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                                                                   EXHIBIT 10.16

             [EOTT ENERGY OPERATING LIMITED PARTNERSHIP LETTERHEAD]




December 19, 2000


                           CRUDE OIL PURCHASE CONTRACT


Coho Resources, Inc.
14785 Preston Road
Suite 865
Dallas, Texas 75240

Attn:     Mr. Gary Pittman
          Chief Financial Officer

Re:       EOTT CONTRACT NO. TP00-1018776
          COHO CONTRACT NO. ____________

Gentlemen:

When accepted by you in the manner hereinafter indicated, this shall evidence
the agreement ("Agreement") by and between COHO RESOURCES, INC., hereinafter
referred to as "COHO", and EOTT ENERGY OPERATING LIMITED PARTNERSHIP,
hereinafter referred to as "EOTT", under the terms of which, and in
consideration of the promises made hereunder and for other valuable
consideration received, such parties shall sell and buy the hereinafter
described crude oil and/or condensate ("crude oil") as follows:

I.        TERM:

          Commencing at 7:00 a.m. Central Time on November 1, 2000 to 7:00 a.m.
          Central Time on December 31, 2001. Termination shall not affect rights
          or obligations of either party accrued prior to the date of
          termination.

II.       TYPE OF OIL:

          Subject to the terms hereof, COHO shall deliver to EOTT COHO's owned
          or controlled production of Mississippi Light Sweet, Mississippi
          Light Sour and Mississippi Heavy Sour types of crude oil as listed on
          Attachment "A" hereto.

III.      QUANTITY:

          Volume to fluctuate with COHO's production from the Leases or Units
          listed on Attachment "A." Production from the properties listed on
          Attachment "A" currently averages eight thousand (8,000) barrels per
          day.



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IV.       DELIVERY:

          COHO shall deliver to EOTT at various lease sites, per Attachment "A",
          by tank gauges and/or meters into EOTT's designated carrier(s) with
          title and risk of loss to pass to EOTT as the oil passes through the
          outlet flange of COHO's tankage and/or meters. If Attachment "A" does
          not list all applicable leases, said leases shall nevertheless be
          covered hereunder and the parties hereto shall amend Attachment "A" as
          needed.

V.        PRICE:

          For each barrel of crude oil delivered to EOTT hereunder during each
          calendar month, EOTT shall pay EOTT's average daily posted price for
          the applicable calendar month, with adjustment made for gravity
          delivered, plus the applicable per barrel premium, as per Attachment
          "A" incorporated herein and made a part hereof for all purposes. For
          pricing purposes, all crude oil delivered hereunder during any
          calendar month will be considered to have been delivered in equal
          daily quantities during each such month.

VI.       PAYMENT:

          Payment shall be made by EOTT by open division order, less applicable
          production and severance taxes, by check, except COHO shall receive
          payment for its interest by wire transfer on the twentieth (20th) day
          of the calendar month following the calendar month of delivery.

VII.      DIVISION ORDERS:

          All division orders, division order documents and division order
          matters shall be sent to the following addresses:

          EOTT Energy Operating Limited         Coho Resources, Inc.
            Partnership                         Attn: Division Order Department
          Attn: Division Order Department       14785 Preston Road, Suite 860
          P.O. Box 4666                         Dallas, Texas 75240
          Houston, TX 77210-4666

          If any division orders are executed pursuant to this Agreement, and in
          the event of any irreconcilable conflict between the terms of any such
          division orders and this Agreement, the terms of this Agreement shall
          be deemed controlling, even if the division orders are dated
          subsequent to this Agreement.

VIII.     SPECIAL PROVISIONS:

          (A)     COHO shall fully defend and indemnify EOTT against, and hold
                  EOTT fully harmless from, any claim, action, suit, demand or
                  complaint (of any nature whatsoever) which any interest owner
                  in any well (on any lease which is covered or affected hereby)
                  may bring in connection with (i) COHO's ability to enter into
                  this Agreement with EOTT, or (ii) any production proceeds paid
                  out by EOTT to COHO pursuant to this Agreement. COHO warrants
                  unto EOTT that COHO has full right and authority to enter into
                  this Agreement for all of the crude oil committed by COHO
                  hereunder, and that COHO is violating no duty or obligation
                  which it may have to any third party in entering into this
                  Agreement, provided, however, EOTT acknowledges that under
                  certain agreements between COHO and other working interest
                  owners COHO's authority to market crude oil is limited to
                  periods not exceeding one year, but EOTT may rely upon COHO's
                  authority to market in the case of any and all crude oil
                  actually delivered to EOTT hereunder.

          (B)     All crude oil delivered to EOTT hereunder will be crude oil
                  delivered in accordance with the quality standards set forth
                  herein (including the General Provisions attached hereto), and
                  COHO will fully indemnify EOTT against and hold EOTT harmless
                  from any loss, damage, harm, liability, claim, action, suit,
                  demand or complaint, of any nature whatsoever, which EOTT may



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                  suffer as a result of receiving non-standard crude oil from
                  COHO at the point of title transfer set forth herein as a
                  consequence of COHO's intentional addition in such crude oil
                  of any contaminant.

          (C)     This Agreement is subject to the General Provisions which are
                  attached hereto and made a part hereof for all purposes.

IX.       ADDITIONAL LEASE PRODUCTION:

          EOTT agrees that any production which is subsequently owned,
          developed, controlled, or acquired by COHO where COHO has the right to
          market the production, in the State of Mississippi during the Term of
          this Agreement shall be automatically added to this Agreement,
          provided the said production is a type of crude oil then being
          purchased by EOTT and is located in an area from which EOTT then
          makes crude oil purchases. The pricing for any additional production
          added to this Agreement under this Paragraph IX shall be priced
          according to crude oil grade as follows:

          (i)     For Mississippi Light Sweet type crude oil: EOTT's posted
                  price for South Louisiana Sweet, with adjustment made for
                  gravity delivered, plus $1.50 per barrel premium, based on
                  deemed equal daily deliveries during each calendar month.

          (ii)    For Mississippi Light Sour type crude oil: EOTT's posted price
                  for Mississippi Light Sour, with adjustment made for gravity
                  delivered, plus $1.70 per barrel premium, based on deemed
                  equal daily deliveries during each calendar month.

          (iii)   For Mississippi Heavy Sour type crude oil transported by
                  pipeline: EOTT's posted price for Mississippi Light Sour, with
                  adjustment made for gravity delivered, plus $1.70 per barrel
                  premium, based on deemed equal daily deliveries during each
                  calendar month. For Mississippi Heavy Sour type crude oil
                  transported by truck: EOTT's posted price for Mississippi
                  Light Sour, with adjustment made for gravity delivered, plus
                  $1.00 per barrel premium, based on deemed equal daily
                  deliveries during each calendar month.

X.        OTHER PRODUCTION:

          COHO also grants EOTT the right of first refusal to purchase any
          "other" production which is owned, developed, controlled, or acquired
          at any time by COHO where COHO has the right to market the production
          in the states of Mississippi or Alabama during the Term of this
          Agreement (meaning any crude oil type which is not being purchased by
          EOTT or any crude oil in any area from which EOTT does not make crude
          oil purchases). The notice period for the right of first refusal shall
          be for a period of thirty (30) days from the date EOTT receives notice
          from COHO of any offers. As to such "other" production, EOTT shall
          have the right, but not the obligation, to add same to this Agreement.
          The price structure for any other grade of Mississippi crude oil or
          for any additional crude oil production in the State of Alabama which
          becomes subject to this Agreement shall be negotiated at the time of
          COHO's acquisition of such production. In the event EOTT and COHO
          cannot agree upon the applicable pricing structure for any such
          production, the matter shall be submitted to arbitration for binding
          resolution.

XI.       RIGHT TO SWITCH PRICING METHOD:

          Reference is made to the one-time right to switch the pricing method
          (which is described in parts I, II and III of Attachment "A"). Subject
          to the same timing and other requirements set forth in Attachment "A,"
          COHO shall have the same, one-time right to switch the pricing method
          as to each of the crude types set forth in Paragraphs IX(i), IX(ii),
          and IX(iii) above, as follows:



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          (a)     For the Mississippi Light Sweet type crude covered under
                  Paragraph IX(i) above, COHO may elect to switch the pricing to
                  the average of Plains Marketing's and EOTT's daily posted
                  prices for Louisiana Light Sweet crude oil during the
                  applicable calendar month of delivery hereunder, with
                  adjustment made for gravity delivered, plus $1.50 per barrel.

          (b)     For the Mississippi Light Sour type crude covered under
                  Paragraph IX(ii) above, COHO may elect to switch the pricing
                  to the average of Equiva's and EOTT's daily posted prices for
                  Mississippi Sour crude oil during the applicable calendar
                  month of delivery hereunder, with adjustment made for gravity
                  delivered, plus $1.70 per barrel.

          (c)     For the Mississippi Heavy Sour type crude covered under
                  Paragraph IX(iii) above, COHO may elect to switch the pricing
                  to the average of Equiva's and EOTT's daily posted prices
                  Mississippi Sour crude oil during the applicable calendar
                  month of delivery hereunder, with adjustment made for gravity
                  delivered, plus $1.70 per barrel for those barrels gathered by
                  pipeline or plus $1.00 per barrel for those barrels gathered
                  by truck.

          This one-time right to switch the pricing method shall be exercisable
          by thirty (30) days' written notice from COHO to EOTT, to be effective
          on the first day of any calendar month after the notice period as
          designated by COHO in such notice.

XII.      RENEWAL TERMS:

          Prior to the expiration of this Agreement, EOTT and COHO shall
          endeavor to negotiate a new, mutually-agreeable agreement, or a
          mutually-agreeable extension of this Agreement. Should the parties be
          unable to agree upon the terms for a new agreement or an extension, or
          should COHO notify EOTT that it does not wish to negotiate a new
          agreement or an extension, EOTT and COHO shall be bound by the
          following terms and conditions:

          (i)     COHO shall solicit bonafide competitive bids from other
                  purchasers (unrelated to COHO) for purchases to be made on or
                  after January 1, 2002, and EOTT shall have the right and
                  option, but not the obligation, to match any bonafide written
                  offer (from any bonafide crude oil purchaser) which COHO will
                  otherwise act upon. COHO shall submit any such bonafide
                  written offer to EOTT no later than December 1, 2001, and EOTT
                  shall advise COHO, no later than December 19, 2001, as to
                  whether EOTT will match such written offer.

          (ii)    If COHO proceeds under Paragraph XII(i) above, and if EOTT
                  elects not to match an applicable bonafide written offer from
                  a bonafide crude oil purchaser, EOTT shall, at COHO's option,
                  enter into a buy/sell agreement with COHO whereby EOTT shall
                  purchase a volume and quality of Mississippi/Alabama crude oil
                  equal to the lease production covered under this Agreement as
                  of December 31, 2001, and sell back to COHO a corresponding
                  volume of crude oil of the grade(s) and quality(ies) provided
                  below. Such delivery back to COHO shall be at either Genesis
                  Pipeline Company's Liberty, Mississippi Station or within
                  TEPPCO Pipeline's facilities at Cushing, Oklahoma, or any
                  combination of these locations, at COHO's option. In the case
                  of deliveries back to COHO at Genesis Pipeline Company's
                  Liberty, Mississippi Station, EOTT shall deliver back to COHO
                  substantially the same grades and qualities of crude oil as
                  are delivered by COHO to EOTT in the applicable calendar
                  month. In the case of deliveries back to COHO within TEPPCO
                  Pipeline's facilities at Cushing, Oklahoma, EOTT shall deliver
                  back to COHO West Texas Intermediate type crude oil. All
                  deliveries made by EOTT to COHO shall be subject to location
                  differentials (in favor of EOTT) and shall be established when
                  the buy/sell agreement is negotiated, with binding arbitration
                  to be used if such differentials cannot be agreed upon.
                  Subject to the location differentials described in the
                  preceding sentences of this Paragraph XII(ii), (a) pricing
                  for all deliveries made by COHO to EOTT pursuant to the
                  buy/sell agreement shall be based upon mutually-agreeable area
                  posted prices for the grades and qualities of crude oil
                  delivered by COHO to EOTT thereunder, (b) pricing for all
                  deliveries made by EOTT back to



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                  COHO at Genesis Pipeline Company's Liberty, Mississippi
                  Station pursuant to the buy/sell agreement shall be based
                  upon the same posted prices determined in accordance with
                  part (a) of this sentence, and (c) pricing for all
                  deliveries made by EOTT back to COHO within TEPPCO
                  Pipeline's facilities at Cushing, Oklahoma pursuant to the
                  buy/sell agreement shall be based upon mutually-agreeable
                  posted prices for West Texas Intermediate type crude oil. If
                  agreement cannot be reached on a specific posted price, then
                  an average of all market related area posted prices for
                  grade and quality of oil delivered shall be used.

XIII.     ARBITRATION:

          Wherever in this Agreement a provision is made for resolution of a
          disagreement between the parties by arbitration, such arbitration
          proceedings shall be conducted in accordance with the commercial
          arbitration rules, then in effect, of the American Arbitration
          Association. All such arbitration proceedings shall be conducted in
          Houston, Texas unless otherwise agreed upon by the parties.

XIV.      ASSIGNABILITY:

          This Agreement, or any portion thereof, shall not be assignable by
          either party without the prior written consent from the other party,
          which consent shall not be unreasonably withheld. No assignment shall
          be binding on either party unless and until the other party has
          received written notice of the assignment and provided its written
          consent.

XV.       NO PARTNERSHIP OR JOINT VENTURE:

          Nothing contained herein is intended to constitute a partnership or
          joint venture between the parties.

          If the foregoing accurately reflects our agreement, please execute
this document in the space provided below and return a fully executed
counterpart hereof to EOTT for its files.

Sincerely,

EOTT ENERGY OPERATING LIMITED PARTNERSHIP
By:  EOTT Energy Corp., its General Partner


By:     /s/ DAN E. COLE
   -----------------------------------------
            Dan E. Cole
            General Manager
            Gulf Coast Region

ACCEPTED AND AGREED TO THIS 18TH DAY OF JANUARY, 2001

BY:  COHO RESOURCES, INC.


By:    /s/ GARY L. PITTMAN
    ------------------------------------------
Title:     CFO
       ---------------------------------------



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