Daywork Drilling Contract




 Exhibit 10.21 
 NOTE. This form contract is a suggested guide only and use of this form or any variation thereof shall be at the sole discretion and risk of the user parties. Users of the form contract or any portion or variation thereof are encouraged to
seek the advice of counsel to ensure that their contract reflects the complete agreement of the parties and applicable law. The International Association of Drilling Contractors disclaims any liability whatsoever for loss or damages which may result
from use of the form contract or portions or variations thereof Computer generated form, reproduced under license from IADC. 
 Revised April, 2003 
  

					
		 	

	  	 INTERNATIONAL ASSOCIATION OF DRILLING CONTRACTORS
 DRILLING BID PROPOSAL
 AND
 DAYWORK DRILLING CONTRACT - U.S.


 TO: Windsor Energy Group, LLC 
 Please submit bid on this drilling contract form for performing the work outlined below, upon the terms and for the consideration set forth, with the understanding that if the bid is accepted by Windsor Energy Group,
LLC this instrument will constitute a Contract between us. Your bid should be mailed or delivered not later than ___________ P.M. on ________________, 20 ___ to the following address: 14313 North May, Suite 100, Oklahoma City, OK 73134 

THIS CONTRACT CONTAINS PROVISIONS RELATING TO INDEMNITY, 
 RELEASE OF LIABILITY, AND ALLOCATION OF RISK – 
 SEE PARAGRAPHS 4.9, 6.3(c), 10, 12, AND 14

 This Contract is made and entered into on the date hereinafter set forth by and between the parties herein designated as “Operator” and
“Contractor”. 
  

			
	OPERATOR:	  	Windsor Energy Group, LLC
	Address:	  	 14313 N. May, Suite 100
 Oklahoma City, Oklahoma
73134

		
	CONTRACTOR:	  	Bronco Drilling Company, Inc.
	Address:	  	 6601 S.W. 29th
 Oklahoma City, OK 73179


 IN CONSIDERATION of the mutual promises, conditions and agreements herein contained and the specifications and
special provisions set forth in Exhibit “A” and Exhibit “B” attached hereto and made a part hereof (the “Contract”), Operator engages Contractor as an independent contractor to drill the hereinafter designated well or
wells in search of oil or gas on a Daywork Basis. 
 For purposes hereof, the term “Daywork” or “Daywork Basis” means Contractor shall
furnish equipment labor, and perform services as herein provided, for a specified sum per day under the direction, supervision and control of Operator (inclusive of any employee, agent, consultant or subcontractor engaged by Operator to direct
drilling operations). When operating on a Daywork Basis, Contractor shall be fully paid at the applicable rates of payment and assumes only the obligations and liabilities stated herein. Except for such obligations and liabilities specifically
assumed by Contractor, Operator shall be solely responsible and assumes liability for all consequences of operations by both parties while on a Daywork Basis, including results and all other risks or liabilities incurred in or incident to such
operations.  
  

	1.	LOCATION OF WELL: 

 Well Name and Number: Windsor
Energy Group Proposal / Term Contract – Bronco Drilling Rig #4 
 Parish/County: Garfield/Mesa/Weld/Yuma State:
Colorado     Field Name: Rifle (Piceance)         
 Well location and land
description: TO BE DETERMINED BY OPERATOR 
 1.1 Additional Well Locations or Areas: To be specified by operator, but limited to the counties
of Garfield, Mesa, Weld, Yuma 
 Locations described above are for well and Contract identification only and Contractor assumes no liability whatsoever for a
proper survey or location stake on Operator’s lease. 
  

	2.	COMMENCEMENT DATE: 

 Contractor agrees to use
reasonable efforts to commence operations for the drilling of the well by the first of either to occur, the first (1st) day August, 2005, or as soon as Rig #4 is scheduled to move from the Oklahoma City yard to the first (1st) well designated by Windsor Energy. 
  

	3.	DEPTH: 

 3.1 Well Depth: The well(s) shall be
drilled to a depth of approximately 10,000' feet, or to the [To be determined by operator] formation, whichever is deeper, but the Contractor shall not be required hereunder to drill said well(s) below a maximum depth of 13,500' feet,
unless Contractor and Operator mutually agree to drill to a greater depth. 
  

	4.	DAYWORK RATES: 

 Contractor shall be paid at the
following rates for the work performed hereunder. Actual mobilization costs plus 85% of the dayrate from rig release of prior well to spud of following or a mobilization day rate of well SEE SPEC PROV. ITEM 2 
 4.1 Mobilization: Operator shall pay Contractor a mobilization fee of $400,000 or a mobilization day rate of $ N/A per day. This sum shall be due and
payable in full at the time the rig is rigged up or positioned at the well site ready to spud. Mobilization shall include: Move in, Rig Up, and labor (including, all permits, trucking, forklift and cranes). All field moves will be actual
mobilization costs. 
 4.2 Demobilization: Operator shall pay Contractor a demobilization fee of $ Same as 4.1 or a demobilization day rate
during tear down of $ N/A per day, provided however that no demobilization fee shall be payable if the Contract is terminated due to the total loss or destruction of the rig. Demobilization shall Include: Rig down, set out and labor (including all
permits, tracking, forklift and cranes). 
 4.3 Moving Rate: During the time the rig is in transit to or from a drill site, or between drill
sites, commencing on SEE SPEC PROV– Item 1, Operator shall pay Contractor a sum of $ N/A per twenty-four (24) hour day. 
  

					
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 Revised April, 2003 
  

 4.4 Operating Day Rate: For work performed per twenty-four (24) hour day with Five (5) man crew the
operating day rate shall be: 
  

																	
	 Depth Intervals
	  	 	  	 	  	 	  	 	  	 	  	 
	 From
	  	 	  	 To
	  	 Without Drill Pipe
	  	 	  	 With Drill Pipe
	  	 
	 0"
	  		  	T.D.	  	$	  	  16,000.00*
	  	per day	  	$	  	 16,000.00*
	  	per day
	  	  		  	  	  	$	  	  	  	per day	  	$	  	  	  	per day
	  	  		  	  	  	$	  	  	  	per day	  	$	  	  	  	per day

  

							
	Using Operator’s drill pipe $16,000.00* per day.	  	*SEE SPECIAL PROVISIONS—ITEM 2

 The rate will begin when the drilling unit is rigged up at the drilling location, or positioned over the location
during marine work, and ready to commence operations; and will cease when the rig is released after pits are clean and at such time moving rates shall commence. 
 If under the above column “With Drill Pipe” no rates are specified, the rate per twenty-four hour day when drill pipe is in use shall be the applicable rate specified in the column “Without Drill Pipe” plus compensation
for any drill pipe actually used at the rates specified below, computed on the basis of the maximum drill pipe in use at any time during each twenty-four hour day. 
 DRILL PIPE RATE PER 24-HOUR DAY 
  

																								
	 	 	 Straight Hole
	  	 	  	 Size
	  	 	  	 Grade
	  	Directional or
Uncontrollable Deviated Hole	  	 Size
	  	 	  	 Grade

	 $
	 	N/A	  	per ft.	  	  	  		  	  	  	$	 	 	  	  	per ft.	  	  	  		  	  
	 $
	 	  	  	per ft.	  	  	  		  	  	  	$	 	 	  	  	per ft.	  	  	  		  	  
	 $
	 	  	  	per ft.	  	  	  		  	  	  	$	 	 	  	  	per ft.	  	  	  		  	  

 Directional or uncontrolled deviated hole will be deemed to exist when deviation exceeds Ten (10) degrees or when
the change of angle exceeds three (3) degrees per one hundred feet. 
 Drill pipe shall be considered in use not only when in actual use but
also while it is being picked up or laid down. When drill pipe is standing in the derrick, it shall not be considered in use, provided, however, that if Contractor furnishes special strings or drill pipe, drill collars, and handling tools as
provided for in Exhibit “A”, the same shall be considered in use at all times when on location or until released by Operator. In no event shall fractions or an hour be considered in computing the amount of time drill pipe is in use but
such time shall be computed to the nearest hour, with thirty minutes or more being considered a full hour and less than thirty minutes not be counted. 
 4.5 Repair Time: In the event it is necessary to shut down Contractor’s rig for repairs, excluding routine rig servicing, Contractor shall be allowed compensation at the applicable rate for such shut down time up
to a maximum or 4 hours for any one rig repair job, but not to exceed 24 hours of such compensation for any calendar month. Thereafter, Contractor shall be compensated at a rate of $ - 0- per twenty-four (24) hour day. Routine rig servicing
shall include, but not be limited to, cutting and slipping drilling line, changing pump or swivel expondables, testing BOP equipment, lubricating rig, and normal and customary rig maintenance. 
 4.6 Standby Time Rate: $16,000* per twenty-four (24) day. Standby time shall be defined to include time when the rig is shut down although in roadiness
to begin or resume operations but Contractor is waiting on orders of Operator or on materials, services or other items to be furnished by Operator. 
 4.7 Drilling Fluid Rates: When drilling fluids of a type and characteristic that increases Contractor’s cost of performance hereunder, including, but not limited to, oil-based mud or potassium chloride, are in use, Operator shall pay
Contractor in addition to the operating rate specified above: (SEE SPEC PROV—ITEM 2) 
  

	 	(a)	$20.00 per man per day for Contractor’s rig-site personnel. (including but not limited to Tool pusher) 

  

	 	(b)	$250.00 per day additional operating rate; and 

  

	 	(c)	Cost of all labor, materials and services plus 48 hours operating rate to clean rig and related equipment. 

 
 4.8 Force Majeure Rate: $16,000.00* per twenty-four (24) hour day for any
continuous period that normal operations are suspended or cannot be carried on due to conditions or Force Majeure as defined in Paragraph 17 hereof. It is, however, understood that subject to Subparagraph 6.3 below, Operator can release the rig in
accordance with Operator’s right to direct stoppage of the work, effective when conditions will permit the rig to be moved from the location. 
 4.9 Reimbursable Costs: Operator shall reimburse Contractor for the costs of material, equipment, work or services which are to be furnished by Operator as provided for herein but which for convenience are actually furnished by Contractor
at Operator’s request, plus ten (10) percent for such cost of handling. When, at Operator’s request and with Contractor’s agreement, the Contractor furnishes or subcontracts for certain items or services which Operator is required
herein to provide, for purposes of the Indemnity and release provisions of this Contract, said items or services shall be deemed to be Operator furnished items or services. Any subcontractors so hired shall be deemed to be Operator’s
contractor, and Operator shall not be relieved of any of its liabilities in connection therewith. 
 4.10 Revision In Rates: The rates
and/or payments herein set forth due to Contractor from Operator shall be revised to reflect the change in costs if the costs of any of the items hereinafter listed shall vary by more than five (5) percent from the costs thereof on the date of this
Contract or by the same percent after the date of any revision pursuant to this Subparagraph: 
  

	 	(a)	Labor costs, including all benefits, of Contractor’s personnel; 

  

	 	(b)	Contractor’s costs of Insurance premiums; 

  

	 	(c)	Contractor’s cost of fuel, including all taxes and fees; the cost per gallon/MCF being $NA; 

  

	 	(d)	Contractor’s cost of catering, when applicable; 

  

	 	(e)	If Operator requires Contractor to Increase or decrease the number of Contractor’s personnel; 

  

	 	(f)	Contractor’s cost of spare parts and supplies with the understanding that such spare parts and supplies constitute ten (10) percent of the operating rate and that the parties
shall use the U.S. Bureau of Labor Statistics Oil Field and Gas Field Drilling Machinery Producer Price Index (Series ID WPU119102) to determine to what extent a price variance has occurred in said spare parts and supplies; 


 

	 	(g)	If there is any change in legislation or regulations in the area in which Contractor is working or other unforeseen, unusual event that alters Contractor’s financial burden.


  

	5.	TIME OF PAYMENT 

 Payment is due by Operator to
Contractor as follows: 
 5.1 Payment for mobilization, drilling and other work performed at applicable rates, and all other applicable
charges shall be due, upon presentation of invoice therefore, upon completion of mobilization, demobilization, no release or at the end of the month in which such work was performed or other charges are incurred, whichever shall first occur. All
invoices may be mailed to Operator at the address hereinabove shown, unless Operator does hereby designate that such invoices shall be mailed as follows, as specified by operator _____________. 
 5.2 Disputed Invoices and Late Payment: Operator shall pay all invoices within 30 days after receipt except that if Operator disputes an invoice or any
part thereof, Operator shall, within fifteen days after receipt of the invoice, notify Contractor of the item disputed, specifying the reason therefore, and payment of the disputed item may be withheld until settlement of the dispute, but timely
payment shall be made of any undisputed portion. Any sums (including amounts ultimately paid with respect to a disputed invoice) not paid within the above specified days shall bear interest at the rate of 1.5 percent or the maximum legal rate,
whichever is less, per month from the due date until paid. If Operator does not pay undisputed items within the above stated time, Contractor may suspend operations or terminate this Contract as specified under Subparagraph 6.3. 
  


					
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 Revised April, 2003 
  


	6.	TERM: 

 6.1 Duration of Contract: This Contract
shall remain in full force and effect until drilling operations are completed on the well or wells specified in Paragraph 1 above, or for a term of seventeen (17) months
                    , commencing on the date specified in Paragraph 2 above. 
 6.2 Extension of Term: Operator may extend the term of this Contract for NA well(s) or for a period of NA by giving notice to Contractor at least
     days prior to completion of the well then being drilled or by
                                        
                     
 6.3 Early
Termination: 
 (a) By Either Party: Upon giving of written notice, either party may terminate this Contract when total loss or destruction
of the rig, or a major breakdown with indefinite repair time necessitate stopping operations hereunder 
 (b) By Operator: Notwithstanding
the provisions of Paragraph 3 with respect to the depth to be drilled. Operator shall have the right to direct the stoppage of the work to be performed by Contractor hereunder at any time prior to reaching the specified depth, and even though
Contractor has made no default hereunder. In such event, Operator shall reimburse Contractor as set forth in Subparagraph 6.4 hereof. 
 (c)
By Contractor: Notwithstanding the provisions of Paragraph 3 with respect to the depth to be drilled, in the event Operator shall become insolvent, or be adjudicated a bankrupt, or file, by way of petition or answer, a debtor’s petition or
other pleading seeking adjustment of Operator’s debts, under any bankruptcy or debtor’s relief laws now or hereafter prevailing, or if any such be filed against Operator, or in case a receiver be appointed of Operator or Operator’s
property, or any part thereof, or Operator’s affairs be placed in the hands of a Creditor’s Committee, or, following three business days prior written notice to Operator if Operator does not pay Contractor within the time specified in
Subparagraph 5.2 all undisputed items due and owing, Contractor may, at its option, (1) elect to terminate further performance of any work under this Contract and Contractor’s right to compensation shall be as set forth in Subparagraph 6.4
hereof, or (2) suspend operations until payments is made by Operator in which event the standby time rate contained in Subparagraph 4.6 shall apply until payment is made by Operator and operations are resumed. In addition to Contractor’s
rights to suspend operations or terminate performance under this Paragraph, Operator hereby expressly agrees to protect, defend and indemnify Contractor from and against any claims, demands and causes of action, including all costs of defense, in
favor of Operator, Operator’s co-ventures, co-lessees and joint owners, or any other parties arising out of any drilling commitments or obligations contained in any loose, farmout agreement or other agreement, which may be affected by such
suspension of operations or termination of performance hereunder. 
 6.4 Early Termination Compensation: 
 (a) Prior to Commencement: In the event Operator terminates this Contract prior to commencement of Operations hereunder, Operator shall pay Contractor as
liquidated damages and not as a penalty a sum equal to $4,080,000.00. 
 (b) Prior to Spudding: If such termination occurs after commencement
of operations but prior to the spudding of the well, Operator shall pay to Contractor as liquidated damages and not as a penalty the lump sum calculated by taking the number of calendar days remaining on the contract term (the difference in
calendar days between the date of termination and seventeen (17) months from the date specified in Paragraph Number 2) multiplied by $8,000.00. This provision is the complete understanding and agreement of the parties and supersedes and merges
all prior written or oral communications regarding the subject matter hereof (see item 4). 
 (c) Subsequent to spudding: If such termination
occurs after the spudding of the well, Operator shall pay Contractor as liquidated damages and not as a penalty the lump sum calculated by taking the number of calendar days remaining on the contract term (the difference in calendar days between
the date of termination and seventeen (17) months from the date specified in Paragraph Number 2) multiplied by $8,000.00. This provision is the complete understanding and agreement of the parties and supersedes and merges all prior written or
oral communications regarding the subject matter hereof (see item 4). 
  

	7.	CASING PROGRAM 

 Operator shall have the right to
designate the points at which casing will be set and the manner of setting, cementing and testing. Operator may modify the casing program, however, any such modification which materially increases Contractor’s hazards or costs can only be made
by mutual consent of Operator and Contractor and upon agreement as to the additional compensation to be paid Contractor as a result thereof. 
  

	8.	DRILLING METHODS AND PRACTICES: 

 8.1 Contractor
shall maintain well control equipment in good condition at all times and shall use all reasonable means to prevent and control fires and blowouts and to protect the hole. 
 8.2 Subject to the terms hereof, and at Operator’s cost, at all times during the drilling of the well, Operator shall have the right to control the mud program, and the drilling fluid must be of a type and have
characteristics and be maintained by Contractor in accordance with the specifications shown in Exhibit “A”. 
 8.3 Each party
hereto agrees to comply with all laws, rules, and regulations of any federal, state or local governmental authority which are now or may become applicable to that party’s operations covered by or arising out of the performance of this Contract.
When required by law, the terms of Exhibit “B” shall apply to this Contract. In the event any provision of this Contract is inconsistent with or contrary to any applicable federal, state or local law, rule or regulation, said provision
shall be deemed to be modified to the extent required to comply with said law, rule or regulation, and as so modified said provision and this Contract shall continue in full force and effect. 
 8.4 Contractor shall keep and furnish to Operator an accurate record of the work performed and formations drilled on the IADC-API Daily Drilling Report
Form or other form acceptable to Operator. A legible copy of said form shall be furnished by Contractor to Operator. 
 8.5 If requested by
Operator, Contractor shall furnish Operator with a copy of delivery tickets covering any material or supplies provided by Operator and received by Contractor. 
  

	9.	INGRESS, EGRESS, AND LOCATION: 

 Operator hereby
assigns to Contractor all necessary rights of ingress and egress with respect to the fact on which the well is to be located for the performance by Contractor of all work contemplated by this Contract. Should Contractor be denied free access to the
location for any reason not reasonably within Contractor’s control, any time lost by Contractor as a result of such denial shall be paid for at the standby time rate. Operator agrees at all times to maintain the road and location in such a
condition that will allow free access and movement to and from the drilling site in an ordinarily equipped highway type vehicle. If Contractor is required to use bulldozers, tractors, four-wheel drive vehicles, or any other specialized
transportation equipment for the movement of necessary personnel, machinery, or equipment over access roads or on the drilling location, Operator shall furnish the same at its expense and without cost to Contractor. The actual cost of repairs to any
transportation equipment furnished by Contractor or its personnel damaged as a result of improperly maintained access roads or location will be charged to Operator. Operator shall reimburse Contractor for all amounts reasonably expended by
Contractor for repairs and/or reinforcement of roads, bridges and related or similar facilities (public and private) required as a direct result of a rig move pursuant to performance hereunder. Operator shall be responsible for any costs associated
with leveling the rig because of location setting. 
  


					
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 Revised April, 2003 
  


	10.	SOUND LOCATION: 

 Operator shall prepare a sound
location adequate in size and capable of property supporting the drilling rig, and shall be responsible for a casing and cementing program adequate to prevent soil and subsoil wash out it is recognized that Operator has superior knowledge of the
location and access routes to the location, and must advice Contractor of any subsurface conditions, or obstructions (including, but not limited to, mines, caverns, sink holes, streams, pipelines, power lines and communication lines) which
Contractor might encounter while on route to the location or during operations hereunder. In the event subsurface conditions cause a cratering or shifting of the location surface, or if seabed conditions prove unsatisfactory to property support
the rig during marino operations hereunder, and loss or damage to the rig or its associated equipment results therefrom, Operator shall, without regard to other provisions of this Contract, Including Subparagraph 14.1 hereof, reimburse Contractor
for all such loss or damage including removal of debris and payment of Force Majeure Rate during repair and/or demobilization if applicable. 
  

	11.	EQUIPMENT CAPACITY 

 Operations shall not be
attempted under any conditions which exceed the capacity of the equipment specified to be used hereunder or where canal or water depths are in excess of N/A feet. Without prejudice to the provisions of Paragraph 14 hereunder, Contractor shall have
the right to make the final decision as to when an operation or attempted operation would exceed the capacity of specified equipment. 
  

	12.	TERMINATION OF LOCATION LIABILITY: 

 When
Contractor has concluded operations at the well location, Operator shall thereafter be liable for damage to property, personal injury or death of any person which occurs as a result of conditions of the location and Contractor shall be relieved of
such liability; provided, however, If Contractor shall subsequently reenter upon the location for any reason, including removal of the rig, any term of the Contract relating to such reentry activity shall become applicable during such period.

  

	13.	INSURANCE 

 During the life of this Contract,
Contractor shall at Contractor’s expense maintain, with an insurance company or companies authorized to do business in the state where the work is to be performed or through a self-insurance program, insurance coverages of the kind and in the
amount set forth in Exhibit “A”. Insuring the liabilities specifically assumed by Contractor in Paragraph 14 of this Contract Contractor shall procure from the company or companies writing said insurance a certificate of certificates that
said insurance is in full force and effect and that the same shall not be canceled or materially changed without ten (10) days prior written notice to Operator. For liabilities assumed hereunder by Contractor, its Insurance shall be endorsed to
provide that the underwriters waive their right of subrogation against Operator. Operator will, as well, cause its insurer to waive subrogation against Contractor for liability it assumes and shall maintain, at Operator’s expense, or shall self
insure, insurance coverage as set forth in Exhibit “A” of the same kind in the same amount as is required of Contractor, insuring the liabilities specifically assumed by Operator in Paragraph 14 of this Contract. Operator shall procure
from the company or companies writing said insurance a certificate or certificates that said insurance is in full force and effect and that the same shall not be canceled or materially changed without ten (10) days prior written notice to Contractor
Operator and Contractor shall cause their respective underwriters to name the other additionally insured but only to the extend of the indemnification obligations assumed herein. 
  

	14.	RESPONSIBILITY FOR LOSS OR DAMAGE, INDEMNITY, RELEASE OF LIABILITY AND ALLOCATION OF RISK: 

 14.1 Contractor’s Surface Equipment: Contractor shall assume liability at all times for damage to or destruction of Contractor’s surface
equipment, regardless of when or how such damage or destruction occurs, and Contractor shall release Operator of any liability of any such loss, except loss or damage under the provisions of Paragraph 10 or Subparagraph 14.3. 
 14.2 Contractor’s In-Hole Equipment: Except in the case of Contractor’s willful misconduct, Operator shall assume liability at all times for
damage to or destruction of Contractor’s in-hole equipment, including, but not limited to, drill pipe, drill collars, and tool joints, and Operator shall reimburse Contractor for the value of any such loss or damage; the value to be determined
by agreement between Contractor and Operator as current repair cost or 100 percent of current replacement cost of such equipment delivered to the well site. 
 14.3 Contractor’s Equipment - Environmental Loss or Damage: Notwithstanding the provisions of Subparagraph 14.1 above, Operator shall assume liability at all times for damage to or destruction of
Contractor’s equipment resulting from the presence of H2S, CO2, or other corrosive elements that enter the drilling fluids from subsurface formations or the use of corrosive, destructive or abrasive additives in the
drilling fluids. 
 14.4 Operator’s Equipment: Operator shall assume liability at all times for damage to or destruction
of Operator’s or its co-venturers’, co-lessees’ or joint owners’ equipment, including, but not limited to, casing, tubing, well head equipment, and platform if applicable, regardless of when or how such damage or destruction
occurs, and Operator shall release Contractor of any liability for any such loss or damage. 
 14.5 The Hole: In the event the hole
should be lost or damaged, Operator shall be solely responsible for such damage to or loss of the hole, including the casing therein, Operator shall release Contractor and its suppliers, contractors and subcontractors of any tier of any liability
for damage to or loss of the hole, and shall protect, defend and indemnify Contractor and its suppliers, contractors and subcontractors of any tier from and against any and all claims, liability and expense relating to such damage to or loss of the
hole. 
 14.6 Underground Damage: Operator shall release Contractor and its supplier, contractors and subcontractors of any tier of
any liability for, and shall protect, defend and indemnify Contractor and its suppliers, contractors and subcontractors of any tier from and against any and all claims, liability, and expense resulting from operations under this Contract on account
of Injury to, destruction of, or loss or Impairment of any property right in or to oil, gas, or other mineral substance or water, if at the time of the act or omission causing such injury, destruction, loss or impairment, said substance had not been
reduced to physical possession above the surface of the earth, and for any loss or damage to any formation, strata, or reservoir beneath the surface of the earth. 
 14.7 Inspection of Materials Furnished by Operator: Contractor agrees to visually inspect all materials furnished by Operator before using same and to notify Operator of any apparent defects therein. Contractor
shall not be liable for any loss or damage resulting from the use of materials furnished by Operator, and Operator shall release Contractor from, and shall protect, defend and indemnify Contractor from and against, any such liability.

 14.8 Contractor’s Indemnification of Operator: Contractor shall release Operator of any liability for, and shall protect,
defend and indemnify Operator from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party or parties, arising in connection
herewith in favor of contractor’s employees or Contractor’s subcontractors of any tier (inclusive of any agent or consultant engaged by Contractor) or their employees, or Contractor’s Invitees, on account of body injury, death or
damage to property, Contractor’s indemnity under this Paragraph shall be without regard to and without any right to contribution from any Insurance maintained by Operator pursuant to Paragraph 13. If it is judicially determined that the
monetary limits of insurance required hereunder or of the Indemnities voluntary assumed under Subparagraph 14.8 (which Contractor and Operator hereby agree will be supported either by available liability insurance, under which the insurer has no
right of subrogation against the indemnities, or voluntarily self-insured, in part or whole) exceed the maximum limits permitted under applicable law, it is agreed that said insurance requirement or indemnities shall automatically be amended to
conform to the maximum monetary limits permitted under such law. This sub paragraph is not meant to replace the provisions of sub paragraphs 14.1 through 14.7 and 14.10 through 14.13. 
  


					
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 Revised April, 2003 
  

 14.9 Operator’s Indemnification of Contractor: Operator shall release Contractor of any
liability for, and shall protect, defend and Indemnify Contractor from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party
or parties, arising in connection herewith in favor of Operator’s employees or Operator’s contractors of any tier (inclusive of any agent, consultant or subcontractor engaged by Operator) or their employees, or Operator’s invitees,
other than those parties identified in Subparagraph 14.8 on account of body injury, death or damage to property. Operator’s indemnity under this Paragraph shall be without regard to and without any right to contribution from any insurance
maintained by Contractor pursuant to Paragraph 13. If it is judicially determined that the monetary limits of insurance required hereunder or of the indemnities voluntary assumed under Subparagraph 14.9 (which Contractor and Operator hereby agree
will be supported either by available liability insurance, under which the insurer has no right of subrogation against the Indemnities, or voluntarily self-insured, In part or whole) exceed the maximum limits permitted under applicable law, it is
agreed that said insurance requirements or indemnities shall automatically be amended to conform to the maximum monetary limits permitted under such law. This sub paragraph is not meant to replace the provisions of sub paragraphs 14.1 through 14.7
and 14.10 through 14.13. 
 14.10 Liability for Wild Well: Operator shall be liable for the cost of regaining control of any wild
well, as well as for cost of removal of any debts and cost of property remediation and restoration, and Operator shall release, protect, defend and indemnify Contractor and its suppliers, contractors and subcontractors of any tier from and against
any liability for such cost. 
 14.11 Pollution or Contamination: Notwithstanding anything to the contrary contained herein, except
the provisions of Paragraphs 10 and 12, it is understood and agreed by and between Contractor and Operator that the responsibility for pollution or contamination shall be as follows: 
 (a) Contractor shall assume all responsibility for, including control and removal of, and shall protect, defend and indemnify Operator from and
against all claims, demands and causes of action of every kind and character arising from pollution or contamination, which originates above the surface of the land or water from spills of fuels, lubricants, motor oil, pipe dope, paints, solvents,
ballast, bilge and garbage except unavoidable pollution from the reserve pits, wholly in Contractor’s possession and control and directly associated with Contractor’s equipment and facilities. 
 (b) Operator shall assume all responsibility for, including control and removal of, and shall protect, defend and indemnify Contractor and its
suppliers, contractors and subcontractors of any tier from and against all claims, demands, and causes of action or every kind and character arising directly or indirectly from all other pollution or contamination which may occur during the conduct
of operations hereunder, including, but not limited to, that which may result from fire, blowout, cratering, seepage or any other uncontrolled flow of oil, gas, water other substance, as well as the use or disposition of all drilling fluids,
including, but not limited to, all emulsion, oil base or chemically treated drilling fluids, contaminated cuttings or cavings, lost circulation and fish recovery materials and fluids. Operator shall release Contractor and its suppliers, contractors
and subcontractors of any tier of any liability for the foregoing. 
 (c) In the event a third party commits an act or omission which
results in pollution or contamination for which either Contractor and Operator, for whom such party is performing work, is held to be legally liable, the responsibility therefore shall be considered, as between Contractor and Operator, to be the
same as if the party for whom the work was performed had performed the same and all of the obligations respecting protection, defense, indemnity and limitation of responsibility and liability, as set forth in (a) and (b) above, shall be specifically
applied. 
 14.12 Consequential Damages: Subject to and without effecting the provisions of this Contract regarding the payment rights
and obligations of the parties or the risk of loss, release and indemnity rights and obligations of the parties, each party shall at all times be responsible for and hold harmless and indemnify the other party from and against its own special,
indirect or consequential damages, and the parties agree that special, indirect and consequential damages shall be deemed to include, without limitation, the following: loss of profit or revenue; costs and expenses resulting from business
interruptions; loss of or delay in production; loss of or damage to the leasehold; loss of or delay in drilling or operating rights; cost of or loss of use of property, equipment, materials and services, including without limitation those provided
by contractors or subcontractors of every tier or by third parties. Operator shall at all times be responsible for and hold harmless and indemnify Contractor and its suppliers, contractors and subcontractors of any tier from and against all claims,
demands and causes of action of every kind and character in connection with such special, indirect or consequential damages suffered by Operator’s co-owners, co-venturers, co-lessees, farmers, farmees, partners and joint owners. 


 14.13 Indemnity Obligation: Except as otherwise expressly limited in this
Contract, it is the intent of parties hereto that all releases, Indemnity obligations and/or liabilities assumed by such parties under terms of this Contract, including, without limitation, Subparagraphs 4.9 and 6.3(c), Paragraphs 10 and 12, and
Subparagraphs 14.1 through 14.12 hereof, be without limit and without regard to the cause or causes thereof, including, but not limited to, pre-existing conditions, defect or ruin of premises or equipment, strict liability, regulatory or statutory
liability, products liability, breach of representation or warranty (express or implied), breach of duty (whether statutory, contractual or otherwise) any theory of tort, breach of contract, fault the negligence of any degree or character
(regardless of whether such negligence is sole, joint or concurrent, active, passive or gross) of any party or parties, including the party seeking the benefit of the release, indemnity or assumption of liability, or any other theory of legal
liability. The indemnities, and releases and assumptions of liability extended by the parties hereto under the provisions of Subparagraphs 4.9 and 6.3 and Paragraphs 10, 12 and 14 shall inure to the benefit of such parties, their co-venturers,
co-lessees, joint owners, their parent, holding and affiliated companies and the officers, directors, stockholders, partners, managers, representatives, employees, consultants, agents, servants and insurers of each. Except as otherwise provided
herein, such indemnification and assumptions of liability shall not be deemed to create any rights to indemnification in any person or entity not a party to this Contract, either as a third party beneficiary or by reason of any agreement of
indemnity between one of the parties hereto and another person or entity not a party of this Contract. 
  

	15.	AUDIT 

 If any payment provided for hereunder is
made on the basis of Contractor’s costs, Operator shall have the right to audit Contractor’s books and records relating to such costs. Contractor agrees to maintain such books and records for a period of two (2) years from the date such
costs were incurred and to make such books and records readily available to Operator at any reasonable time or times within the period. 
  

	16.	NO WAIVER EXCEPT IN WRITING 

 It is fully understood
and agreed that none of the requirements of this Contract shall be considered as waived by either party unless the same is done in writing, and then only by the persons executing this Contract or other duly authorized agent or representative of the
party. 
  

	17.	FORCE MAJEURE 

 Except as provided in this Paragraph
17 and without prejudice to the risk of loss, release and indemnity obligations under this Contract, each party of this Contract shall be excused from complying with the terms of this Contract, except for the payment of monies when due, if and for
so long as such compliance is hindered or prevented by a Force Majeure Event As used in this Contract, “Force Majeure Event” includes: acts of God, action of the elements, wars (declared or undeclared), insurrection, revolution, rebellions
or civil strife, piracy, civil war or hostile action, terrorist acts, riots, strikes, differences with workmen, acts of public enemies, federal or state laws, rules, regulations dispositions or orders of any governmental authorities having
jurisdiction in the premises or of any other group, organization or informal association (whether or not formally recognized as a government), inability to procure material, equipment, fuel or necessary labor in the open market, acute and unusual
labor or material, equipment or fuel shortages, or any other causes (except financial) beyond the control of either party. Neither Operator nor Contractor shall be required against its will to adjust any labor or similar disputes except accordance
with applicable law in the event that either party hereto is rendered unable, wholly or in party, by 

  


					
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 Revised April, 2003 
  

 
any of these causes to carry out its obligation under this Contract, It is agreed that such party shall give notice and details of Force Majeure in writing
to the order party as promptly as possible after its occurrence. In such cases, the obligation of the party giving the notice shall be suspended during the continuance of any inability so caused except that Operator shall be obligated to pay to
Contractor the Force Majeure Rate provided for in Subparagraph 4.8 above. 
  

	18.	GOVERNING LAW: 

 This Contract shall be construed,
governed, Interpreted, enforced and litigated, and the relations between the parties determined in accordance with the laws of State of Oklahoma. 
  

	19.	INFORMATION CONFIDENTIAL: 

 Upon written request by
Operator, Information obtained by Contractor in the conduct of drilling operations on this well, including, but not limited, to depth, formation penetrated, the result of coring, testing and surveying, shall be considered confidential and shall not
be divulged by Contractor or its employees, to any person, firm, or corporation other than Operator’s designated representatives. 
  

	20.	SUBCONTRACTS: 

 Either party may employ other
contractors to perform any of the operations or services to be provided or performed by it according to Exhibit “A”. 
  

	21.	ATTORNEY’S FEES 

 If this Contract is placed in
the hands of an attorney for collection of any sums or the performance of any services due hereunder, or suit is brought on same, or sums due hereunder are collected through bankruptcy or arbitration proceedings, then the prevailing party shall be
entitled to recover reasonable attorney’s fees and costs. 
  

	22.	CLAIMS AND LIENS: 

 Contractor agrees to pay all
valid claims for labor, material, services, and supplies to be furnished by Contractor hereunder, and agrees to allow no lien by such third parties to be fixed upon the lease, the well, or other property of the Operator or the land upon which said
well is located. 
  

	23.	ASSIGNMENT: 

 Neither party may assign this Contract
without the prior written consent of the other, which shall not be unreasonably withheld, and prompt notice of any such intent to assign shall be given to the other party. In the event of such assignment, the assigning party shall remain liable to
the other party as a guarantor of the performance by the assignee of the terms of this Contract. Assignee Shall be required to enter into a contract containing the same terms as this contract, or which is otherwise satisfactory to the non-assigning
party to the contract. 
  
  

	24.	NOTICES AND PLACE OF PAYMENT: 

 Notices, reports,
and other communications required or permitted by this Contract to be given or sent by one party to the other shall be delivered by hand, mailed, digitally transmitted or telecopied to the address hereinabove shown. All sums payable hereunder to
Contractor shall be payable at its address hereinabove shown unless otherwise specified herein. 
  

	25.	CONTINUING OBLIGATIONS: 

 Notwithstanding the
termination of this Contract, the parties shall continue to be bound by the provisions of this Contract that reasonably require some action or forbearance after such termination. 
  

	26.	ENTIRE AGREEMENT: 

 This Contract constitutes the
full understanding of the parties, and a complete and exclusive statement of the terms of their agreement, and shall exclusively control and govern all work performed hereunder. All representations, offers, and undertakings of the parties made prior
to the effective date hereof, whether oral or in writing, are merged herein, and no other contracts, agreements or work orders, executed prior to the execution of this Contract, shall in any way modify, amend, alter or change any of the terms or
conditions set out herein. 
  

	27.	SPECIAL PROVISIONS: 

  

	ITEM 1	Operator agrees to pay actual mobilization costs plus operating day rate while moving rigging up, rigging down, waiting on location, trucks, or that does not rise to the level of
a force majeure event. 

  

	ITEM 2	Day rate will be $17,000.00 per day effective January 1, 2006. 

  

	ITEM 3	A fee of $500.00 per day will be charged when boiler is in use. 

  

	ITEM 4	*(See Below). 

 ACCEPTANCE OF CONTRACT:

 The foregoing Contract, including the provision relating to indemnity, release of liability and allocation of risk of Subparagraphs
4.9 and 6.3(c), Paragraph 10 and 12, and Subparagraphs 14.1 through 14.13, is acknowledged, agreed to and accepted by Operator this      day of
                    ,20    . 
  

			
		
	 OPERATOR:
	 	 Windsor Energy Group, LLC

		
	By:	 	 /s/ Michael P. Cross

	Title:	 	 CEO



 The foregoing Contract, including the provisions relating to indemnity, release of
liability and allocation of risk of Subparagraphs 4.9, 6.3(c) Paragraphs 10 and 12, and Subparagraphs 14.1 through 14.13, is acknowledged, agreed to and accepted by Contractor this 20th day of July, 2005, which is the effective date of this
Contract, subject to rig availability, and subject to all its terms and provisions, with the understanding that it will not be binding upon Operator until Operator has noted its acceptance, and with the further understanding that unless said
Contract is thus executed by Operator within 10 days of the above date Contractor shall be in no manner bound by its signature thereto. 
  

			
		
	 CONTRACTOR:
	 	 Bronco Drilling Company, Inc.

		
	By:	 	 /s/ Frank Harrison

	Title:	 	Frank Harrison-CEO


  

	ITEM 4	Windsor agrees to reimburse Bronco for modification costs requested by Windsor and in conjunction with this contract. 

  
  


					
		 	(U.S. Daywork Contract - Page 6)	  	Form provided by Forms On-A-Disk
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 Revised April, 2003 
  

 EXHIBIT “A” 
 To Daywork Contract dated July 20, 2005              
 Operator Windsor Energy Group, LLC; Contractor Bronco Drilling Company, Inc. 
 Well Name and Number TO BE DETERMINED BY OPERATOR AND SPECIFIED BY
INDIVIDUAL LETTER AGREEMENT FOR EACH WELL 
 SPECIFICATIONS AND SPECIAL PROVISIONS 
  

	1.	CASING PROGRAM (See Paragraph 7) To be determined by Operator. 

  

																							
	  	  	 Hole
 Size
	  	 	  	 Casing
 Size
	  	 	  	Weight	  	 	  	Grade	  	 Approximation
 Setting Depth
	  	 	  	 Wait on Cement
 Time
	  	 
	Conductor	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	Surface	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	Protection	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
		  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	Production	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	Liner	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs
	____________	  	__________	  	in.	  	__________	  	in.	  	__________	  	lbs/ft.	  	__________	  	__________	  	ft.	  	__________	  	hrs

  

	2.	MUD CONTROL PROGRAM (See Subparagraph 8.2) To be determined by Operator. 

  

											
	 Depth Interval
 (ft)
	  	 	  	 	  	 	  	 
	 From
	  	To	  	Type Mud	  	 Weight
 (lbs./gal.)
	  	 Viscosity
 (Secs)
	  	 Water Loss
 (cc)

	__________________	  	________________	  	________________	  	________________	  	________________	  	________________
	__________________	  	________________	  	________________	  	________________	  	________________	  	________________
	__________________	  	________________	  	________________	  	________________	  	________________	  	________________
	__________________	  	________________	  	________________	  	________________	  	________________	  	________________
	__________________	  	________________	  	________________	  	________________	  	________________	  	________________

  

			
	 Other mud specifications:
	  	  
	  
	  
	  
	  

  

	3.	INSURANCE (See Paragraph 13) Certificates on file with Operator. 

 3.1 Adequate Workers’ Compensation Insurance complying with State Laws applicable or Employers’ Liability Insurance with limits of
$                     covering all of Contractor’s employees working under this Contract. 
 3.2 Commercial (or Comprehensive) General Liability Insurance, including contractual obligations as respects this Contract and proper coverage for all
other obligations assumed in this Contract. The limit shall be $                     combined single limit per occurrence for Bodily Injury
and Property Damage. 
 3.3 Automobile Public Library Insurance with limits of
$                     for the death or injury of each person and
$                     for each accident; and Automobile Public Liability Property Damage Insurance with limits of
$                     for each accident. 
 3.4 In the event operations are over water, Contractor shall carry in addition to the Statutory Workers’ Compensation Insurance, endorsements covering liability under the Longshoremen’s & Harbor Workers’ Compensation Act
and Maritime liability including maintenance and cure with limits of $                     for each death or injury to one person and
$                     for any one accident. 
  

			
	3.5 Other Insurance:	  	  
	  	  	  
	  	  	  

  

	4.	EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED BY CONTRACTOR: 

 The machinery, equipment, tools, materials, supplies, instruments, services and labor hereinafter listed, including any transportation required for such items, shall be provided at the well location at the expense of
Contractor unless otherwise noted by this Contract. 
 4.1 Drilling Rig - Inventory attached. 
 Complete drilling rig, designated by Contractor at its Rig No #4 the major items of equipment being: 
 Drawworks; Make and Model __________________________________________________________________________________ 
 Engines: Make, Model, and H.P. ________________________________________________________________________________ 
 No. on Rig SEE ATTACHED RIG INVENTORY 
 Pumps: No. 1 Make,
Size, and Power _____________________________________________________________________________ 
              No. 2 Make, Size, and Power _____________________________________________________________________________ 
 Mud Mixing Pump: Make, Size, and Power ________________________________________________________________________ 
 Boilers:
Number, Make, H.P. and W.P. ___________________________________________________________________________ 
 Derrick or Mast: Make, Size, and Capacity
________________________________________________________________________ 
 ___________________________________________________________________________________________________________ 
 Substructure. Size and Capacity
_________________________________________________________________________________ 
 Rotary Drive. Type
___________________________________________________________________________________________ 
 Drill Pipe: Size _________________ in __________________ ft:
Size: __________________________ in __________________ft 
 Drill Collars, Number and Size
__________________________________________________________________________________ 
  


					
		 	(U.S. Daywork Contract - “Exhibit A” - Page 1)	  	Form provided by Forms On-A-Disk
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 Revised April, 2003 
  


			
	Blowout Preventors.	  	  

  

							
	Size	 	Series or Test Pr.	 	Make & Model	 	Number
	____________________	 	____________________	 	____________________	 	____________________
	____________________	 	____________________	 	____________________	 	____________________
	____________________	 	____________________	 	____________________	 	____________________
	____________________	 	____________________	 	____________________	 	____________________
	B.O.P. Closing Unit.	 	  	 	  	 	  
	B.O.P. Accumulator:	 	  	 	  	 	  

 4.2 Derrick timbers. 
 4.3 Normal strings of drill pie and drill collars specified above. 
 4.4 Conventional drift indicator.

 4.5 Circulating mud pits. 
 4.6 Necessary pipe racks and rigging up material. 
 4.7 Normal storage for mud and chemicals. 
 4.8 Shale Shaker. 
 4.9
_________________________________________________________________________________________________ 
 4.10
_________________________________________________________________________________________________ 
 4.11
_________________________________________________________________________________________________ 
 4.12
_________________________________________________________________________________________________ 
 4.13
_________________________________________________________________________________________________ 
 4.14
_________________________________________________________________________________________________ 
 4.15
_________________________________________________________________________________________________ 
 4.16
_________________________________________________________________________________________________ 
 4.17
_________________________________________________________________________________________________ 
  

	5.	EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED BY OPERATOR: 

 The machinery, equipment, tools, materials, supplies, instruments, services and labor hereinafter listed, including any transportation required for such items, shall be provided at the well location at the expense of
Operator unless otherwise noted by this Contract. 
 5.1 Furnish and maintain adequate roadway and/or canal to location, right-of-way,
including rights–of–way for fuel and water lines, river crossings, highway crossings, gates and cattle guards. 
 5.2 Stake
location, clear and grade location, and provide turnaround, including surfacing when necessary. 
 5.3 Test tanks with pipe and fittings.

 5.4 Mud storage tanks with pipe and fittings. 
 5.5 Separator with pipe and fittings. 
 5.6 Labor and materials to connect and disconnect mud tank, test
tank, and mud gas separator. 
 5.7 Labor to disconnect and clean test tanks and mud gas separator. 
 5.8 Drilling mud, chemicals, lost circulation materials and other additives. 
 5.9 Pipe and connections for oil circulating lines. 
 5.10 Labor to lay, bury and recover oil circulating lines. 
 5.11 Drilling bits, reamers, reamer cutters, stabilizers and special
tools. 
 5.12 Contract fishing tool services and tool rental. 
 5.13 Wire line core bits or heads, core barrels and wire line core catchers if required. 
 5.14 Conventional
core bits, core catchers and core barrels. 
 5.15 Diamond core barrel with head. 
 5.16 Cement and cementing service. 
 5.17
Electrical wireline logging services. 
 5.18 Directional, caliper, or other special services. 
 5.19 Gun or jet pertorating services. 
 5.20
Explosives and shooting devices. 
 5.21 Formation testing, hydraulic fracturing, acidizing and other related services. 
 5.22 Equipment for drill stem testing. 
 5.23 Mud logging services. 
 5.24 Sidewall coring service. 
 5.25 Welding service for welding bottom joints of casing, guide shoe, float shoe, float collar and in connection with installing of well head equipment
if required. 
 5.26 Casing, tubing, liners, screen, floats collars, guide and float shoes and associated equipment. 
 5.27 Casing scratchers and centralizers. 
 5.28 Well head connections and all equipment to be installed in or on well or on the premises for use in connection with testing, completion and operation of well. 
 5.29 Special or added storage for mud and chemicals. 
 5.30 Casinghead, API series, to conform to that shown for the blowout Preventors specified in Subparagraph 4.1 above. 
 5.31 Blowout preventor testing packoff and testing services. 
 5.32 Replacement of BOP rubbers, elements and
seals, if required, after initial test. 
 5.33 Casing Thread Protectors and Casing Lubricants. 
 5.34 H2S Training and equipment as necessary or as required by law. 
 5.35 Site specific systems. 
 5.36 Fuel additives and conditioners as required for year round operations
_________________________________________ 
 5.37 All rubber products furnished as required while using an oil based drilling fluid including
all expendables and mud system valves _____________________________________________________________ 
 5.38
_________________________________________________________________________________________________ 
 5.39
_________________________________________________________________________________________________ 
 5.40
_________________________________________________________________________________________________ 
 5.41
_________________________________________________________________________________________________ 
 5.42
_________________________________________________________________________________________________ 
 5.43
_________________________________________________________________________________________________ 
 5.44
_________________________________________________________________________________________________ 
 5.45
_________________________________________________________________________________________________ 
 5.46
_________________________________________________________________________________________________ 
 5.47
_________________________________________________________________________________________________ 
 5.48
_________________________________________________________________________________________________ 
 5.49
_________________________________________________________________________________________________ 
 5.50
_________________________________________________________________________________________________ 
  


					
		 	(U.S. Daywork Contract - “Exhibit A” - Page 2)	  	Form provided by Forms On-A-Disk
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 Revised April, 2003 
  


	6.	EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED BY DESIGNATED PARTY: 

 The machinery, equipment, tools, materials, supplies, instruments, services, and labor listed to as the following numbered items, including any transportation required for such items unless otherwise specified, shall
be provided at the well location and at the expense of the party hereto as designated by an X mark in the appropriate column. 
  

							
	 	 	 	  	 To Be Provided By and
 At The Expense Of

	  	 	 Item
	  	Operator	  	Contractor
	 6.1
	 	 Cellar and Runways
	  	x	  	
	 6.2
	 	 Ditches and Bumps
	  	x	  	
	 6.3
	 	 Fuel (located at Rig - including propane)
	  	x	  	
	 6.4
	 	 Fuel Lines ( length)
	  		  	x
	 6.5
	 	 Water at sources, including required permits
	  	x	  	
	 6.6
	 	 Water well, including required permits
	  	x	  	
	 6.7
	 	 Water lines, including required permits
	  	x	  	
	 6.8
	 	 Water storage tanks 500 bbl capacity
	  		  	x
	 6.9
	 	 Potable water
	  	x	  	
	 6.10
	 	 Labor to operate water well or water pump
	  	x	  	
	 6.11
	 	 Maintenance of water well, if required
	  	x	  	
	 6.12
	 	 Water pump
	  	x	  	
	 6.13
	 	 Fuel or water pump
	  	x	  	
	 6.14
	 	 Mats for engines and boilers, or motors and mud pumps
	  		  	x
	 6.15
	 	 Transportation of Contractor’s property Move in
	  	x	  	
		 	 Move out
	  	x	  	
	 6.16
	 	 Materials for “boxing in” rig and derrick
	  		  	x
	 6.17
	 	 Special strings of drill pipe and drill collars as follows:
 All tubulars not listed on rig inventory
	  	x	  	
	 6.18
	 	 Kelly joints, subs, elevators, tongs, slips and BOP rams for use with special drill pipe
	  	x	  	
	 6.19
	 	 Drill pipe protectors for Kelly joint and each joint of drill pipe running inside of Surface Casing as required, for use with normal strings
of drill pipe
	  	x	  	
	 6.20
	 	 Drill pipe protectors for Kelly joint and drill pipe running inside of Protection Casing
	  	x	  	
	 6.21
	 	 Ratio of penetration recording device Mechanical or Totco EDR as required by contractor
	  		  	x
	 6.22
	 	 Extra labor for running and cementing casing (Casing crews)
	  	x	  	
	 6.23
	 	 Casing tools
	  	x	  	
	 6.24
	 	 Power casing tongs
	  	x	  	
	 6.25
	 	 Laydown and pickup machine
	  	x	  	
	 6.26
	 	 Tubing tools
	  	x	  	
	 6.27
	 	 Power tubing tong
	  	x	  	
	 6.28
	 	 Crow Boats, Number
	  	N/A	  	
	 6.29
	 	 Service Barge
	  	N/A	  	
	 6.30
	 	 Service Tug Boat
	  	N/A	  	
	 6.31
	 	 Rat Hole
	  	x	  	
	 6.32
	 	 Mouse Hole
	  	x	  	
	 6.33
	 	 Reserve Pits
	  	x	  	
	 6.34
	 	 Upper Kelly Cock
	  		  	x
	 6.35
	 	 Lower Kelly Valve
	  		  	x
	 6.36
	 	 Drill Pipe Safety Valve
	  		  	x
	 6.37
	 	 Inside Blowout Preventer
	  		  	x
	 6.38
	 	 Drilling hole for or driving for conductor pipe
	  	x	  	
	 6.39
	 	 Charges, cost of bonds for public roads
	  	x	  	
	 6.40
	 	 Portable Toilet
	  	x	  	
	 6.41
	 	 Trash Recoptacio
	  	x	  	
	 6.42
	 	 Linear Motion Shale Shaker
	  		  	x
	 6.43
	 	 Shale Shaker Screens Operators to provide all shale shaker screens
	  	x	  	
	 6.44
	 	 Mud Cleaner
	  	x	  	
	 6.45
	 	 Mud/Gas Separator
	  	x	  	
	 6.46
	 	 Dosander - Rig Inventory
	  		  	x
	 6.47
	 	 Desilter
	  		  	x
	 6.48
	 	 Degasser
	  		  	x
	 6.49
	 	 Centrifuge
	  	x	  	
	 6.50
	 	 Rotating Head
	  	x	  	
	 6.51
	 	 Rotating Head Rubbers
	  	x	  	
	 6.52
	 	 Hydraulic Adjustable Choke
	  	x	  	
	 6.53
	 	 Pit Volume Totalizer
	  	x	  	
	 6.54
	 	 Communication type MOBILE PHONE ONLY 
	  		  	x
	 6.55
	 	 Forklift, capacity 8000# Overhead Extended Boom
	  	x	  	
	 6.56
	 	 Corrosion Inhibitor for protecting drill string To be specified by Contractor
	  	x	  	
	 6.58
	 		  		  	
	 6.59
	 		  		  	
	 6.60
	 		  		  	
	 6.61
	 		  		  	

 EXHIBIT “B” 
 (See Subparagraph 8.3) 
  


					
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	7	   OTHER PROVISIONS: 

 7.1 Chemical
additives to the mud for preventing oxidation of the drill string and hydrogen sulfide scavenging chemicals to treat the mud or drilling fluids are necessary to remove all traces of H2S and to control oxygen corrosion levels not to exceed 1.5 pounds
per square foot per year to be furnished by Operator. Contractor to specify corrosion company to be used. 
 7.2 Initial inspection of all
drill pipe, drill collars, Kelly, Kelly joint, valves, and subs shall be at CONTRACTOR’S expense. 
 7.3 Subsequent inspections
(including the inspection at the end of the job) of all drill pipe, drill collars, Kelly, Kelly joints, valves, and HWDP shall be at the OPERATOR’S expense. All repairs, replacements and hauling for repairs to restore drill pipe to API Premium
specifications will be at OPERATOR’S expense. 
 7.4 Operator’s representative and Operator’s subcontractors shall support
Contractor’s safety policies and procedures in general and in particular will comply with all Contractor’s personal protective equipment requirements. 
 7.5 Contractor agrees to utilize the mud pumps to 80% of pump efficiency. 










					
	EXHIBIT “B”	 	(See Subparagraph 8.3)	 	Revised April, 2003

  

 The following clauses, when required by law, are incorporated in the Contract by reference as if fully set out:

  

	(1)	The Equal Opportunity Clause prescribed in 41 CFR 60-1.4 

  

	(2)	The Affirmative Action Clause prescribed in 41 CFR 60-250.4 regarding veterans and veterans of Vietnam era. 

  

	(3)	The Affirmative Action Clause for handicapped workers prescribed in 41 CFR 60-741.4 

  

	(4)	The Certification of Compliance with Environmental Laws prescribed in 40 CFR 15.20 

  


					
		 	(U.S. Daywork Contract - “Exhibit B” - Page 4)	  	Form provided by Forms On-A-Disk
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