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**Exhibit      10.29**

**MCMORAN      EXPLORATION CO.**

**2004      DIRECTOR COMPENSATION PLAN**

**1.**
**Purpose      of the Plan.**

**2.**
**Definitions.**

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**3.**
**Shares      of Common Stock Subject to the Plan.**

**4.**
**Administration      of the Plan.**

**5.**
**Grant      of **
**Options.**

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**6.**
**Terms      and Conditions of Options.**

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**7.**
**Election      to Have Annual Retainer Paid in Common Stock.**

**8.**
**Deferral      of Cash Compensation.**

**9.**
**Deferred      Compensation Accounts**
**.**

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**10.**
**Adjustment      Provisions.**

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**11.**
**Change      of Control.**

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**12.**
**General      Provisions.**

** **

*de      minimus*

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**13.**
**Amendment,      Discontinuance or Termination of the Plan.**

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**ANNEX      A to 2004 Director Compensation Plan**

**Special      Awards to be Granted May 9, 2004**

***Gabrielle      K. McDonald***

| **Number                of****Options** |   | **Exercise                Price** |   | **Vesting                Schedule**                                                                                      |   | **Termination****Date***    |
|-----------------------------------------|--------|-----------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|
| 364                options              |   | $12.0954                          |   | May                9, 2004                                                                                               |   | May                1, 2005  |
| 364                options              |   | $22.1411                          |   | May                9, 2004                                                                                               |   | May                1, 2006  |
| 364                options              |   | $17.6902                          |   | May                9, 2004                                                                                               |   | May                1, 2007  |
| 1,000                options            |   | $15.7813                          |   | 75%                on May 9, 2004, 25% on June 1, 2004                                                                   |   | June                1, 2010 |
| 1,000                options            |   | $13.075                           |   | 50%                on May 9, 2004, 25% on June 1, 2004, and on the next anniversary                thereof               |   | June                1, 2011 |
| 1,000                options            |   | $                4.275            |   | 25%                on May 9, 2004, 25% on June 1, 2004, and on each of the next two                anniversaries thereof |   | June                1, 2012 |
| 3,500                options            |   | $12.71                            |   | 25%                on June 1, 2004, and on each of the next three anniversaries                thereof                   |   | June                1, 2013 |

***Morrison      C. Bethea***

| **Number                of****Options** |   | **Exercise                Price** |   | **Vesting                Schedule**                                                                                      |   | **Termination****Date***          |
|-----------------------------------------|--------|-----------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|
|  1,000                options      |   |  $15.7813                    |   |  75%                on May 9, 2004, 25% on June 1, 2004                                                             |   |  June                1, 2010 |
| 1,000                options            |   | $13.075                           |   | 50%                on May 9, 2004, 25% on June 1, 2004, and on the next anniversary                thereof               |   | June                1, 2011       |
| 1,000                options            |   | $                4.275            |   | 25%                on May 9, 2004, 25% on June 1, 2004, and on each of the next two                anniversaries thereof |   | June                1, 2012       |
| 3,500                options            |   | $12.71                            |   | 25%                on June 1, 2004, and on each of the next three anniversaries thereof                                  |   | June                1, 2013       |

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