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**EXECUTION      VERSION**

**Credit      Agreement**

**Dated      as of**

**August      1, 2007**

**among**

**McMoRan      Exploration Co.,**

**As      Borrower,**

**JPMorgan      Chase Bank, N.A.,**

**as      Administrative Agent,**

**and**

**The      Lenders Party Hereto**

**Joint      Lead Arrangers and Joint Book Runners**

**J.P.      Morgan Securities      Inc.                                                                                                                               Merrill Lynch, Pierce, Fenner & Smith      Incorporated**

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**TABLE        OF CONTENTS**

**Page**

| **ARTICLE                  I****DEFINITIONS                  AND ACCOUNTING MATTERS**                                                             |
|---------------------------------------------------------------------------------------------------------------------------------------------------|
| Section                  1.01Section                  1.02Section                  1.03Section                  1.04Section                  1.05 | Terms                  Defined AboveCertain                  Defined TermsTypes                  of Loans and BorrowingsTerms                  Generally; Rules of ConstructionAccounting                  Terms and Determinations:  GAAP | 11313132 |
| **ARTICLE                  II****THE                  CREDITS**                                                                                   |
| Section                  2.01Section                  2.02Section                  2.03                                                           | CommitmentsProcedures                  for BorrowingPresumption                  of Funding by the Lenders | 323233 |
| **ARTICLE                  III****MATURITY,                  EXCHANGE NOTES; PAYMENTS OF PRINCIPAL AND                  INTEREST**                |
| Section                  3.01Section                  3.02Section                  3.03Section                  3.04Section                  3.05 | Maturity                  and Exchange NotesRepayment                  of LoansInterest                  Rates and Payment Dates[Intentionally                  Omitted]Optional                  and Mandatory Prepayments | 3333343434 |
| **ARTICLE                  IV****PAYMENTS;                  PRO RATA TREATMENT; SHARING OF SET-OFFS**                                             |
| Section                  4.01Section                  4.02Section                  4.03Section                  4.04                              | Payments                  Generally; Pro Rata Treatment; Sharing of Set-offsPresumption                  of Payment by the BorrowerCertain                  Deductions by the Administrative AgentDisposition                  of Proceeds | 36383838 |
| **ARTICLE                  V****INCREASED                  COSTS; BREAK FUNDING PAYMENTS; TAXES**                                                 |
| Section                  5.01Section                  5.02Section                  5.03Section                  5.04Section                  5.05 | Increased                  CostsBreak                  Funding PaymentsTaxesDesignation                  of Different Lending OfficeReplacement                  of Lenders | 3839404142 |
|                                                                                                                                              |   |   |
| **ARTICLE                  VI****CONDITIONS                  PRECEDENT**                                                                          |
| Section                  6.01Section                  6.02                                                                                        | Effective                  DateEach                  Credit Event | 4244 |
| **ARTICLE                  VII****REPRESENTATIONS                  AND WARRANTIES**                                                               |
| Section                  7.01Section                  7.02Section                  7.03                                                           | Organization;                  PowersAuthority;                  EnforceabilityApprovals;                  No Conflicts  | 454545  |

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| Section                    7.04Section                    7.05Section                    7.06Section                    7.07Section                    7.08Section                    7.09Section                    7.10Section                    7.11Section                    7.12Section                    7.13Section                    7.14Section                    7.15Section                    7.16Section                    7.17Section                    7.18Section                    7.19Section                    7.20Section                    7.21Section                    7.22 | Financial                    Condition; No Material Adverse ChangeLitigationEnvironmental                    MattersCompliance                    with the Laws and Agreements; No DefaultsInvestment                    Company ActTaxesERISADisclosure;                    No Material MisstatementsInsuranceRestriction                    on LiensSubsidiariesLocation                    of Business and OfficesProperties;                    Titles, Etc.Maintenance                    of PropertiesGas                    Imbalances, PrepaymentsMarketing                    of ProductionSwap                    AgreementsUse                    of LoansSolvency | 45464647484848495050505050515252525252 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|

| **ARTICLE                  VIII****AFFIRMATIVE                  COVENANTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Section                  8.01Section                  8.02Section                  8.03Section                  8.04Section                  8.05Section                  8.06Section                  8.07Section                  8.08 Section                  8.09Section                  8.10Section                  8.11Section                  8.12Section                  8.13Section                  8.14Section                  8.15Section                  8.16Section                  8.17Section                  8.18Section                  8.19Section                  8.20Section                  8.21 | Financial  Statements;                  Other InformationNotices                  of Material EventsExistence;                  Conduct of BusinessPayment                  of ObligationsPerformance                  of Obligations under Loan DocumentsOperation                  and Maintenance of PropertiesInsuranceBooks                  and Records; Inspection RightsCompliance                  with LawsEnvironmental                  MattersFurther                  AssurancesReserve                  Reports[Intentionally                  Omitted]Additional                  GuarantorsERISA                  ComplianceUnrestricted                  SubsidiariesMarketing                  activitiesSwap                  AgreementsSecond                  LienExchange                  NotesUse                  of Proceeds of the Take-Out Securities | 535556565656575757575858585859595960606061 |
| **ARTICLE                  IX****NEGATIVE                  COVENANTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Section                  9.01Section                  9.02Section                  9.03Section                  9.04Section                  9.05                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | [Intentionally                  Omitted]DebtLiensRestricted                  Payments[Intentionally                  Omitted]  | 6161656569  |

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| Section                9.06Section                  9.07Section                  9.08Section                  9.09Section                  9.10Section                  9.11Section                  9.12Section                  9.13Section                  9.14Section                  9.15Section                  9.16Section                  9.17Section                  9.18Section                  9.19Section                  9.20Section                  9.21 | Nature                  of Business; International OperationsProceeds                  of NotesERISA                  Compliance[Intentionally                  Omitted]Mergers,                  Etc.Sale                  of Properties and Subsidiary StockEnvironmental                  MattersTransactions                  with AffiliatesSubsidiariesDividend                  Restrictions[Intentionally                  Omitted][Intentionally                  Omitted][Intentionally                  Omitted]Unrestricted                  SubsidiariesChange                  of ControlPayments                  for Consent | 69696970707274747575777777777778  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|
| **ARTICLE                  X****EVENTS                  OF DEFAULT; REMEDIES**                                                                                                                                                                                                                                                                                                                                                                                                 |
| Section                  10.01Section                  10.02                                                                                                                                                                                                                                                                                                                                                                                                                   | Events                  of DefaultRemedies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 7880                                   |
| **ARTICLE                  XI****THE                  ADMINISTRATIVE AGENT**                                                                                                                                                                                                                                                                                                                                                                                                   |
| Section                  11.01Section                  11.02Section                  11.03Section                  11.04Section                  11.05Section                  11.06Section                  11.07Section                  11.08Section                  11.09Section                  11.10Section                  11.11                                                                                                                                | Appointment;                  PowersDuties                  and Obligations of Administrative AgentAction                  by Administrative AgentReliance                  by Administrative AgentSubagentsResignation                  of Administrative agentAgents                  as LendersNo                  RelianceAdministrative                  Agent May File Proofs of ClaimAuthority                  of Administrative Agent to Release Collateral and LiensThe                  Arrangers and the Agents                                                                                                                  | 8181818282828383838484                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                   |
| **ARTICLE                  XII****MISCELLANEOUS**                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Section                  12.01Section                  12.02Section                  12.03Section                  12.04Section                  12.05Section                  12.06Section                  12.07Section                  12.08Section                  12.09Section                  12.10Section                  12.11Section                  12.12                                                                                                       | NoticesWaivers;                  AmendmentsExpenses,                  Indemnity; Damage WaiverSuccessors                  and AssignsSurvival;                  Revival; ReinstatementCounterparts;                  Integration; EffectivenessSeverabilityRight                  of SetoffGOVERNING                  LAW; JURISDICTION; CONSENT TO SERVICE  PROCESSHeadingsConfidentialityInterest                  Rate Limitation                                                                                                                                                                                          | 848586889192929293949494          |

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|  Section                12.13Section                  12.14Section                  12.15Section                  12.16 |  Intercreditor                AgreementNo                  Third Party BeneficiariesAcknowledgementsUSA                  Patriot Act Notice | 95959595  |
|------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|----------------|

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**ANNEX,      EXHIBITS AND SCHEDULES**

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**THIS      CREDIT AGREEMENT**
** **

**ARTICLE      I**

**Definitions      and Accounting Matters**

*,*

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Section 12.04(b)

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Section 2.02

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Section 5.01(b)

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*,*

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Section 6.01
Section 12.02

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Section 1.05

* *

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Section 12.04(c)

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|   | (i) | as                to which neither the Borrower nor any Restricted Subsidiary (a) provides                any Guarantee or credit support of any kind (including any undertaking,                guarantee, indemnity, agreement or instrument that would constitute                Debt)                or (b) is directly or indirectly liable (as a guarantor or                otherwise); |
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|   | (ii) | no                default with respect to which (including any rights that the holders                thereof may have to take enforcement action against an Unrestricted                Subsidiary) would permit (upon notice, lapse of time or both) any                holder                of any other Debt of the Borrower or any Restricted Subsidiary to                declare                a default under such other Debt or cause the payment thereof to be                accelerated or payable prior to its stated maturity;                and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the                explicit terms of which provide there is no recourse against any                of the                assets of the Borrower or its Restricted                Subsidiaries. |
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Section      5.03(d)

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Section      12.04(c)

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Section      12.04(b)(iv)

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Section      8.10(a)

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**ARTICLE      II**

**The      Credits**

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**ARTICLE      III**

**Maturity,      Exchange Notes; Payments of Principal and Interest**

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*First*
*First*
*Second*
*Second*
*Third*

Section 3.05
Section      5.02

**ARTICLE      IV **

**Payments;      Pro Rata Treatment; Sharing of Set-offs**

Section 5.01
Section 5.02
Section      5.03
Section      12.01
Section      5.01
Section 5.02
Section 5.03
Section      12.03

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*First*
*Second*
*Third*
*Fourth*

*First*
*First*
*Second*
*Second*
*Third*

Section 4.01(d)

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Section 4.01(d)

Section 4.02

**ARTICLE      V**

**Increased      Costs; Break Funding Payments; Taxes**

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Section 5.01(a)
(b)

Section 5.01
Section 5.01

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Section 5.02

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Section      5.03
Section 5.03

Section 5.03

Section 5.01
Section 5.03
Section 5.01
Section      5.03

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Section      5.01
Section 5.03
Section 5.01
Section 5.03

**ARTICLE      VI**

**Conditions      Precedent**

Section 12.02

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Section 7.12

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Section 12.02

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Section 2.02

**ARTICLE      VII**

**Representations      and Warranties**

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*pro forma*
*pro      forma*
*pro forma*

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Section 8.01(m)
Section 12.01
Section 12.01
Section 8.01(m)
Section 12.01(c)
Section      8.01(m)

Section 9.03

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Section      8.01(d)

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**ARTICLE      VIII **

**Affirmative      Covenants**

Section      8.01(a)
Section 8.01(b)

Section      8.01(a)
Section 8.01(b)

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Section 8.01(a)
Section 8.07

Section 8.01

Section      8.12

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Section 8.02

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Section 8.06

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Section 8.10
(a)

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**ARTICLE      IX**

**Negative      Covenants**

*,*

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*,*

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fiscal      quarter in which the Effective Date occurs to the end of the most recent fiscal      quarter ending prior to the date of such Restricted Payment for which financial      statements are in existence (or, in case such Consolidated Net Income is a      deficit, minus 100% of such deficit); (B) 100% of the aggregate Net Cash      Proceeds received by the Borrower from the issue or sale of its Equity Interest      (other than Disqualified 

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*,*

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* *
* *

*,*

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* *
*,*

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Section      7.21

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*,*

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*, *

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**ARTICLE      X**

**Events      of Default; Remedies**

Section      10.01(a)

Section 8.01(m)
Section      8.02
Section 8.03
ARTICLE IX

Section 10.01(a)
Section 10.01(b)
Section      10.01(d)

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Section 10.01(j)
Section 10.01(j)

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**ARTICLE      XI**

**The      Administrative Agent**

Section 11.03
ARTICLE VI
ARTICLE VI

Section      12.02
Section      12.02

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Section 11.03
Section      12.02

ARTICLE XI

Section 11.06

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ARTICLE XI
Section      12.03

Section 12.03

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Section      12.03

**ARTICLE      XII**

**Miscellaneous**

Section 12.01(b)

ARTICLE II
ARTICLE III
ARTICLE      IV
ARTICLE V

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Section 12.02(b)

Section 4.01(b)
Section 4.01(d)
Section 10.02(c)
Section 11.10
Section      12.02(b)

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Section 12.03

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Section 12.03(a)
(b)

Section 12.03

Section 12.04
Section      12.04(c)

Section      12.04(b)(ii)

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Section 12.04(b)(iv)
Section 5.01
Section 5.02
Section      5.03
Section      12.03
Section 12.04
Section      12.04(c)

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Section 12.04(b)
Section 12.04(b)
Section      12.04(b)

Section 12.02
Section      12.03
Section      12.04(c)
Section 5.01
Section 5.02
Section      5.03
Section      12.04(b)
Section 12.08
Section 4.01(d)

Section 5.01
Section 5.03
Section 5.03

Section 12.04(d)

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*cancelled*

Section 12.04

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Section      5.01
Section 5.02
Section 5.03
Section      12.03
ARTICLE XI

Section 6.01

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Section 12.08

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| SYNDICATION                AGENT: | MERRILL                LYNCH, PIERCE, FENNER & SMITH INCORPORATED,                as Syndication Agent |
|-----------------------------------|------------------------------------------------------------------------------------------------------------|

|   | MERRILL                LYNCH CAPITAL CORPORATION, as a Lender |
|--------|---------------------------------------------------------------|

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