AMENDMENT TO EMPLOYMENT AGREEMENT


         WHEREAS,  Seagull Energy  Corporation (the "Company") and Barry J. Galt
("Galt") have heretofore entered into an Employment Agreement (the "Agreement"),
effective as of December 30, 1983; and

         WHEREAS,  Section 3.4 of the Agreement obligates the Company to provide
certain term life  insurance  coverage to Galt during the term of the Agreement;
and

         WHEREAS, the Company and Galt have heretofore entered into an agreement
regarding the provision of insurance coverage for Galt,  effective as of January
1, 1987, and in satisfaction of the Company's  obligations  under Section 3.4 of
the Agreement; and

         WHEREAS,  the  Company  and Galt  desire to amend such prior  agreement
regarding the  provision of life  insurance  coverage for Galt,  effective as of
January 1, 1997,  to provide Galt with  additional  flexibility  with respect to
such insurance coverage;

         NOW, THEREFORE, the parties hereto agree as follows:

         1.  Effective as of January 1, 1997 and  continuing  for each year that
the Agreement is in force and effect,  on the date and in the manner  designated
by Galt,  which date shall be within  ninety days of the due date  specified  on
Schedule A attached  hereto and made a part  hereof,  the Company  shall  tender
annual  premiums  in the  amounts  established  pursuant  to Schedule A by check
payable  to the  insurance  company  designated  by Galt to be  applied  by such
company to the insurance policy designated by Galt.

         2. Galt agrees that payment of the premiums by the Company as specified
in Item 1 above will constitute full and complete  performance by the Company of
its obligations under Section 3.4 of the Agreement.

         Executed this 23rd day of January, 1997.


                                              SEAGULL ENERGY CORPORATION



                                              By: /s/ William L. Transier
                                              Name:   William L. Transier
                                              Title:  Sr. Vice President and CFO



                                              /s/ Barry J. Galt
                                                  BARRY J. GALT

<PAGE>

                                   SCHEDULE A


              Annual Premium Payments by Seagull Energy Corporation

<TABLE>
<CAPTION>

Due Date                            Amount                       Age of Mr. Galt
--------------------------------------------------------------------------------
<S>                                 <C>                          <C>   

2-9-97                              $ 4,770                            63
2-9-98                                5,490                            64
2-9-99                                6,355                            65
2-9-00                                7,225                            66
2-9-01                                8,100                            67
2-9-02                                8,990                            68
2-9-03                                9,885                            69
2-9-04                               11,000                            70
2-9-05                               12,520                            71
2-9-06                               14,520                            72
2-9-07                               17,055                            73
2-9-08                               20,235                            74
2-9-09                               24,060                            75
2-9-10                               28,510                            76
2-9-11                               33,570                            77
2-9-12                               36,730                            78
2-9-13                               40,080                            79
2-9-14                               43,565                            80


</TABLE>