| Seller: | Shaanxi      Natural Gas Co., Ltd. |
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| Purchaser: | Xi'an      Xilan Natural Gas Co.,Ltd. |

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| 1. | Duration:      From 8 am on December 31, 2007 to 8 am on December 31,    2008. |
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| 2. | Supply:      According to the annual plan of the China Natural Petroleum Corporation      (‘CNPC’) Changqing Natural Gas Company and the distribution plan of the      Shaanxi Development and Reform Commission, the volume of gas in      this contract for the year 2008 will be 25.58 million cubic      meters. |
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| Jan. | Feb. | Mar. | Apr. | May  | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. |
|------|------|------|------|------|------|------|------|------|------|------|------|
| 1.94 | 2.18 | 2.53 | 1.94 | 1.64 | 1.83 | 1.76 | 2.05 | 1.99 | 2.49 | 2.52 | 2.71 |

| 3. | In      order to ensure continuing operation, Party B shall provide the annual gas      usage plan for next year before July 20 2008 and the monthly gas usage      plan before the 20th of each month to Party A in  writing. |
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| 4. | Party      B shall provide timely and accurate market information regarding gas usage      and market development for the efficient and timely communication between      both parties. |
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| 5. | Party      B shall inform Party A of its new users one year in advance. Party B must      obtain approval under Notification No. [2005] 387 by Shaanxi Development      and Reform Commission for natural gas quota. Otherwise, Party A will not      consider the natural gas demand for Party B’s new industrial      users. |
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| 6. | Shaanxi      Natural Gas Supply Contingency Plan No. [2005] 387 shall govern in cases      of gas supply shortage or other emergency, and is attached as exhibit for      this Agreement. |
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| 1. | Selling      price is set according to the relevant documents of Shaanxi Price      Bureau. |
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| 2. | During      the term of this contract, in cases of any price adjustments by regulatory      authorities, the new price shall substitute the price currently agreed by      both parties. |
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|   | 1. | Volume      calculation: |
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|  | (1) | Measurement      standards: the      amount of gas shall be measured by volume, and      in compliance with law of the People's Republic of China's oil and gas      industry standard SY/T6143-2004. |
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|  | (2) | Measurement      condition: the standard temperature to measure the      volume of gas is 293.15K (20 degrees Celsius) with pressure 101.325 Pa (1      standard atmospheric pressure). |
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|   | 2. | Gas      handover |
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|  | (1) | Shall      be in accordance with the calculation standards of Party A’s Lintong      distribution station, it will be monitored by Party B,  and      Party A is responsible for the operation of the measuring      instruments. |
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|  | (2) | Party      A shall provide receipt daily in five copies. After recording and signing      by both parties, these copies will be deemed as proof of      settlement. |
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|  | (3) | At      8 o 'clock every morning, Party B will assign staff to record volume of      gas with Party A’s staff at the Lintongstation. |
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|   | 3. | Maintenance      of measuring instruments |
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|   | 4. | Dispute      Resolution for Measuring |
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|  | (1) | In      the process of gas supply, if      Party B has objection to Party A relating to the volume of metrological      instrument measuring, it shall inform Party A in written within three      days, and invite professionals in the Shaanxi Scientific Research      Institute to perform metrological measurement. Party B shall cooperate      with Party A. If      instrument measuring data are incorrect, Party A shall amend the record on      the day when dispute arises and be liable for the expenses otherwise Party      B will be liable for the assessmentexpenses. |
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|  | (2) | For      disputes between the parties, settlement will be in accordance with Party      A's calculation standards. The amended figures after negotiation will be      used in the settlement calculation, where overpaid/underpaid amount will      be settled. |
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|   | 1. | Settlement      time |
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|   | 2. | The      settlement: According      to the People's Republic of China’s present interim measures for the      administration of gas supply:  ‘For the settlement of supply      settlement, the measurement by the seller shall prevail’. Each day, the      "Invoice for the supply and purchase of gas" as signed by the designated      staff of each party will be the proof of settlement for the supply of      natural gas. |
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|   | 3. | Payment      option |
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|  |   | Party      B shall adopt bank transfer and check      transfer methods etc. Party      B shall send or fax a copy of the receipt to Party A after payment is      made. |
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|   | 1. | Under      normal circumstances, Party A shall be in strict compliance with the plan      for continuous gas supply. Party A cannot automatically suspend the      supply. |
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|   | 2. | For      repair and maintenance of the gas pipelines, it will require a temporary      suspension of the gas supply. Party A shall inform Party B 24 hours in      advance; for sudden failure leading to immediate suspension of supply,      Party A shall inform Party B immediately. After suspension of supply,      Party A shall fix and provide gas supply as soon as    possible. |
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|   | 3. | Party      A shall provide written notice to Party B five days in advance when gas      supply is suspended for overhaulmaintenance. |
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|   | 4. | If      Party B reasonably requests to suspend gas supply, Party A shall      immediately contact the upstream units for volume adjustment and prepare      for the termination of the gas supply, and      accordingly inform Party B. |
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|   | 1. | If      Party B is unable to perform the contract in the following circumstances,      it will be deemed as a breach of the contractand Party B will be liable to compensate the losses caused to the      other      party: |
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|  | (1) | Under      normal circumstances, Party B shall be in strict compliance with the      target for continuous gas usage. |
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|  | (2) | When      Party B intends to terminate gas usage, Party B shall inform Party A 24      hours in advance so that Party A can perform all the necessary preparation      works for the suspension of gas supply. Party B can only shut down the      valves after receiving replied from Party A. For sudden failure causing      suspension of gas supply, Party B shall inform Party A immediately. Party      B shall fix and ensure gas usage as soon as  possible. |
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|  | (3) | Party      B shall provide written notice to Party A five days in advance when gas      supply is suspended for overhaulmaintenance. |
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|  | (4) | If      Party A reasonably requests to suspend supply, Party B shall cooperate      with and reply Party B immediately. |
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|   | 2. | If      Party B fails to settle the payments on time, besides paying money      according to the daily amount, from the second day of the deferred      payment, Party B shall pay 0.3% of accounts payable per day as the      penalty. If Party B delays the payment for more than 5 days, Party A may      reduce the quantity of daily gas supply, and may not guarantee minimum      supplies, all of the consequential losses shall be borne by Party      B. |
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|   | 1. | For      disputes arising between the parties, both parties shall make their best      effort to negotiate. If the dispute cannot be resolved, either party can      pursue the first resolution set forth asfollow: |
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|   | (1) | Apply      to the Xi'an arbitrationcommission; |
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|   | (2) | Proceed      with legal proceedings at the People's Court at Party A's      locality. |
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|   | 2. | During      the mediation period, both parties are strictly bound by this      Agreement. |
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|   | 1. | Unless      terminated under contract law, either      party shall not unilaterally modify or terminate this Agreement. Either      party, requesting to change or terminate this Agreement in accordance with      the law, shall promptly notify the other party in writing and to reach a      written agreement between theparties. |
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|   | 2. | If      this Agreement could not be performed due to force majeure, both parties,      in accordance with relevant laws and regulations, shall negotiate and      settle the matter promptly. |
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|   | 3. | As      for any outstanding issues, the two parties can make further negotiation      and enter into a supplemental agreement. The supplemental agreement has      the same legal effect as thisAgreement. |
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|   | 1. | This      Agreement will be valid from 8:00 am on December 31, 2007 until 8:00 am on      December 31, 2008. |
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|   | 2. | This      Agreement is executed in four copies, two original and two copies, all of      which have equal legal effectiveness. Each      of Party A and Party B holds one original copy    respectively. |
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