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                                                                   EXHIBIT 10.73

[Hanover Company Letterhead]

                                        February 1, 2002

Mr. John E. Jackson
10311 West Indore Drive
Littleton, CO 80127

Dear John:

This letter summarizes Hanover Compressor Company's offer of employment to you
to serve as the Company's Chief Financial Officer based in Hanover's corporate
office in Houston, Texas. I am confident that your inclusion in Hanover's senior
executive management team will prove to be mutually rewarding and offer you the
career opportunity that you seek.

A job description describing the essential responsibilities of the Chief
Financial Officer position is attached. In this position you will be responsible
for all traditional financial management and related administrative activities
of the Company, including all domestic and international accounting practices
and policies, financial and management reporting, internal controls, treasury
and finance activities, tax planning and compliance, and information technology.
This position will also entail your management of the Company's capital
structure, commercial and investment banking relationships, external financing
and relations with investors, ratings agencies and other parties essential to
the Company's capital formation. Additionally, as a critical member of the
Company's senior executive management team you will be involved with and
responsible for the budgeting and planning activities of the Company, working
with other Hanover senior managers to accomplish the business development and
operating objectives of the Company.

The compensation for this position is as follows.

Base Salary:        $11,538.47 per pay period (26 pay periods per year).

Profit Sharing
Opportunity:        25-100% of annual base salary to be paid annually based upon
                    Company performance and personal performance compared with
                    agreed upon objectives and subjective measures. Provided
                    such agreed upon performance objectives are met, target
                    annual profit sharing payout shall be 50% of annual base
                    salary. Not withstanding the provisions described above,
                    your minimum profit sharing payment for performance during
                    2002 will be $75,000.

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Mr. John E. Jackson
February 1, 2002

Stock Option
Program:            Upon your employment start date, the Company will grant to
                    you non-qualified stock options to purchase 50,000 shares of
                    Company common stock at a price per share equal to the NYSE
                    closing market price that day. In addition, provided that
                    you remain continually employed by the Company in a role
                    substantially similar to that described herein, the Company
                    shall offer you the opportunity to participate in at least
                    one subsequent stock option program within two years of your
                    employment start date with Hanover.

DEFS Incentive
Compensation
Make-Whole:         Upon commencement of employment, the Company shall make a
                    one-time payment to you of $210,000 before applicable tax
                    representing (i) $95,000 for 2001 bonus compensation that
                    you would have otherwise received from Duke Energy Field
                    Services Inc. ("DEFS") for services rendered during 2001;
                    (ii) $100,000 for unvested but "in the money" Duke Corp.
                    stock options previously granted to you by DEFS and (iii)
                    $15,000 for unvested but "in the money" shares of Duke Corp.
                    restricted stock previously issued to you by DEFS. This
                    payment may be utilized by you to finance your personal
                    investment in the Company's common stock described herein.
                    Note that the Company may reclaim this amount if you
                    terminate your employment with the Company without "Good
                    Reason" within 12 months of your employment start date.

Relocation
Allowance:          The Company will assume financial responsibility for the
                    relocation costs listed below with the objective of covering
                    all such documented costs subject to a cap described below.
                    As part of this program, the Company will coordinate the
                    movement of your household goods and personal belongings on
                    a direct bill basis under its agreement with one of its
                    national moving companies. The Company will also reimburse
                    you for reasonable and customary closing costs and make a
                    one-time payment to you of $10,000 to cover incidental
                    expenses related to your move. Additionally, under this
                    program the Company agrees to (i) assume financial
                    responsibility for third party brokerage commissions related
                    to the sale of your current residence of up to 6 percent of
                    the sale price of your home or (ii) pay you a "sales
                    incentive" of up to 3 percent of the value of your home in
                    the event that you sell your home


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Mr. John E. Jackson
February 1, 2002

                    yourself without a third party broker. The Company will also
                    assume financial responsibility for loan application,
                    origination and title insurance costs and miscellaneous
                    warranty, appraisal and related fees related to your
                    purchase of a new residence in Houston. Additionally, to
                    help facilitate your family's relocation to Houston, the
                    Company will reimburse you for reasonable out-of-pocket
                    travel and related living expenses for a period of up to
                    twelve months following your start date. The Company will
                    provide an income tax gross up to you on taxes that may be
                    owed resulting from taxable relocation-related expenses. The
                    Company will not reimburse you for property, school and
                    personal taxes, related to the sale of your existing primary
                    residence.


                    Total Company reimbursement for the above-referenced
                    relocation and related costs, excluding transitional,
                    temporary living and related travel expense or any "tax
                    gross-up" (see below) incurred within eighteen months of
                    your employment start date shall be capped at $60,000.
                    Whenever possible, these costs will be billed directly to
                    the Company. To the extent that payment of these costs
                    result in taxable relocation expense to you, the Company
                    agrees to provide an income tax gross up to you for such
                    personal taxes paid by you. Note that the Company may
                    reclaim this relocation payment if you terminate your
                    employment with the Company without "Good Reason" within 12
                    months of your employment date.


Auto Allowance:     Either $500 per month or company furnished vehicle (TBD).

Vacation:           Up to four weeks per year.

Employment
Agreement:          An agreement obligating the Company to make a severance
                    payment to you equal to one and one-half times your
                    annualized salary and bonus compensation in the event that
                    you involuntarily terminate your employment with the Company
                    within the first twelve months following a "Change of
                    Control" of the Company. This agreement will not obligate
                    the Company to make a severance payment to you in the event
                    that you voluntarily terminate your employment with the
                    Company without "Good Reason" or involuntarily terminate
                    your employment with the Company due to your death,
                    disability, or termination for "Cause". The agreement will
                    be paired with a non-competition agreement, which shall
                    preclude you from employment in

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Mr. John E. Jackson
February 1, 2002

                    Hanover's principal lines of business for a period one year
                    after you terminate your employment with the Company
                    employment and shall terminate the above-referenced
                    severance payment to you in the event that you violate this
                    non-compete agreement.

                    For purposes of this letter, voluntary termination of
                    employment for "Good Reason" shall be defined as any
                    situation in which your termination of employment with the
                    Company (i) promptly follows a material reduction of your
                    duties and responsibilities or a permanent change in your
                    duties and responsibilities which are materially
                    inconsistent with the type of duties and responsibilities
                    then in effect, (ii) promptly follows a material reduction
                    in your annual base salary (without regard to bonus
                    compensation, if any), (iii) promptly follows a material
                    reduction in your employee benefits (without regard to bonus
                    compensation, if any) if such reduction results in you
                    receiving benefits which are, in the aggregate, materially
                    less than the benefits received by other comparable
                    employees of the Company generally or (iv) the Board
                    otherwise determines that a voluntary termination by you is
                    for "Good Reason" under the circumstances then prevailing.

Additionally, as a full time employee, you will also be eligible to participate
in the various benefit programs offered by the Company. Enclosed please find a
summary of those programs. During the initial three-month eligibility waiting
period for health benefits, the Company will reimburse you for your actual cost
of continuing your current employer's health coverage under the Consolidated
Omnibus Reconciliation Act (COBRA) option. Pursuant to Company and ERISA
guidelines, your eligibility for participating in the Company's 401(k) plan will
occur on the 1st of the month following six months of service with the Company.

John, this offer is contingent upon providing Hanover with the required
documentation to complete the INS I-9 Form and the successful completion of a
drug screen. These activities, along with a full discussion of benefits and the
related forms, can be accomplished by calling me or Errol Robinson, Director of
Human Resources in the Hanover's corporate office at 281/447-8787.

Again, we are extremely confident that if your decision is to accept this offer,
it will prove to be mutually rewarding. Your inclusion in Hanover's senior
executive management group represents a very significant addition to the Company
step and an excellent opportunity for both you and the Company.


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Mr. John E. Jackson
February 1, 2002

Your acceptance of this offer can be confirmed by signing the acceptance below
and returning a copy to my attention.

Sincerely,

/s/ Michael J. McGhan
----------------------------
Michael J. McGhan

cc: William S. Goldberg

Accepted: /s/ John E. Jackson                   Date: 2-2-02
         --------------------------
              John E. Jackson

Start Date: As agreed per B.O.D.

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