$0 30
9/1/2008
119314
XP - Midland Sweet
742055630000PIPS
WTI
Pioneer Natural Resources
WINDHAM J
5/1/2005
100.00000000
Midland
TX
Centurion Pipeline
$0 30
5/1/2005
119314
XP - Midland Sweet
5 Greenway Plaza, Suite 110, Houston, Texas 77046-0521
Occidental Energy Marketing, Inc.
P.O. Box 27570, Houston, Texas77227-7570
A subsidiary of Occidental Petroleum Corporation
Phone 713.215.7000
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-13604-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 2,760 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:
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 GIYEN
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 26TH OF THE SECOND MONTH PROCEEDING THE
DELIVERY MONTH AND ENDING ON THE 25TH OF THE MONTH PRECEEDING THE DELIVERY MONTH
(CARRIED TO 4 DECIMAL PLACES).
FORMULA 2 - PLATT'S TRADING MONTH WT (MIDLAND)
THE AVERAGE OF THE MIDPOINTS OF THE ASSESSMENTS FOR PLATT'S TRADING MONTH WTI AT
MIDLAND, THE PLATT'S TRADING MIDLAND WTI VALUE SHALL BE THE MEAN DAILY AVERAGE,
AS PUBLISHED BY PLATTS DURING THE PERIOD BEGINNING ON THE 26th OF THE SECOND
MONTH PROCEEDING