exv10w26



 




Exhibit 10.26




January 15, 2007




COG Operating LLC

306 W. Wall, Suite 1209

Midland, TX 79701




Revision #1




Attn: Necie Terrell,



This agreement, by and between Navajo Refining Company, L.P. herein called “Navajo” and COG
Operating LLC, herein called “COG”, covers the outright purchase of crude oil, by Navajo under the
following conditions.




DELIVERIES BY COG




	 	 	 
	QUALITY:

	 	West Texas/ New Mexico Intermediate and West Texas/ New Mexico Sour Crude Oil.
	 
	 	 
	QUANTITY:

	 	Production from the leases listed on the attached Exhibit A, B, C, D, E, F, G, H, AND I.
	 
	 	 
	TERM:

	 	Effective January 1, 2007 through January 31, 2007 and continuing on a 30 day evergreen basis until cancelled by
either party upon 30 day advanced written notice.
	 
	 	 
	DELIVERY:

	 	COG will delivery barrels at the flange as the barrels enter Navajo’s trucks or Navajo’s designated carrier.
	 
	 	 
	PRICE:

	 	A) Navajo agrees to pay COG the average of Flint Hills Resources posted price for West Texas Intermediate type crude
oil, gravity deemed 40 degrees API, for the month of delivery, plus the average of Platt’s Oil gram (Platt’s) spot
crude price assessments for Posting Plus (P+) WTI at Crushing, plus or minus the Platt’s Cushing WTI/Midland WTS
(WTI/WTS) differential, based on equal daily quantities, minus the applicable deduct listed on the attached Exhibit
“A”
	 
	 	 
	 

	 	The P+ and the WTI/WTS differential value will be the mean of the daily average of the Platt’s P+ WTI prices quote in
the Platt’s Oil gram from the 26th day of the month two months prior to the month of delivery through the
25th day of the month one month prior to the month of delivery (excluding weekends and holidays). The
posted price average includes weekends and holidays, the prices in effect on the day prior to a Saturday, Sunday or
holiday will be price for Saturday, Sunday, or holiday.
	 
	 	 
	 

	 	B) Navajo agrees to pay COG the higher of Navajo’s New Mexico Sour Pipeline posting
of the ConocoPhillps’ New Mexico Sour Posting or the average of Flint Hill’s
Resources posted price for West Texas Intermediate type crude oil, gravity deemed 40
degrees API, for the month of delivery, plus the average of Platt’s Oil gram
(Platt’s) spot crude price assessments for Posting Plus (P+) WTI at Crushing, plus or
minus the Platt’s Crushing WTI/ Midland WTS (WTI/WTS) differential, based on equal
daily quantities, minus the applicable deduct listed on the attached Exhibit “B”.






 









 






	 	 	 
	 

	 	The P+ and the WTI/WTS differential value will be the mean of the daily average of
the Platt’s P+ WTI prices quote in the Platt’s Oil gram from the 26th day
of the month two months prior to the month of delivery through the 25th
day of the month one month prior to the month of delivery (excluding weekends and
holidays). The posted price average includes weekends and holidays, the prices in
effect on the day prior to a Saturday, Sunday or holiday will be price for Saturday,
Sunday, or holiday.
	 
	 	 
	 

	 	C) Navajo agrees to pay COG the base price plus/minus the roll component minus
Platt’s Cushing WTI/Midland WTI spread less the applicable deduct shown on attached
Exhibit ”C”.
	 
	 	 
	 

	 	BASE PRICE- The base price shall be average of the Merc settlement price during the
calendar month of the delivery month. Weekends and Holiday shall carry the price of
the previous Merc settlement price.
	 
	 	 
	 

	 	ROLL COMPONENT- The settlement prices shall be averaged for the entire MERC trade
month while the delivery month is the Merc prompt month. The roll component for the
prompt month/second month shall be the difference between the prompt month average
minus the second month average times a decimal factor determined by dividing the
number of calendar days in the delivery month that the second month trades on the
Merc by the number of calendar days in the delivery month. The roll component for
the month average times a decimal factor that is one (1) minus the decimal factor for
the prompt month /second month. If the second month Merc trading in the delivery
month expires on a Friday, then the weekend and any holidays shall be deemed as
second month days for determining the decimal factor for the prompt month/second
month.
	 
	 	 
	 

	 	CUSHING WTI/MIDLAND WTI SPREAD- Platt’s daily high/low average fro WTI Cushing minus
Platt’s daily high/low average for Midland WTI is the daily WTI/WTI spread. Note:
	 

	 	All Platt’s pricing is for the delivery month as published by Platt’s during the
period beginning on the 26th of the second month proceeding the delivery
month and ending on the 25th of the second month proceeding the delivery
month.
	 
	 	 
	 

	 	D) Navajo agrees to pay COG the base price plus/minus the roll component minus
Platt’s Cushing WTI/Midland WTI spread less the applicable deduct shown on the
attached Exhibit “D”.
	 
	 	 
	 

	 	BASE PRICE- The base price shall be average of the Merc settlement price during the
calendar month of the delivery month. Weekends and Holiday shall carry the price of
the previous Merc settlement price.
	 
	 	 
	 

	 	ROLL COMPONENT- The settlement prices shall be averaged for the entire Merc trade
month while the delivery month is the Merc prompt month. The month averaged shall be
the prompt (delivery) difference between the prompt month average minus the second
month average times a decimal factor determined by dividing the number of calendar
days in the delivery month that the second month trades on the Merc by the number of
calendar days in the month. The roll component for the prompt month/third month shall
be the difference between the prompt month average minus the third month average
times a decimal factor that is one (1) minus the decimal factor for the prompt
month/second month. If the second month Merc trading in the delivery month expires
on a Friday, then the weekend and any holidays shall be deemed as second month days
for determining the decimal factor for the prompt month/second month.
	 
	 	 
	 

	 	CUSHING WTI/MIDLAND WTI SPREAD- Platt’s daily high/low average fro WTI Cushing minus
Platt’s daily high/low average for Midland WTI is the daily WTI/WTI spread. Note:
	 

	 	All Platt’s pricing is for the delivery month as published by Platt’s during the
period beginning on the 26th of the second month proceeding the delivery
month and ending on the 25th of the second month proceeding the delivery
month.






 









 






	 	 	 
	 

	 	E) Navajo agrees to pay COG the base price plus/minus roll component minus Platt’s
Cushing WTI/Midland WTS Spread less the applicable deduct on the attached Exhibit “E”
	 
	 	 
	 

	 	BASE PRICE- The base price shall be average of the Merc settlement price during the
calendar month of the delivery month. Weekends and Holiday shall carry the price of
the previous Merc settlement price.
	 
	 	 
	 

	 	ROLL COMPONENT- The settlement prices shall be averaged for the entire MERC trade
month while the delivery month is the Merc prompt month. The month averaged shall be
the prompt (delivery) month and the next two months. The roll component for the
prompt month/second month shall be the difference between the prompt month average
minus the second month average times a decimal factor determined by dividing the
number of calendar days in the delivery month that the second month trades on the
Merc by the number of calendar days in the delivery month. The roll component for
the month average times a decimal factor that is one (1) minus the decimal factor for
the prompt month /second month. If the second month Merc trading in the delivery
month expires on a Friday, then the weekend and any holidays shall be deemed as
second month days for determining the decimal factor for the prompt month/second
month.
	 
	 	 
	 

	 	CUSHING WTI/MIDLAND WTI SPREAD- Platt’s daily high/low average fro WTI Cushing minus
Platt’s daily high/low average for Midland WTI is the daily WTI/WTI spread. Note:
	 

	 	All Platt’s pricing is for the delivery month as published by Platt’s during the
period beginning on the 26th of the second month proceeding the delivery
month and ending on the 25th of the second month proceeding the delivery
month.
	 
	 	 
	 

	 	F) Navajo agrees to pay COG the base price plus/minus roll component minus Platt’s
Cushing WTI/Midland WTS spread less the applicable deduct as listed on the attached
Exhibit “F”
	 
	 	 
	 

	 	BASE PRICE- The base price shall be average of the Merc settlement price during the
calendar month of the delivery month. Weekends and Holiday shall carry the price of
the previous Merc settlement price.
	 
	 	 
	 

	 	ROLL COMPONENT- The settlement prices shall be averaged for the entire MERC trade
month while the delivery month is the Merc prompt month. The months averages shall be
the prompt (delivery) month and the next two months. The roll component for the
prompt month/second month shall be the difference between the prompt month average
minus the second month average times a decimal factor determined by dividing the
number of calendar days in the delivery month that the second month trades on the
Merc by the number of calendar days in the delivery month. The roll component for
the month average times a decimal factor that is one (1) minus the decimal factor for
the prompt month /second month. If the second month Merc trading in the delivery
month expires on a Friday, then the weekend and any holidays shall be deemed as
second month days for determining the decimal factor for the prompt month/second
month.
	 
	 	 
	 

	 	CUSHING WTI/MIDLAND WTI SPREAD- Platt’s daily high/low average fro WTI Cushing minus
Platt’s daily high/low average for Midland WTI is the daily WTI/WTI spread. Note:
	 

	 	All Platt’s pricing is for the delivery month as published by Platt’s during the
period beginning on the 26th of the second month proceeding the delivery
month and ending on the 25th of the second month proceeding the delivery
month.
	 
	 	 
	 

	 	G) Navajo agrees to pay COG Navajo Refining Company’s posted price for New Mexico
Trucked Sour Crude Oil, gravity deemed 34 degrees API, on leases attached to Exhibit
“G”, based on equal daily quantities.
	 
	 	 
	 

	 	H) Navajo agrees to pay COG Navajo Refining Company’s posted price for West Texas
Trucked intermediate crude oil based on equal daily quantities .






 









 






	 	 	 
	I)

	 	Navajo agrees to pay COG the average for Platt’s posted prices
for West Texas Intermediate, gravity deemed 40 degrees API, for the month of
delivery, plus the average of Platt’s Oil Gram (Platt’s) spot crude price
assessment for posting Plus (P+) WTI Cushing, plus or minus the Platt’s
Midland/Cushing WTI (Mid/Cush) differential, based on equal daily quantities,
minus the applicable deduct listed on the attached Exhibit “I”.
	 
	 	 
	 

	 	The P+ and the WTI differential value will be the mean of the daily average of
the Platt’s P+ WTI prices quoted in the Platt’s Oil gram from the
26th day of the month two month prior to the month of delivery
through the 25th day of the month one month prior of delivery
(excluding weekends and holidays). The posted average includes weekends and
holidays, the price in effect on the day prior to a Saturday, Sunday or
holiday will be the price for Saturday, Sunday or holiday.






PROVISION APPLICABLE TO BOTH PARTIES





			
	PAYMENT:	 	Payment shall be made via wire transfer on or about the 20th of
the month following the month of delivery.





GENERAL PROVISIONS: ConocoPhillps General Provisions dated January 1, 1993 apply.



If the foregoing is in accordance with your understanding of our agreement, please indicate your
acceptance by signing in the space provided below and return one copy for our records.




Sincerely,




Navajo Refining Company LP




	 	 	 	 	 	 	 
	/s/
Bryan L. Mason

	 	 	 	/s/ Curt Kamradt
	 	 
	 

	 	 	 	 	 	 
	Manager Crude Supply

	 	 	 	Curt Kamradt	 	 
	Navajo
Refining Company, L.P. 

	 	 	 	COG Operating LLC	 	 






 









 





EXHIBIT ‘A’

NEW MEXICO SOUR LEASES




	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	12252	 	CARPERS LEVERS
	 	EDDY, NM	 	-0.20
	14056	 	HOLDER CB FEDERAL
	 	EDDY, NM	 	-0.20
	14124	 	MCINTYRE A EAST
	 	EDDY, NM	 	-0.20
	14522	 	ETZ STATE UNIT
	 	EDDY, NM	 	-0.20
	14523	 	BERRY A FEDERAL
	 	EDDY, NM	 	-0.20
	14557	 	RJ UNIT (SOUTH BATTERY)
	 	EDDY, NM	 	-0.20
	15923	 	BERRY A FEDERAL (PADDOCK)
	 	EDDY, NM	 	-0.20
	16001-001	 	MCINTYRE A EAST (NW PADDOCK)
	 	EDDY, NM	 	-0.20
	16001-002	 	MCINTYRE A WEST (NW PADDOCK)
	 	EDDY, NM	 	-0.20
	16002	 	WD MCINTYRE C (PADDOCK)
	 	EDDY, NM	 	-0.20
	16200	 	MCINTYRE DK FEDERAL #1-13
	 	EDDY, NM	 	-0.20
	16201-001	 	JENKINS B FEDERAL (PADDOCK)
	 	EDDY, NM	 	-0.20
	16201-002	 	JENKINS B FEDERAL (SAN ANDRES)
	 	EDDY, NM	 	-0.20
	16235-001	 	MCINTYRE A EAST (SW PADDOCK)
	 	EDDY, NM	 	-0.20
	16235-002	 	MCINTYRE A WEST (SW PADDOCK)
	 	EDDY, NM	 	-0.20
	16236	 	W D MCINTYRE E
	 	EDDY, NM	 	-0.20
	16237	 	MCINTYRE B
	 	EDDY, NM	 	-0.20
	16238	 	JUNIPER STATE (PADDOCK)
	 	EDDY, NM	 	-0.20
	16258-001	 	STATE S-19 (E-4201)
	 	EDDY, NM	 	-0.20
	16258-002	 	STATE S-19 (E-742)
	 	EDDY, NM	 	-0.20
	16258-003	 	STATE S-19 (B-7677)
	 	EDDY, NM	 	-0.20
	16289	 	CONTINENTAL A STATE
	 	EDDY, NM	 	-0.20
	16491	 	DEXTER FEDERAL (PADDOCK)
	 	EDDY, NM	 	-0.20
	16496	 	SINCLAIR PARK #2 & 3
	 	EDDY, NM	 	-0.20
	16552	 	CONTINENTAL B STATE (YESO)
	 	EDDY, NM	 	-0.20
	16582	 	SCHLEY FEDERAL
	 	EDDY, NM	 	-0.20
	16599	 	MOHAWK FEDERAL
	 	EDDY, NM	 	-0.20
	16607	 	SHAWNEE FEDERAL
	 	EDDY, NM	 	-0.20
	16609	 	RINCON STATE
	 	EDDY, NM	 	-0.20
	16627	 	WICHITA STATE #1
	 	EDDY, NM	 	-0.20
	16632	 	WOOLLEY FEDERAL (PADDOCK)
	 	EDDY, NM	 	-0.20
	16665	 	HARPER STATE
	 	EDDY, NM	 	-0.20
	16679	 	BRIGHAM H NORTH
	 	EDDY, NM	 	-0.20
	16689	 	BRIGHAM H SOUTH
	 	EDDY, NM	 	-0.20
	16691	 	NAVAHO FEDERAL
	 	EDDY, NM	 	-0.20
	16704	 	IMPERIAL STATE #1-5
	 	EDDY, NM	 	-0.20
	16736	 	CHEYENNE FEDERAL
	 	EDDY, NM	 	-0.20
	16781	 	PAWNEE STATE
	 	EDDY, NM	 	-0.20
	16796	 	MESILLA STATE
	 	EDDY, NM	 	-0.20
	16846	 	ELECTRA FEDERAL
	 	EDDY, NM	 	-0.20
	16850	 	HOUMA STATE
	 	EDDY, NM	 	-0.20
	16856	 	POLARIS B FEDERAL 1,2,3
	 	EDDY, NM	 	-0.20
	19903	 	G J WEST COOP UNIT
	 	EDDY, NM	 	-0.20
	40159	 	HOLDER CB FEDERAL (PADDOCK)
	 	EDDY, NM	 	-0.20
	41989	 	HARPER STATE #5
	 	EDDY, NM	 	-0.20
	17418	 	BROWN FEDERAL (MALJAMAR)
	 	LEA, NM	 	-0.20






EXHIBIT ‘B’

NEW MEXICO SOUR LEASES




	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	10200	 	RLSU (RED LAKE SAND UNIT)
	 	EDDY, NM	 	-0.60






 









 






	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	12040	 	EAST HIGH LONESOME FEDERAL)
	 	EDDY, NM	 	-0.60
	12105	 	Y D FEDERAL
	 	EDDY, NM	 	-0.60
	14159	 	WELCH FEDERAL #1
	 	EDDY, NM	 	-0.60
	14517	 	W D MCINTYRE C
	 	EDDY, NM	 	-0.60
	14556	 	JACKSON FEDERAL
	 	EDDY, NM	 	-0.60
	15253	 	BIG GEORGE STATE
	 	EDDY, NM	 	-0.60
	15288	 	TYLER FEDERAL
	 	EDDY, NM	 	-0.60
	15291	 	ADAMS FEDERAL
	 	EDDY, NM	 	-0.60
	15491	 	WESTALL A STATE
	 	EDDY, NM	 	-0.60
	15496	 	WILLOW STATE
	 	EDDY, NM	 	-0.60
	15518	 	CONTINENTAL B STATE
	 	EDDY, NM	 	-0.60
	15598	 	YUCCA STATE
	 	EDDY, NM	 	-0.60
	16219	 	CHOCTAW STATE
	 	EDDY, NM	 	-0.60
	17036	 	STATE “I”
	 	EDDY, NM	 	-0.60
	17100	 	VS UNIT
	 	EDDY, NM	 	-0.60
	17462	 	DEXTER 1, 2 & 3
	 	EDDY, NM	 	-0.60
	17769	 	GISSLER FEDERAL
	 	EDDY, NM	 	-0.60
	18021	 	DAVIS FEDERAL
	 	EDDY, NM	 	-0.60
	18307	 	RV STATE
	 	EDDY, NM	 	-0.60
	18339	 	FARMER FEDERAL
	 	EDDY, NM	 	-0.60
	18375	 	WILSON FEDERAL
	 	EDDY, NM	 	-0.60
	18810	 	BEESON NO. 1
	 	EDDY, NM	 	-0.60
	19034	 	HIGH LONESOME PENROSE
	 	EDDY, NM	 	-0.60
	19138	 	SIVLEY FEDERAL
	 	EDDY, NM	 	-0.60
	19158	 	DENTON FEDERAL
	 	EDDY, NM	 	-0.60
	19322	 	WESTALL B STATE
	 	EDDY, NM	 	-0.60
	19427	 	BEESON D FED #2
	 	EDDY, NM	 	-0.60
	19932	 	FOLK FEDERAL
	 	EDDY, NM	 	-0.60
	40322	 	STATE S 19 (YESO)
	 	EDDY, NM	 	-0.60
	40835	 	REDBUD FEDERAL
	 	EDDY, NM	 	-0.60
	41432	 	NEW MEXICO Z STATE
	 	EDDY, NM	 	-0.60
	41481	 	S & T STATE
	 	EDDY, NM	 	-0.60
	41504	 	RAPTOR STATE #1
	 	EDDY, NM	 	-0.60
	41786	 	DOVE STATE
	 	EDDY, NM	 	-0.60
	41926	 	STATE CA
	 	EDDY, NM	 	-0.60
	41983	 	MESILLA STATE #3
	 	EDDY, NM	 	-0.60
	42090	 	RJ UNIT (NORTH BATTERY)
	 	EDDY, NM	 	-0.60
	41478-001	 	ALSCOTT FEDERAL #1
	 	EDDY, NM	 	-0.60
	41478-002	 	ALSCOTT FEDERAL #2
	 	EDDY, NM	 	-0.60
	42120	 	POLARIS B FEDERAL #5
	 	EDDY, NM	 	-0.60
	12417	 	GRACE MITCHELL B
	 	LEA, NM	 	-0.60
	13201	 	LEAKER CC
	 	LEA, NM	 	-0.60
	14500	 	PEARSALL “BX”
	 	LEA, NM	 	-0.60
	15540	 	MONSANTO 30 STATE
	 	LEA, NM	 	-0.60
	16631	 	BATE FEDERAL #1
	 	LEA, NM	 	-0.60
	17360	 	FEDERAL 18 TONTO SWD
	 	LEA, NM	 	-0.60
	17596	 	PETRUS D
	 	LEA, NM	 	-0.60
	17633	 	PEARSALL “AX” #3
	 	LEA, NM	 	-0.60
	17771	 	EDWARD STATE
	 	LEA, NM	 	-0.60
	17847	 	PEARSALL QUEEN SAND UNIT
	 	LEA, NM	 	-0.60
	17936	 	BROWN FEDERAL (PEARSALL)
	 	LEA, NM	 	-0.60
	18483	 	JOHNS B #1
	 	LEA, NM	 	-0.60
	19054	 	WALLINGFORD
	 	LEA, NM	 	-0.60
	19697	 	WALKER FEDERAL #1 & #2
	 	LEA, NM	 	-0.60
	19812	 	BASSETT BIRNEY #1
	 	LEA, NM	 	-0.60
	40682	 	SAPPHIRE STATE
	 	LEA, NM	 	-0.60
	40917	 	PEARSALL AX
	 	LEA, NM	 	-0.60
	40925	 	WALKER FEDERAL #3
	 	LEA, NM	 	-0.60
	41430	 	ANTEATER FEDERAL
	 	LEA, NM	 	-0.60
	42059	 	CENTURY STATE #1
	 	LEA, NM	 	-0.60






 









 






	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	13499-001	 	MILLER “B”
	 	LEA, NM	 	-0.60
	13499-002	 	MILLER BX
	 	LEA, NM	 	-0.60
	15965-001	 	ELLIOTT 31 FEDERAL #6
	 	LEA, NM	 	-0.60
	15965-002	 	ELLIOTT 31 FEDERAL #8
	 	LEA, NM	 	-0.60






EXHIBIT ‘C’

WEST TEXAS INTERMEDIATE LEASES




	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	5276	 	BARNETT
	 	LOVING, TX	 	-0.98
	4397	 	DICKENSON 19
	 	MIDLAND, TX	 	-0.98
	40120	 	CLARENCE SCHARBAUER ET AL
	 	MIDLAND, TX	 	0.00
	31394	 	ATHEY STATE #1
	 	PECOS, TX	 	0.00
	42073	 	NEAL JO 49 #1
	 	PECOS, TX	 	0.00
	3837360	 	TENNECO MENDEL 38 #1,2 & 3
	 	PECOS, TX	 	-1.00
	3837382	 	TENNECO ROGERS 35 #1 & #2
	 	PECOS, TX	 	-1.00
	3838512	 	TEXACO ATA #1
	 	REEVES, TX	 	-1.00
	2561	 	UNIVERSITY 41 & 5
	 	ANDREWS, TX	 	-0.85
	31383	 	LOCKHART & BROWN #3
	 	ANDREWS, TX	 	0.00
	3381471	 	HUMBLE KING #1E & #2D
	 	ANDREWS, TX	 	-0.85
	3571243	 	HAYDEN MILES “A”
	 	ANDREWS, TX	 	-0.85
	5651-003	 	BITLERLOWE (COG) TRACT #2
	 	ANDREWS, TX	 	-0.85






EXHIBIT ‘D’

NEW MEXICO INTERMEDIATE LEASES




	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	1660	 	GOLDRUSH 30 FEDERAL #7, 2 & 31 FED #1,2,3
	 	EDDY, NM	 	-0.95
	5213	 	STATE 11 COM #1
	 	EDDY, NM	 	-0.95
	5267	 	GOLDRUSH 30 FEDERAL #1,3,4,5,6
	 	EDDY, NM	 	-0.95
	5278	 	KEYSTONE BATTERY #1,2,5
	 	EDDY, NM	 	-0.95
	5279	 	KEYSTONE BATTERY #4 & HONDO STATE COM #1
	 	EDDY, NM	 	-0.95
	5280	 	GR 30 STATE #1,2,3
	 	EDDY, NM	 	-0.95
	5286	 	COCHITI 5 FEDERAL COM
	 	EDDY, NM	 	-0.95
	5295	 	DC 30 STATE #1
	 	EDDY, NM	 	-0.95
	5411	 	HANSON FEDERAL
	 	EDDY, NM	 	-0.95
	42103	 	BLUE THUNDER 5 #1
	 	EDDY, NM	 	-0.95
	15986	 	WHITE OAK STATE
	 	EDDY, NM	 	-0.85
	16202	 	G J WEST COOP UNIT (COM)
	 	EDDY, NM	 	-0.85
	16203	 	FEDERAL KL-17 #1
	 	EDDY, NM	 	-0.85
	18017	 	SINCLAIR PARK #1
	 	EDDY, NM	 	-0.85
	19092	 	WOOLLEY FEDERAL
	 	EDDY, NM	 	-0.85
	40271	 	BROWN BEAR COM #1
	 	EDDY, NM	 	-0.85
	40297	 	ANTELOPE 36 STATE COM
	 	EDDY, NM	 	-0.85
	40302	 	KODIAK FEDERAL
	 	EDDY, NM	 	-0.85
	40476	 	BARBARY 17 COM
	 	EDDY, NM	 	-0.85
	40929	 	IMPALA STATE
	 	EDDY, NM	 	-0.85
	41071	 	DOGWOOD FEDERAL
	 	EDDY, NM	 	-0.85
	41128	 	MAPLE STATE #1
	 	EDDY, NM	 	-0.85
	41293	 	DIAMONDBACKS STATE #1
	 	EDDY, NM	 	-0.85
	41840	 	ELECTRA FEDERAL #5
	 	EDDY, NM	 	-0.85
	41951	 	MESQUITE 17-19 BATTERY
	 	EDDY, NM	 	-0.85
	42011	 	MCINTYRE B #10
	 	EDDY, NM	 	-0.85
	42049	 	IMPERIAL STATE #7
	 	EDDY, NM	 	-0.85
	42097	 	REINDEER FEDERAL #1
	 	EDDY, NM	 	-0.85
	16626-001	 	MESQUITE STATE (EMPIRE YESO)
	 	EDDY, NM	 	-0.85
	16626-002	 	MESQUITE STATE (SAN ANDRES)
	 	EDDY, NM	 	-0.85
	17952-001	 	STATE S 19 #4 (ABO)
	 	EDDY, NM	 	-0.85
	17952-002	 	STATE S 19 #1 (ABO)
	 	EDDY, NM	 	-0.85






 









 






	 	 	 	 	 	 	 
	NRC LSE#	 	         LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	42048-001	 	STATE S-19 #23 & #25
	 	EDDY, NM	 	-0.85
	42048-002	 	STATE S-19 #28
	 	EDDY, NM	 	-0.85
	42157	 	BLUE RIDGE 28 STATE #1
	 	EDDY, NM	 	-0.85
	16451	 	SCHLEY FEDERAL
	 	EDDY, NM	 	-0.78
	16478	 	WESTERN FEDERAL
	 	EDDY, NM	 	-0.78
	16565	 	MIMOSA STATE
	 	EDDY, NM	 	-0.78
	16581	 	TENNECO STATE
	 	EDDY, NM	 	-0.78
	16593	 	SPRUCE FEDERAL
	 	EDDY, NM	 	-0.78
	16870	 	ELK 22 FEDERAL
	 	EDDY, NM	 	-0.78
	19140	 	MCINTYRE A WEST (ABO)
	 	EDDY, NM	 	-0.78
	40051	 	BEECH FEDERAL
	 	EDDY, NM	 	-0.78
	40125	 	LOCO SW #1
	 	EDDY, NM	 	-0.78
	40337	 	FIR FEDERAL
	 	EDDY, NM	 	-0.78
	40431	 	ANTELOPE STATE
	 	EDDY, NM	 	-0.78
	40701	 	COYOTE STATE
	 	EDDY, NM	 	-0.78
	42002	 	CONTINENTAL A STATE #11 & 12
	 	EDDY, NM	 	-0.78
	41792	 	GOLDRUSH 29 FEDERAL #2
	 	EDDY, NM	 	0.00
	41863	 	BLUE THUNDER 4 FEDERAL #1
	 	EDDY, NM	 	0.00
	41874	 	STATE 11 COM #2
	 	EDDY, NM	 	0.00
	41932	 	WD MCINTYRE C #8
	 	EDDY, NM	 	0.00
	41996	 	HARVARD FEDERAL #5
	 	EDDY, NM	 	0.00
	42072	 	MOSLEY CANYON 6 STATE #1
	 	EDDY, NM	 	0.00
	15761	 	STATE K 33 COM #3
	 	LEA, NM	 	-1.00
	16667	 	STINGRAY 10 STATE
	 	LEA, NM	 	-0.85
	17867	 	LANGLEY A FEDERAL #1
	 	LEA, NM	 	-0.85
	18316	 	JON BOB #1
	 	LEA, NM	 	-0.85
	40127	 	BARRACUDA STATE
	 	LEA, NM	 	-0.85
	40311	 	CHINOOK STATE
	 	LEA, NM	 	-0.85
	40926	 	FOX FEDERAL
	 	LEA, NM	 	-0.85
	41104	 	PEARSALL A #2
	 	LEA, NM	 	-0.85
	41121	 	PEARSALL BX #7 & 9
	 	LEA, NM	 	-0.85
	41249	 	WEASEL FEDERAL #4
	 	LEA, NM	 	-0.85
	41372	 	RHINO FEDERAL #1
	 	LEA, NM	 	-0.85
	40911-001	 	PANTHER FEDERAL #1
	 	LEA, NM	 	-0.85
	40911-002	 	PANTHER FEDERAL #3
	 	LEA, NM	 	-0.85
	40911-003	 	PANTHER FEDERAL #5
	 	LEA, NM	 	-0.85
	40911-004	 	PANTHER FEDERAL #2
	 	LEA, NM	 	-0.85
	40911-005	 	PANTHER FEDERAL #4
	 	LEA, NM	 	-0.85
	41131-001	 	FEE MA B #4
	 	LEA, NM	 	-0.85
	41131-002	 	FEE MA B #5
	 	LEA, NM	 	-0.85
	41131-003	 	FEE MA B #6
	 	LEA, NM	 	-0.85
	41131-004	 	FEE MA B #7
	 	LEA, NM	 	-0.85
	5296	 	LOWE 20 #1,2
	 	LEA, NM	 	-0.75
	31382	 	BILBREY 34 FED #001
	 	LEA, NM	 	0.00
	31385	 	WILDTURKEY 9 STATE & 10 STATE
	 	LEA, NM	 	0.00
	31386	 	PROHIBITION FEDERAL UNIT #3
	 	LEA, NM	 	0.00
	31387	 	EMERALD FEDERAL #1
	 	LEA, NM	 	0.00
	31391	 	PROHIBITION FEDERAL UNIT #1
	 	LEA, NM	 	0.00
	31392	 	PROHIBITION #4 & #6
	 	LEA, NM	 	0.00
	41898	 	PROHIBITION 12 FEDERAL #7 & #8
	 	LEA, NM	 	0.00
	42054	 	PROHIBITION 12 FEDERAL #10, 12
	 	LEA, NM	 	0.00






 









 





EXHIBIT ‘E’

WEST TEXAS SOUR LEASES




	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	3571241	 	MILES HAYDEN A & MILES B
	 	ANDREWS, TX	 	-0.88
	1025	 	SOUTHLAND ROYALTY D #1 & C #2
	 	ANDREWS, TX	 	-0.85
	1026	 	SOUTHLAND ROYALTY C #1,3,4 & D #4
	 	ANDREWS, TX	 	-0.85
	5651-002	 	BITLERLOWE (COG) TRACT #2 & 3
	 	ANDREWS, TX	 	-0.85
	3179119	 	DEEP ROCK A
	 	ANDREWS, TX	 	-0.85
	3635700	 	OGDEN A & B
	 	ANDREWS, TX	 	-0.85
	31393	 	WHITE #2
	 	ANDREWS, TX	 	0.00
	31395	 	BITLERLOWE B
	 	ANDREWS, TX	 	0.00
	42038	 	M R LOWE 15 #1
	 	ANDREWS, TX	 	0.00
	3659	 	L B RUSSELL
	 	GAINES, TX	 	-0.86
	1508	 	STRAUCH HAMMOND CUNNINGHAM
	 	GAINES, TX	 	-0.68
	2604	 	FIELDS #1-3 & ANCELL
	 	GAINES, TX	 	-0.68
	31396	 	NORTHRUP-LINDSEY
	 	GAINES, TX	 	0.00
	40090	 	HOPKINS UNIT
	 	GAINES, TX	 	0.00
	42014	 	WINKLES #1
	 	GAINES, TX	 	0.00






EXHIBIT ‘F’

NEW MEXICO SOUR LEASES




	 	 	 	 	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	 	DEDUCT/BONUS	 
	31384	 	M D SELF #3, #5, #6
	 	 	 	LEA, NM	 	 	0.00	 
	40615	 	WEST CORBIN 13, 13A, UNCLE SAM 13
	 		 	LEA, NM	 	 	0.00	 
	42031	 	CHOLLA STATE #1
	 	 	 	LEA, NM	 	 	0.00	 






EXHIBIT ‘G’

NEW MEXICO SOUR LEASES




	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	15318	 	PRONGHORN SWD #1
	 	LEA, NM	 	0.00
	42058	 	BARREL STATE #1
	 	LEA, NM	 	0.00






EXHIBIT ‘H’

NEW MEXICO INTERMEDIATE LEASE




	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME 	 	COUNTY, ST	 	DEDUCT/BONUS
	42012	 	HANSON 33 FEDERAL #4
	 	EDDY, NM	 	0.00






EXHIBIT ‘I’

WEST TEXAS INTERMEDIATE LEASE




	 	 	 	 	 	 	 
	NRC LSE#	 	LEASE NAME	 	COUNTY, ST	 	DEDUCT/BONUS
	3296000	 	FULLER
	 	HOWARD, TX	 	-0.84
	3765450	 	J B RYAN 1-10
	 	HOWARD, TX	 	-0.84
	3765680	 	T P RYAN
	 	HOWARD, TX	 	-0.84
	3831320	 	TALBOT #2 & #4
	 	HOWARD, TX	 	-0.84
	3832320	 	TATE D #1 & #2
	 	HOWARD, TX	 	-0.84






 









 










GENERAL PROVISIONS

DOMESTIC CRUDE OIL AGREEMENTS



A. Measurement and Tests: All measurements hereunder shall be made from static tank gauges on 100
percent tank table basis or by positive displacement meters. All measurements and tests shall be
made in accordance with the latest ASTM or ASME-API (Petroleum PD Meter Code) published methods
then in effect, whichever apply. Volume and gravity shall be adjusted to 60 degrees Fahrenheit by
the use of Table 6A and 5A of the Petroleum Measurement Tables ASTM Designation D1250 in their
latest revision. The crude oil delivered hereunder shall be marketable and acceptable in the
applicable common or segregated stream of the carriers involved but not to exceed 1% S&W. Full
deduction for all free water and S&W content shall be made according to the API/ASTM Standard
Method then in effect. Either party shall have the right to have a representative witness all
gauges, tests and measurements. In the absence of the other party’s representative, such gauges,
tests and measurements shall be deemed to be correct.



B. Warranty: The Seller warrants good title to all crude oil delivered hereunder and warrants that
such crude oil shall be free from all royalties, liens, encumbrances and all applicable foreign,
federal, state and local taxes.




     Seller further warrants that the crude oil delivered shall not be contaminated by chemicals
foreign to virgin crude oil including, but not limited to chlorinated and/or oxygenated
hydrocarbons and lead. Buyer shall have the right, without prejudice to any other remedy available
to Buyer, to reject and return to Seller any quantities of crude oil which are found to be so
contaminated, even after delivery to Buyer.


C. Rules and Regulations: The terms, provisions and activities undertaken pursuant to this
Agreement shall be subject to all applicable laws, orders and regulations of all governmental
authorities. If at any time a provision hereof violates any such applicable laws, orders or
regulations, such provision shall be voided and the remainder of the Agreement shall continue in
full force and effect unless terminated by either party upon giving written notice to the other
party hereto. If applicable, the parties hereto agree to comply with all provisions (as amended)
of the Equal Opportunity Clause prescribed in 41 C.F.R. 60-1.4; the Affirmative Action Clause for
disabled veterans and veterans of the Vietnam Era prescribed in 41 C.F.R. 60-250.4; the Affirmative
Action Clause for Handicapped Workers prescribed in 41 C.F.R. 60-741.4; 48 C.F.R. Chapter 1 Subpart
19.7 regarding Small Business and Small Disadvantaged Business Concerns; 48 C.F.R. Chapter 1
Subpart 20.3 regarding Utilization of Labor Surplus Area Concerns; Executive Order 12138 and
regulations thereunder regarding subcontracts to women-owned business concerns; Affirmative Action
Complicance Program (41 C.F.R. 60-1.40); annually file SF-100 Employer Information Report (41
C.F.R. 60-1.7); 41 C.F.R. 60-1.8 prohibiting segregated facilities; and the Fair Labor Standards
Act of 1938 as amended, all of which are incorporated in this Agreement by reference.



D. Hazard Communication: Seller shall provide its Material Safety Data Sheet (“MSDS”) to Buyer.
Buyer acknowledges the hazards and risks in handling and using crude oil. Buyer shall read the
MSDS and advise its employees, its affiliates, and third parties, who may purchase or come into
contact with such crude oil, about the hazards of crude oil, as well as the precautionary
procedures for handling said crude oil, which are set forth in such MSDS and any supplementary MSDS
or written warning(s) which Seller may provide to Buyer from time to time.



E. Force Majeure: Except for payment due hereunder, either party hereto shall be relieved from
liability for failure to perform hereunder for the duration and to the extent such failure is
occasioned by war, riots, insurrections, fire, explosions, sabotage, strikes, and other labor or
industrial disturbances, acts of God or the elements, governmental laws, regulations, or requests,
acts in furtherance of the International Energy Program, disruption or breakdown of production or
transportation facilities, delays of pipeline carrier in receiving and delivering crude oil
tendered, or by any other cause, whether similar or not, reasonably beyond the control of such
party. Any such failures to perform shall be remedied with all reasonable dispatch, but neither
party shall be required to supply substitute quantities from other sources of supply. Failure to
perform due to events of Force Majeure shall not extend the terms of this Agreement.




     Notwithstanding the above, and in the event that the Agreement is an associated purchase/sale,
or exchange of crude oil, the parties shall have the rights and obligations described below in the
circumstances described below:



     (1) If, because of Force Majeure, the party declaring Force Majeure (the “Declaring Party”) is
unable to deliver part or all of the quantity of crude oil which the Declaring Party is obligated
to deliver under the Agreement or associated contract, the other party (the “Exchange Partner”)
shall have the right but not the obligation to reduce its deliveries of crude oil under the same
Agreement or associated contract by an amount not to exceed the number of barrels of crude oil that
the Declaring Party fails to deliver.



     (2) If, because of Force Majeure, the Declaring Party is unable to take delivery of part or
all of the quantity of crude oil to be delivered by the Exchange Partner under the Agreement or
associated contract, the Exchange Partner shall have the right but not the obligation to reduce its
receipts of crude oil under the same Agreement or associated contract by an amount not to exceed
the number of barrels of crude oil that the Declaring Party fails to take delivery of.


F. Payment: Unless otherwise specified in the Special Provisions of this Agreement, Buyer agrees
to make payment against Seller’s invoice for the crude oil purchased hereunder to a bank designated
by Seller in U.S. dollars by telegraphic transfer in immediately available funds. Unless otherwise
specified in the Special Provisions of this Agreement, payment will be due on or before the 20th of
the month following the month of delivery. If payment due date is on a Saturday or New York bank
holiday other than Monday, payment shall be due on the preceding New York banking day. If payment
due date is on a Sunday or a Monday New York bank holiday, payment shall be due on the succeeding
New York banking day.




     Payment shall be deemed to be made on the date good funds are credited to Seller’s account at
Seller’s designated bank.



     In the event that Buyer fails to make any payment when due, Seller shall have the right to
charge interest on the amount of the overdue payment at a per annum rate which shall be two
percentage points higher than the published prime lending rate of Morgan Guaranty Trust Company of
New York on the date payment was due, but not to exceed the maximum rate permitted by law.



Effective January 1, 1993

Supersedes November 1983 General Provisions




 









 




G. Financial Responsibility: Notwithstanding anything to the contrary in this Agreement, should
Seller reasonably believe it necessary to assure payment, Seller may at any time require, by
written notice to Buyer, advance cash payment or satisfactory security in the form of a Letter or
Letters of Credit at Buyer’s expense in a form and from a bank acceptable to Seller to cover any or
all deliveries of crude oil. If Buyer does not provide the Letter of Credit on or before the date
specified in Seller’s notice under this section, Seller or Buyer may terminate this Agreement
forthwith. However, if a Letter of Credit is required under the Special Provisions of this
Agreement and Buyer does not provide same, then Seller only may terminate this Agreement forthwith.
In no event shall Seller be obligated to schedule or complete delivery of the crude oil until said
Letter of Credit is found acceptable to Seller. Each party may offset any payments or deliveries
due to the other party under this or any other agreement between the parties.




     If a party to this Agreement (the “Defaulting Party”) should (1) become the subject of
bankruptcy or other insolvency proceedings, or proceedings for the appointment of a receiver,
trustee, or similar official, (2) become generally unable to pay its debts as they become due, or
(3) make a general assignment for the benefit of creditors, the other party to this Agreement may
withhold shipments without notice.



H. Liquidation:




     (1) Right to Liquidate. At any time after the occurrence of one or more of the events
described in the third paragraph of Section G, Financial Responsibility, the other party to the
Agreement (the “Liquidating Party”) shall have the right, at its sole discretion, to liquidate this
Agreement by terminating this Agreement. Upon termination, the parties shall have no further
rights or obligations with respect to this Agreement, except for the payment of the amount(s) (the
“Settlement Amount” or “Settlement Amounts”) determined as provided in Paragraph (3) of this
section.



     (2) Multiple Deliveries. If this Agreement provides for multiple deliveries of one or more
types of crude oil in the same or different
delivery months, or for the purchase or exchange of crude oil by the parties, all deliveries under
this Agreement to the same party at the same delivery location during a particular delivery month
shall be considered a single commodity transaction (“Commodity Transaction”) for the purpose of
determining the Settlement Amount(s). If the Liquidating Party elects to liquidate this Agreement,
the Liquidating Party must terminate all Commodity Transactions under this Agreement.



     (3) Settlement Amount. With respect to each terminated Commodity Transaction, the Settlement
Amount shall be equal to the contract quantity of crude oil, multiplied by the difference between
the contract price per barrel specified in this Agreement (the “Contract Price”) and the market
price per barrel of crude oil on the date the Liquidating Party terminates this Agreement (the
“Market Price”). If the Market Price exceeds the Contract Price in a Commodity Transaction, the
selling party shall pay the Settlement Amount to the buying party. If the Market Price is less
than the Contract Price in a Commodity Transaction, the buying party shall pay the Settlement
Amount to the selling party. If the Market Price is equal to the Contract Price in a Commodity
Transaction, no Settlement Amount shall be due.



     (4) Termination Date. For the purpose of determining the Settlement Amount, the date on
which the Liquidating Party terminates this Agreement shall be deemed to be (a) the date on which
the Liquidating Party sends written notice of termination to the Defaulting Party, if such notice
of termination is sent by telex or facsimile transaction; or (b) the date on which the Defaulting
Party receives written notice of termination from the Liquidating Party, if such notice of
termination is given by United States mail or a private mail delivery service.



     (5) Market Price. Unless otherwise provided in this Agreement, the Market Price of crude oil
sold or exchanged under this Agreement shall be the price for crude oil for the delivery month
specified in this Agreement and at the delivery location that corresponds to the delivery location
specified in this Agreement, as reported in Platt’s Oilgram Price Report (“Platt’s”) for the date
on which the Liquidating Party terminates this Agreement. If Platt’s reports a range of prices for
crude oil on that date, the Market Price shall be the arithmetic average of the high and low prices
reported by Platt’s. If Platt’s does not report prices for the crude oil being sold under this
Agreement, the Liquidating Party shall determine the Market Price of such crude oil in a
commercially reasonable manner, unless otherwise provided in this Agreement.



     (6) Payment of Settlement Amount. Any Settlement Amount due upon termination of this
Agreement shall be paid in immediately available funds within two business days after the
Liquidating Party terminates this Agreement. However, if this Agreement provides for more than one
Commodity Transaction, or if Settlement Amounts are due under other agreements terminated by the
Liquidating Party, the Settlement Amounts due to each party for such Commodity Transactions and/or
agreements shall be aggregated. The party owing the net amount after such aggregation shall pay
such net amount to the other party in immediately available funds within two business days after
the date on which the Liquidating Party terminates this Agreement.



     (7) Miscellaneous. This section shall not limit the rights and remedies available to the
Liquidating Party by law or under other provisions of this Agreement. The parties hereby
acknowledge that this Agreement constitutes a forward contract for purposes of Section 556 of the
U.S. Bankruptcy Code.


I. Equal Daily Deliveries: For pricing purposes only, unless otherwise specified in the Special
Provisions, all crude oil delivered hereunder during any calendar month shall be considered to have
been delivered in equal daily quantities during such month.



J. Exchange Balancing: If volumes are exchanged, each party shall be responsible for
maintaining the exchange in balance on a month-to-month basis, as near as pipeline or other
transportation conditions will permit. In all events upon termination of this Agreement
and after all monetary obligations under this Agreement have been satisfied, any volume
imbalance existing at the conclusion of this Agreement of less than 1,000 barrels will be
declared in balance. Any volume imbalance of 1,000 barrels or more, limited to the total
contract volume, will be settled by the underdelivering party making delivery of the total
volume imbalance in accordance with the delivery provisions of this Agreement applicable to
the underdelivering party, unless mutually agreed to the contrary. The request to schedule
all volume imbalances must be confirmed in writing by one party or both parties. Volume
imbalances confirmed by the 20th of the month shall be delivered during the calendar month
after the volume imbalance is confirmed. Volume imbalances confirmed after the 20th of the
month shall be delivered during the second calendar month after the volume imbalance is
confirmed.




Effective January 1, 1993

Supersedes November 1983 General Provisions




 









 




K. Delivery, Title, and Risk of Loss: Delivery, title, and risk of loss of the crude oil delivered
hereunder shall pass from Seller to Buyer as follows:



     For lease delivery locations, delivery of the
crude oil to the Buyer shall be effected as the crude oil passes the last permanent delivery flange
and/or meter connecting the Seller’s lease/unit storage tanks or processing facilities to the
Buyer’s carrier. Title to and risk of loss of the crude oil shall pass from Seller to Buyer at the
point of delivery.



     For delivery locations other than lease/unit delivery locations, delivery of the crude oil to
the Buyer shall be effected as the crude oil passes the last permanent delivery flange and/or meter
connecting the delivery facility designated by the Seller to the Buyer’s carrier. If delivery is
by in-line transfer, delivery of the crude oil to the Buyer shall be effected at the particular
pipeline facility designated in this Agreement. Title to and risk of loss of the crude oil shall
pass from the Seller to the Buyer upon delivery.


L. Term: Unless otherwise specified in the Special Provisions, delivery months begin at 7:00 a.m.
on the first day of the calendar month and end at 7:00 a.m. on the first day of the following
calendar month.



M. Governing Law: This Agreement and any disputes arising hereunder shall be governed by the laws
of the State of Texas.



N. Necessary Documents: Upon request, each party agrees to furnish all substantiating documents
incident to the transaction, including a Delivery Ticket for each volume delivered and an invoice
for any month in which the sums are due.



O. Waiver: No waiver by either party regarding the performance of the other party under any of the
provisions of this Agreement shall be construed as a waiver of any subsequent performance under the
same or any other provisions.



P. Assignment: Neither party shall assign this Agreement or any rights hereunder without the
written consent of the other party unless such assignment is made to a person controlling,
controlled by or under common control of assignor, in which event assignor shall remain responsible
for nonperformance.



Q. Entirety of Agreement: The Special Provisions and these General Provisions contain the entire
Agreement of the parties; there are no other promises, representations or warranties. Any
modification of this Agreement shall be by written instrument. Any conflict between the Special
Provisions and these General Provisions shall be resolved in favor of the Special Provisions. The
section headings are for convenience only and shall not limit or change the subject matter of this
Agreement.



R. Definitions: When used in this Agreement, the terms listed below have the following meanings:




     “API” means the American Petroleum Institute.



     “ASME” means the American Society of Mechanical Engineers.



     “ASTM” means the American Society for Testing Materials.



     “Barrel” means 42 U.S. gallons of 231 cubic inches per gallon corrected to 60 degrees
Fahrenheit.



     “Carrier” means a pipeline, barge, truck, or other suitable transporter of crude oil.



     “Crude Oil” means crude oil or condensate, as appropriate.



     “Day,” “month,” and “year” mean, respectively, calendar day, calendar month, and calendar
year, unless otherwise specified.



     “Delivery Ticket” means a shipping/loading document or documents stating the type and quality
of crude oil delivered, the volume delivered and method of measurement, the corrected specific
gravity, temperature, and S&W content.



     “Invoice” means a statement setting forth at least the following information: The date(s) of
delivery under the transaction; the location(s) of delivery; the volume(s); price(s); the specific
gravity and gravity adjustments to the price(s) (where applicable); and the term(s) of payment.



     “S&W” means sediment and water.



Effective January 1, 1993

Supersedes November 1983 General Provisions