UT TR 45B
74205535045BPIPS
Midland
TX
13
0.60
WTI
Centurion PI
03/01/2004
200030
58377
60838
75454
1.00000000
B015
PIONEER NATURAL RES. USA, INC.
PRESTON DEAN SPRABERRY UNIT TR 4 (46A)
PRESTON SPRABERRY UT TR 46A
74205535046APIPS
Midland
TX
9
060
WTI
Centurion PI
03/01/2004
200002
58377
60837
75452
1.00000000
B015
PIONEER NATURAL RES. USA, INC
PRESTON SPRABERRY UNIT TR 7
PRESTON SPRABERRY UT-7
74205535O0O7PIPS
Midland
TX
4
0.60
WTI
Centurion PI
03/01/2004
298808
55583
55583
75045
1.00000000
B015
PIONEER NATURAL RES. USA, INC
PRESTON DEAN SPBY UNIT TR 37B
TXL -M- PRESTON SPBY UT 298808
74205535037BPIPS
Midland
TX
18
0.60
1816
Occidental Energy Marketing, Inc.
5 Greenway Plaza, Suite 110, Houston, Texas 77046-0521
P.O. Box 27570, Houston, Texas 77227-7570
Phone 713.215.7000
A subsidiary of Occidental Petroleum Corporation
VIA FAX: 972-969-3574
TO:
DEB STEWART - PIONEER NATURAL RESOURCES USA, INC. - PHONE 972-969-3855
FROM:
MARK HAFNER- OCCIDENTAL ENERGY MARKETING, INC. - PHONE 432-685-5884
REFERENCE:
OCCIDENTAL CONTRACT NUMBER: 0403-PNR-13603-P
PIONEER NATURAL RESOURCES USA, INC. CONTRACT NUMBER:
THIS FAX CONFIRMS THE AGREEMENT BETWEEN DEB STEWART OF PIONEER NATURAL RESOURCES
USA, INC. AND MARK HAFNER OF OCCIDENTAL ENERGY MARKETING, INC. ON FEBRUARY 1,
2004. THE FOLLOWING DETAILS ARE OCCIDENTAL'S UNDERSTANDING:
SELLER:
PIONEER NATURAL RESOURCES USA, INC. ("PIONEER")
BUYER:
OCCIDENTAL ENERGY MARKETING, INC. ("OCCIDENTAL")
1.
VOLUME:
APPROXIMATELY 1,816 BARRELS PER DAY EXACT VOLUME EQUAL TO THE
PRODUCTION FROM THE LEASES ON ATTACHED EXHIBIT "A"
2.
QUALITY/GRADE:
WEST TEXAS INTERMEDIATE
3.
DELIVERY POINT:
TITLE AND RISK OF LOSS SHALL PASS FROM PIONEER TO
OCCIDENTAL AS THE CRUDE OIL ENTERS THE FACILITIES OF TROJAN PIPELINE AND
OCCIDENTAL'S DESIGNATED TRUCKER.
4.
TERM:
MARCH
1- 31, 2004 AND
CONTINUING MONTH TO MONTH THEREAFTER SUBJECT
TO A 30 DAY ADVANCE WRITTEN NOTICE OF CANCELLATION BY EITHER PARTY.
5.
PRICE:
OXY AGREES TO PAY PIONEER A PRICE PER BARREL EQUAL TO
ONE OF THE THREE PRICING FORMULAS DESCRIBED BELOW. PIONEER SHALL HAVE THE RIGHT
TO ELECT WHICH PRICING FORMULA IS USED ON A QUARTERLY BASIS. PIONEER SHALL
NOTIFY OXY IN WRITING AT LEAST FIVE (5) DAYS PRIOR TO THE BEGINNING OF THE FIRST
NYMEX TRADING MONTH OF ANY QUARTER. THE QUARTERLY PRICING FORMULA WILL DEFAULT
TO THE PRECEDING QUARTER'S PRICING FORMULA IF PIONEER NEGLECTS TO NOTIFY OXY BY
FIVE (5) DAYS PRIOR TO THE BEGINNING OF THE NYMEX TRADING MONTH FOR ANY GIVEN
QUARTER.
IT IS HEREBY AGREED THAT PRICING FORMULA 3 WILL BE USED FOR MARCH 2004 AND WILL
BE USED FOR THE REMAINDER OF THE SECOND QUARTER OF 2004.
FORMULA 1 - PLATT'S TRADING MONTH POSTING PLUS (MIDLAND)
PRICE: KOCH PETROLEUM GROUP L.P. MONTHLY EDQ POSTED PRICE FOR WEST TEXAS/NEW
MEXICO INTERMEDIATE DEEMED 40.0 DEGREES FOR THE MONTH OF DELIVERY, PLUS THE
AVERAGE OF THE *PLATTS DAILY ASSESSMENTS OF WTI-P PLUS LESS THE DIFFERENCE
BETWEEN (PLATTS WTI-CUSHING LESS PLATTS WTI-MIDLAND) PLUS THE DELTA DOLLARS PER
BARREL SET OUT ON EXHIBIT "A".
* NOTE ALL PLATTS PRICING IS FOR THE DELIVERY MONTH AS PUBLISHED BY PLATTS
DURING THE PERIOD BEGINNING ON THE 26� OF THE SECOND MONTH PROCEEDING THE