**PURCHASE        AND SALE AGREEMENT**

** SUMMIT PETROLEUM        MANAGEMENT CORPORATION, **
**,**
**SUMMIT        PETROLEUM LLC,**
**,**
**LEGACY        RESERVES OPERATING LP**

|   | (a) | Leases,                  Lands, Wells and Pooling and Unitization Agreements.  All of                  Seller’s right, title, and interest of whatever nature in all leasehold                  and other interests in; (i) the oil, gas and mineral leases limited                  to                  those portions described on Exhibit “A” and including the working and net                  revenue interests set forth therein (the “Leases”), insofar and only                  insofar as said Leases include and pertain to and cover the lands                  and                  depths as specifically described herein on attached Exhibit “A” (the                  “Lands”); (ii) the oil and gas wells located on the Leases or on Lands                  pooled or unitized therewith (the “Wells”) including those listed on                  Exhibit “A”; and (iii) the units, pooled acreage, spacing or proration                  units or other allocation of acreage applicable to the Wells established                  by or in accordance with the applicable state, federal or local                  law; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Production.  Hydrocarbons                  produced from or allocable to the Wells for periods on or after                  the                  Effective Time (as defined in Section 2.3) and the proceeds                  therefrom; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Equipment.  Personal                  property, equipment, fixtures, and improvements appurtenant to                  or located                  on the Leases or the Lands, or used or obtained in connection with                  the                  ownership or operation of the Properties,                  and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Easements,                  Contracts, Land Files and Records.  (i) appurtenances,                  surface leases, easements, permits, licenses, servitudes and                  rights-of-way; (ii) all leases, farmout agreements, unitization                  agreements, pooling agreements, unit declarations, division orders,                  transfer orders, joint interest billings, accounting, production                  payment/payout records, operating contracts, excluding drilling                  rig                  contracts which are proprietary and non-assignable and any other                  applicable agreements and instruments, including to the extent                  assignable                  all applicable production sales agreements, the existing electric                  supply                  agreement and water disposal agreements (except as to the Windham                  14 (STA)                  SWD System will be assigned to Buyer only to the extent that Buyer’s                  disposal volume needs are subordinate to Seller’s disposal volume needs on                  the Windham 14 SWD System), and (iii) all Records as are defined                  in                  Section 7.4 (b); however Seller retains such rights under this                  Section                  2.2(d) to the extent necessary to enjoy the use and access to its                  other                  properties, leases and lands. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | Excluded                  Properties.   Seller’s interest in these Properties has                  been collectively referred to  as “Property or Properties”,                  provided, however, the Property or Properties shall not include                  and there                  is excepted, reserved  and excluded from this                  Agreement  the produced water disposal system(s) and its                  associated facilities and                  equipment. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Amount. | The                  Purchase                  Price of the Properties shall be a consideration equal                  to   FIFTEEN MILLION THREE HUNDRED THOUSAND ($15,300,000)                  (Subject to                  adjustment only as hereinafter provided). |
|--------|-----|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Allocation.  Buyer                  has allocated the Purchase Price among the Properties including                  the                  undeveloped locations and behind pipe intervals, as set forth on                  Exhibit                  “A-1” attached hereto for the purpose of (1) establishing a basis for                  certain taxes, and (2) giving notices of value to the owners of                  any                  preferential rights to purchase the Properties, (3) determining                  the value                  of a Title Defect(s) and/or Environmental Defect(s), if any and                  (4)                  allocation of the Purchase Price to each individual                  Seller. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | All                  amounts required under this Article 3 to be paid by Buyer to Seller                  shall                  be made by wire transfer of immediately available funds to an account(s)                  designated by Seller which designation shall be made on or before                  the date                  said payment is due.  These amounts are subject to further                  adjustment after the Closing as provided in this                  Agreement.  Seller may delay or refuse to proceed with the                  Closing should Buyer refuse or fail to comply with payment provisions                  as                  set forth by Seller.  This right on the part of Seller is in                  addition to all other rights and remedies Seller may have under                  this                  Agreement, at law, or in equity. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Buyer                  and Seller hereby agree that Seller, in lieu of the sale of the                  Properties                  to Buyer for the cash consideration provided herein, shall have                  the right                  at any time prior to the Closing to assign all or a portion of                  its rights                  under this Agreement to a qualified intermediary, in order to accomplish                  the transaction in a manner that will comply, either in whole or                  in part                  with the requirements of a like kind exchange pursuant to §1031 of the                  Internal Revenue Code of 1986, as amended.  In the event Seller                  does assign its rights under this Agreement pursuant to this Article                  3.1(d), Seller agrees to notify Buyer in writing of such assignment                  not                  less than seven (7) days before Closing.  If Seller assigns its                  rights under this Agreement, Buyer (i) consents to Seller's assignment                  of                  its rights in this Agreement, and (ii) deposit the Purchase Price                  with the                  qualified escrow or qualified trust account at the                  Closing. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | Buyer                  has deposited with Seller, and Seller acknowledges receipt of,                  a                  performance deposit in an amount which represents ten percent (10%)                  of the                  Purchase Price (the "Deposit"), which amount shall be held by Seller                  and                  distributed as follows: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if                  this Agreement is terminated by mutual consent of the parties as                  provided                  in Article 8.1, the Deposit shall be returned by Seller to Buyer,                  without                  interest; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if                  this Agreement is terminated by either party pursuant to the termination                  right provided in Article 8.1 and at such time all of Buyer's conditions                  to Closing as set forth in Article 7.3 have not been satisfied                  (and such                  failure is not due to a breach by Buyer of its obligations hereunder),                  the                  Deposit shall be returned by Seller to Buyer                  without  interest; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | if                  this Agreement is terminated by either party pursuant to the termination                  right provided in Article 8.1 and at such time all of Buyer's conditions                  to Closing as set forth in Article 7.3 have been satisfied, the                  Deposit                  shall be retained by Seller, and such shall constitute liquidated                  damages                  and Seller’s sole damages for any breach by Buyer of this Agreement                  causing its termination as set forth in this section;                  and |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | if                  Closing occurs, Seller shall apply the Deposit towards the Purchase                  Price. |
|--------|------|-----------------------------------------------------------------------------------------------------------------|

|   | (v) | the                  Deposit shall be sent by wire transfer by end of business on August                  31,                  2007, as instructed by Seller. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | be                  in writing; |
|--------|-----|---------------------------------|

|   | (b) | describe                  in sufficient detail the nature of Title Defect and include appropriate                  evidence to substantiate the Title                  Defect; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | describe                  the steps and actions (in reasonable detail) which are necessary                  in                  Buyer’s opinion for the curing of identified Title                  Defects; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | be                  delivered to Seller as soon as possible, but no later than September                  24,                  2007 |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | waive                  such Title Defect; or |
|--------|-----|----------------------------------------------|

|   | (b) | In                  the event the Seller and Buyer cannot mutually agree on a purchase                  price                  adjustment for an alleged Title Defect, Buyer shall have the right                  to (i)                  proceed to Closing and accept the Interest with no purchase price                  adjustment, or (ii)terminate this Agreement as to the Properties                  affected                  by the alleged Title Defect and receive a Purchase Price adjustment                  for                  such Properties as set forth in the allocation of value set forth                  in                  Exhibit “A-1”, or , where feasible, the proportionate allocated value;                  or. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Buyer                  and Seller may proceed to Closing without any adjustment to the                  Purchase                  Price and Seller will have until the Post-Closing to provide evidence                  of                  cure of any such Title Defect. If Seller is unable to cure under                  this                  Section 4.6(c), Buyer shall be entitled to an adjustment at Post-Closing                  in accordance with Section 4.6(b). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SELLER EXPRESSLY DISCLAIMS ANY        REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING OR IN ANY WAY RELATING        TO OBLIGATIONS OR LIABILITIES UNDER ANY ENVIRONMENTAL LAWS OR THE ENVIRONMENTAL        CONDITION OF THE PROPERTIES,**

----

|   | (a) | proceed                  with Closing and either elect to remedy the condition or account                  for said                  costs for the remediation of the condition contained in Buyer’s                  notification as a normal pre-Effective Time operating expense item                  in the                  Post Closing Adjustment, or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (b) | remove                  the subject Property from this Agreement and adjust the Purchase                  Price                  based upon the allocation of value set forth in Exhibit A-1,                  or |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)    terminate                  this Agreement if the total cost to remediate all Environmental                  Matters                  will exceed  ten percent (10%) of the Purchase                  Price. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (I) | the                  appropriate governmental authorities provide written notice to                  Seller or                  Buyer that no further remediation of the condition is required                  to comply                  with the applicable Environmental Laws;                  or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (II) | An                  independent third party determines to Seller’s and Buyer’s reasonable                  satisfaction that the condition has been remediated to the level                  required                  by the Environmental Laws or as mutually agreed to by Buyer and                  Seller. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Description                  and Title.  Seller represents and warrants that Exhibit “A”                  sets forth a true, complete and legally sufficient description                  of the                  Properties.  It is understood that pursuant to this Agreement,                  Seller warrants title to the Properties as set forth on Exhibit“A” by,                  through and under Seller only, but not                  otherwise. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Organization,                  Standing and Power.  To the extent that each Seller is a                  corporation, partnership or similar entity, the affected Seller                  is validly                  existing and in good standing under the laws of the State                  of  Texas and has all requisite powers and authority to own,                  lease, operate, sell and convey the Properties and to carry on                  its                  business as is now being conducted. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Authority                  and Enforceability.  The execution and delivery of this                  Agreement, and the consummation of the transactions contemplated                  hereby,                  have been duly and validly authorized by all necessary action on                  the part                  of each party constituting Seller.  This Agreement is the valid                  and binding obligation of Seller, enforceable against each Seller                  in their                  respective proportionate ownership share in accordance with its                  terms.  Neither the execution and delivery by Seller of this                  Agreement nor the consummation of the transactions contemplated                  hereby nor                  the compliance by Seller with any of the provisions hereof will                  conflict                  with or result in a breach of any provision of Seller's organization                  documents or by-laws.  The execution and delivery hereof by                  Seller does not, and the fulfillment and compliance with the terms                  and                  conditions hereof, and the consummation of the transactions contemplated                  hereby, will not result in the creation or imposition of any lien,                  charge                  or other encumbrance on the                  Properties. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d)   Seller's                  Title to Properties.  Seller has Defensible Title to the                  Properties.  The                  term         “Defensible                  Title” shall mean in the case of the leasehold interests listed on Exhibit                  “A”, such right, title and interest (owned beneficially or of record)                  that, except for Permitted                  Encumbrances: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | is                  free from reasonable doubt that a prudent person engaged in the                  business                  of purchasing and owning, developing and operating producing oil                  and gas                  properties with knowledge of all of the facts and their legal effect                  would                  be willing to accept the title; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | entitles                  Seller to receive not less than the interest set forth in Exhibit“A-1” as                  the net revenue interest with respect to all of the oil, gas, and                  hydrocarbon minerals produced, saved and marketed from each unit                  or well,                  as the case may be, that relates to Seller’s producing interval in the                  lands and depths included within each property identified in Exhibit                  “A-1”; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | obligates                  Seller to pay costs and expenses relating to the operations on                  and the                  maintenance and development of each unit or well, as the case may                  be, that                  relates to Seller’s producing interval in the lands and depths included                  within each property, in an amount not greater than the working                  interest                  set forth in Exhibit “A-1”; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | is                  free and clear of any mortgages, pledges, deeds of trust, hypothecations                  and production payments, except for the DML Properties which currently                  partially secures a line of Credit between WM. Mark Cranmer, Trustee                  and                  JPMorgan Chase Bank N.A. as Lender and Summit Petroleum LLC, et                  al as                  borrower (recorded May 14, 2007, INS. No. 101006, Vol. 82, Page                  346 in the                  Official Public Records of Reagan County, Texas, which will be                  released no                  later than 5 days prior to Closing; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Liability                  for Brokers’ Fees.  Seller has not incurred any liability,                  contingent or otherwise, for brokers’ or finders’ fees relating to this                  Transaction for which Buyer shall have any responsibility                  whatsoever. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Insurance.  Seller                  shall maintain through the Closing with respect to the Properties                  its                  existing insurance coverage. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Compliance                  with Law.  Seller has not received a written notice of a                  material violation of any statute, law, ordinance, regulation,                  permit,                  rule or order of any federal, state, tribal or local government                  or any                  other governmental department or agency, or any judgment, decree                  or order                  of any court, applicable to the Properties or operations on the                  Properties, which remains uncured. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Plugging                  Obligations.  To the best of Seller’s knowledge, except for                  the Nordic B No. 4 Well , there are no dry holes or shut-in or                  otherwise                  inactive wells, located on the Properties on lands pooled or unitized                  therewith that Seller has the current obligation to plug and                  abandon. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | Governmental                  Permits.  To the best of Seller’s knowledge, Seller has all                  governmental licenses, filings and permits (including, without                  limitation,                  permits, licenses, approval registrations, notifications, exemptions                  and                  any other authorizations pursuant to Law) necessary or appropriate                  to own                  and operate the Properties as presently being owned and                  operated.  To the best of Seller’s knowledge, Seller has not                  received written notice of any violations in respect of any such                  licenses                  or permits that remains uncured. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Personal                  Property and Equipment.  Seller has not removed any personal                  property, equipment and fixtures from the Wells, unless it has                  been                  replaced with personal property, equipment and fixtures of similar                  grade                  and utility.  Unless removed, repaired or replaced with personal                  property, equipment and fixtures or similar grade and utility,                  the                  personal property, equipment and fixtures currently attendant to                  the Wells                  was the equipment historically used on the Wells to produce the                  Hydrocarbons prior to the execution of this                  Agreement.   |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | No                  Alienation.  Within 120 days of the date hereof, Seller has                  not sold, assigned, conveyed, or transferred or contracted to sell,                  assign, convey or transfer any right or title to, or interest in,                  the                  Properties other than (i) production sold in the ordinary course                  of                  Seller’s business and (ii) equipment which was worthless, obsolete or                  replaced by equipment of equal suitability and                  value. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Property                  Expenses.  In the ordinary course of business, Seller has                  paid all costs and expenses attributable to the period of time                  prior to                  the Effective Time as such costs and expenses become due, and such                  costs                  and expenses are being paid in a timely manner before the same                  become                  delinquent, except such costs and expenses as are disputed in good                  faith                  by Seller in a timely manner and for which Seller shall retain                  responsibility. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | Records.   Seller                  makes no representations regarding the accuracy of any of the Records;                  provided, however, Seller does represent that (i) all of the Records                  are                  files, or copies thereof, that Seller has used in the ordinary                  course of                  operating and owning the Properties, (ii) Seller has not intentionally                  withheld any material information from the Records or (iii) Seller                  has not                  intentionally misrepresented any material information in the                  Records.  Except as set forth in this Section 5.1, no                  representation or warranty of any kind is made by Seller as to                  the                  information or with respect to the Properties to which the information                  relates and Buyer expressly agrees that any conclusions drawn therefrom                  shall be the result of its own independent review and judgment.                  The                  representations contained in this paragraph shall apply only to                  matters of                  fact, and shall not apply to any information, data, printouts,                  extrapolations, projections, documentation, maps, graphs, charts,                  or                  tables which reflect, depict, present, portray, or represent, or                  which are                  based upon or derived from, in whole or in part, interpretation                  of the                  information including, but not limited to, matters of geological,                  geophysical, engineering, or scientific                  interpretation. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | Gas                  Imbalances.  To the best of Seller’s knowledge, no gas                  imbalance exists with respect to the                  Properties. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | Leases.  To                  the best of Seller's knowledge, the Leases have been maintained                  according                  to their material terms, in compliance with the agreements to which                  the                  Leases are subject, and are presently in full force and                  effect.  To the best of Seller's knowledge, there has not                  occurred any event, fact or circumstance which with the lapse of                  time or                  the giving of notice, or both, would constitute such a material                  breach or                  default on behalf of Seller under the provisions of the                  Leases. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | Litigation.  To                  the best of Seller’s knowledge, there are no actions, suits, claims,                  proceedings, agency enforcement actions or investigations pending,                  or to                  the best knowledge of Seller, threatened against or affecting the                  Properties.  There is no suit, action, claim, investigation or                  inquiry by any person or entity or by any administrative agency                  or                  governmental body and no legal, administrative or arbitration proceeding                  pending, or, to the best knowledge of Seller threatened against                  Seller                  which has affected or could affect Seller's ability to consummate                  the                  transaction contemplated by this                  Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Organization,                  Standing and Power.  Buyer is a limited partnership duly                  organized, validly existing and in good standing under the laws                  of the                  State of Delaware and has all requisite powers and authority to                  own, lease                  and operate the Properties and to carry on its business as is now                  being                  conducted in the jurisdictions where the nature of its properties                  or                  business so requires such                  qualification. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Authority                  and Enforceability.  The execution and delivery of this                  Agreement, and the consummation of the transactions contemplated                  hereby,                  have been duly and validly authorized by all necessary corporate                  action on                  the part of Buyer.  This Agreement is the valid and binding                  obligation of Buyer, enforceable against Buyer in accordance with                  its                  terms.  Neither the execution and delivery by Buyer of this                  Agreement nor the consummation of the transactions contemplated                  hereby nor                  the compliance by Buyer with any of the provisions hereof will                  conflict                  with or result in a breach of any provision of Buyer's articles                  and                  by-laws.  The execution and delivery hereof by Buyer does not,                  and the fulfillment and compliance with the terms and conditions                  hereof                  and the consummation of the transactions contemplated hereby will                  not,                  result in the creation or imposition of any lien, charge or other                  encumbrance on the Properties. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Warranty                  Maintenance.  Buyer shall cause all the representations and                  warranties of Buyer contained in this Agreement to be true and                  correct on                  and as of the Closing Date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Buyer                  represents that it did not solely rely upon representations or                  materials                  provided to Buyer by Seller or Seller’s marketing agents in evaluating the                  Properties, but rather has also relied upon its individual evaluations                  and                  due diligence. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e)     Buyer                  represents that it has sufficient funds on hand or commitments                  from one or                  more  banking institutions to fund payment of the Purchase Price                  at the Closing. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | All                  representations and warranties of Buyer contained in this Agreement                  shall                  be true, correct, and not misleading in all material respects,                  and Buyer                  shall have performed and satisfied all agreements and covenants                  in all                  material respects required by this Agreement to be performed and                  satisfied                  by Buyer; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | No                  suit or other proceeding shall be pending or threatened before                  any court                  or governmental agency seeking to restrain, prohibit, or declare                  illegal,                  or seeking substantial damages in connection with the transaction                  contemplated hereby. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Should                  there be downward adjustments to the Purchase Price in excess of                  ten                  percent (10%) of the Purchase Price, due to asserted Title Defects                  and                  Environmental Defects; Seller has the option to terminate this                  Agreement                  with no liability to Buyer other than return of the                  Deposit. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | All                  representations and warranties of Seller contained in this Agreement                  shall                  be true, correct, and not misleading in all material respects,                  and Seller                  shall have performed and satisfied all agreements and covenants                  in all                  material respects required by this Agreement to be performed and                  satisfied                  by Seller; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | No                  suit or other proceeding shall be pending or threatened before                  any court                  or governmental agency seeking to restrain, prohibit, or declare                  illegal,                  or seeking substantial damages in connection with the transaction                  contemplated hereby; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Should                  there be downward adjustments to the Purchase Price in excess of                  ten                  percent (10%) of the Purchase Price, due to asserted Title Defects                  and                  Environmental Defects; Buyer has the option to terminate this Agreement                  with no liability to Buyer other than return of the                  Deposit. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | No                  material adverse change in the condition of or title to the Properties                  shall have occurred subsequent to the Effective Time, except depletion                  through normal production within authorized allowables, ordinary                  changes                  in rates of production, and depreciation of equipment through ordinary                  wear and tear. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Seller                  shall execute, acknowledge and deliver to Buyer, the original Assignment                  of Oil and Gas Leases and Bill of Sale attached hereto as Exhibit“B” (the                  “Assignment”), conveying title to the Properties to Buyer, as well as such                  certificates or other documents as are required to effect the transfer                  of                  the Properties. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | All                  books, records and files  in the possession of Seller pertaining                  to the Properties, including, without limitation, the following,                  if and to                  the extent that such files exist: all books, records, reports,                  manuals,                  files, title documents, including correspondence, records of production                  and maintenance, revenue, sales, expenses, warranties, lease files,                  land                  files, well files, title opinions and title reports, abstracts,                  division                  order files, assignments, contract files, operations files, copies                  of tax                  and accounting records (but excluding Federal and state income                  tax returns                  and records) and files, maps, core data, hydrocarbon analysis,                  well logs,                  mud logs, field studies together with other files, contracts and                  other                  records and data including all geological, geophysical (including                  any                  micro seismic) and engineering information, except for that data                  prohibited by third party confidentiality agreements (the “Records”),                  shall be made available for delivery to Buyer, at Buyer’s cost, at                  Seller’s offices where currently maintained, within fifteen (15) business                  days after the Closing.  Seller shall have the right to retain                  copies of the Records (and receive from Buyer, at Seller’s expense, copies                  of Records requested by Seller from Buyer in the future) and to                  retain                  canceled checks and general ledger, purchasing and other general                  accounting records of Seller.  Buyer’s reliance on same shall be                  at Buyer’s sole risk. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Seller                  and Buyer shall execute, acknowledge and deliver such transfer                  orders or                  letters in lieu thereof as Buyer may request, directing all purchasers                  of                  production to make payment of proceeds attributable to production                  from the                  Properties after the Effective Time to                  Buyer. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Buyer                  shall deliver the cash consideration of the total Purchase Price                  to Seller                  by Wire Transfer on the date of Closing as adjusted to reflect                  the Deposit                  and matters described in Article 7.5. To the extent that actual                  amounts                  are not available, the parties will use reasonable estimates of                  such                  amounts less any adjustments due to Title Defects and/or Environmental                  Matters as applicable as set out in Article                  4. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Seller                  will provide such reasonable assistance to Buyer as Buyer may request                  in                  order for Buyer to prepare its required SEC                  filings. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Seller                  will provide Buyer with executed assignments of assignable contracts                  which                  relate to the Properties. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | The                  amount of all direct costs and expenditures chargeable to Seller's                  interest incurred and paid by                  Seller: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | that                  are attributable to the drilling, completion, recompletion, reworking,                  operation and maintenance of the Properties on and after the Effective                  Time; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | bonuses,                  lease rentals and shut-in payments due after (and expressly excluding                  those due before) the Effective                  Time; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | ad                  valorem, property and other taxes that are allocated to the Buyer                  pursuant                  to Article 7.5(d) herein below; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | amounts                  relating to obligations arising under the Contracts relating to                  the                  Properties with respect to operations or production after the Effective                  Time; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | The                  value of all Hydrocarbons, which have been produced and are merchantable,                  and are in storage and/or credited to the Properties as of the                  Effective                  Time, net of all severance taxes, and less an appropriate deduction                  based                  on industry practice for basic sediment, water and other non-merchantable                  liquids; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Any                  other amount agreed upon by Seller and                  Buyer |
|--------|-------|------------------------------------------------------------------------------------|

|   | (i) | The                  amount of all proceeds received by Seller that are attributable                  to its                  ownership and the operation of the Properties on or after the Effective                  Time; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | The                  following amounts to the extent paid by                  Buyer: |
|--------|------|--------------------------------------------------------------------------------------|

|   | (A) | all                  direct unrelated costs and expenditures chargeable to Seller's                  interest                  that are attributable to the drilling, completion, recompletion,                  reworking, operation and maintenance of the Properties prior to                  the                  Effective Time; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | all                  bonuses, lease rentals and shut-in payments due prior to the Effective                  Time; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | by                  Buyer or Seller in accordance with Article 4.6 concerning Remedies                  for                  Title Defects and Article 4.7 Remedies for Environmental                  Defects; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | by                  Buyer if the conditions set forth in Article 5.1 and/or Article                  7.3 are                  not satisfied in all |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | by                  Seller if the conditions set forth in Article 5.2 and/or Article                  7.2 are                  not satisfied in all material respects or waived prior to the Closing                  Date, and notwithstanding any other provisions of this Agreement                  to the                  contrary, by the Seller if the Seller is not in default hereunder                  and the                  Closing has not occurred on or before October 8, 2007;                  or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ANY        ASSIGNMENT AND BILL OF SALE EXECUTED PURSUANT HERETO SHALL BE EXECUTED WITHOUT        ANY EXPRESS OR IMPLIED WARRANTY OR REPRESENTATION AS TO THE MERCHANTABILITY        OF        ANY OF THE WELLS OR EQUIPMENT OR THEIR FITNESS FOR ANY PURPOSE, AND WITHOUT        ANY        OTHER EXPRESS OR IMPLIED WARRANTY OR REPRESENTATION WHATSOEVER EXCEPT AS        EXPRESSLY SET FORTH IN SAID ASSIGNMENT AND BILL OF SALE.  IT IS        UNDERSTOOD AND AGREED THAT BUYER SHALL HAVE INSPECTED THE PROPERTY AND PREMISES        AND SATISFIED ITSELF AS TO THEIR PHYSICAL AND ENVIRONMENTAL CONDITION, BOTH        SURFACE AND SUBSURFACE, AND THAT BUYER SHALL ACCEPT ALL OF THE SAME IN THEIR“AS        IS, WHERE IS” CONDITION.  IN ADDITION NEITHER, SELLER, NOR SELLER’S        REPRESENTATIVE (SUMMIT PETROLEUM LLC), MAKES ANY WARRANTY OR REPRESENTATION,        EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF ANY DATA, INFORMATION        OR MATERIALS HERETOFORE OR HEREAFTER FURNISHED BUYER IN CONNECTION WITH THE        PROPERTIES, OR AS TO THE QUALITY OR QUANTITY OF HYDROCARBON RESERVES (IF        ANY)        ATTRIBUTABLE TO THE PROPERTIES OR THE ABILITY OF THE PROPERTIES TO PRODUCE        HYDROCARBONS.  ANY AND ALL SUCH DATA, INFORMATION AND OTHER MATERIALS        FURNISHED BY SELLER AND SELLER’S REPRESENTATIVE IS PROVIDED BUYER AS A        CONVENIENCE AND ANY RELIANCE ON OR USE OF THE SAME SHALL BE AT BUYER’S SOLE        RISK.  BUYER EXPRESSLY WAIVES THE PROVISIONS OF CHAPTER XVII,        SUBCHAPTER E, SECTIONS 17.41 THROUGH 17.63, INCLUSIVE (OTHER THAN SECTION        17.555, WHICH IS NOT WAIVED), VERNON’S TEXAS CODE ANNOTATED BUSINESS AND        COMMERCE CODE (THE “DECEPTIVE TRADE PRACTICES ACT”).**

----

**BUYER’S ASSUMPTION AND INDEMNIFICATION; POTENTIAL THIRD PARTY        LIABILITIES.**
**  EXCEPT AS OTHERWISE PROVIDED IN        THIS AGREEMENT, BUYER AGREES UPON THE OCCURRENCE OF CLOSING (I) TO ASSUME,        AND        TIMELY PAY AND PERFORM, ALL DUTIES, OBLIGATIONS AND LIABILITIES RELATED TO        THE        OWNERSHIP AND/OR OPERATION OF THE PROPERTIES, INSOFAR AND ONLY INSOFAR AS        SUCH        DUTIES, OBLIGATIONS AND LIABILITIES ARISE AND ARE ATTRIBUTABLE TO PERIODS        FROM        AND AFTER THE EFFECTIVE TIME AND LIMITED (AND ATTRIBUTABLE) TO THE INTERESTS        INTHE PROPERTIES ASSIGNED TO BUYER BY SELLER (COLLECTIVELY, THE ASSUMED        LIABILITIES) INCLUDING , WITHOUT LIMITATION, THOSE ARISING UNDER THE CONTRACTS        AND AGREEMENTS DESCRIBED IN ARTICLE 2.2, AND (II) TO INDEMNIFY AND HOLD SELLER,        ITS RELATED ENTITIES AND AFFILIATES, AND THE DIRECTORS, OFFICERS , EMPLOYEES        CONSULTANTS AND AGENTS OF SUCH PARTIES, RESPECTIVELY HARMLESS FROM AND AGAINST        ANY AND ALL CLAIMS, ACTIONS, LIABILITIES, LOSSES, DAMAGES, COSTS OR EXPENSES        (INCLUDING COURT COSTS AND ATTORNEYS’ FEES) OF ANY KIND OR CHARACTER ARISING OUT        OF OR OTHERWISE RELATING TO THE ASSUMED LIABILITIES. IN CONNECTION WITH (BUT        NOT        IN LIMITATION OF) THE FOREGOING, BUT SUBJECT TO THE OTHER PROVISIONS OF THIS        AGREEMENT, IT IS SPECIFICALLY UNDERSTOOD AND AGREED THAT ASSUMED LIABILITIES        SHALL INCLUDE ALL OBLIGATIONS TO PROPERLY PLUG AND ABANDON, OR RE-PLUG AND        RE-ABANDON, ANY WELLS PRODUCING, SHUT-IN, OR DRILLED ON OR AFTER THE EFFECTIVE        DATE AND LOCATED ON THE PROPERTIES. HOWEVER, EXCEPT FOR BUYER’S OBLIGATIONS SET        FORTH UNDER ARTICLE 10.3, BUYER SHALL NOT INDEMNIFY OR HOLD SELLER HARMLESS        FOR        CLAIMS, COSTS, EXPENSES AND LIABILITIES INCURRED BY SELLER WITH RESPECT TO        THE        SALE OF THE PROPERTIES TO BUYER, OR THE NEGOTIATIONS LEADING TO SUCH SALE,        OR        THOSE THAT RESULT FROM OR ARE ATTRIBUTABLE TO ANY REPRESENTATION OF SELLER        CONTAINED IN THIS AGREEMENT BEING UNTRUE OR A BREACH OF ANY WARRANTY OR COVENANT        OF SELLER CONTAINED IN THIS AGREEMENT.**

** **
**LIMITATIONS        ON DAMAGES. **
**NOTWITHSTANDING ANYTHING TO THE CONTRARY IN        THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY        EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE OR SPECULATIVE        DAMAGES OF  ANY OTHER PARTY ARISING OUT OF OR RELATING TO, IN ANY        MANNER, THIS AGREEMENT, THE TRANSACTION CONTEMPLATED HEREUNDER, OR THE        PROPERTIES; PROVIDED, HOWEVER THAT THIS WAIVER SHALL NOT AFFECT OR RELEASE        ANY        CLAIMS OF THIRD PARTIES (BEING PERSONS, ENTITIES OR GOVERNMENTAL AUTHORITIES        WHO        ARE NOT THE BUYER AND NOT THE SELLER) FOR WHICH A PARTY IS OBLIGATED TO        INDEMNIFY THE OTHER UNDER THIS AGREEMENT.**

**Assumption        and Indemnification of Environmental        Matters.**
** **
** **
**“AS IS, WHERE IS” BASIS,“WITH ALL FAULTS”**

----

**UPON        CLOSING, BUYER HEREBY ASSUMES AND SHALL BE RESPONSIBLE FOR AND AGREES TO        INDEMNIFY, DEFEND AND HOLD HARMLESS SELLER FROM AND AGAINST ANY AND ALL CLAIMS,        LIABILITY OR LOSSES, (INCLUDING, WITHOUT LIMITATION, LOSSES FROM DAMAGE TO        PROPERTY, ALLEGED GROUNDWATER CONTAMINATION, INJURY TO OR DEATH OF PERSONS        OR        OTHER LIVING THINGS, NATURAL RESOURCE DAMAGES, CERCLA RESPONSE COSTS,        ENVIRONMENTAL REMEDIATION AND RESTORATION COSTS OR FINES) OR PENALTIES ARISING        OUT OF OR ATTRIBUTABLE TO, IN WHOLE OR IN PART BY A VIOLATION OF, FAILURE        TO        FULFILL DUTIES IMPOSED BY OR INCURRENCE OF LIABILITY UNDER ANY COMMON LAW        RELATING TO HUMAN HEALTH, SAFETY OR THE ENVIRONMENT OR ANY ENVIRONMENTAL        LAWS        (AN “ENVIRONMENTAL MATTER”) OCCURRING AT ANY TIME BEFORE, AT OR AFTER THE        EFFECTIVE TIME WITHOUT REGARD TO THE SOLE, PARTIAL OR CONCURRENT NEGLIGENCE,        STRICT LIABLITY OR OTHER FAULT OF THE SELLER, REGARDLESS OF WHEN THE EVENTS        THAT        CAUSED SUCH CONDITION TO EXIST OR THE OBLIGATION TO ARISE,         PROVIDED, HOWEVER, THAT SELLER SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS        THE        BUYER FROM AND AGAINST ANY AND ALL LOSSES RESULTING FROM ANY ENVIRONMENTAL        MATTER OCCURRING AT ANY TIME PRIOR TO THE EFFECTIVE TIME TO THE EXTENT THAT        SUCH        LOSSES RESULT FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SELLER OR        THAT        HAVE BEEN ASSERTED IN A THIRD-PARTY LAWSUIT OR ADMINISTRATIVE PROCEEDING        OR        ORDER THAT IS FILED, ISSUED OR COMMENCED AGAINST SELLER OR HAS BEEN DOCUMENTED        BY BUYER TO SELLER IN WRITING ON OR BEFORE THE CLOSING        DATE.**

----

|   |   303                  West Wall, Suite 1600 |
|--------|--------------------------------------------------------|

|   |   Midland,                  Texas 79702 |
|--------|---------------------------------------------------|

|   | Fax:                  (432) 684-3774 |
|--------|--------------------------------------|

|   | Phone:                  (432) 682-2516 |
|--------|----------------------------------------|

|   | kmcgraw@legacylp.com |
|--------|----------------------|

|   | Attention:                  Mr. Kyle A. McGraw |
|--------|------------------------------------------------|

|   | Summit                  Petroleum Management Corporation |
|--------|----------------------------------------------------------|

|   | 550                  West Texas, Suite 700 |
|--------|--------------------------------------------|

|   | Midland,                  Texas 79701 |
|--------|---------------------------------------|

|   | Fax:                  (432) 682-9809 |
|--------|--------------------------------------|

----

----

|   | **SELLER:** **SUMMIT PETROLEUM MANAGEMENT                  CORPORATION** |                                                     |
|--------|-------------------------------------------------------------------------------|----------------------------------------------------------|
|   |                                                                          |                                                     |   |
|   | By:                                                                           | /s/ Dennis                R.                Johnson |   |
|   |                                                                          | Dennis                R.                Johnson          |   |
|   |                                                                          | President&                CEO                        |   |
|   |                                                                          |                                                     |   |

|   | **SUMMIT            PETROLEUM LLC** |                                  |
|--------|-------------------------------------|---------------------------------------|
|   |                                |                                  |   |
|   | By:                                 | /s/ Dennis            R. Johnson |   |
|   |                                | Dennis            R. Johnson          |   |
|   |                                | President            & CEO        |   |
|   |                                |                                  |   |

|   | **BUYER:** **LEGACY RESERVES OPERATING LP,                a****Delaware limited                partnership****BY: Legacy Reserves Operating GP LLC,                its****general partner****By: Legacy Reserves LP, its sole                member****By: Legacy Reserves GP, LLC, its general                partner ** |                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                |                                                                |   |
|   | By:                                                                                                                                                                                                                                                                                                                                 | /s/ Kyle              A. McGraw                                |   |
|   |                                                                                                                                                                                                                                                                                                                                | Kyle              A. McGraw                                         |   |
|   |                                                                                                                                                                                                                                                                                                                                | Executive              Vice President Business Development and Land |   |
|   |                                                                                                                                                                                                                                                                                                                                |                                                                |   |

----