----

|  Makers:                                             |                                            |   |  Payee:                                                                                          |            |
|---------------------------------------------------------------------|-------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|-----------------|
|                                                                |                                            |   |                                                                                                  |            |   |
| Pegasi Energy Resources Corporation,a Texas corporation   |                                            |   | Teton, Ltd., a Texas limited partnershipBy: Notet Corp., a Texas corporation,its general partner |            |
|                                                                |                                            |   |                                                                                                  |            |   |   |
|  By:                                                           | /s/                                             |   |                                                                                                  |   By: | /s/ |   |
|                                                                | Michael H. Neufeld, President    |   |                                                                                                  |            | Michael H. Neufeld, President |   |
|                                                                |                                            |   |                                                                                                  |            |   |   |

|                                       |                                            |   |   |   |
|--------------------------------------------|-------------------------------------------------|--------|--------|--------|
|                                       |                                            |   |   |   |   |
| Pegasi Operating Inc., a Texas corporation |                                            |   |   |   |
|                                       |                                            |   |   |   |   |   |
|  By:                                  | /s/                                             |   |   |   |   |   |
|                                       | Michael H. Neufeld, President    |   |   |   |   |   |
|                                       |                                            |   |   |   |   |   |

|                                  |                                            |   |   |   |
|---------------------------------------|-------------------------------------------------|--------|--------|--------|
|                                  |                                            |   |   |   |   |
| TR Rodessa, Inc., a Texas corporation |                                            |   |   |   |
|                                  |                                            |   |   |   |   |   |
|  By:                             | /s/                                             |   |   |   |   |   |
|                                  | Michael H. Neufeld, President    |   |   |   |   |   |
|                                  |                                            |   |   |   |   |   |

|                                   |                                            |   |   |   |
|----------------------------------------|-------------------------------------------------|--------|--------|--------|
|                                   |                                            |   |   |   |   |
| 59 Disposal, Inc., a Texas corporation |                                            |   |   |   |
|                                   |                                            |   |   |   |   |   |
|  By:                              | /s/                                             |   |   |   |   |   |
|                                   | Michael H. Neufeld, President    |   |   |   |   |   |
|                                   |                                            |   |   |   |   |   |