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Exhibit 10.8    
    


[PLAINS MARKETING, L.P. LETTERHEAD] 


 
 

Crude Oil Purchase Contract    
    



	CONTRACT NO. 4765-1001	 	June 1, 2002





This
contract by and between Presco Western, LLC ("Presco"), with an address of 1775 Sherman Street, Suite 2950, Denver, CO 80203 and  Plains Marketing, L.P., ("PMLP"), covering the sale and delivery by Presco and the purchase and receipt by PMLP of the hereinafter specified oil is
entered into in accordance with the following team and conditions: 



	1.	 	TERM:	 	The primary term shall be a period of one (1) month from June l, 2002 to July 1, 2002.
	

 	
 	

 	
 	

The term shall be automatically extended fora Secondary Term month to month thereafter unless notice of non-renewal is given by either party hereto upon not less than thirty (30) days advance written notice to the other party.
	

2.	
 	

QUANTITY	
 	

 
	 	 	AND	 	 
	 	 	CRUDE TYPE:	 	Kansas Sweet Crude Oil.
	

3.	
 	

QUANTITY:	
 	

An amount equal to deliveries.
	

4.	
 	

DELIVERY:	
 	

Shall be made at the well tankage into PMLP's designated transportation facilities.
	

5.	
 	

PRICE:	
 	

For the crude oil sold and delivered hereunder, PMLP agrees to pay a price per barrel equal to PMLP's Kansas Common Crude Oil Posting, deemed 40.0° API gravity. For pricing purposes, deliveries will be calculated on equal daily
quantities.
	

6.	
 	

PAYMENT:	
 	

Payment shall be made by check on or about the twentieth (20th) day of the month following the month of delivery





PMLP's
General Provisions dated February 01, 2001 are incorporated herein by reference and made a part hereof. To the extent of any conflict between the provisions herein and the General
Provisions, the provisions herein shall govern. 


If
Division Orders have been issued to Presco by PMLP and executed by Presco covering the wells on Exhibit "A", the Division Orders are incorporated herein and made a part hereof. The
provisions of this Agreement, including but not limited to those relating to term, rights of termination, price and otherwise, shall be applicable and govern, notwithstanding any provision in the
Division Orders to the contrary. 


All
invoices and notices given pursuant to this agreement shall be in writing, telex or faxed and shall be deemed delivered when received by the other party at the address specified below: 


Notices
and all other correspondence to PMLP shall be mailed or faxed as follows: 






Plains
Marketing, L.P.

P. O. Box 330

Abilene, TX 79604

Phone: (915) 692-7786

Fax: (915) 692-4692 











 









Invoices
shall be mailed or faxed to PMLP as follows: 






Plains
Marketing, LP.

333 Clay Street Suite 1600

Houston, Texas 77002

Phone: (713) 846-4100

Fax: (713) 646-4114 







Notices
and all other correspondence to Presto shall be mailed or faxed as follows: 






Presco
Western, LLC

1775 Sherman Street

Suite 2950

Denver, CO 80203

Phone:(303) 864-1881 






	BUYER	 	SELLER
	
  Plains Marketing, LP.	
 	

Presco Western, LLC
	 By Plains Marketing GP Inc.

    its General Partner	 	 	 
	
  Agreed to and accepted this 2

day of August, 2002.	
 	

Agreed to and accepted this 21st

day of August, 2002.
	
 By:	

/s/  KENT FINLEY      
	
 	

By:	

/s/  RICHARD J. GRAY      

	
 Name:	

Kent Finley	
 	

Name:	

Richard J. Gray
	
 Title:	

Director, Oklahoma Kansas Region and Attorney

    in Fact	
 	

Title:	

President




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Exhibit 10.8


Crude Oil Purchase Contract