for damage or
destruction of Contractor's in-hole equipment Including, but not limited to,
drill pipe, drill collars, and tool joints, and Operator shall reimburse
Contractor for the value of any such less or damage; the value to be determined
by agreement between Contractor and Operator as current repair costs or
100
percent of current new replacement east of such equipment delivered to the well
site.

     14.3 Contractor's
Equipment - Environmental Loss or Damage; Notwithstanding the provisions of
Subparagraph 14.1 above, Operator shall assume liability at all times for damage
to or destruction of Contractor's equipment resulting from the presence of
H2S,
CO2, or other corrosive elements that enter the drilling fluids from subsurface
formations or the use of
corrosive, destructive or abrasive additives in the drilling
fluids.

     14.4 Operator's
Equipment, Operator shall assume debility
at all times for damage to or destruction of Operator's or Its co-venturers;
co-lessees' or joint owners' equipment, including, but not limited to, casing,
tubing, well head equipment, and platform if applicable, regardless of when or
how such damage or destruction occurs, and Operator shall release Contractor of
any liability for any such loss or damage.

     14.5 Underground
Damage; Operator shall release Contractor and its suppliers, contractors and
subcontractors of any tier of any liability for, and shall protect defend and
indemnify Contractor and its suppliers, contractors and subcontractors- of any
tier from and against any and all claims, liability, and expense resulting from
operations under this Contract on account of Injury to, destruction of or loss
or impairment of any property right in or to oil, gas, or other mineral
substance or water, if at the time of the act or omission causing such injury,
destruction, loss, or Impairment sold substance had not been reduced to physical
possession above the surface of the earth and for any loss or damage to any
formation, strata, or reservoir beneath the surface of the
earth.

     14.6 Inspection
of Materials Furnished by Operator; Contractor agrees to visually inspect all
materials furnished by Operator before using same and to notify Operator of any
apparent defects therein. Contractor shell not be liable far any loss or damage
resulting from the use of materials furnished by Operator, and Operator shall





release Contractor from , and shall protect,
defend and Indemnify Contractor from and against, any such
liability.

     14.7 Contractor's
Indemnification of Operator: Contractor shaft release Operator of any liability
for, and shall protect, defend and indemnify Operator from and against all
claims, demands, and causes of action of every kind and character, without limit
and without regard to the cause or ceases thereof or the negligence of any party
or parties, arising in connection herewith in favor of Contractor's employees or
Contractor's subcontractors of any tier (inclusive of any agent or consultant
engaged by Contractor) or their employees, or Contractor's invitees, on account
of bodily injury, death or damage to property. Contractors Indemnity under this
Paragraph shall be without regard to and without any right to contribution from
any insurance maintained by Operator pursuant to Paragraph 13. If it is
judicially determined that the monetary limits of insurance required hereunder
or Of the indemnities voluntarily assumed under Subparagraph 14.8 (Which
Contractor and Operator hereby agree will be supported either by available
liability insurance, under which the insurer has no right of subrogation against
the indemnifies, or voluntarily self-insured, in part or whole) exceed the
maximum limits permitted under applicable law, it is agreed that said insurance
requirements or indemnities shall automatically be amended to conform too the
maximum monetary limits permitted under such law.

     14.8 Operator's
Indemnification of Contractor Operator shall release Contractor of any liability
for, and shell protect. defend and indemnify Contractor from and against all
claims, demands, and causes of action of every kind and character, without limit
and without regard to the cause or causes thereof or the negligence of any party
or parties, arising In connection herewith In favor of Operator's employees or
Operator's contractors of any tier (inclusive of any agent, consultant or
subcontractor engaged by Operator) or then-employees, or Operator's invitees,
other than those parties identified in Subparagraph 14.8 on account of bodily
injury, death or

 

 

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     Revised April, 2003


damage to property. Operator's indemnify under
Paragraph shall be without regard to and without any right to contribution horn
any insurance maintained by Contractor pursuant to Paragraph 13. If it is
judicially determined that the monetary limits of insurance required hereunder
or of indemnities voluntarily assumed under Subparagraph 14.8 (which Contractor
and Operator hereby agree will be supported either by available liability
Insurance, under which the insurer has no right of subrogation against the
indemnities, or voluntarily self-Insured, In part or whole) exceed the maximum
limits permitted under applicable law, it is agreed that said Insurance
requirements or indemnities shall automatically be amended to conform to the
maximum monetary limits permitted under such law.

     14.9 Liability
for Wild Well: Operator shall be liable for the cost of regaining control of any
wild well, as well as for cost of removal oleo debris and cost of property
remediation and restoration, and Operator shall release, protect defend and
indemnify Contractor and Its suppliers, contractors and subcontractors of any
tier from and against any liability for such cost 14.10 Pollution or
Contamination: Notwithstanding anything to the contrary contained herein, except
the provisions of Paragraphs 10 and 12, it is understood and agreed by and
between Contractor and Operator that the responsibility for pollution or
contamination shall be as follows: 

     (a) Contractor shall
assume at responsibility for, including control and removal of, and shall
protect defend and indemnify Operator from and against all claims, demands and
causes of action of every kind and character arising from pollution or
contamination, which originates above the surface of the land or water from
spills of fuels, lubricants, motor oils, pipe dope, paints, solvents, ballast,
bilge and garbage, except unavoidable pollution from reserve pits, wholly in
Contractor's possession and control and directly associated with Contractor's
equipment and facilities.

     (b) Operator
shall assume oil responsibility for, including control and removal
of, and shall
protect defend and indemnify Contractor and its suppliers, contractors and
subcontractors of any tier from and against all claims, demands, and causes
of action of every
kind and character arising directly or Indirectly from all other pollution or
contamination which may occur during the conduct of operations hereunder, including but not
Limited to, that
which may result from fire, blowout cratering, seepage or any other uncontrolled
flow of oil, gas, water or other substance, as well as the use or disposition of
all drilling fluids, including, but not limited to, oil emulsion, oil base or
chemically treated drilling fluids, contaminated cuttings or cavings, lost
circulation end fish recovery materials and fluids. Operator shall release
Contractor and its suppliers, contractors and subcontractors of any tier of any
liability for the foregoing (c) In the event a third party commits an act or
omission which results In pollution or contamination for which either Contractor
or Operator, for whom such party is performing work, is held to be legally
liable, the responsibility therefore shall 




be considered, as between Contractor and
Operator, to he the same as if the party for whom the work was performed had
performed the same and all of the obligations respecting protection, defense,
indemnity and limitation of responsibility and liability, as see forth in (a)
and (b) above, shall be specifically applied.

     14.11
Consequential Damages: Subject to and without affecting the provisions of this
Contract regarding the payment rights and obligations of the parties or the risk
of loss, release and indemnity rights and obligations of the parties, each party
shall at all times be responsible for and hold harmless and indemnify the other
party from and against its own special, indirect or consequential damages, and
the parties agree that special indirect or consequential damages shall be deemed
to Include, without limitation, the following: loss of profit or revenue; costs
and expenses resulting from business interruptions; loss of or delay in
production; loss of or damage to the leasehold; loss of or delay in drilling or
operating rights; cost of or loss of use of property, equipment materials end
services, including without limitation those provided by contractors or
subcontractors of every tier or by third parties. Operator shall at all times be
responsible for and hold harmless and indemnify Contractor and its suppliers,
contractors and subcontractors of any tier from and against all claims, demands
and causes of action of every kind and character In connection with such
special, indirect or consequential damages suffered by Operator's co-owners,
co-venturers, co-lessees, farmors, farmees, partners and joint owners


     14.14 indemnity
Obligation: Except as otherwise expressly limited in this Contract, it is the
intent of parties hereto that all releases, indemnity obligations and/or
liabilities assumed by such parties under terms of this Contract Including,
without limitation, Subparagraphs 4.9 and 6.3(c), Paragraphs 10 and 12, end
Subparagraphs 14.1 through 14,11 hereof, be without limit and without regard to
the cause or causes thereat, including, but not limited to, pre-existing
conditions, defect or ruin of premises or equipment, strict liability,
regulatory or statutory liability, products liability, breach of representation
of warranty (express or implied), breach of duty (whether statutory, contractual
or otherwise) any theory of fort breach of contract fault the negligence of any
degree or character (regardless of whether such negligence is sole, joint or
concurrent active, passive or gross) of any parties, including the party seeking
the benefit of the release, indemnity or assumption of liability, or any other
theory of legal liability. The Indemnities, and releases and assumptions of
liability extended by the parries hereto under the provisions of Subparagraphs
4.9 and 6.3 and Paragraphs 10, 12 and 14 shall inure to the benefit of such
parties, their co-venturers, co-lessees, joint owners, their parent holding and
affiliated companies and the officers, directors, stockholders, partners,
managers, representatives, employees, consultants, agents, servants and insurers
of each. Except as otherwise provided herein, such indemnification and
assumptions of liability shall not be deemed to create any rights to
indemnification in any person or entity not a party to this Contract, either as
a third party beneficiary or by reason of any agreement of indemnity between one
of the parties hereto and 




another person or entity not a party to this
Contract

15. AUDIT

     If any payment provided
for hereunder is made an the basis of Contractor's costs, Operator shall have
the right to audit Contractor's books and records relating to such costs,
Contractor agrees to maintain such books and records for a period of two (2)
years from the date such casts were incurred and to make such books and records
readily available to Operator at any reasonable limo or times militia the
period.

16. NO WAIVER EXCEPT IN WRITING

     It is fully understood
and agreed that none of the requirements at this Contract shall be considered as
waived by either party unless the same is done in minting, and then only by the
persons executing this Contract or other duly authorized agent or representative
of the party.

17. FORCE MAJEURE

     Except as provided in
this Paragraph 17 and without prejudice to the risk of loss, release and
indemnity obligations under this Contract, each party to this Contract shall be
excused from complying with the terms of this Contract, except for the payment
of monies when due, if and for so long as such compliance is hindered or
prevented by a Force Majeure Event. As used in this Contract, “Force Majeure
Event” includes: acts at God, action of the elements, sears (declared or
undeclared), insurrection, revolution, rebellions or civil strife, piracy, civil
war or hostile action, terrorist ads, riots, strikes, acts of pubic enemies,
federal or slate laws, rules, regulations dispositions or orders of any
governmental authorities having jurisdiction in the premises or of any other
group, organization or informal association (whether or not formally recognized
as a government), inability to procure material, equipment, fuel or necessary
labor in the open market, acute and unusual labor or material, equipment or fuel
shortages, or any other causes (except financial) beyond the control of either
party. Neither Operator nor Contractor shall be required against its will to
adjust any labor or similar disputes except in accordance with applicable law.
In the event that either party hereto is rendered unable, wholly or in part, by
any of these causes to carry out its obligation under this Contract, it is
agreed that such party shall give notice and details of Force Majeure in writing
to the other party as promptly as possible after its occurrence. in such cases,
the obligations of the party giving the notice shall be suspended during the
continuance of any inability so caused except that Operator shall be obligated
to pay to Contractor the Force Majeure Rate provided for in Subparagraph 4.8
above.

18. GOVERNING LAW:

 

 

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This Contract shall be construed, governed,
interpreted, enforced and litigated, and the relations between the parties
determined in accordance with the lows of The
State of Nevada 

19. INFORMATION CONFIDENTIAL:

     Upon written request by
Operator, Information obtained by Contractor in the conduct of drilling
operations on this well, including, but not limited to, depth, formations
penetrated, the results of coring, testing and surveying, shall be considered
confidential and shall not be divulged by Contractor or its employees, to any
person, firm, or corporation gluten Operator's designated
representatives.

20. SUBCONTRACTS:

     Either party may employ
other contractors to perform any of the operations or services to be provided or
perfumed by it according to Exhibit “A”.

21. See Part 7 — Other Provisions 

22. CLAIMS AND LIENS:

     Contractor agrees to
pay all valid claims for labor, material, services, end supplies to be furnished
by Contractor hereunder, and agrees to allow no Lien by such third parties to be
fixed upon the lease, the well, or other property of the Operator or the land
upon which said well is located.

23. ASIGNMENT:

     Neither party may
assign this Contract to a third party other than an equity investor or lender
without the prior written consent of the other, and prompt notice of any such
intent to assign shall be given to the other party. In the event of such
assignment the assigning party shall remain liable to the other party as a
guarantor of the performance by the assignee of the terms of this Contract.
Irony assignment is made that materially alters Contractors financial burden,
Contractor's compensation shall be adjusted to give &folio any increase or
decrease in Contractor's operating costs,

24. NOTICES AND PLACE OF PAYMENT:

     Notices, reports, and
ether communications required or permitted by this Contract to be given or sent
by one party to the other shall be delivered by hand, malted, digitally
transmitted or telecopied to the address hereinabove shown. All sums payable
hereunder to Contractor shall be payable al its address hereinabove shown unless
otherwise specified herein.

25. CONTINUING OBLIGATIONS:

     Notwithstanding the
termination of this Contract, the parties shall continue to be bound by the
previsions of this Contract that reasonably require some action or forbearance
after such termination.

26. ENTIRE AGREEMENT:

     This Contract
constitutes the full understanding of the parties, and a complete and exclusive
statement of the terms of their agreement, and shall exclusively control and
govern all work performed hereunder. All representations, offers, and
undertakings of the parties made prior to the effective date hereof, whether
oral or in writing, are merged herein, and no ether contracts, agreements or
work orders, executed prior to the execution of this Contract, shall in any way
modify, amend, alter or change any of the terns or conditions set out
herein.




27. SPECIAL PROVISIONS:

27.1 Exhibit “C” – Contractor's Special Provisions Is
attached hereto and made a part hereof.

27.2 For periods of delay during the rig move from
Fort Bidwell CA, caused by circumstances beyond Contractor's control but under
the control of the operator, including, but not limited to lack of availability
of roads, location, transportation equipment or permits, Operator s all pay
Contractor a delay rate of 15,000 per day. If delay occurs due to Inclement
weather a Force Majeure rate of $1,000 per day of day rate will be charged for a
maximum of 2 days 27.3 In addition to the terms of Sub-paragraph 5.2 the
following will apply:

	 	(a) 	Upon execution of this contract an advanced payment of
      $600,000 shall be made by the Operator, prior to rig mobilization, to the
      Contractor. The actual cost of mobilization will be deducted from these
      funds and th5 balance will be retained by the Contractor to cover costs of
      Demobilization. Any positive balance at the end of demobilization will be
      returned to the Operator and any negative balance will be invoiced to the
      Operator. 
	 	 	 
	 	(b) 	If Contractor terminates, Contractor shall have the
      right to remove its rig, equipment, and jurisdiction from the location.
      Operator agrees to file all necessary documents with any state or Federal
      agency having jurisdiction to gain consent for Con - tractor to remove its rig and
      equipment from the location and, if required, plug and abandon the well in
      accordance with the requirements of the state or Federal agency having
      jurisdiction. 


27.4

     (a) Operator shall
provide certificates of insurance to Contractor in evidence of Operator
complying with those requirements that apply to the Operator which are listed In
Exhibit A , Paragraph 3 not later than 1 month prior to mobilization If
certificates of insurance are not provided to Contractor by said date,
Contractor may at any time thereafter terminate this contract with immediate
effect and the terms of Sub-paragraph 6.4 shall apply as though such termination
was at Operator’s election, If Contractor terminates in accordance with this
sub-paragraph, Contractor shall have the right to remove its rig, equipment, and
personnel from the location. Operator agrees to the all necessary documents with
any state or Federal agency having jurisdiction to sin consent for Contractor to
remove its rig and equipment from the location and if required, plug
and-abandon the
well in accordance with the requirements of the state or Federal agent having
jurisdiction. IN addition to Contractor's rights to terminate performance under
this Paragraph, Operator hereby expressly agrees to PROTECT, DEFEND, and
INDEMNIFY Contractor from and against any claims, demands and causes of action,
including all costs of defense, in favor of Operator, Operators co-venturers,
co-lessees and joint owners, or any other parties arising out of any drilling
commitments or obligations contained in any lose, farmout agreement or other
agreement, which may be affected by such suspension of operations or termination
of performance hereunder.

     (b) Contractor shall
provide certificates of insurance to Operator in evidence of Contractor
complying with the requirements listed In Exhibit “A”, Paragraph 3 not than 1
month prior to mobilization. If certificates of insurance are not provided to
the Operator by said date, Contractor may at any time terminate this contract
with immediate effect and the terms in accordance with this Sub-paragraph, the
Contractor
shall have the right to remove its rig, equipment, and ,personnel from the
location. Operator agrees to file all,necessary
documents with any state or Federal agency having funs diction to gain consent for Contractor to remove its
rig anti equipment from the location and, if required, plug and abandon the well
in accordance with the requirements of the slate or Federal agency having
jurisdiction. IN addition to the Operator's rights to terminate performance
under this Paragraph, Contractor hereby expressly agrees to PROTECT, DEFEND and
INDEMNIFY Operator from and against any claims, demands and causes of action,
including all costs of defense, in favor of Contractor, Contractor's
co-ventures, co-lessees and joint owners, or any other parties arising out of
any drilling commitments or obligations contained in any lease, farmout
agreement or other agreement, which may be affected by such suspension of
operations or termination of performance hereunder.




27.5 Exhibit “D” – Operator's Special Provisions is attached
hereto and made a part hereof.

 

 

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Revised April, 2003

28. ACCEPTANCE OF
CONTRACT:

The foregoing Contract, including the provisions
relating to indemnity, release of liability and allocation of risk of Subparagraphs 4.9 and 6.3(c)
Paragraphs 10 and 12, and
Subparagraphs 14.1 through 14.12,
is acknowledged, agreed to and accepted by Operator this 29 day of Nov, 2007

	 	OPERATOR:   /s/ Brian Fairbank 
	 	By: 	Brian Fairbank

	 	Title: 	President
  


The foregoing Contract, including the provisions
relating to indemnify, release of liability and allocation of risk of
Subparagraphs 4.9, 6.3(c), Paragraphs 10 and 12, and Subparagraphs 14.1 through
1412, Is acknowledged, agreed to and accepted by Contractor this
30 day of
Nov,
2007 which is the
effective date of this Contract, subject to rig availability, and subject to all
of its tenors and provisions, with the understanding that It will not be binding
upon Operator until Operator has noted its acceptance, and with the further
understanding that unless said Contract is thus executed by Operator within 15
days of the above date Contractor shall be in no manner bound by its signature
thereto.

	 	OPERATOR: /s/ Louis
      Capuano 
	 	By: 	Louis Capuano 
	 	Title: 	CEO



 


 

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EXHIBIT “A”

To Daywork Contract dated November 15 , 2007

Operator NGP Blue Mountain 1.
LLC Contractor ThermaSource, Inc

Well Name and Number As
directed by Operator 

SPECIFICATIONS AND SPECIAL PROVISIONS


1. CASING PROGRAM (See Paragraph 

	  	Hole 	  	Casing 	Weight 	 	Grade
    	Approximate 	Wait on Cement
    
	  	Size 	  	Size 	  	 		Setting Depth 	Time 
	Conductor 	As Directed	  in. 	By Operator	in. 		 lbs/ft. 	  		  ft.  		hrs  
	  	 	  	 	 	  	 	  	  	 	  	 
	  	  	  		  	  	 	  	  	 	  	 
	Surface 	  	  in. 	  	  in. 		  lbs/ft. 	  		  ft.  		hrs  
	Protection 	  	  in. 	  	  in. 		  lbs/ft. 	  		  ft. 		hrs  
	  	  	  in. 	  	  in. 		  lbs/ft. 	  		  ft. 		hrs  
	Production 	  	  in. 	  	  in. 		  lbs/ft. 	  		  ft.  		hrs  
	Liner 	  	  in. 	  	  in. 		  lbs/ft. 	  		  ft.  		hrs  
	  	  	  in. 	  	  in. 		  lbs/ft. 	  		  ft.  		hrs  


2. MUD CONTROL PROGRAM (See Subparagraph
8.2)

	Depth Interval 	 		 	Weight  	 	Viscosity 	 	Water Loss 
	(ft) 	 		 	(lbs./gal.)  	 	(Secs) 	 	(cc) 
	From 	 	To 	 	Type Mud 	 	 	 	 
    	 	 
    
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 


Other mud specifications: Operator reserves the right to use Calcium Carbonate at no additional
charge by Contractor.

3. INSURANCE (See Paragraph 13)

	 	3.1 	Adequate Workers' Compensation Insurance complying with
      State Laws applicable or Employers' Liability Insurance with limits of
      $1,000,000 covering all of
      Contractor's employees working under this Contract. 
	 	 	 
	 	3.2 	Commercial (or Comprehensive) General Liability
      Insurance, including contractual obligations as respects this Contract and
      proper coverage for all other obligations assumed in this Contract. The
      limit shall be $2,000,000 combined single limit per occurrence for Bodily
      Injury and Properly Damage. 
	 	 	 
	 	3.3 	Automobile Public Liability Insurance with limits of $
      1,000,000 for the death or
      injury of each person and $1,000,000for each accident; and Automobile,
      Public Liability Properly Damage Insurance with units 015 1,000,000for each accident. 
	 	 	 
	 	3.4 	In the event operations are over water, Contractor shall
      carry in addition to the Statutory Workers' Compensation Insurance,
      endorsements covering liability under the Longshoremen's & Harbor
      Workers' Compensation Act and Maritime liability including maintenance and
      cure with limits of $ N/A for each death or jokey to one person and $ N/A for any one
      accident. 






Other insurance: General
Liability Umbrella of $5,000,000 for any one occurrence. Such policy
should be written on an occurrence basis and not a
claims basis.

4.EQUIPMENT, MATERIALS AND SERVICES TO BE
FURNISHED BY CONTRACTOR:

     The machinery,
equipment, tools, materials, supplies, instruments, services and labor
hereinafter listed, including any transportation required for such items, shall
be provided at the well location at the expense of Contractor unless otherwise
noted by this Contract.

     4.1 Drilling
Rig

     Complete drilling rig,
designated by Contractor as its Rig No. TSL Rig 101
the major items of equipment being:

	Drawworks: Make and Model 	 	Per rig inventory attached hereto
      and made a part hereof. 	 
	Engines: Make, Model, and H.P 	  	  	  
	                                     No. on Rig 	  	  
	Pumps: No. 1 Make, Size, and
      Power 	  	  
	             
      No. 2 Make, Size, and Power 	  	  
	Mud Mixing Pump: make, Size,
      and Power 	  	  
	Bolters: Number, Make, H.P. and
      W.P 	  	  
	Derrick or Mast: Make, Size, and Capacity 	  	  
	Substructure: Size and Capacity 	  	  	  
	Rotary Drive: Type 	  	  	  
	Drill Pipe: Size 4-1/2 in. 6000 
      ft.;  Size:	 	            
             in.                     
      ft 	 
	Drill Collars: Number and Size 	 	10 x 6-112” and 8/8”
      	  


 


 

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	Blowout Preventers: 	 	 	 	 
    	 	 
    
	Size 	 	Series or Test Pr. 	 	Make & Model 	 	Number 
	  	 	  	 	  	 	  
	  	 	  	 	  	 	  
	  	 	  	 	  	 	  
	  	 	  	 	  	 	  
	       B.O.P Closing
      unit 	 	 	 	 
    	 	 
    
	       B.O.P
      Accumulator 	 	 	 	 
    	 	 
    



	 	4.2 	Derrick limbers. 
	 	 	 
	 	4.3 	Normal strings of drill pipe and drill collars specified
      above. 
	 	 	 
	 	4.4 	Conventional drift indicator. 
	 	 	 
	 	4.5 	Circulating mud pits. 
	 	 	 
	 	4.6 	Necessary pipe racks and rigging up material.
  
	 	 	 
	 	4.7 	Normal storage for mud and chemicals, 
	 	 	 
	 	4.8 	
	 	 	 
	 	4.9 	
	 	 	 
	 	4.10 	
	 	 	 
	 	4.11 	
	 	 	 
	 	4.12 	
	 	 	 
	 	4.13 	
	 	 	 
	 	4.14 	
	 	 	 
	 	4.15 	
	 	 	 
	 	4.16 	
	 	 	 
	 	4.17 	


5. EQUIPMENT, MATERIALS AND SERVICES TO BE
FURNISHED BY OPERATOR:

     The machinery,
equipment, tools, materials, supplies, Instruments, services and labor
hereinafter fisted, including any transportation required for such items, shall
be provided at the well location at the expense of Operator unless otherwise
noted by this Contract.

	 	5.1 	Furnish and maintain adequate roadway and/or canal to
      location, right-of-way, including rights-of-way far fuel and water tees,
      river crossings, highway crossings, gates end cattle guards. 
	 	 	 
	 	5.2 	Stake location, clear and grade location, and provide
      turnaround, including surfacing when necessary. 
	 	 	 
	 	5.3 	Test ranks with pipe and fillings. 
	 	 	 
	 	5.4 	Mud storage tanks with pipe and fittings. 
	 	 	 
	 	5.5 	Separator with pipe and fillings. 
	 	 	 
	 	5.6 	Labor and materials to connect and disconnect mud tank,
      test tank, and mud gas separator. 
	 	 	 
	 	5.7 	Labor to disconnect and clean test tanks and mud gas
      separator. 
	 	 	 
	 	5.8 	Drilling mud, chemicals, lost circulation materials and
      other additives, 
	 	 	 
	 	5.9 	Pipe and connections for oil circulating lines.
  
	 	 	 
	 	5.10 	Labor to lay, bury and recover oil circulating
      lines. 
	 	 	 
	 	5.11 	Drilling bits, reamers, reamer cutters, stabilizers and
      special tools. 
	 	 	 
	 	5.12 	Contract fishing tool services and tool rental.
  
	 	 	 
	 	5.13 	Wire line core bits or heads, core barrels and wire line
      core catchers if required. 
	 	 	 
	 	5.14 	Conventional core bits, core catchers and core
      barrels. 
	 	 	 
	 	5.15 	Diamond core barrel with head. 
	 	 	 
	 	5.16 	Cement and cementing service. 
	 	 	 
	 	5.17 	Electrical wireline legging services. 
	 	 	 
	 	5.18 	Directional, caliper, or other special services.
    







	 	5.19 	Gun or jet perforating services. 
	 	 	 
	 	5.20 	Explosives and shooting devices. 
	 	 	 
	 	5.21 	Formation testing, hydraulic fracturing, acidizing and
      other related services. 
	 	 	 
	 	5.22 	Equipment for drill stem testing. 
	 	 	 
	 	5.23 	Mud logging services. 
	 	 	 
	 	5.24 	Sidewall coring service. 



		5.25  	 Welding
        service for welding bottom joints of casing, guide shoe, goat shoe, float
        collar and in connection with installing of well head equipment
        if required. 

		 	 
		5.26 	 Casing, tubing,
        liners, screen, float cellars, guide and float shoes and associated
        equipment. 





	 	5.27	  Casing
        scratchers and centralizers. 

		 	 
		5.28 	 Well head connections
        and all equipment to be installed in or on well or on the premises
        for use in connection with tooling, completion and operation of well.
      

	 	 	 
	 	5.29	 Special or added
        storage for mud and chemicals. 

		 	 
		5.30 	 Casinghead, API
        series, to conform to that shown for the blowout preventers specified
        in Subparagraph 4.1 above. 





	 	5.31 	Blowout preventer testing packoff and testing
      services. 
	 	 	 
	 	5.32 	Replacement of BOP rubbers, elements and seals, if
      required, after initial test 
	 	 	 
	 	5.33 	Casing Thread Protectors and Casing Lubricants.
  
	 	 	 
	 	5.34 	H2 S
      training and equipment as necessary or as required by law. 
	 	 	 
	 	5.35 	Site septic systems. 
	 	 	 
	 	5.36 	The cost of heater and fuel for winterization of the rig
      will be billed to the Operator directly. 



	 	5.37 	
	 	 	 
	 	5.38 	
	 	 	 
	 	5.39 	
	 	 	 
	 	5.40 	
	 	 	 
	 	5.41 	
	 	 	 
	 	5.42 	
	 	 	 
	 	5.43 	
	 	 	 
	 	5.44 	
	 	 	 
	 	5.45 	
	 	 	 
	 	5.46 	
	 	 	 
	 	5.47 	
	 	 	 
	 	5.48 	
	 	 	 
	 	5.49 	
	 	 	 
	 	5.50 	


 


 

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6. EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED
BY DESIGNATED PARTY: The machinery, equipment, tools, materials, supplies,
instruments, services, and labor listed es the following numbered items,
including any transportation required for such items unless otherwise specified,
shell be provided at the well location and at the expense of the party hereto as
designated by an X mark in the appropriate column.

	 
	  	 	To Be Provided By and 
	 
	  	 	At The Expense Of 
	 
	  	 	  	 	 
	 
	  	 	  	 	 
	 
	  	 	  	 	 
	 
	  Item 	 	Operator 	 	Contractor  
	6.1 
	Cellar and Runways 	 	  X	 	 
	0.2 
	Ditches and sumps 	 	  X	 	 
	6.3 
	Fuel (located at X                                         
       	 	  X	 	 
	6.4 
	Fuel Lines (length                           
      )             	 		 	 X
	6.5 
	Water at source, 50' including required
      permits 	 	 	 	 
	6.6 
	Water well, including required permits
      	 	 	 	 
	6.7 
	Waterlines, including required permits
      	 	 	 	 
	6.8 
	Water storage tanks                   
      capacity - 	 		 	 X
	6.9 
	Potable Extra water 	 	  	 	 
	6.10 
	Labor to operate water well or water
      pump 	 	 	 	 
	6.11 
	Maintenance of water well, if required
      	 	 X	 	 
	6.12 
	Water Pump 	 	 X	 	 
	6.13 
	Fuel far water pump 	 	 X 	 	 
	6.14 
	Mats for engines and boilers, or motors
      and mud 	 	 	 	 X
	6.15 
	Transportation pumps of Contractors
      properly: 	 	 X	 	 
	 
	Move in 	 	  	 	 
	 
	Move out 	 	 X	 	 
	6.16 
	Materials for “boxing in”
      rig and derrick 	 	 	 	 
	6.17 
	Special strings of drill pipe and
      drill collars as 	 	 	 	 
	 
	Airfollows:Drill Pipe 	 	  	 	 
	 
	  	 	  	 	 
	 
	  	 	  	 	 
	6.18
	Kelly joints, sobs, elevators, longs, slips and  	 	 X	 	 
	6.19 
	Drill pipe protectors for Kelly joint
      and each joint of drill pipe running Inside of Surface Casing as required,
      for use with normal strings of drill pipe	 	 X		
	6.20 
	Drill pipe protectors for Kelly joint
      and drill pipe running 	 	 X		
	6.21 
	Rate of penetration recording device
      	 	 X	 	 
	6.22 
	Extra labor for running and cementing casing 	 	 X 	 	 
	 
	(Casing crews) 	 	 X	 	 
	6.23 
	Casing toots 	 	 X	 	 
	6.24 
	Power easing longs 	 	 X	 	 
	6.25 
	Laydown and pickup machine 	 	 X	 	 
	6.26 
	Tubing tools .....................
      	 	 X	 	 
	6.27 
	Power tubing tong 	 	 X	 	 
	6.28 
	Crew Boats. Number 	 	 X	 	 








	6.29 	Service Barge 	 	  	 	 
	6.30 	Service Tug Boat 	 	  	 	 
	6.31 	Rat Hole 	 	X 	 	 
	6.32 	Mouse Hole 	 	N/A 	 	 
	6.33 	Reserve Pits 	 	X 	 	 
	6.34 	Upper Kelly Cock 	 		 	 X 
	6.35 	Lower Kelly Valve 	 	X 	 	 
	6.36 	Drill Pipe Safety Valve 	 	X 	 	 
	6.37 	Inside Blowout Presenter 	 	X 	 	 
	6.38 	Drilling hole for or driving for conductor
      pipe 	 	X 	 	 
	6.30 	Charges, cost of bonds for public
      roads 	 	X 	 	 
	6.40 	Portable Toilet 	 	X 	 	 
	6.41 	Trash Receptacle 	 	X 	 	 
	6.42 	Linear Malign Shale Shaker
    	 	X 	 	 
	6.43 	Shale Shaker Screens 	 	X 	 	 
	6.44 	Mud Cleaner 	 	X 	 	 
	6.45 	Mud/Gas Separator 	 	X 	 	 
	6.46 	Desander 	 	X 	 	 
	6.47 	Desilter 	 	X 	 	 
	6.48 	Degasser 	 	X 	 	 
	6.49 	Centrifuge 	 	X 	 	 
	6.50 	Rotating Head 	 	X 	 	 
	6.51 	Rotating Head Rubbers 	 	X 	 	 
	6.52 	Hydraulic Adjustable Choke
    	 	X 	 	 
	6.53 	Pit Volume Totalizer 	 	X 	 	 
	6.54 	Communication, type 	 	X 	 	 
	6.55 	Forklift. capacity 	 	X 	 	 
	6.56 	Corrosion Inhibitor for protecting
      drill string 	 	X 	 	 
	6.57 	  	 	  	 	 
	6.50 	  	 	  	 	 
	6.59 	  	 	  	 	 
	6.69 	  	 	  	 	 


 


 

	  	(U.S. Daywork Contract-page
      “Exhibit B”-Page 1) 	 	Form provided
      by 
	TSL Rig 101 	Copyright 2003 international
      Association of Drilling 	 	Forms
      On-A-Disk 
	Blue 	Contractors 	 	(214) 340 9429
       
	Mountain 	  	 	FormsOnADisk.com 






     EXHIBIT “B”


(See Subparagraph 9.3)

The following clauses, when required by law, are
incorporated in the Contract by reference as if fully set out: 

	(1) 	The Equal Opportunity Clause prescribed In 41 CFR
      60-1.4. 
	 	 
	(2) 	The Affirmative Action Clause prescribed in 41 CFR
      60-250.4 regarding veterans and veterans of the Vietnam era, 
	 	 
	(3) 	The Affirmative Action Clause for handicapped workers
      prescribed in 41 CFR 60-741.4. 
	 	 
	(4) 	The Certification of Compliance with Environmental Laws
      prescribed In 40 CFR 15.20, 


 


 

	  	(U.S. Daywork Contract-page
      “Exhibit B”-Page 1) 	 	Form provided
      by 
	TSL Rig 101 	Copyright 2003 international
      Association of Drilling 	 	Forms
      On-A-Disk 
	Blue 	Contractors 	 	(214) 340 9429
       
	Mountain 	  	 	FormsOnADisk.com 






EXHIBIT “C” 
(See
Sub-paragraph 27.1)

	1) 	
      Operator agrees that Operator’s personnel as
      well as third party personnel shall be subject to
      ThermaSource's policies and regulations regarding safety, environmental and health protection a copy of which shall be
      provided to the Operator. This includes the full use
      of PPE and rules regarding drug and alcohol use.
      Operations may be suspended if no corrective action is taken and billed
      out to the Operator as dayrate. Prior suspending any
      operations the Contractor's management will contact
      the Operator's management to resolve the situation in an effort to forgo any suspension. 

	  	
      

	2) 	
      Inspection of downhole tools and collars
      will be at the expense of the Operator at the end of
      the well and as specified by the Operator (every 200 hrs while
      drilling with air) when drilling with air or aerated
      fluid. Repairs and inspection, re-works and new joints
      cut including hardbanding of tool joints will be at the expense of
      the Operator. An additional charge for drill pipe
      usage during air or aerated fluid drilling is added to
      daily rig rental rate if Contractor's drill pipe is used.


	  	
      

	3.) 	
      Rental items and third party charges that
      are billed to ThermaSource will be provided to the
      Operator for approval. Prior to commencing work under this contract, Contractor shall provide Operator with an inventory of
      all consumable pump and engine parts or other drilling
      replacement equipment and materials that are
      attributed to excessive temperature (above 180°F) or excessive abrasive
      wear, due to Operator drilling conditions, may be
      billed back to the Operator, subject to Operator's
      approval. 

	  	
      

	4.) 	
      Crew lodging and subsistence will be billed
      to Operator at actual cost (double occupancy for crew,
      single occupancy for tool pusher with a maximum cost of $600/day), 

	  	
      

	5.) 	
      When running or pulling casing with the well
      flowing (Hot Liners), the bonus payment (double time)
      to the crews will be billed to the Operator. 

	  	
      

	6.) 	
      Additional labor costs to Contractor to work
      on the following holidays will be charged to Operator:
      January 1, July 4, Labor Day, Thanksgiving and Christmas.


	  	  
	  	a.  Holiday Labor rates are
      as follows 
	  	  
	  	           
       i. Tool Pusher = $202.11/hr 
	  	  
	  	           
       ii. Driller = $52.73/hr 
	  	  
	  	           
       iii.Derrickman = $47.34/hr 
	  	  
	  	           
       iv.Motorman = $45.63/hr 
	  	  
	  	           
       v. Floorman $45.63/hr 
	  	  
	  	b. So the extra cost for labor on
      a holiday is $3,147.60/day. 



	7.)	The Operator will supply the drill pipe used for Air
      Drilling procedures, 
	 	 
	8.)	The Operator will pay for the winterization of the rig.
      The rig insulation and covering will be supplied by the Contractor. The
      heater rental plus fuel for the unit will be billed directly back to the
      Operator at cost 
	 	 
	9.) 	A forklift, man lift and a combined accommodation and
      office trailer for the tool 







		pusher will be provided for an additional charge of $300
      to all daily rates. Operator shall be charged for any costs related to
      either mobilization or demobilization of the trailer. 
	 	 
	10.) 	An extra night tool pusher will be added at a daily fee
      of $1450 that will be invoiced to the Operator.
    


 


 

	  	(U.S. Daywork Contract-page
      “Exhibit C”-Page 1) 	 	Form provided by 
	TSL Rig 101 	Copyright 2003 international
      Association of Drilling 	 	Forms On-A-Disk 
	Blue 	Contractors 	 	(214) 340 9429  
	Mountain 	  	 	FormsOnADisk.com 






EXHIBIT D 
DRILL
CONTRACT
THERMASOURCE AND NGP BLUE MOUNTAIN 1,
LLC
(See subparagraph 27.5)

1. It is agreed that all disputed invoices and other
disagreements concerning the respective obligations of the parties under the
Contract shall be resolved in accordance with the rules of the American
Arbitration Association, and that both parties will act in good faith and use
their best efforts to appoint an arbitrator within 30 days after completion or
termination of the work contemplated by the Contract. Each party shall bear its
own attorney's fees and costs in connection resolving such disputes unless a
specific award for costs is made in favour of one party under a decision of a
duly appointed arbitrator or a court of competent jurisdiction.

2. Contractor agrees that it shall not have the right
to file a lien against the property in connection with any disputed invoices, or
any part thereof, described in section 5.2 of the Contract.

3. Operator shall not he responsible for any costs
incurred by the Contractor under the terms of the Contract with any third party
providers of materials or services (“Other Contractors”) unless such costs or
services to be performed by Other Contractors have been authorized by the prior
written consent of the Operator.

4. Contractor shall ensure that the drilling rig and
all related equipment necessary to complete the work contemplated by the
Contract is supplied in good working order, and shall conduct regular
maintenance and repairs upon such equipment for wear and tear in accordance with
reasonable industry practices.

5. Contractor shall provide duly qualified and/or
trained personnel necessary to conduct the drilling operations contemplated by
the Contract and shall ensure that all such personnel have received adequate
instruction and/or completed training courses concerning safety programs and
procedures.

6. Contractor holds a valid and current contractor's
licence issued by the State of Nevada.

 

	  	(U.S. Daywork Contract-page
      “Exhibit C”-Page 2) 	 	Form provided
      by 
	TSL Rig 101 	Copyright 2003 international
      Association of Drilling 	 	Forms
      On-A-Disk 
	Blue 	Contractors 	 	(214) 340 9429
       
	Mountain 	  	 	FormsOnADisk.com 






Revised April, 2003

ThermaSource 
Rig #101 

Drilling Depth Rating: 

6,000 feet with 4-1/2” DP 
9,000 feet with
3-1/2” DP

Drawworks 
OILWELL 52 T, double drum, mechanical Drawworks, with 2 engine compound,
rated at 400 input HP. Powered by 2 x New Caterpillar C15 ACERT, EPA Tier 3
certified engine, rated at 475 HP @ 1800 RPM, complete with OWI C195-100 torque
converters. Main drum is LEBUS grooved for 1-1/8” line. Compete with 2 x rebuilt
air operated catheads, rebuilt 15”triple hydro-matic brake, new brake bands and
rebuilt air compressor.

Mast
Lee C.
Moore 127' x 15' Cantilever mast, completely recertified (Oct 2006). Maximum
hook load with 8 lines 300,000 lbs. Mast includes API 4-F certification plate on
leg. Crown block includes 4 x 30” sheaves grooved for 1-1/8” wire line & 1 x
36” fast line sheave. Racking board with fingers to rack 5” DP, new electric
wiring & lighting.

Sub-Structure
Completely rebuilt 27.5' high x 36' long x 19' wide, with clear height
under rotary beams of 24'. Rated maximum rotary load 300,000 simultaneously with
200,000 DP setback. Note Sub height can be reduced to 18.5' with 15 clear height
by removing 9' pony sub.

Mud Pumps
2 x
New EMSCO F-1000 triplex rated at 1000 HP, Chinese manufacture powered by 2 x
New Caterpillar C27 ACERT, EPA Tier 2 certified engines rated at 950 HP @ 1800
RPM complete with National C245-64F torque converters. Pumps mounted on oilfield
skids complete with pulsation dampeners, pressure gauge, pressure relief valves,
and electric driven 5” x 6” mission centrifugal pre-charge pumps. Stand pipe
& mud lines rated at 5000 psi.

Mud System
2
pits with 785 bbls total capacity. One suction pit with 405 bbls capacity 12'
wide x 6' high x 50' long, complete with 2 x new 5” x 6” mission centrifugal
pumps driven by 60 HP electric motors, mud hopper, mud agitators, gun lines,
completely covered in grating with hand rails.
One
Shaker pit with 380 this capacity, 11' x 6' high x 43' Completely cover in
grating with hand rails.
Note: shakers and any
required mud cleaning equipment to be third party rental. Rotary Table One new SJ-Petro 27-1/2
rotary table, Chinese manufacture, complete with master bushings & locks.
Rotary table is chain driven from drawworks.

Traveling Blocks 
One new Sentry YG 135 hook/block combination rated at 150 tons API with 4
x 36” sheaves grooved for 1-1/8” wire line. Chinese manufacture.

Drilling Line
One new 1-1/8” x 5000' EIPS 6 x 19 IWRC, USA manufacture.

Swivel 
One
model SL 170 rotary swivel rated at 187 tons API with quick change packing
assembly. Chinese manufacture.

Kelly & Bushings

One new 5-1/4” x 40' Hex complete with square
drive bushings & Hex rollers, with 6-




518” Reg LH box & 4-1/2” XH pin.


Air Winches 
One new IR K6UL rated at 10,000 lbs complete with muffler. One New IR
K5UL rated at 5,000 lbs complete with muffler.

Accumulator
One new Type-80 (Koomey style) 5 station 80 gallon accumulator, complete
with one triplex & 2 x air operated pumps. US manufactured complete with all
valves, gauges & annular regulator.

 

 

	  	(U.S. Daywork Contract-page
      “Exhibit C”-Page 3) 	 	Form provided by 
	TSL Rig 101 	Copyright 2003 international
      Association of Drilling 	 	Forms On-A-Disk 
	Blue 	Contractors 	 	(214) 340 9429  
	Mountain 	  	 	FormsOnADisk.com 






Air Compressors 
One new Sullivan - Palatek 30G rotary screw air compressor with 30 Hp
electric motor & tank. One rebuilt 2 stage compound driven air compressor.


Generators 
2
new Caterpillar 455 KW 480 volt AC generators mounted In completely new 8' x 40'
Generator house complete with all control panels & plugs.

Water Tank 
One 300 bbls capacity 8' high x 8' wide x 38' long with 1 - 4” x 5”
centrifugal pump powered by 40 HP electric motor and 1 – 2” x 3” centrifugal
pump powered by 20 HP electric motor.

Drillers Doq House 
One new 10' x 31' complete with knowledge box, storage & benches.
Electric heater & lighting panel provided.

Crew Change House
One Rebuilt 8' x 36' skid mounted with lockers, electric heater &
lighting. 

Tool House 
One 8' x 31' Skid mounted tool house with integrated lube oil storage
tanks with drip pan.

Cat Walk 
New
safety style catwalk & 2 sets pipe racks. Catwalk dimensions 6' wide x 50'
long x 1.5' high with pipe racks to match.

Instrumentation 
TOTCO type clip on weight indicator, Rotary torque indicator, Tong Line
Indicator. 

Tubulars 
6000 feet of new 4-1/2” 16.6# Grade “G” drill pipe with 
Geothermal
hard banding 
3000 feet 4-114” 22.82# Grade “X” drill pipe (API premium)

10 each 6-1/2” X 31' DC with 4-1/2 XH conns

 

 

	  	(U.S. Daywork Contract-page
      “Exhibit C”-Page 4) 	 	Form provided
      by 
	TSL Rig 101 	Copyright 2003 international
      Association of Drilling 	 	Forms
      On-A-Disk 
	Blue 	Contractors 	 	(214) 340 9429
       
	Mountain 	  	 	FormsOnADisk.com