<PAGE>   1
                                                                  EXHIBIT 10.16

                       UNION PACIFIC RESOURCES GROUP INC.
                        EXECUTIVE LIFE INSURANCE PROGRAM

In recognition of the services provided to Union Pacific Resources Group Inc.
(the "Company") and participating Affiliated Companies by certain key
employees, the Board of Directors of the Company has deemed it appropriate to
make life insurance coverage available to these key employees under the terms
and conditions hereinafter set forth:

                                   SECTION 1
                                  DEFINITIONS

As used herein, the following words and phrases shall have the meaning
described below:

         1.1      "ACTIVELY-AT-WORK" means the Eligible Employee is performing
                  all normal duties of the position held by the Eligible
                  Employee on a full-time basis for not less than 35 hours per
                  week and is not absent from work due to accident, illness or
                  other condition for more than any three (3) days of the 90
                  days prior to the date of reference.

         1.2      "AFFILIATED COMPANY" means any entity that is required to be
                  aggregated with the Company pursuant to section 414(b),
                  414(c), 414(m) or 414(o) of the Code.

         1.3      "AGE" means the Eligible Employee's age on his or her birthday
                  that is nearest to the date of reference.

         1.4      "BASE SALARY" means, with respect to any Plan Year, an
                  Eligible Employee's base annual salary from the Employer,
                  exclusive of (a) bonuses or any other form of extra
                  remuneration and (b) severance pay, but including any
                  deferral from base annual salary made pursuant to the
                  provisions of section 125 or 401(k) of the Code, determined
                  as of the August 16 immediately preceding the first day of
                  the Plan Year.

         1.5      "BENEFICIARY" means the person or persons designated in
                  accordance with the terms of the applicable Contract to
                  receive any death benefit payable under the Contract.

         1.6      "BOARD" means the Board of Directors of the Company.


                                       1





<PAGE>   2



         1.7      "CLAIMS REVIEWER" means the designated claims reviewer under
                  any contract which provides for the processing of claims
                  under the Plan or, otherwise, the Named Fiduciary-Plan
                  Administration.

         1.8      "CODE" means the Internal Revenue Code of 1986, as the same
                  may be amended from time to time, and any successor statute
                  of similar purpose.

         1.9      "COMPANY" means the Union Pacific Resources Group Inc. and any
                  successor thereto that adopts this Plan.

         1.10     "CONTRACT" means an agreement with the Insurer relating to
                  the provision of universal life insurance coverage for an
                  Eligible Employee, with an initial targeted death benefit
                  payable to the Beneficiary of two times the Eligible
                  Employee's Base Salary as of initial enrollment, if death
                  occurs while he or she is an Eligible Employee, and 1/2 final
                  Base Salary, if death occurs after retirement on or after the
                  Eligible Employees 62nd birthday. The targeted death benefit
                  under any Contract issued for an Eligible Employee shall be
                  increased as of the first day of each Plan Year while he or
                  she remains an Eligible Employee to reflect the Eligible
                  Employee's Base Salary as determined for the Plan Year
                  pursuant to Section 1.4, subject to the Insurer's then
                  applicable underwriting standards and other applicable terms
                  of the Contract. The actual amount of any death benefit
                  payable to a Beneficiary shall be determined by the terms of
                  the Contract.

         1.11     "EFFECTIVE DATE" means January 1, 1993.

         1.12     "ELIGIBLE EMPLOYEE" means an Employee who has attained salary 
                  grade 25 or above as of such date as the Named Fiduciary-Plan
                  Administration establishes for a given Plan Year. An Eligible
                  Employee shall cease to be such upon his or her death,
                  retirement, discharge, resignation or other termination of
                  employment with the Employer or as of such date as may be
                  prescribed by the Named Fiduciary-Plan Administration in the
                  event of his or her transfer to a position with the Employer
                  not described in the preceding sentence.

         1.13     "EMPLOYEE" means any individual employed by the Employer, but
                  excluding any non-resident alien and any leased employee
                  within the meaning of Code Section 414(n) (2).


                                       2




<PAGE>   3



         1.14     "EMPLOYER" means, either collectively or individually as the
                  context requires, the Company or any Affiliated Company that
                  adopts this Plan for the benefit of its Eligible Employees
                  with the approval of the Vice President - People of the
                  Company.

         1.15     "INSURER" means Connecticut General Life Insurance Company or 
                  any successor thereto.

         1.16     "NAMED FIDUCIARY-PLAN ADMINISTRATION" means the Vice
                  President - People of the Company or, in the event there is
                  no such person, the person or persons named as such by the
                  Company or, in the absence of any such appointment, the
                  Company.

         1.17     "PARTICIPANT" means any individual who has satisfied the
                  eligibility requirements for participation set forth in
                  Section 2.1 and who is an Eligible Employee with an election
                  to purchase a Contract in effect under Section 2.2 or 2.4 on
                  the date of reference.

         1.18     "PLAN" means the Union Pacific Resources Group Inc. Executive 
                  Life Insurance Program as set forth herein.

         1.19     "PLAN YEAR" means a twelve consecutive month period that
                  begins on any January 1 on or after the Effective Dates and
                  ends on the next following December 31.

                                   SECTION 2
                                 PARTICIPATION

         2.1      ELIGIBILITY TO PARTICIPATE.

                  (a)      Each Employee who is an Eligible Employee under Age
                           62 as of August 1, 1993 may elect to become a
                           Participant in the Plan as of the Effective Date
                           (the Eligible Employee's "Initial Eligibility
                           Date"), or as of the first day of any Plan Year
                           thereafter with respect to which he or she is an
                           Eligible Employee, pursuant to Section 2.2.

                  (b)      Each Employee not described in subsection (a) who
                           becomes an Eligible Employee may elect to become a
                           Participant in the Plan as of January 1 next
                           following the date he or she becomes an Eligible
                           Employee (the Eligible Employee's "Initial
                           Eligibility Date"), or as of the first day of any
                           Plan Year thereafter with respect to which he or she
                           is an Eligible Employee, pursuant to Section 2.2.


                                       3





<PAGE>   4



         2.2      ELECTION TO PARTICIPATE.

                  An Eligible Employee described in Section 2.1 shall become a
                  Participant by electing, in the form and manner and at such
                  time in advance as may be prescribed by the Name
                  Fiduciary-Plan Administration, to purchase a Contract,
                  effective as of the Initial Eligibility Date or as of the
                  first day of any Plan Year thereafter with respect to which
                  he or she is an Eligible Employee, and by authorizing the
                  Employer to make any necessary payment of premiums for such
                  Contract by payroll deduction pursuant to Section 3.1 or
                  making such other arrangement for payment of premiums as may
                  be acceptable to the Insurer and the Named Fiduciary-Plan
                  Administration. Notwithstanding anything in this Article 2 to
                  the contrary, elections under this Section 2.2 by Eligible
                  Employees shall be subject to the Insurer's then applicable
                  underwriting standards and other applicable standards or
                  terms of the Contract.

         2.3      CESSATION OF PARTICIPATION.

                  (a)      DATE OF CESSATION OF PARTICIPATION.

                           An Eligible Employee who has become a Participant
                           shall cease to be a Participant on the earliest of:

                           (1)      The date the Plan is terminated pursuant to 
                                    Section 5.2;

                           (2)      The date he or she ceases to be an Eligible 
                                    Employee under Section 1.12;

                           (3)      The date as of which required premiums for 
                                    the Contract described in Section 3.1 cease 
                                    to be paid; or

                           (4)      The date any Contract issued for the 
                                    Participant is surrendered.



                  (b)      EFFECT OF CESSATION OF PARTICIPATION.

                           When an individual ceases to be a Participant, his
                           or her right to purchase a Contract through the Plan
                           shall cease, whether or not such individual
                           continues to be an Employee or an Eligible Employee.
                           Upon cessation of participation, such individual may
                           surrender any Contract purchased as a 


                                       4





<PAGE>   5



                           Participant or continue any such Contract in
                           accordance with arrangements made directly with the
                           Insurer.

         2.4      RECOMMENDATION OF PARTICIPATION.

                  In the event a former Participant's participation ceased due
                  to an event described in Section 2.3 (a) (2) and such former
                  Participant again becomes an Eligible Employee, he or she
                  shall recommence participation in the Plan as if he or she
                  were a new Employee on the date he or she again became an
                  Eligible Employee, subject to the Insurer's then applicable
                  underwriting standards and other applicable standards or
                  terms of the Contract. In the event a former Participant's
                  participation ceased due to an event described in Section 2.3
                  (a) (3), he or she may elect, in accordance with procedures
                  prescribed by the Named Fiduciary-Plan Administration, to
                  recommence participation in the Plan as of the first day of
                  any subsequent Plan Year on which he or she is an Eligible
                  Employee, subject to the Insurer's then applicable
                  underwriting standards and other applicable standards or
                  terms of the Contract. In the event a former Participant's
                  participation ceased due to an event described in Section 2.3
                  (a) (4), he or she may not recommence participation in the
                  Plan.

                                   SECTION 3
                          PREMIUMS AND BENEFIT PAYMENT

         3.1      PAYMENT OF PREMIUMS.

                  Each participant shall own any Contract issued pursuant to
                  his or her election under Section 2.2 or 2.4 and shall be
                  responsible for payment of premiums for such Contract as
                  determined by the Insurer from time to time. At the written
                  authorization of the Participant, the Employer shall deduct
                  the required premiums from compensation paid to the
                  Participant by the Employer and remit such amounts to the
                  Insurer as soon as administratively practicable, but no later
                  than 90 days, following such deduction. The Employer shall
                  have no duty to make any contributions to the Plan.

         3.2      SOURCE OF BENEFIT PAYMENTS.

                  All benefits provided for by any Contract issued pursuant to
                  a Participant's election under Section 2.2 or 2.4 shall be
                  paid exclusively by the Insurer.


                                       5





<PAGE>   6



                                   SECTION 4
                                 ADMINISTRATION

         4.1      DUTIES AND POWERS OF NAMED FIDUCIARY-PLAN ADMINISTRATION.

                  The Named Fiduciary-Plan Administration shall have full
                  discretionary power and authority to construe, interpret and
                  administer this Plan and may, to the extent permitted by law,
                  make factual determinations, correct defects, supply
                  omissions and reconcile inconsistencies to the extent
                  necessary to effectuate the Plan and, subject to Section 4.2,
                  the Name Fiduciary-Plan Administration's actions in doing so
                  shall be final and binding on all persons interested in the
                  Plan. The Named Fiduciary-Plan Administration may from time
                  to time adopt rules and regulations governing the operation
                  of this Plan and may employ and rely on such legal counsel,
                  such actuaries, such accountants and such agents as it may
                  deem advisable to assist in the administration of the Plan.

         4.2      CLAIMS PROCEDURE.

                  The Claims Reviewer shall review claims under the Plan and
                  respond thereto within a reasonable time after receiving the
                  claim. Claims shall generally be processed as described in
                  the applicable Contract; provided, however, that the claims
                  procedure described in this Section 4.2 shall apply in the
                  event the applicable Contract does not contain a claims
                  procedure that complies with 29 CFR ss.2560.503-1. The Claims
                  Reviewer shall provide to every claimant whose claim is
                  denied a written notice setting forth, in a manner calculated
                  to be understood by the claimant:

                  (a)      the specific reason or reasons for the denial;

                  (b)      specific references to pertinent Plan provisions on 
                           which denial is based;

                  (c)      a description of any additional material or 
                           information necessary for the claimant to perfect the
                           claim; and

                  (d)      an explanation of the claim review procedure set 
                           forth below.

         Within 60 days of receipt by a claimant of a notice denying a claim,
         the claimant or his duly authorized representative may request in
         writing a full and fair review of the claim by the Claims Reviewer.
         The Claims Reviewer may extend the 60-day period where the nature of
         the benefit involved or other attendant circumstances made such
         extension appropriate. In 

                                       6
<PAGE>   7


         connection with such review, the claimant or his duly authorized
         representatives may review pertinent documents and may submit issues
         and comments in writing. The Claims Reviewer shall make a decision
         promptly, and not later than 60 days after the Claims Reviewer's
         receipt of a request for review, unless special circumstances (such as
         the need to hold a hearing, if the Claims Reviewer deems one
         necessary) require an extension of time for processing, in which case
         a decision shall be rendered as soon as possible, but not later than
         120 days after receipt of a request for review. The decision on review
         shall be in writing and shall include specific reasons for the
         decision, written in a manner calculated to be understood by the
         claimant, and specific references to the pertinent Plan provisions on
         which the decision is based.

                                   SECTION 5
                           AMENDMENT AND TERMINATION

         5.1      AUTHORITY TO AMEND.

                  The Company, acting through its Vice President - People, may
                  amend the Plan at any time in any manner whatsoever.

         5.2      RIGHT TO TERMINATE.

                  Continuance of the Plan is completely voluntary and is not
                  assumed as a contractual obligation of the Employer. The
                  Company shall have the right at any time for any reason to
                  terminate the Plan by action of the Board. Furthermore, each
                  Employer may discontinue its participation in the Plan at any
                  time with the approval of the Vice President - People of the
                  Company.

                                   SECTION 6
                                 MISCELLANEOUS

         6.1      EFFECT ON EMPLOYMENT.

                  Nothing contained herein shall be construed as conferring
                  upon an Employee the right to continue in the employ of the
                  Employer as an executive or in any other capacity.



                                       7


<PAGE>   8
         6.2      RIGHTS AND OBLIGATIONS.

                  The rights and obligations created hereunder shall be binding
                  on a Participant's heirs, executors and administrators and on
                  the successor and assigns of the Employers.

         6.3      NONALIENATION.

                  The rights of any Participant under this Plan are personal
                  and may not be assigned, transferred, pledged or encumbered;
                  provided, however, that nothing herein shall prevent or shall
                  be construed to prevent a transfer of rights under any
                  Contract issued to the Participant, in accordance with the
                  terms of the Contract.

         6.4      LIMITATION ON OBLIGATIONS.

                  Neither the Company nor any other Employer nor any member of
                  the Board shall be responsible or liable in any manner to any
                  Participant, any person claiming through him or her for any
                  benefit or action taken or omitted in connection with the
                  granting of benefits, the continuation of benefits, or the
                  interpretation and administration of the Plan.

         6.5      GOVERNING LAW.

                  The Plan shall be construed in accordance with and governed
                  by the laws of the COMMONWEALTH OF PENNSYLVANIA, except to
                  the extent preempted by the Employee Retirement Income
                  Security Act of 1974, as amended from time to time.



                                       8