Document:

NARCO #282  (HAND WRITTEN)

KOCH
--------------------------------------------------------------------------------
KOCH  HYDROCARBON  COMPANY

                                                               December 28, 1989

Amoco  Production  Company
P.  0.  Box  591
Tulsa,  OK  74102

Re:  The  Gas  Processing Agreement dated June 1 1986, ("The Agreement") between
Amoco Production Company ("Producer") and Koch Hydrocarbon Company (successor in
interest  of  Oryx  Energy  Company,  hereinafter  referred  to as "Processor").

Gentlemen:

As  you may be aware, Processor has purchased the Denver Central Plant which was
owned  by  Oryx.  Your gas covered by The Agreement(s) referenced above has been
processed  in  that  Plant.

If  justified  economically,  Processor  may  terminate  operation of the Denver
Central Plant and place into service a gathering line connecting your production
with  Processor's  Third  Creek  Plant.   If this operational change is made, we
believe  you will see an increase in the price you are paid for your gas for the
reason  that (i) the Third Creek Plant is more efficient than the Denver Central
Plant, and (ii) the geographical location and liquid and residue sales lines out
of  the  Third  Creek  Plant  will allow Processor to sell its Plant liquids and
residue  gas  residue  gas  at prices which are generally higher than obtainable
from  the  Denver  Central  Plant.  A comparison of prices of the Denver Central
Plant versus the prices of the Third Creek Plant for the month of October, 1989,
is  attached  to this letter. (Such comparison is based on actual October prices
but  is  an  example  for  illustrative purposes only, and does not constitute a
warranty  of  minimum  or  periodic  prices.)

In  order to defray a portion of Processor's costs in connecting your gas to the
more  efficient Plant and enhanced marketing situation, it will be necessary for
Processor  to  charge  Producer  a  Gathering  Fee  of  twelve  cents ($.12) per

      The Dome Tower - Suite 1570 - 1625 Broadway - Denver, Colorado 80202 -
                                  303/623-1993

<PAGE>
Amoco  Production  Company
December  28,  1989
Page  Two

MCF  of  gas delivered through this connecting line, based upon the MCF's of gas
delivered  to  Processor  at  the  Point(s)  of  Delivery  provided  for  in The
Agreement(s),  effective  December  1,  1989.
If  you are in agreement with the foregoing provisions of this letter, please so
indicate  by signing as provided for below.   In order for you to take advantage
of  the  enhanced  marketing  opportunity, please return executed copies of this
letter  to  the  undersigned  no  later  than  the  end of the month of January;
otherwise, we will assume you wish to remain with the status quo with respect to
the  marketing  of  your  liquids  and  residue  gas.
Except  as hereinabove amended, The Agreement(s), and any amendments thereto not
hereby  superseded,  shall  remain  in  full  force  and  effect.
If  you  have  any  questions in regard to the foregoing, please call either Ms.
Janie  Hostetter  or  Mr.  Lance  Larkin  @  303-  623-1993.

                                       Yours  truly,
                                       D.  J.  Zaloudek

Accepted  and  agreed  to  this  day  of
    14   day  of  February  ,  1990
  -----           --------       --
AMOCO  PRODUCT  COMPANY
By:  (SIGNED)
   ----------------------
Its:  Attorney-in-Fact
  -----------------------

<PAGE>
<TABLE>
<CAPTION>
                             CONTRACT SUMMARY BRIEF
<S>                                           <C>
                              ContractNumber  282
                              ProducerNumber  23557
                                ProducerName  Nova  Energy
                                ContractType  P
                                ContractDate  6/1/1986
                               EffectiveDate  6/1/1986
                                ContractTerm  60
                              ExpirationDate  1Jun91
                                 RenewalCode  A
                       TerminationNoticeDays  90
                   UnprofitabilityNoticeDays  30
                             MeasurementTest  6
                                     BtuTest  6
                                 PaymentDays  25
                              AuditProvision  0
                         ProductSalesPercent  0.65
                            ProductSalesBase  99
                         ResidueSalesPercent  0.65
                              ResidueGasBase  99
                      CondensateSalesPercent  0
                          CondesateSalesBase  99
                           WellheadPriceCode
                                  FixedPrice  0
                                   IndexCode  0
                             IndexAdjustment  0
                                   BasePrice  0
                        PercentPriceIncrease  0
                           PriceIncreaseBase  0
                               UnitOfMeasure  Mmbtu
                                PressureBase  14.65
                                 Deduct1Code  30
       Deduction  Rate  Codes.DeductRateDesc  Third Creek Gathering
       Deduction  Rate  Codes.DeductRateDesc  0.12
    Deduction  Rate  Codes.Unit  of  Measure  Mcf
                             Deduct1CalcCode  9
  Deduction Calculation Codes.DeductCalcDesc  Wellhead  Mcf
                                 Deduct2Code     99
    Deduction  Rate  Codes  3.DeductRateDesc  Not  Applicable
    Deduction  Rate  Codes  3.DeductRateDesc  0
      Deduction Rate Codes 3.Unit of Measure
                             Deduct2CalcCode  99
Deduction Calculation Codes 1.DeductCalcDesc  Not  Applicable
                                 Deduct3Code  99
    Deduction  Rate  Codes  1.DeductRateDesc  Not  Applicable
    Deduction  Rate  Codes  1.DeductRateDesc  0
      Deduction Rate Codes 1.Unit of Measure
                             Deduct3CalcCode  99
Deduction Calculation Codes 2.DeductCalcDesc  Not  Applicable
                                 Deduct4Code  99
    Deduction  Rate  Codes  2.DeductRateDesc  Not  Applicable
        Deduction  Rate  Codes  2.DeductRate  0
      Deduction Rate Codes 2.Unit of Measure
                             Deduct4CalcCode  99
Deduction Calculation Codes 3.DeductCalcDesc  Not  Applicable
                                 PayOperator  FALSE
                                                                     Denver Central System, Elbert County, Legal Description:
                                                                     Sec7,T6S,R62W,Koch Contract Number 1903
                          ContractDedication
                              LastUpdateUser  Receptionist
                              LastUpdateDate  18Nov96
                       MaximumResiduePercent  0
                       MinimumResiduePercent  0                      Term @ 6-1-86 5 years
                       MaximumLiquidsPercent  0                      Thereafter - year by year
                       MinimumLiquidsPercent  0                      Terminate 3 months notice
                         Maxi8mumVolumeLimit  0                      See page 25
                          MinimumVolumeLimit  0                      (HAND WRITTEN)
                             VolumeLimitCode  1
                           VolumeMeasureCode  1
                        EthaneRecoveryFactor  0
                       PropaneRecoveryFactor  0
                     IsoButaneRecoveryFactor  0
                  NormalButaneRecoveryFactor  0
                    IsoPentaneRecoveryFactor  0
                 NormalPentaneRecoveryFactor  0
                       HexanesRecoveryFactor  0
                            RecoveryCalcCode  99
                       GuaranteedFL&UPercent  0
                                FL&UCalcCode  99

                                                      Third
                             Contract Number  Meter   Party
                                              Number  Number    Meter Name
                                   282         1437           CHAMPLIN 569-E
</TABLE>

<PAGE>

                         GAS SALES and PURCHASE CONTRACT

                                     Between

                            AMOCO PRODUCTION COMPANY
                                 (HAND WRITTEN)

                                     SELLER
                                       and
                            AMOCO PRODUCTION COMPANY
                                      BUYER

                    Dated ____JUNE 1, 1986__(HAND WRITTEN)__
                          ----------------------------------
                 Amoco Contract No.____118689_(HAND WRITTEN____
                                   ----------------------------

<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS
                                -----------------

                                            Page
<S>             <C>                         <C>

Article I       Definitions                    2
Article  11     Purpose and Commitments        4
Article  III    Point of Delivery              4
Article  IV     Quantity                       5
Article  V      Quality                        6
Article  VI     Meters and Computations of
A               Volumes                        8
Article  VII    Tests                         11
Article  VIII   Residue Gas                   12
Article  IX     Liquid Products and Ethane    14
Article  X      Price                         16
Article  XI     Payment                       18
Article  xii    Warranty                      18
Article  XIII   Reservations of Parties       19
Article  XIV    Royalty and Taxes             20
Article  XV     Drip                          20
Article  XVI    Force Majeure                 21
Article  XVII   Unprofitable Gas              22
Article  XVIII  Producing Schedule            23
Article  XIX    Right-of-Way                  24
Article  XX     Indemnity                     24
Article  XXI    Regulatory Bodies             25
Article  XXII   Unitization                   25
Article  XXIII  Term                          25
Article  XXIV   Counterpart Execution         26
Article  XXV    Assignment                    26
Article  XXVI   Notices                       26
</TABLE>

                              Execution of Contract
                                   Exhibit "A"
CON391
                                 55295 (STAMPED)

<PAGE>
                         GAS SALES AND PURCHASE CONTRACT
                         -------------------------------

hereinafter  referred  to  as "Seller," and AMOCO PRODUCTION COMPANY, a Delaware
Corporation, as Operator of the Peoria Gas Plant, and acting individually and as
authorized  by  those  Plant  Owners  purchasing  a  proportionate  share of gas
hereunder  in accordance with that certain Agreement for the Ownership, Arapahoe
County,  Colorado,  hereinafter  referred  to  collectively  as  "Buyer."

     W  I  T  N  E  S  S  E  T  H,  That:

     WHEREAS,  Seller  owns  and  holds certain valid and subsisting oil and gas
leases  on  or  oil  and  gas mineral interests in lands in Adams, Arapahoe, and
                                                            --------------------
Elbert_(HAND  WRITTEN)County,  Colorado,  which  leases, lands and interests are
    ------------------
more  particularly  described  in  Exhibit  "A"  attached hereto and made a part
hereof;  and,

WHEREAS,  Buyer  desires  to purchase gas hereunder for processing in its Peoria
Gas Plant for the recovery of liquefiable products and residue gas from the area
in  which  said  leases  or  mineral  interests  of  Seller  are  located.

     NOW  THEREFORE,  in  consideration of One Dollar ($1.00) and other good and
valuable  payments  and  covenants  hereinafter  specified, the parties agree as
follows:

                                 55295 (STAMPED)
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS
                                   -----------

     1.1     For  the  purpose  of  this contract, certain terms and expressions
herein  used  are  defined  as  follows:

     a.     "Gas"  shall  mean  all  gaseous  hydrocarbons  or  mixtures thereof
produced  in  the vapor state from a well, including casinghead or oil well gas,
gas  well  gas,  and  gas  vaporized  from  oil  or  condensate.

     b.     "Gas  well"  shall  mean  a  well  that  produces  gas  that  is not
associated  or  blended with oil at the time of production, or that produces gas
from  a  formation  or producing horizon productive of gas only encountered in a
well  bore  through  which  oil  also  is produced through the inside of another
string  of  casing, or that produces more than 100,000 cubic feet of gas to each
barrel  of  oil  from  the  same  producing  horizon.

     c.     "Oil  well"  as  used  herein  shall  mean a well from which the gas
produced  is  indigenous  to  oil,  in  its  natural  state as produced, whether
produced from the same strata from which oil is produced, or by the enduction of
gas  by  compressors,  or  other means for lifting oil, as well as gas vaporized
from  oil  after  production.

     d.     "Gas  Plant"  or "plant" shall mean all tanks, machinery, equipment,
fixtures,  appliances, pipe, valves, fittings and material of any nature or kind
whatsoever,  including appropriate storage, shipping, treating, dehydration, and
delivery facilities for plant products; all buildings and structures of any kind
whatsoever  located,  or  to  be  located,  or  the  site  or sites at which the
compressing  and  processing  facilities  of  Buyer  are  located,  all

CON391                                2
<PAGE>

easements  pertaining  to such site or sites and the operation of the plant, gas
gathering system, and any and all other facilities and appurtenances located, or
to  be  located,  on  or  away  from  such  site  or sites deemed by Buyer to be
necessary  for  the  successful  operation  of  the  plant.

     e.     "Liquid products" shall mean ethane if removed, propane, butanes and
natural gasoline, individually or as a mixture, and any other liquid hydrocarbon
product  recovered  in  Buyer's  plant.

     f.     "Residue  gas"  shall  mean  that portion of the gas remaining after
recovery  of  liquid  products.

     g.     "Residue  gas  remaining"  shall mean residue gas as herein defined,
less  such  portion  thereof  required  for  plant  operations.

     h.     "Surplus  residue  gas"  shall  mean residue gas remaining as herein
defined,  less  such portion thereof returned to leases or mineral interest from
which  gas  is  supplied  to  the  plant.

     i.     "Plant  products"  shall  mean any one or all of liquid products and
residue  gas  as above defined. "Cubic foot of gas" shall mean the amount of gas
necessary  to  fill  a  cubic  foot  of  space, when the gas is at a pressure of
fourteen  and  sixty-five one hundredths (14.65) pounds per square inch absolute
and  at  a  temperature  of  sixty  (60)  degrees  Fahrenheit.

     k.     "MCF"  shall  mean  one  thousand  cubic  feet  of  gas.

     l.     "Day"  shall  mean  period  of  twenty-four  (24)  consecutive hours
beginning  and  ending  at  7:00  o'clock  a.m.  Rocky  Mountain  Time.

CON391                                 3
<PAGE>
     m.     "Month"  shall  mean  the  period  beginning  on  the first day of a
calendar  month  and  ending  on  the  first day of the next succeeding calendar
month.

                                   ARTICLE II

                             PURPOSE AND COMMITMENTS
                             -----------------------

     2.1     The  gas  hereby  sold  is  conveyed  to  Buyer  for the purpose of
recovering  and  disposing  of such plant products as are made from time to time
including  the  disposition  of  surplus  residue  gas.

     2.2     Subject  to the stipulations and conditions herein specified and to
the  extent of Seller's interest, Seller hereby commits, grants, bargains, sells
and  agrees  to  deliver to Buyer, and Buyer agrees to purchase and receive from
Seller,  Seller's share of all gas produced from all formations from the surface
of  the  ground to the base of the lowest formation of Cretaceous age from wells
now  or  hereafter  located  upon  the  lands  described in Exhibit "A" attached
hereto.

                                   ARTICLE III

                                POINT OF DELIVERY
                                -----------------

     3.1     The  point  of  delivery  of  the  gas, for measurement, allocation
purposes,  and  sampling  hereunder shall be at a mutually agreeable location or
locations  on  the  Plant  gathering  system.  Seller  shall  provide  adequate
liquid-gas  separation  facilities  upstream  of  the  point  of  delivery.

     3.2     Gas  shall be delivered by Seller to Buyer at a sufficient pressure
to  enter  Buyer's  gathering system not to exceed 60 psig, and Seller agrees to
operate  its  mechanical liquid-gas separators at the minimum pressure to effect
the  delivery  of  gas  hereunder.

     3.3     It  is further agreed that during the term hereof, in the event any
well  located  on  lands  shown  on

CON391                                4
<PAGE>
Exhibit  "A"  is productive, or becomes productive of gas, Seller shall promptly
give buyer notice in writing thereof. Thereafter, Buyer shall promptly determine
the  quality  and  quantity  of  gas  available.  If  Buyer  determines that the
connection  of  such  gas  is  uneconomical  due  to the quality and/or quantity
thereof;  or  if,  in  the  Buyer's  exclusive  opinion, his plant does not have
sufficient  capacity to process the tendered gas, or for any reason Buyer elects
not  to  connect  such gas, Buyer shall promptly give Seller notice thereof, and
Buyer  shall  be  relieved  henceforth of any obligation to connect such gas for
processing  at  the  plant,  and  Seller  may by thirty (30) days written notice
withdraw  such  gas  and the acreage attributable thereto from the terms of this
contract.  If  Buyer  elects  to connect such gas, he shall have forty-five (45)
days  after  right-of-way  has  been  obtained  by Buyer to connect and commence
receiving  such  gas.

     3.4     Title  to  all  gas shall pass from Seller to Buyer at the point of
delivery.  Seller  shall  be solely liable and responsible for said gas prior to
delivery  thereof  to  Buyer, and Buyer shall be liable and responsible therefor
from  and  after  the  point  of  delivery.

                                   ARTICLE IV

                                    QUANTITY
                                    --------

     4.1     The  Buyer agrees to take all the gas testing more than nine-tenths
(.9)  of  a  gallon of propane and heavier liquefiable hydrocarbons per thousand
cubic  feet  of  gas,  determined  in  accordance with Paragraph 7.1 (a) hereof,
provided  that  during periods when gas production from the properties connected
to Buyer's plant exceeds Buyer's pipeline or compressor capacity in the field or
plant  capacity  and/or  Buyer's  surplus  residue  gas  market,

CON391                                5
<PAGE>
Buyer shall be obligated to take ratably as to quantity first from all oil wells
connected to Buyer's plant, and thereafter, to the extent possible, from all gas
wells  connected to Buyer's plant, it is being understood that the taking of gas
well gas shall be subservient to the taking of oil well gas during such periods.
Seller  shall have the right to dispose of any gas not taken by Buyer; provided,
however, Seller must give thirty (30) days notice that it proposes to dispose of
said  gas,  and  Buyer shall have the option to elect to take said gas by giving
written  notice  within  said thirty (30) day period to Seller that it elects to
take said gas under the terms and conditions of this Contract. If Buyer does not
resume  taking  said  gas  by the end of said thirty (30) day period, Seller may
dispose  of  said  gas,  and  Buyer  shall  release said gas from this Contract,
provided  Buyer's residue gas sales contract allows such a release. In the event
Seller  should  not  dispose  of  all or any part of said gas within one hundred
eighty (180) days after the expiration of said first thirty (30) days' notice of
its  intention to dispose of said gas, Buyer will again have the option to elect
to  take  said  gas  as  hereinabove  set  forth.

                                    ARTICLE V

                                     QUALITY
                                     -------

     5.1  The  gas  delivered  hereunder  shall  comply  with  the  following
specifications:

     a.     The  gas  shall  be  free  from  dust,  gums, free water, crude oil,
impurities  and  other  objectionable substances which may become separated from
the  gas  and  interfere  with  its  transmission.

     b.     The  gas  shall  contain  not  more  than  one-fourth (1/4) grain of
hydrogen  sulphide  per  hundred

CON391                                  6
<PAGE>
cubic  feet,  not  more  than five (5) grains of total sulphur per hundred cubic
feet,  not more than one (1) grain of mercaptan per one hundred (100) cubic feet
and  not  more  than  three  percent  (3%)  by  volume  of  carbon  dioxide.

     c.     The  gas  shall  not  contain in excess of two-tenths of one percent
(0.2%)  by  volume  of  oxygen.

     d.   The  gross heating value of the gas, wet basis, shall not be less than
one  thousand  one  hundred  (1,100)  British  thermal  units  per  cubic  foot.

     5.2     If  Buyer accepts delivery of any gas not complying with any of the
specifications  in  Sub-paragraphs  5.1  (a) and (b) above, Buyer shall have the
right  to  deduct  from  the  price otherwise payable under Article X hereof the
reasonable  cost, including return on undepreciated investment, of purifying all
such  gas  so  accepted  by  Buyer.

     5.3     The  determinations  as  to  conformity  of  the  gas  with  the
specifications set forth in Subsections (b), (c), and (d) of Paragraph 5.1 above
shall  be  made by Buyer in accordance with generally accepted procedures of the
industry.  Such  determinations shall be made as often as Buyer deems necessary.
Buyer  shall  notify  Seller  in  writing  of  the  date  of  making  any  such
determinations

at  least  ten (10) days prior thereto. Seller may witness the determinations or
make  joint  determinations  with  its  own  appliances.

     5.4     In  the  event  the  gas tendered by Seller to Buyer should fail to
meet  any  one or more of the above specifications from time to time, then Buyer
shall  have the continuing right at its election to cease receiving the delivery
of  gas from Seller so long as such conditions exist. In the event buyer refuses
to accept gas tendered it hereunder for a period of sixty (60) consecutive days,
then  Seller

CON391                                  7
<PAGE>
may,  upon thirty (30) days prior to written notice, withdraw from this contract
such well or wells and the gas reserves attributable thereto from which such gas
causing  the  quality deficiency is being produced; provided, however, Buyer may
keep  this agreement in force and effect as to such well or wells by agreeing to
and commencing to receive said gas hereunder within said thirty (30) day period.

                                   ARTICLE VI

                       METERS AND COMPUTATIONS OF VOLUMES
                       ----------------------------------

     6.1     Buyer  shall  install, operate and maintain suitable orifice meter,
or  meters,  of standard make at the points of delivery provided for herein. All
meters  shall  be installed and operated and volumes computed in accordance with
the  specifications  prescribed  in the 1978 edition of ANSI/API 2530 on Orifice
Metering  of  Natural  Gas  (formerly  Gas Measurement Committee Report No. 3 of

the  Natural  Gas Department of the American Gas Association) as the same may be
amended  or  supplemented  from  time to time or by any other method agreed upon
between  the  parties hereto. Seller may, at its option and expense, install and
operate meters to check Buyer's meter, provided such check meter installation in
no  way interferes with the proper operation of Buyer's meter. The amount of gas
so  metered  shall  be  computed  to  a standard pressure of 14.65 psia and at a
standard  temperature  of  60  Fahrenheit.  For  the purposes of computation, it
shall  be  assumed  that  the atmospheric pressure is 12.1 psia and that the gas
obeys  the  Ideal  Gas  Laws  as to variations of volume with pressure, specific
gravity  and  temperature. The flowing temperature of the gas being delivered at
any  point  of delivery shall be assumed to be 60  Fahrenheit; provided however,
Buyer,  at  its  option,  may  determine  the  actual

CON391                                  8
<PAGE>

flowing  temperature  of such gas by continuous temperature recording or by spot
thermometer  readings  made  as  often  as  found  necessary.

     6.2     At  least  once  each  six  (6)  months, Buyer at its expense shall
verify the accuracy of its measuring equipment. If either party shall notify the
other  that  it  desires  a special test on any measuring equipment, the parties
shall  cooperate  to  secure  a  prompt  verification  of  the  accuracy of such
equipment. Unless otherwise agreed upon, Buyer shall notify Seller in writing at
least ten (10) days prior to any semi-annual test of its measuring equipment, in
order  that the Seller may conveniently have its representative present. Cost of
special  tests shall be borne by party requesting same if measuring equipment is
found  to  be  registering  accurately  and  by Buyer if found to be registering
inaccurately.

     6.3     If  upon  test  any measuring equipment is found to be in error not
more  than  two  percent  (2%),  previous  recordings of such equipment shall be
considered  accurate in computing deliveries hereunder, but such equipment shall
be  adjusted  at once to record accurately. If upon test any measuring equipment
shall  be  found  to  be inaccurate by an amount exceeding two percent (2%) at a
recording  corresponding to the average hourly rate of flow for the period since
the last preceding test, then such equipment shall be adjusted at once to record
accu-  rately,  and any previous recordings of such equipment shall be corrected
to  zero  error  for any period which is known definitely or agreed upon, but in
case the period is not known definitely or agreed upon, such correction shall be
for  a  period  extending over one-half of the time elapsed since the last test.

CON391                                   9
<PAGE>
     6.4     In the event a meter is out of service or registering inaccurately,
the  volume  of  gas  delivered hereunder shall be estimated by the first of the
following  methods  which  is  feasible:

     a.     Using the registration of any check meter or meters if installed and
accurately  registering,  or

b.     In  the absence of such check meter or meters, by correcting the error if
the  percentage  of  error  is  ascertained  by  calibration  or  mathematical
computation,  or

     c.     In  the  absence  of  both  (a)  and (b) the volume of gas delivered
during  any such period when meter is out of service or registering inaccurately
shall  be determined by multiplying the number of barrels of oil produced during
such  period from the wells from which gas is delivered through the meter by the
average  volume of gas delivered hereunder per barrel of oil produced during the
thirty  (30)  day period prior to the last test of the meter reflecting accurate
measurement.

     6.5     The  meter  or  meters  installed  by Buyer to measure gas sold and
purchased  hereunder  shall  be  open  to  inspection at all reasonable times to
Seller  in  the  presence of Buyer. If requested, Buyer shall send the charts to
Seller  for checking, after which they are to be returned to Buyer within twenty
(20)  days  after  receipt.

     6.6     In  the event the volume of gas received under this contract during
any  month  shall,  in  the  judgment  of  Buyer, be insufficient to justify the
expense  of  continuous  measurement,  Buyer  may  at  its  election discontinue
continuous  measurement  of the gas purchased hereunder as above provided and in
lieu  of  such  continuous measurement determine the daily average volume of gas
received  by

CON391                                 10
<PAGE>
periodical meter measurements. Such periodical measurements shall be for periods
of  not less than two weeks and shall be made whenever, in the opinion of either
party  and  in any event within thirty (30) days after written demand of Seller,
the  volume of gas delivered hereunder has changed sufficiently to again warrant
measurement,  but  in  no  event .shall such periodical measurement be made less
often  than  once each calendar year. The daily average volume of gas determined
by each such periodical measurement shall be used until, and shall be superseded
by,  the  next  periodical  measurement  as  herein  provided.

                                   ARTICLE VII

                                      TESTS
                                      -----

     7.1     Buyer  shall,  at  its  expense,  test  the  gas purchased and sold
hereunder  to  determine  the  composition  of  the  gas and specific gravity as
hereinafter  provided:

     a.     Composition  of the Gas:     Buyer shall obtain a spot sample of the
            ------------------------
gas  purchased  and  sold hereunder while the gas is being produced under normal
operating conditions. Analysis of such sample shall be made or caused to be made
by  Buyer  by  gas chromatography, or any other method accepted in the industry.
The  gallons  per  thousand cubic feet and Mol percent of each component and the
heat  content  shall  be  determined  from  said  analysis.

     b.     Specific  Gravity:     The specific gravity of the gas purchased and
            ------------------
sold  hereunder  shall  be  determined by Buyer from the analysis made under the
provisions  of  7.1  (a)  above  after  adjusting such analysis to eliminate the
presence  of  air,

CON391                                 11
<PAGE>
     or  Buyer  may  use  any  other  method  accepted  in  the  industry.

     7.2     The  tests  provided to be made under the provisions of 7.1 (a) and
(b) above shall be made semi-annually by Buyer, after ten (10) days prior notice
to  Seller;  each  such  test  shall  be  effective  the  first day of the month
following  the  making  of  such  test  and shall endure for a period of six (6)
months  unless  prior  thereto  such  tests are superseded by a special test, as
hereinafter  provided. A copy of the results of each such test shall be provided
to  Seller.  Either  party  hereto  may request in writing that special tests be
made,  at  the expense of the party requesting same, when, in their opinion, the
composition  of  the  gas or its specific gravity has changed materially. In the
event  any such special tests are made, same shall be effective immediately upon
completion and shall endure for a period until the end of the semi-annual period
within  which  such  test was made, or until superseded by another special test.

                                  ARTICLE VIII

                                   RESIDUE GAS
                                   -----------

     8.1     Buyer  may,  but  shall  not be obligated to, return residue gas to
those points where gas was originally received and measured under Paragraph 3.1,
or  to other mutually agreeable points. Seller agrees to accept such residue gas
"as  is,"  and Buyer does not warrant the quality, composition or odorization of
such  residue  gas. The use of such residue gas shall be for the development and
above  ground operations of Seller's leases and mineral interests covered hereby
and the amount of such residue gas delivered to Seller is not intended to exceed
an  amount  equal  to  the  "residue  gas  remaining"  from  the  gas  currently

CON391                               12
<PAGE>
delivered to Buyer from Seller. Buyer may deliver residue gas to Seller, at such
points, at any pressure. "Residue gas remaining" attributable to Seller shall be
determined  by  multiplying  the  total actual volume of "residue gas remaining"
from all gas delivered to said plant by a fraction, the numerator of which shall
be  the  theoretical  volume of "residue gas remaining" from the gas received at
each  point of delivery hereunder from Seller and the denominator of which shall
be  the  total theoretical volume of "residue gas remaining" attributable to all
gas  received  for  processing  in  the  Plant.

     8.2     The theoretical volume of "residue gas remaining" from gas received
at  each  point  of  delivery  under  Paragraph  3.1,  shall  be  determined  by
multiplying  the  volume of gas delivered at such point of delivery by whichever
of  the  following  is  applicable:

            (i)     The  sum of the Mol percents of the ethane and methane
                    components in the gas when ethane is not being recovered, or

            (ii)    The  Mol  percent  of  the methane component in the gas when
                    ethane is  being  recovered.

     8.3     The  volume  of residue gas delivered to Seller for development and
above  ground  operations  shall be measured and computed upon the pressure base
set  out  in  Paragraph 6.1 hereof; except when, in the event the volume of such
gas  does  not, in Buyer's judgment, justify a meter installation. If meters are
not  used,  the  volume  of  residue  gas  delivered to Seller shall be computed
monthly  from  estimates  based  on  the  number of hours the consuming or using
equipment  is  operated;  such  estimates to give due consideration to the size,
type,  horsepower,  and/or  capacity of such equipment. Buyer shall allocate the
residue  gas  as  measured  at  the  plant  discharge  into  the

CON391                                13
<PAGE>
residue  gas  system  on  the basis that each metered and/or estimated volume as
determined  at  each  point  of  delivery  bears to the summation of all metered
and/or  estimated  volumes of residue gas delivered to all Sellers. Title to all
residue  gas remaining shall pass from Buyer to seller at the point of delivery,
or  other mutually agreeable point at which Buyer delivers residue gas remaining
to  Seller,  and  Seller  shall  thereafter  own  such  gas  at  Seller's  risk.

     8.4     In  the  event "residue gas remaining" to be delivered hereunder by
Buyer to Seller shall be insufficient in quantity for the purpose of development
and  above  ground operations of Seller's properties, the seller hereby reserves
the  right  to  use  gas  from  the lands committed to this Contract pursuant to
Paragraph  2.2  above and described on Exhibit "A" attached hereto in sufficient
quantity  to  make  up  the  deficiency.

     8.5     If  Seller  accepts  and  uses  residue  gas furnished by Buyer, in
excess  of amount of "residue gas remaining" to which Seller is entitled, Seller
shall pay Buyer for such excess gas during each month the weighted average price
per  thousand cubic feet of residue gas which Buyer received for all residue gas
sold  from  the  Plant.

                                   ARTICLE IX

                           LIQUID PRODUCTS AND ETHANE
                           --------------------------

9.1     Liquid  Products:
        -----------------

     a.   The  liquid  products  attributable  to  the  gas  from  each point of
delivery  hereunder  during  each  accounting  period  shall  be  determined  by
multiplying (1) the total gallons of each liquid product recovered and sold from
the  plant  attributable  to  all  gas  processed  in  the  plant  during

CON391                                 14
<PAGE>
such accounting period times (2) a fraction, the numerator of which shall be the
theoretical  gallons  of  each  such liquid product attributable to Seller's gas
contained in such gas during such accounting period and the denominator of which
shall  be  the  sum  of  the  theoretical  gallons  of  each such liquid product
contained  in  all gas delivered to the plant for processing during such period.

     b.     Seller's theoretical gallons of each liquid product contained in the
gas  during  any  period shall be determined by multiplying the volume in MCF of
gas  received  at  each  point  of  delivery hereunder during such period by the
gallons  of  propane,  butane, pentane, and heavier liquefiable hydrocarbons per
thousand  cubic  feet, respectively, contained in the gas as determined pursuant
to  Paragraph  7.1  hereof.

9.2     Ethane:
        -------

     a.     Whenever  ethane is manufactured and sold from the plant, the ethane
attributable  to the gas received at each point of delivery hereunder during any
accounting  period  shall  be  determined by multiplying (1) the total volume of
ethane  recovered  and  sold from the plant attributable to all gas processed in
the  plant  during said accounting period times (2) a fraction, the numerator of
which  shall  be  the  volume of theoretical ethane attributable to Seller's gas
contained in such gas during such accounting period and the denominator of which
shall  be  the sum of the volumes of the theoretical ethane contained in all gas
delivered  to  the  plant  for  processing  during  such  period.

     b.     Seller's  theoretical  volume  of ethane contained in the gas during
any  period  shall  be  determined

CON391                                15
<PAGE>
by  multiplying  the  volume  in  MCF  of gas received at each point of delivery
hereunder  during  such  period by the gallons of ethane per thousand cubic feet
contained  in  the  gas  as  determined  pursuant  to  Paragraph  7.1  hereof.

                                    ARTICLE X

                                      PRICE
                                      -----

     10.1     As  full  consideration  for  the  gas  delivered  by  Seller  and
purchased  by  Buyer each month hereunder, Buyer shall pay Seller the sum of the
proceeds  computed  in  accordance with Paragraphs 10.2 and 10.3 below, less any
amounts to be deducted in accordance with Paragraph 5.2 hereof, but in any event
not more than the maximum lawful price for said gas under the Natural Gas Policy
Act  of

1978  or  subsequent  legislation  or  regulations  thereunder.

     10.2     Liquid  Products:
              -----------------

     a.     For  liquid  products,  Buyer  shall  pay  Seller sixty-five percent
(657.)  of  the  value  determined by multiplying (1) the gallons of each liquid
product attributable to the gas delivered from each point of delivery hereunder,
as  determined in Paragraph 9.1 hereof, times (2) the weighted average net sales
price  per  gallon  received  for  each  liquid  product  recovered and sold, as
determined  in  accordance  with  Paragraph  10.2  (b)  below.

b.     The weighted average net sales price per gallon shall be (1) the invoiced
value F.O.B. plant for each liquid product recovered and sold from the plant and
attributable  to  all  natural  gas processed in the plant during the accounting
period  for  which  settlement  is  made,  minus  any applicable taxes, tank car
rentals,  cash  discounts,  trade  allowances,  freight

CON391                                16
<PAGE>
equalizations,  remote  underground  storage costs, commissions to third parties
and any claims allowed for outages, impurities and contamination, divided by (2)
the  total  gallons  of  each such liquid product recovered and sold during said
period.

10.3     Residue  Gas:
         -------------

     a.     In the event that residue gas remaining from  gas purchased from any
lease  hereunder,  as determined in accordance Paragraph 8.1, shall be more than
sufficient  for  the  needs and requirements of Seller for development and above
ground  operating  purposes  upon  the premises from which said gas is produced,
then  it  is  agreed and understood by and between the parties hereto that Buyer
shall  have  the right to sell any or all of such surplus residue gas remaining.
Buyer  shall  pay  Seller  sixty-five  percent  (65%) of the value determined by
multiplying  (1)  the  MCF  of  surplus  residue  gas remaining and sold that is
attributable  to  Seller  in accordance with Paragraph 10.3 (b) below, times (2)
the weighted average price per MCF that Buyer receives for all gas sold from the
Plant.

     b.     The  surplus residue gas remaining and sold from  the plant shall be
allocated  to  each  point of delivery in the ratio that the surplus residue gas
remaining  from  such  delivery point bears to the surplus residue gas remaining
from  all  gas  delivered  to  the  plant  (determined  in  a  like  manner).

     c.   It  shall  be  the  sole  obligation  of Seller to file and diligently
pursue  any  application  required  by  the  Natural  Gas  Policy Act of 1978 or
subsequent  legislation  or  regulations  thereunder  for  a  determination  of
eligibility  for  maximum  lawful  price categories or for price deregulation if
Buyer  requests

CON391                                 17
<PAGE>
such  filings  to be made to enhance the value of the gas purchased hereunder to
Buyer  at  resale.

                                   ARTICLE XI

                                     PAYMENT
                                     -------

     11.1     Payment  will  be made by the Buyer not later than the 25th day of
the month following the month in which delivery occurred and at the time payment
is  made  a statement showing details of the accounts will be transmitted to the
Seller  accompanying  the  Buyer's check in payment therefor. Examination by the
Seller  of  the  books  of account kept by the Buyer respecting said gas account
shall  be  permitted by the Buyer at any and all reasonable hours; however, such
examination  by  the  Seller  shall  be  limited to the books of account for the
current  year  plus  the  two  preceding  years.

                                   ARTICLE XII

                                    WARRANTY
                                    --------

     12.1     Seller  warrants  title to the gas delivered hereunder and that it
has  good  right  to  sell gas to Buyer; however, Buyer shall not be required to
make  payments  to  Seller  until Seller shall have submitted abstracts of title
covering  said  lands  or  other  suitable  documentation  showing  good  and
merchantable  title  in  Seller and that Seller has good right to sell said gas,
all  to  the  satisfaction  of the attorneys of Buyer; provided, however, if the
title  of  Seller is questioned, or involved in any action, Buyer shall have the
right to withhold payment during the pendency of such action or until said title
is  freed from such question, or until Seller furnishes bond conditioned to save
Buyer  harmless  with  surety  or  other

CON391                                 18
<PAGE>
indemnities  acceptable  to  Buyer. Any payments so withheld by Buyer shall bear
interest  at  the  prime  rate.

                                  ARTICLE XIII

                             RESERVATIONS OF PARTIES
                             -----------------------

     13.1     Seller reserves gas for above ground development and operations of
its  properties  covered  hereby;  and, if Seller's leases and mineral interests
covered  hereby  are  unitized  with  others  in  the  field  where produced for
secondary recovery of oil, then Seller reserves from delivery hereunder such gas
as  is  required  for  below  ground  injection  and  repressuring.

     13.2     Seller  reserves gas for delivery to its lessors as required under
the  terms  of  its  oil  and  gas  leases.

     13.3     Seller  may  at  any  time, without liability to Buyer, clean out,
deepen,  re-work, plug back, use for injection or abandon any of Seller's wells,
or  Seller  may use any efficient, modern, or improved method for the production
of  oil.  Before  any  well  or  wells  are  taken out of service for any reason
whatsoever,  Seller shall, at its sole risk, cost, and expense, first disconnect
same  from  Buyer's  gas  gathering  system.

     13.4     Seller  hereby  specifically  reserves the right to introduce air,
gas,  water,  or  any other extraneous substances into its well or wells or into
the  formation or formations from which said well or wells are producing when in
the  exclusive  judgment  of  Seller,  the  introduction  of  such substances is
desirable  in  the  operation  of  such  well or wells for the production of oil
and/or  gas,  even  though  such  well  or  wells may be entirely destroyed as a
producer  or  producers  of gas; provided that if Seller's operations under this
paragraph  create  a  condition which, in the exclusive judgment of Buyer, makes
the  taking  and

CON391                                  19
<PAGE>
utilization  of  gas  therefrom unprofitable to Buyer, or should such operations
tend  to  endanger  the  plant  or  property  of  Buyer  or the lives of Buyer's
employees  should such diluted or contaminated gas be taken, then Buyer reserves
the  right  to  discontinue  taking  gas from the particular well or wells while
being  so  operated.

                                   ARTICLE XIV

                                ROYALTY AND TAXES
                                -----------------

     14.1     Seller  agrees to account and pay to the lessors or royalty owners
under  its leases, in strict accordance with the provisions thereof, the royalty
on  the  gas  sold  and  delivered  hereunder  to  Buyer.

     14.2     Seller  shall pay all taxes against the gas sold hereunder. In the
event any new or additional tax should hereafter be assessed on the value of the
gas  sold  to  Buyer  hereunder,  the  Seller shall pay the same. If such new or
additional  tax  is  a  type  of  tax which is assumed by a purchaser of surplus
residue  gas  under the provisions of any gas purchase agreement entered into by
Buyer,  then  to the extent such tax is required to be assumed by such purchaser
of  surplus  residue  gas,  Buyer  agrees  to  pay  to the Seller those proceeds
received  by  Buyer,  insofar  as  such  reimbursements  represent  the Seller's
proportionate  share  of such funds paid by the purchaser of surplus residue gas
under  such  agreement.

                                   ARTICLE XV

                                      DRIP
                                      ----

     15.1     Buyer shall keep reasonably clear of obstruction all its pipelines
through  which said gas is being delivered and shall own all liquid collected in
such  line.

CON391                                 20
<PAGE>
                                   ARTICLE XVI

                                  FORCE MAJEURE
                                  -------------

     16.1     Any  failure  of  either  party  hereto  to  perform  any  of  the
obligations  hereunder  except  payments  of monies due shall be excused if such
failure  is  due  to  "force  majeure"  as  hereinafter defined. The term "force
majeure"  shall  mean  acts  of  God,  strikes,  lockouts,  or  other industrial
disturbances,  acts  of the public enemy, wars, blockades, insurrections, riots,
epidemics,  landslides,  lightning, earthquakes, fires, storms, flood, washouts,
arrests  and  restraints  of  the government, either Federal or State, civil and
military,  civil  disturbances, explosions, breakage or accident to machinery or
line  of  pipe, freezing of wells or lines of pipe, partial or entire failure of
wells,  inability of any party hereto to obtain necessary materials, supplies or
permits,  due  to  existing  or  future  rules,  regulations,  orders,  laws  or
proclamations  of  Governmental  Authorities (both Federal and State), including
both  civil  and  military,  and  any  other  causes, whether of the kind herein
enumerated  or otherwise not reasonably within the control of the party claiming
suspension.

     16.2     It  is  understood  and  agreed  that the settlement of strikes or
lockouts  shall  be  entirely  within  the  discretion  of  the party having the
difficulty,  and  that  any  force majeure shall be remedied with all reasonable
dispatch;  however,  such  remedy shall not require the settlement of strikes or
lockouts  by  acceding  to  demands  of  opposing  party  when  such courses are
inadvisable  in  the  discretion  of  the  party  having  the  difficulty.

CON391                                  21
<PAGE>
                                  ARTICLE XVII

                                UNPROFITABLE GAS
                                ----------------

     17.1     In  the  event  the  gas  from  any  source  of supply on Seller's
property  is  or  becomes  insufficient  in  volume  or  liquefiable hydrocarbon
content,  or for any cause is or becomes unprofitable in Buyer's sole opinion to
gather, compress and extract the liquid products therefrom, Buyer shall have the
right to refuse to take the gas and will release that gas for Seller's disposal.
It  is  further  provided  that  if  at  any  time the volume and/or liquefiable
hydrocarbon  content  of  the gas available to Buyer, or if any cause beyond its
control,  shall render the operation of said plant unprofitable, in Buyer's sole
opinion,  Buyer  may,  by thirty (30) days written notice, cancel this contract.

     17.2     If  at  any  time  the  price  payable  for any portion of the gas
purchased  and  sold,  pursuant  to  the  terms  hereof, should, in Buyer's sole
judgement,  result  in  an  uneconomical  situation for Buyer, Buyer may, at its
option,  reduce the price payable hereunder by furnishing Seller 30 days written
notice  of  such  reduced  price  so  that,  in  Buyer's  sole  judgement,  such
uneconomical situation is alleviated. Should Buyer exercise its option as stated
above, Seller shall have the right to seek a higher price from other purchasers.
If,  within one hundred twenty (120) days from the date buyer notifies Seller of
the  reduced  price,  Seller  has  obtained a bona fide offer in writing for the
purchase  of  such  gas, which Seller is willing to accept, which is for a price
higher  than Buyer's reduced price, Seller shall give notice to Buyer in writing
of  such  offer  within ten (10) days of receipt of such offer. Buyer thereafter
shall have the option to continue the purchase of such gas at the same terms and
conditions  of

such  offer  by  notifying  Seller  in  writing  within  twenty  (20)

CON391                                  22
<PAGE>
days  from  receipt of Seller's notice that Buyer elects to continue to purchase
such  gas  at  the higher price. If Buyer does not elect to continue to purchase
said  gas  this  agreement  at Seller's option may be terminated with respect to
said gas by forwarding written notice of such termination to Buyer no later than
thirty  (30)  days prior to the date deliveries are to cease. If Seller does not
notify Buyer of a bona fide offer to purchase such gas at the higher price, this
contract shall continue in effect at the reduced price for one year, after which
the  original  contract price shall be redetermined. Should both parties then be
unable  to  agree on a redetermined price, either party may, by thirty (30) days
written  notice,  cancel  this  Contract. The effective date of any price change
pursuant  to  this Article XVII shall be the date specified in Buyer's notice to
Seller  of  the  aforesaid  reduced  price.

                                  ARTICLE XVIII

                               PRODUCING SCHEDULE
                               ------------------

     18.1     In the interest of conservation and to secure the maximum benefits
to  Seller  and  Buyer,  it  is  desired  by  the  parties  hereto to maintain a
reasonably  uniform rate of flow of gas to said plant over each twenty-four (24)
hour  period  throughout the month. It is therefore agreed that Seller shall, at
its  option,  either

     a.     Regulate  its  producing schedule so that gas will be delivered at a
reasonably  uniform  rate  of  flow,  or

     b.     Accept  and  follow  a producing schedule for all wells connected to
the  plant  to  be  established  by  Buyer in cooperation with all gas suppliers
delivering  gas  to  the  plant.

CON391                                 23
<PAGE>
     18.2     In  the event Seller refuses to comply with either 18.1 (a) or (b)
above,  Buyer shall have the right, without incurring liability to Seller of any
character  whatsoever,  to refuse to take any part or all of Seller's gas during
the  periods  of  such  noncompliance.

                                   ARTICLE XIX

                                  RIGHT-OF-WAY
                                  ------------

     19.1     Insofar  as  Seller's leases or mineral interests permit, Buyer is
granted  the  right  to  lay  and  maintain  lines  and to install any necessary
equipment  on  said  properties  and  shall have the right to free entry for any
purpose  incidental  to  plant  operations  so  long  as  such  purpose does not
interfere  with  lease  operations  or the rights of others. All liens and other
equipment  placed  by  Buyer on said properties shall remain the property of the
Buyer and, subject to the terms of this contract, may be removed by Buyer at any
time.

                                   ARTICLE XX

                                    INDEMNITY
                                    ---------

     20.1     Buyer  shall  defend,  indemnify and hold Seller harmless from any
claims for damages, causes of action, or judgments arising out of the operations
conducted  hereunder  by Buyer. Seller shall defend and indemnify and hold Buyer
harmless  from any claims for damages, causes of action or judgments arising out
of  Seller's  operations of the leases or mineral interests herein described, or
Seller's  actions  taken  with  respect  to  Gas  prior to delivery to Buyer, or
Seller's  actions taken with respect to Residue Gas after redelivery by Buyer to
Seller.

CON391                                 24
<PAGE>
                                   ARTICLE XXI

                                REGULATORY BODIES
                                -----------------

     21.1     This  contract  shall  be  subject to all valid present and future
orders,  rules  and  regulations  of  any  duly  constituted  Federal  or  State
regulatory  body having jurisdiction of the production, transportation, purchase
or  sale  of gas, and any and all failures of Seller to deliver, and of Buyer to
receive,  gas  hereunder  caused  by such orders, rules and regulations shall be
deemed  to  be  excused  under  the  provisions  of  "Force  Majeure."

                                  ARTICLE XXII

                                   UNITIZATION
                                   -----------

     22.1     Seller reserves the right to unitize any of the leases and mineral
interests  covered  hereby  with  other properties, in which event this contract
will cover Seller's interest in any such unit, but only insofar as such interest
is  attributable  to  the  leases  and  mineral  interests  covered  hereby.

                                  ARTICLE XXIII

                                      TERM
                                      ----

     23.1     This  contract  shall  be  effective as of the date and year first
above  written  and shall remain in full force and effect for a term of five (5)
years  and thereafter on a year to year basis until terminated by written notice
by  either  party  to  the  other to be given at least three months prior to the
anniversary  date.  If  this  contract  is  terminated  for  any  gas production
dedicated  hereunder  pursuant  to  the  conditions of Article XVII, the well or
wells  associated  with  said  gas shall be disconnected from Buyer's collection
system.

CON391                                 25
<PAGE>
                                  ARTICLE XXIV

                              COUNTERPART EXECUTION
                              ---------------------

     24.1     The  rights  and  obligations  imposed  by  this contract shall be
severable  as  to each person or group of persons among those listed as "Seller"
owning  a  distinct  legal  interest  in the leases or mineral interests covered
-hereby,  and  this contract shall be fully binding upon such person or group of
persons  after  execution,  irrespective  of  whether  or  not all other persons
described  as  "Seller"  join  in  the execution of this contract or of an exact
counterpart  thereof.

                                   ARTICLE XXV

                                   ASSIGNMENT
                                   ----------

     25.1     This  contract  shall  extend  to  and be binding upon the parties
hereto,  their heirs, administrators, successors and assigns, but no transfer of
or  succession  to  the  interest  of the Seller hereunder, wholly or partially,
shall  affect or bind the Buyer until it shall have been furnished at the office
of  the  Buyer  in the City of Denver, Colorado, with the original instrument or
with  the  proper  proof that the claimant is legally'entitled to such interest.

                                  ARTICLE XXVI

                                     NOTICES
                                     -------

     26.1     Notices  to  be given hereunder shall be deemed sufficiently given
and  served when and if deposited in the United States Mail, postage prepaid and
registered  or  certified,  addressed  as  follows:

     Seller:   Notices     AMOCO  PRODUCTION  COMPANY
     ------    -------

                          1670  Broadway

                          P.  O.  Box  800

                          Denver,  CO  80201

                          Attn:  Natural  Gas  Marketing  Department

                         (HAND  WRITTEN)
                          ---------------

Revenues                 Amoco  Production  Company
--------

                         P. O. Box 591

                         Tulsa,  Okla.  74102

                         (HAND  WRITTEN)
                         ---------------

CON391                           26

                           55295 (STAMPED)
<PAGE>

     Buyer:             Amoco  Production  Company

                        Amoco  Building

                        Denver,  Colorado  80202

                        Attn:  Natural  Gas  Marketing  Department

or  to such other address as either party respectfully hereinafter designates by
registered  or  certified  mail  addressed  to  the  other  party  or  parties.

     26.2     Routine  communications,  including  monthly statements, payments,
and notices of tests shall be considered as duly delivered when mailed by either
registered  or  certified mail or ordinary first-class mail, postage prepaid, to
the  appropriate  address  above  specified.

IN  WITNESS  WHEREOF,  the  parties  have  hereto  subscribed  their  names.

                                 AMOCO  PRODUCTION  COMPANY

                                 By      (signed)
                                     --------------------------------
                                      Attorney-in-Fact
                                          "Buyer"
ATTEST:

_______________________          By      (signed)
                                     --------------------------------
                                                "Seller"
ATTEST:

_______________________          By  _________________________________
                                                "Seller"

ATTEST:

_______________________          By  _________________________________
                                                "Seller"

ATTEST:

_______________________          By  _________________________________
                                                "Seller"

CON391                             27

                             55295 (STAMPED)

STATE  OF  COLORADO          )
    CITY  AND                :    ss.
 COUNTY  OF  DENVER          )

     The  forgoing  instrument  was  acknowledged  before  me  this   9th day of
                                                                      ---
January    ,1987  by  DAVID G. WIGHT.  Attorney-in-Fact for AMOCO
----------------      -------------------------------------------
PRODUCTION  COMPANY,  a  Delaware  corporation.

     WITNESS  my  hand  and  official  seal.

My Commission expires:
  January  4,1989

   (STAMPED)                                    (SIGNED)
                                          ----------------------
                                              Notary  Public

                                            1670  BROADWAY
My Commission expires:                     DENVER,CO  80201
  January  4,  1989

   (STAMPED)

  STATE  OF        )
    CITY AND       :    ss.
  COUNTY OF        )

     The  foregoing instrument was acknowledged before me this _____ day of
_________________,  1984,  by  _________________________________.

     WITNESS  my  hand  and  official  seal.

                                               ______________________________
                                                       Notary  Public

My  Commission  expires:

_____________________                              Amoco  Building
                                                   Denver,
Colorado  80202

STATE  OF         )
                  :  ss.
COUNTY  OF        )

     The  foregoing  instrument was acknowledged before me this     day of
_________________,  1984,  by  _________________________________.

     WITNESS  my  hand  and  official  seal.

     ____________________________________

Notary  Public

My  Commission  expires:                            Amoco  Building
                                                    Denver,  Colorado  80202
_____________________

<PAGE>
STATE  OF

SS.  COUNTY  OF

The  foregoing  instrument  was  acknowledged  before  me  this      day  of
1  1984,  by

WITNESS  my  hand  and  official  seal.

Notary  Public

My  Commission  expires:

Amoco  Building
Denver,  Colorado  80202

STATE  OF
SS.  COUNTY  OF

The  foregoing  instrument  was  acknowledged  before  me  this      day  of
1984,  by

WITNESS  my  hand  and  official  seal.

Notary  Public

my  commission  expires:
Amoco  Building
Denver,  Colorado  80202

CON391                                29
<PAGE>

EXHIBIT  "A"  TO

THE  GAS SALES AND PURCHASE CONTRACT DATED @'VnellllL7 COVERING LEASES AND LANDS
                                           -------------------------------------
IN  VARIOUS  FIELDS
-------------------
ADAMS,  ARAPAHOE,AND  ELBERT  COUNTIES,  COLORADO
-----------------     ---------------------------
SELLER:  AMOCO  PRODUCTION  COMPANY
         --------------------------

GROSS

LEASE  NAME                                     SEC.  TWP.            RGE.
DESCRIPTION  ACRES       WI./.

UPRR  No.  11-9                                    11       4S        63W
E/2  SE/4            80      100  Champlin  321  Amoco          "All  No.    I
11       4S        63W       NW  SE              40      100  Amoco Champlin 569
A-1                    5      6S        62W       NE  SE              40
100  Amoco  Champlin  569          D-1                    3      6s        62W
SW  NW              40      100  Champlin       100   Amoco    "All  No.    1
17       3S        58W       NW  NW  Champlin   100   Amoco    "All  No.    2
17       3S        5aw       SW  NW  Champlin   100   Amoco    "All  No.    3
17       3S        58W       NW  SW  Champlin   100   Amoco    "All  No.    4
17       3S        58W       SW  SW  Champlin   100   Amoco    "All  No.    5
17       3S        58W       SE  SW  Champlin   100   Amoco    "All  No.    6
17       3S        5aw       NE  SW  Champlin   100   Amoco    "All  No.    7
17       3S        5aw       SE  NW  Champlip   100   Amoco    "All  No.    8
17       3S        5aw       NE  NW  Champlin   100   Amoco    "B"   No.    1
7        3S        58W       SW  SE  Poncho  J  Sand  Unit      No.  17
4        4S        59W       NE  SE

Champlin      548  A  #1                           1      6S        63W       SE
SE              40  Champlin      548  A  #2                           1      6S
63W       NW  SE              40  Champlin      569  A  #2
5      6s        62W       SW  SE              40  Champlin      569  A  #3
5      6S        62W       NE  SW              40  Champlin      569  A  #4
5      6S        62W       SW  SW              40  Champlin      569  A  #5
5      6S        62W       SW  NW              40  Champlin      569  D  #2
3      6S        62W       NE  NW              40  Champlin      569  E  #1
7      6S        62W       NW  NW              40  Champlin      569  E  #2
7      6s        62W       SE  NW              40  "-'hamplin    569  E  #3
7      6S        62W       SW  NW              40  Champlin      569  E  #4
7      6S        62W       NE  NW              40

Champlin      126  Amoco  I'D"  No.  2              15       5S        62W
c-sw  SW                      68.75%  Champlin      93  Amoco  "All  No.  1
7      3S        61W       W/2  SW/4            so      100

<PAGE>
EXHIBIT  "A"  TO

THE  GAS  SALES  AND  PURCHASE  CONTRACT  DATED

COVERING  LEASES  AND  LANDS  IN  VARIOUS  FIELDS

ADAMS,  ARAPAHOE,  AND  ELBERT  COUNTIES,  COLORADO
---------------------------------------------------

SELLER:  AMOCO  PRODUCTION  COMPANY
         --------------------------

GROSS

LEASE  NAME                                     SEC.  TWP.            RGE.
DESCRIPTION  ACRES                  WI%

UPRR  No.  11-9                                    11       4S        63W
E/2  SE/4            80      100  Champlin  321  Amoco           "All  No.   I
11       4S        63W       NW   SE             40      100  Amoco Champlin 569
A-1                   5      6S        62W       NE   SE             40      100
Amoco Champlin 569           D-1                   3      6S        62W       SW
NW             40      100  Champlin      100   Amoco    "All  No.   1       17
3S        5aw       NW   NW  Champlin      100   Amoco    "All  No.   2       17
3S        58W       SW   NW  Champlin      100   Amoco    "All  No.   3       17
3S        5aw       NW   SW  Champlin      100   Amoco    "All  No.   4       17
3S        58W       SW   SW  Champlin      100   Amoco    "All  No.   5       17
3S        58W       SE   SW  Champlin      100   Amoco    "All  No.   6       17
3S        5sw       NE   SW  Champlin      100   Amoco    "All  No.   7       17
3S        58W       SE   NW  Champlin      100   Amoco    "All  No.   8       17
3S        58W       NE   NW Champlin      100   Amoco    "B"   No.   1         7
3S        58W       SW   SE Poncho J      Sand Unit      No.   17              4
4S        59W       NE   SE

Champlin      548   A  #1                          1      6S        63W       SE
SE             40  Champlin      548   A  #2                          1      6S
63W       NW   SE             40  Champlin      569   A  #2
5      6S        62W       SW   SE             40  Champlin      569   A  #3
5      6s        62W       NE   SW             40  Champlin      569   A  #4
5      6S        62W       SW   SW             40  Champlin      569   A  #5
5      6S        62W       SW   NW             40  Champlin      569   D  #2
3      6S        62W       NE   NW             40  Champlin      569   E  #1
7      6S        62W       NW   NW             40  Champlin      569   E  #2
7      6S        62W       SE   NW             40  Champlin      569   E  #3
7      6S        62W       SW   NW             40  Champlin      569   E  #4
7      6S        62W       NE   NW             40

Champlin      126   Amoco  I'D"  No.  2             15       5S        62W
c-sw  SW                       68.75y,,  Champlin      93  Amoco  "All  No.  1
7      3S        61W       W/2  SW/4            80      100

<PAGE>162 (7-85) GPC

                                                           162-0159-90 (Stamped)

                              GAS PURCHASE CONTRACT
                              ---------------------

     THIS  AGREEMENT, made and entered into this    22 day of __JUNE__,19_92_,by
                                                 -----          ----      --
and  between  WARREN  PETROLEUM  COMPANY,  a  Division  of  Chevron U.S.A. Inc.,
hereinafter  referred  to  as  "Buyer",  and  JUBILEE  OIL  & GAS CORPORA'I'ION,
hereinafter  referred  to  as  "Seller";

WITNESSETH:

     WHEREAS,  Seller owns and holds one or more valid and subsisting oil and/or
gas  mining  leases  covering  the  following described lands situated and being
within  the  County  of  Ward,  State  of  Texas,  to-wit:

     Pennzoil  Hartwich  Lease     -     Section  219,  Block  34,  H&TC Survey

and,

     WHEREAS,  Seller  is  operating  the above-described properties and certain
wells on said lands are productive, of what is termed casinghead gas, and/or gas
well  gas,  and  Seller  desires to sell the gas which may hereafter be produced
from  wells  located  on  said  premises;  and,

     WHEREAS,  Buyer  desires  to  purchase  said  gas;
     NOW,  THEREFORE, in consideration of the mutual covenants and agreements to
be kept and performed by the parties, Seller hereby grants, bargains, sells, and
agrees  to deliver to Buyer and further agrees to purchase and take from Seller,
subject  to  the  stipulations  and  conditions  hereinafter specified, Seller's
interest  in  gas  now or hereafter Produced from wells on the lands hereinabove
described.

1.     PURPOSE-  The  gas  hereby  sold  is conveyed to Buyer for the purpose of
       -------
extracting  therefrom  liquid hydrocarbons. Seller agrees that prior to delivery
to Buyer, the gas shall not be processed other than in a conventional mechanical
gas  oil  separator  or  separators,  operating with no internal piping for heat
interchange.  The  term "gas' as used throughout this contract means gas issuing
from  oil  wells  or  gas  produced  from  gas  wells as classified by the Texas
Railroad  Commisson.

2.     DELIVERY  PLACE-  The  delivery  of gas shall he made at vapor tight flow
       ---------------
ranks  and/or  gas  traps  furnished  by Seller and/or at the casingheads of the
wells.  Buyer may, with Seller's consent, install equipment acceptable to Seller
on  Seller's  storage  links  for  the  purpose  of  saving and utilizing vapors
therefrom,  which  vapors  for  the purpose of this contract shall he considered
gas.

3.     DELIVERY  DATE-  The  delivery  and reception of said gas hereunder shall
       --------------
begin  on  or  before  sixty  (60)  days  from the date this contract, signed by
Seller,  is  received by Buyer at its offices in Tulsa, Oklahoma. If Buyer fails
to  accept  and/or  agree to pay for said gas by said date, Seller's sole remedy
shall  be  the  right  to cancel this contract any time thereafter before actual
utilization  begins  by serving ten (10) days' written notice on Buyer, in which
event  this contract shall terminate at the end of said ten-day period unless on
or  before the last day thereof Buyer either starts receiving said gas or agrees
to  pay  for  the  same  as  though  received.

                                                          (HAND WRITTEN)C-162158
                                                           -------------
<PAGE>
                                                                   162(7-85)/GPC
                                                     (HAND STAMPED)  162-0159-00

4.     LEAN  AND  FLUSH  GAS- Buyer agrees to take all the gas testing more than
       ---------------------
0.50  gallons  of  gasoline  to one thousand (1,000) cubic feet of gas, provided
that  during  flush  gas  production  and  during  periods of curtailment by the
residue  gas  purchaser  or purchasers Buyer shall only be obligated to take gas
ratably  as to quantity with all other casinghead gas connected to its gathering
line  and only obligated to take gas well gas ratably with other gas well gas of
the  same  type  connected  to  Buyer's  plant.  A flush gas condition is hereby
defined  to  exist  whenever  Buyer's gathering line or plant is of insufficient
capacity  to  gather  or  process all of the gas connected thereto. Unless Buyer
within  six  (6) months from the commencement of such excess production arranges
to  take  or  pay  for any part or all of such excess gas, Seller shall have the
right  to  dispose  of  any  such  excess  gas not taken or paid for by Buyer.
4.     RESIDUE  GAS-  The  term 'residue gas' is defined as and shall be any gas
       ------------
connected  to Buyer's plant gas gathering system which is sold before processing
or  which  is  discharged  in  the form of gas from the gas processing facility.
Buyer  shall not be obligated to return residue gas to Seller's lease for use in
the  development and operation of such lease, though Buyer may do so at any time
that  it so elects. Until such time as Buyer does return residue gas to Seller's
lease, Seller may use gas produced from said lease for the purpose of developing
and  operating  the  lease,  excluding  the  use  of  gas for gas lifting or for
pressure  maintenance and/or cycling operations. Upon Buyer's election to return
residue  gas,  Buyer  agrees  to return to the nearest boundary line of Seller's
lease, heretofore described, sufficient residue gas for developing and operating
said lease, the amount of such gas not to exceed an amount equal to the "residue
gas  remaining"  as  hereinafter  determined,  provided  that  in  the event the
"residue  gas  remaining"  shall  be insufficient in quantity for the purpose of
developing and operating said lease, Seller hereby reserves the right to use gas
from  its  lease sufficient in quantity to make up the deficiency. The volume of
residue  gas  returned  to  Seller  shall  be  computed  on  the  same  basis of
measurement  as  provided  in  Paragraph 9, MEASUREMENT; provided, however, such
volume  of  residue  gas may, at Buyer's option, be estimated in accordance with
methods  followed  generally in the natural gas processing industry. Utilization
of  said  residue  gas  so  delivered by Buyer shall be at Seller's risk. In the
event  Seller  accepts  and uses residue gas furnished by Buyer in excess of the
amount  of  residue  gas to which Seller is entitled, Seller shall pay Buyer for
such  gas  at the weighted average price per MCF paid by the major purchasers of
residue  gas sold from Buyer's plant for the residue gas sold to such purchasers
from said plant. In the event Seller accepts and uses gas other than residue gas
in excess of the amount of residue gas to which Seller is entitled, Seller shall
pay  Buyer  for  such excess gas at Buyer's cost at point of delivery to Seller.
Seller  shall  not  permit  wasteful  use  of  gas  returned hereunder. The term
"wasteful  use" shall include, but not by way of limitation, the use of gas as a
working  fluid in steam pumps or turbines and the burning of gas in open flares.
The volume of "residue gas remaining" shall be determined by (1) multiplying the
volume  of  said  gas  delivered  from  said lease by the applicable theoretical
percentage  as  shown  in the following table, the result being the "theoretical
volume  of  residue  gas  remaining" from the gas delivered from said lease, (2)
dividing  the  "total actual volume of residue gas remaining" (determined in the
manner  hereinafter  provided) from all gas delivered to said plant by the total
"theoretical  volume  of  residue  gas remaining" from all gas delivered to said
plant  (the  latter being the sum of the theoretical volumes for all leases from
which  gas  is delivered to said plant determined as to each lease in accordance
with (1) above) and expressing the result in percentage, and (3) multiplying the
"theoretical  volume  of residue gas remaining" from Seller's said lease by said
last-mentioned  percentage.  The  "total actual volume of residue gas remaining"
from  all  gas  delivered to said plant as used herein shall mean that volume of
residue gas remaining, after the extraction of gasoline and additional products,
from  all  gas  processed  in  Buyer's  plant,  less  the  volume of residue gas
necessary  for  plant  operation.  Said  "total  actual  volume  of  residue gas
remaining"  shall  be measured by suitable orifice meters of standard make to be
installed  and  kept  in repair by Buyer at the various points where the residue
gas  is delivered to producers and to purchasers (if not measured by purchasers)
and to flare; provided, however, that Buyer shall not be required to measure the
deliveries  of  small  quantities  of  residue  gas  which would not, in Buyer's
judgment,  justify a meter installation and the volumes of such deliveries shall
he  estimated  by  Buyer  in  accordance  with methods followed generally in the
natural  gas  processing  industry.

                                        2
<PAGE>
162-  0159-00  (STAMPED)                                        162(7-85)/GPC

Notwithstanding  anything  in this agreement to the contrary, Buyer, at its sole
discretion,  may  at  any  time  change the residue gas allocation procedure set
forth herein to a procedure which takes into account the BTU content of the gas,
thereby providing that the total BTU's in the actual Plant residue gas remaining
will  he  allocated  between leases/wells connected to the Plant on the basis of
the theoretical BTU's remaining from each lease/well after the extraction of the
products  and  the consumption of fuel. Likewise, Buyer may change the method of
product  allocation  set  forth  herein  to one based on the theoretical product
content  of  the  gas  from  each  lease/well  as  determined by measurement and
chromatographic  analysis  of  the  gas  from  each  lease/well.

Theoretical Percentage of Gas Remaining as Residue After Extraction of Gasoline
-------------------------------------------------------------------------------
and Plant Use Based Upon Gasoline Content in Gallons per 1,000 Cubic Feet (GPM).
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
GPM      %     GPM     %     GPM     %     GPM     %     GPM     %      GPM     %      GPM     %
----  -------  ----  ------  ----  ------  ----  ------  ----  ------  -----  ------  -----  -----
<S>   <C>      <C>   <C>     <C>   <C>     <C>   <C>     <C>   <C>     <C>    <C>     <C>    <C>
 .00    100.00  2.00   72.90  4.00   54.30  6.00   38.30  8.00   25.10  10.00   13.70  12.00   3.50
 .05     93.10  2.05   72.45  4.05   53.85  6.05   37.90  8.05   24.80  10.05   13.35  12.05   3.25
 .10     92.60  2.10   72.00  4.10   53.40  6.10   37.50  8.10   24.50  10.10   13.00  12.10   3.00
 .15     92.10  2.15   71.50  4.15   52.95  6.15   37.20  8.15   24.25  10.15   12.75  12.15   2.75
 .20     91.50  2.20   71.00  4.20   52.50  6.20   36.90  8.20   24.00  10.20   12.50  12.20   2.50
 .25     91.05  2.25   70.50  4.25   52.15  6.25   36.55  8.25   23.65  10.25   12.25  12.25   2.30
 .30     90.50  2.30   70.10  4.30   51.80  6.30   36.20  8.30   23.30  10.30   12.00  12.30   2.10
 .35     90.05  2.35   69.60  4.35   51.30  6.35   35.80  8.35   22.95  10.35   11.75  12.35   1.85
 .40     89.60  2.40   69.10  4.40   50.80  6.40   35.40  8.40   22.60  10.40   11.50  12.40   1.60
 .45     89.00  2.45   68.65  4.45   50.40  6.45   35.10  8.45   22.30  10.45   11.25  12.45   1.40
 .50     88.40  2.50   68.20  4.50   50.00  6.50   34.80  8.50   22.00  10.50   11.0O  12.50   1.20
 .55     87.85  2.55   67.70  4.55   49.65  6.55   34.45  8.55   21.70  10.55   10.75  12.55    .90
 .60     87.30  2.60   67.20  4.60   49.30  6.60   34.10  8.60   21.40  10.60   10.50  12.60    .60
 .65     86.80  2.65   66.70  4.65   48.85  6.65   33.80  8.65   21.10  10.65   10.25  12.65    .35
 .70     86.30  2.70   66.20  4.70   48.40  6.70   33.50  8.70   20.80  10.70   10.00  12.70    .10
 .75     85.75  2.75   65.75  4.75   47.95  6.75   33.15  8.75   20.55  10.75    9.75
 .80     85.20  2.80   65.30  4.80   47.50  6.80   32.80  8.80   20.30  10.80    9.50
 .85     84.70  2.85   64.90  4.85   47.15  6.85   32.50  8.85   20.05  10.85    9.25
 .90     84.20  2.90   64.50  4.90   46.90  6.90   32.20  8.90   19.80  10.90    9.00
 .95     83.65  2.95   63.95  4.95   46.35  6.95   31.85  8.95   19.50  10.95    8.75
1.00    83.10  3.00   61.40  5.00   45.90  7.00   31.50  9.00   19.20  11.00    8.50
1.05    82.50  3.05   62.95  5.05   45.50  7.05   31.15  9.05   18.85  11.05    8.25
1.10    81.90  3.10   62.50  5.10   45.10  7.10   30.80  9.10   18.50  11.10    8.00
1.15    81.50  3.15   62.00  5.15   44.75  7.15   30.50  9.15   18.20  11.15    7.70
1.20    80.90  3.20   61.50  5.20   44.20  7.20   30.20  9.20   17.90  11.20    7.40
1.25    80.40  3.25   61.00  5.25   43.85  7.25   29.95  9.25   17.60  11.25    7.20
1.30    79.90  3.30   60.50  5.30   43.50  7.30   29.50  9.30   17.30  11.30    7.00
1.15    79.45  3.35   00.15  5.35   43.05  7.35   29.25  9.35   17.05  11.35    6.75
1.40    79.00  3.40   59.80  5.40   42.60  7.40   29.00  9.40   16.80  11.40    6.50
1.45    78.50  3.45   59.30  5.45   42.25  7.45   28.65  9.45   16.50  11.45    6.25
1.50    78.00  3.50   58.80  5.50   41.90  7.50   28.30  9.50   16.20  11.50    6.00
1.55    77.50  3.55   58.15  5.55   41.55  7.55   28.00  9.55   16.00  11.55    5.80
1.60    77.00  3.60   57.90  5.60   41.20  7.60   27.70  9.60   15.80  11.60    5.60
1.65    76.50  3.65   57.40  5.65   40.80  7.65   27.30  9.65   15.50  11.65    5.35
1.70    76.00  3.70   56.90  5.70   40.40  7.70   26.90  9.70   15.20  11.70    5.10
1.75    75.50  3.75   56.55  5.75   40.15  7.75   26.70  9.75   14.95  11.75    4.95
1.80    75.00  3.80   56.20  5.80   39.90  7.80   26.50  9.80   14.70  11.80    4.60
1.85    74.50  3.85   55.75  5.85   39.50  7.85   26.20  9.85   14.41  11.85    4.35
1.90    74.00  3.90   55.30  5.90   39.10  7.90   25.90  9.90   14.20  11.90    4.10
1.95    73.45  3.95   54.80  5.95   38.70  7.95   25.50  9.95   13.95  11.95    3.80
</TABLE>

                                        3
                                                      (HAND WRITTEN)  C - 162158
<PAGE>
                                                                  162 (7-85)/GPC

6.     DILUTFD  GAS-  Should  Seller's  operations under this paragraph create a
       ------------
condition  which  in  the  exclusive  judgment  of  Buyer  makes  the taking and
utilization  of  gas  therefrom unprofitable to Buyer, or should such operations
tend  to  endanger  the  plant  or  property  of  Buyer  or the lives of Buyer's
employees  should  such diluted or contaminated gas be taken, then Buyer, at its
election, may discontinue taking the gas from the particular well or wells while
being  so  operated.

7.       RIGHT  OF  WAY  - To the full extent that Seller is able to convey such
         --------------
rights,  Seller  hereby  assigns  and  grants  to  Buyer  an easement across the
premises  covered  hereby to lay and maintain lines and to install, maintain and
operate any equipment necessary to its operations hereunder and Buyer shall have
the  right  of  free  entry  for  any purpose connected therewith. All lines and
equipment  placed  by  Buyer on said premises shall remain the property of Buyer
and  may  he  removed  by  Buyer  before  or  within a reasonable time after the
expiration  of  this  Agreement.

8.     SETTLEMENT  TESTS-  The  gasoline  content per thousand cubic feet of gas
       -----------------
delivered to Buyer hereunder shall be determined by a field compression test, or
chromatographic  analysis,  at  Buyer's  option,  made  in  accordance  with the
official  code  of  the  Gas  Processors Association for testing natural gas for
gasoline  content.  The  specific  gravity  shall  be determined by the use of a
gravitometer  of  the  Ranarex type. The tests for gasoline content and specific
gravity  shall  be  made  by  Buyer  semiannually except when, in the opinion of
either  party,  a  change  in  the method of operations of the lease will affect
materially  the gasoline content and specific gravity of the gas, in which event
the tests shall be made at the demand of either party upon five (5) days' notice
to  the other party. Buyer shall notify Seller in writing ten (10) days previous
to  the  semiannual  tests in order that it may have a representative present to
witness  said tests and/or make joint tests with its own appliances. The content
tests  shall  be computed to a standard pressure base of 14.65 pounds per square
inch  absolute  and  at  a  standard  base  temperature  of  sixty  (60) degrees
Fahrenheit.

9.     MEASUREMENT-  The gas delivered hereunder shall be measured by a suitable
       -----------
orifice  meter, or meters, of standard make to be furnished, installed, and kept
in  repair  by  Buyer near tile point of delivery of such gas. Buyer may, at its
option,  install  an  electronic  flow  recorder  to  record  the  static  and
differential  pressures,  flowing  temperature  and  volume of such gas. All gas
volumes  measured  hereunder  shall  be  computed to a standard pressure base of
14.65  pounds  per  square inch absolute at a standard base temperature of sixty
(60)  degrees  Fahrenheit. For purposes of measurement computations tile average
atmospheric  pressure shall be assumed to be 13.2 pounds per square inch and the
average  flowing  temperature  shall  be  assumed  to  be  sixty  (60)  degrees
Fahrenheit.  All  orifice  coefficient  computations shall be made in accordance
with  published  procedures  adopted  as  American  National  Standard, "Orifice
Metering of Natural Gas," published as ANSI-API 2530 (Formerly prescribed by the
API  and  published  as  API2530, including therein the American Gas Association
Report  No.  3  adopted  in  1975  by  API  and further approved by the American
National  Standards  Institute June 28, 1977) as amended or revised from time to
time,  except  that  the Reynolds Number, Expansion, and Manometer Factors shall
each be considered as unity, and only those gas volumes measured at pressures of
100  pounds  per  square  inch gauge or greater shall be corrected for deviation
from  Boyle's  Law. Notwithstanding the foregoing, at Buyer's option the flowing
temperature  of  the  gas  may be determined by means of a recording thermometer
installed  by and at the expense of Buyer. In the event Buyer elects to exercise
such  option,  the  arithmetical average of the recorded temperatures of the gas
delivered during each month shall be deemed to be the temperature of such gas so
delivered  during  such  month.  Buyer  shall  test, and if necessary adjust and
repair,  any  meter installed by it hereunder at or about the time the tests for
gasoline content are made. Said meter, or meters, shall be open to inspection at
all  times by Seller in the presence of Buyer. In case any question arises as to
the  accuracy  of  the meter measurement, said meter, or meters, shall be tested
upon the demand of either party. The expense of such tests shall be borne by the
party  demanding  same if the meter is found to be correct and by Buyer if found
incorrect.  A  registration  within 2% of correct shall be considered correct.

                                        4
                                                      (HAND WRITTEN)  C - 162158
<PAGE>
                                                                  162 (7-85)/GPC

If  at  any time any of the measuring or testing equipment is found to be out of
service,  or registering inaccurately in any percentage, it shall be adjusted at
once  to  read  accurately, within the limits prescribed by the manufacturer. If
such  equipment  is  out  of  service,  or inaccurate by an amount exceeding two
percent  (2%)  at  a  reading  corresponding to the average rate of flow for the
period  since  the  last preceding test, the previous readings of such equipment
shall  be  disregarded for any period definitely known or agreed upon, or if not
so  known or agreed upon, for a period of sixteen (16) days or one-half (1/2) of
the  elapsed  time  since the last test, whichever is shorter. The volume of gas
delivered  during  such  period  shall  be  estimated  by:

(a)     Using  the  data  recorded by any check-measuring equipment if installed
and  accurately  registering,  or  if not installed or registering accurately;
(b)     By  correcting  the error if the percentage of error is ascertainable by
calibration,  test  or  mathematical  calculation,  or if neither such method is
feasible;
(e)     By  estimating the quantity, or quality, delivered based upon deliveries
under  similar  conditions  during  a  period when the equipment was registering
accurately.                No  corrections  shall  be  made  for  recorded
inaccuracies  of  two  percent  (2%)  or  less.
If  requested,  Buyer  shall send charts or flow computer unit data printouts to
Seller  for  checking  after  which  they  shall  be  returned  to  Buyer.

10.    PRICE
       -----

A.     Natural  Gasoline  Value- The gasoline content values due each connection
       ------------------------
shall be determined by multiplying the "Total Gasoline Value" by a fraction, the
numerator of which is the "Adjusted Gasoline Content of Each Connection" and the
denominator  of which is the "Adjusted Gasoline Content of All Connections," and
then  multiplying  the  result  by  whichever  of  the  following percentages is
applicable,  to-wit:

     Monthly  Delivered  Volume  (MCF                             Percentage
     --------------------------------                             ----------

     Less  than  9,125                                                55%
     9,125  or  more,  but  less than 15,200                          60%
     15,200  or  more                                                 65%

The  "Total  Gasoline Value" shall be the total value invoiced for deliveries of
natural  gasoline.

The  "Adjusted  Gasoline  Content  of  Each  Connection"  shall be determined by
multiplying  the  "Gasoline  Content  Per Thousand Cubic Feet", as determined in
accordance with Section 8 hereunder, by a fraction, the numerator of which shall
be  the "Actual Net Plant Production of Natural Gasoline" and the denominator of
which  shall  be the "Gasoline Content of all Connections", then multiplying the
result  by  the  applicable  measured  volume  of  gas  from  each  connection.
The  "Actual  Net  Plant  Production of Natural Gasoline", expressed in gallons,
shall  be  the  total  net deliveries of natural gasoline adjusted for change in
inventory.

The  "Adjusted  Gasoline  Content  of  All  Connections" shall be the sum of the
"Adjusted  Gasoline  Content  of  Each  Connection"  for  all  connections.

The  "Gasoline  Content  of  all  Connections"  shall be the sun or the products
obtained  by  multiplying the "Gasoline Content Per Thousand Cubic Feet" of each
connection  by  the  applicable  measured  volume  of  gas from each connection.

                                        5
                                                      (HAND WRITTEN)  C - 162158
<PAGE>
                                                                  162 (7-85)/GPC

B.     Additional  Products  Value-  The  additional  products  value  for  each
       ---------------------------
connection  shall  he  determined  by multiplying the "Total Additional Products
Value"  by  a fraction, the numerator of which is the "Adjusted Gasoline Content
of each Connection", as defined in Section 10-A, and the denominator of which is
the "Adjusted Gasoline Content of all Connections", also as defined in 10-A, and
then  by  whichever  of  the  following  percentages  is  applicable,  to-wit:

     Monthly  Delivered  Volume  (MCF                            Percentage
     --------------------------------                            ----------
     less  than  9,125                                               55%
     9,125  or  more,  but  less  than  15,200                       60%
     15,200 or more                                                  65%

The  "Total  Additional  Products  Value"  shall be the total value invoiced for
deliveries  of additional products. The value invoiced shall include any and all
adjustments  from prescribed quality specifications including but not limited to
impurities  and contamination claims, if allowed by Buyer, but shall not include
any  cash  discounts.

Notwithstanding  the  foregoing,  the  individual  liquid  hydrocarbon products,
delivered  by  Buyer into a pipeline operated by others or delivered to remotely
located  fractionation  facilities  owned  by  Buyer or remotely located storage
owned  by  Buyer  shall he deemed to have been sold; and each of said individual
products  except methane shall be priced for settlement purposes hereunder at an
amount  per  gallon equal to the weighted average price per gallon paid by Buyer
for  all like product purchased by it under arms-length contracts from suppliers
(other than any corporation more than 50% of the capital stock of which is owned
directly  or  indirectly  by  Buyer  or  other  entity which controls Buyer) and
delivered  during  such  settlement  period  into  Chevron  Pipe  Line Company's
(formerly  Gulf Pipeline Company's) LPG Pipeline System at points west of Taylor
County,  Texas,  for  transportation  to  Buyer's  MtBelvieu  fractionation
facilities.  Methane,  if  any  shall  be priced at the same price as heretofore
provided  for  ethane.

In  the  event  such  deliveries  of  said  products to Buyer's remotely located
fractionation  or  storage facilities are made as a composite stream or streams,
the composition of such composite stream delivered during each accounting period
hereunder  shall  be deemed to be the same as that revealed by a chromatographic
analysis  of  a  representative sample of such stream taken by Buyer during such
month.  Such  samples  shall  be  analyzed  at  Buyer's  expense.

The parties hereto acknowledge that governmental regulations, both currently and
prospectively,  may  limit  the  price  Buyer  may  charge third parties for the
respective  liquid products attributable to the gas purchased hereunder. When so
limited,  Buyer may elect to pay Seller, notwithstanding the above paragraph, an
amount  equal  to the applicable percentage of such limited price, multiplied by
the  volume  of  the  subject  product  saved and sold at Buyer's Plant which is
attributable  to  Seller's  gas  purchased  hereunder.

C.     Residue  Gas  Sales Value - If the "residue gas remaining" (determined as
       -------------------------
heretofore  provided)  from  Seller's  gas shall he more than sufficient for the
needs and requirements of Seller for development and operation purposes upon the
premises from which said gas is produced, Buyer shall have the right to sell any
or  all  of  such  surplus residue gas or to use such surplus residue gas in its
operations.  If  Buyer  sells  any  surplus  residue  gas remaining from the gas
delivered  hereunder, Buyer shall pay to Seller eighty percent (80%) of the "net
proceeds  received  from the sale of such residue gas," hereinafter defined. The
"net  proceeds received from the sale of such residue gas" shall be deemed to be
the gross proceeds received from the sale of such residue gas less Buyer's costs
of  treating, dehydrating, and compressing such gas to the pressure required for
delivery  to  the  purchaser thereof (whether treated, dehydrated, or compressed
before  or  after  processing  in  Buyer's  plant),  and  less  the  cost of any
transportation  necessary  to  market  the residue gas. For the purposes hereof,
Buyer's  said  treating  cost  shall  be deemed to be 0.5  per MCF, Buyer's said
dehydration  cost  shall  be  deemed  to  be  0.25  per  MCF,  and  Buyer's said
compression  cost  shall  be  deemed  to  be  1.0  per  MCF  for  each  stage of
compression.

                                        6
<PAGE>
In  the event Buyer should elect to utilize the surplus residue gas attributable
to  the  gas  delivered hereunder, said residue gas shall he valued at the price
Warren receives for said gas from the Company, Division, or Department utilizing
such  gas.

The  volume  of  surplus  residue  gas available for sale from the gas delivered
hereunder  shall be the remainder obtained by subtracting the volume, determined
either  by  estimate  or  measurement, that actually was delivered to Seller for
lease  operation  during  the  month for which settlement is to be made from the
volume  of  "residue  gas  remaining"  determined  by application of Paragraph 5
hereof.  The volume of surplus residue gas sold from the gas delivered hereunder
shall  be  deemed  to  be that proportionate part of the total volume of surplus
residue  gas  sold  from  Buyer's  plant which the volume of surplus residue gas
available  for  sale  from  the  gas delivered to Buyer hereunder, determined as
heretofore  provided, bears to the total volume of surplus residue gas available
for  sale  from  all  gas  delivered  to  Buyer  for  processing  in such plant.

11.     SEVERANCE  TAXES - Buyer hereby agrees to reimburse Seller for all state
        ----------------
severance  taxes  which  are  actually  borne by Seller and which Buyer actually
collects  from  its  purchaser of residue gas under the terms of Buyer's residue
sales  contract  or  applicable  law  or  regulation.

12.     FUEL  GAS  &  ELECTRICAL  POWER-  In  the event, Buyer elects to utilize
        -------------------------------
electrical  power  in  the  operation  of compressors at the processing plant or
located  in the field, such electrical power costs will be allocated to Seller's
gas by multiplying the total electrical power cost times a factor, the numerator
of  which  is the volume of gas delivered hereunder and the denominator of which
is  the  total  volume  of  gas utilizing such electrical cost. This total lease
allocated  electric  cost  will  then be subtracted from the lease residue value
before  dividing  the  residue  income  between  Buyer and Seller as provided in
Section  C  of  Article  10.

13.     PAYMENT  -  Payment shall he mailed by Buyer not later than the last day
        -------
of each month for all gas purchased hereunder during the preceding month, and at
the  time  payment is made a statement showing full details of the account shall
he  transmitted  to  Seller  accompanying  Buyer's  check  in  payment therefor.
Examination  by Seller of the books of account kept by Buyer respecting said gas
account  shall  be  permitted  by  Buyer  at  any  and all reasonable hours. All
statements  rendered  to  Seller  by  Buyer  during  any  calendar year shall be
conclusively  presumed  to  be  true  and  correct after twenty-four (24) months
following  the end of any such calendar year, unless within the said twenty-four
month period Seller takes written exception therein and makes claim on Buyer for
adjustment.  Failure on the part of Seller to make claim on Buyer for adjustment
within  such  period  shall  establish  the correctness thereof and preclude the
filing  of  exceptions  thereto  or  making  of claims for adjustment thereof.
If  the  lease  or leases described herein are owned by two or more parties, the
Gas  Purchase Statement will be sent to the operator and payment of any sums due
to  Seller  hereunder  shall be made to the party designated as Operator of such
lease or leases and he shall make proper distribution of the sums to the parties
Seller.

14.     TITLE  -  Title to the gas conveyed hereunder shall pass to Buyer at the
        -----
point  of  delivery.  Seller  warrants  that it has clear title to the gas being
conveyed  hereunder and that it has good and merchantable title in the leasehold
from  which the gas is produced. Seller also warrants and represents that it has
a  good  and  clear  right  to  sell all of the gas conveyed to Buyer hereunder.
Seller  also  agrees that upon demand by Buyer it will submit abstracts of title
covering  said  leasehold  and  such  other  documents  as  may  be necessary or
desirable to satisfy the attorneys of Buyer that Seller has good and clear title
to  the  gas  being  conveyed hereunder; provided, however, that if the title of
Seller  is  questioned, or involved in any action, Buyer shall have the right to
withhold payment for such gas without liability for interest during the pendency
of  such action or until said title is freed from such question, or until Seller
furnishes  Buyer  with  a bond acceptable to Buyer that will save Buyer harmless
from  any losses that may arise from Buyer having made payment to Seller for gas
in  which  Seller  did  not  have  a  good  and  clear  title.

                                        7
<PAGE>
                                                                  162 (7-85)/GPC

15.     ROYALTY  -  Seller  agrees  to  account  and pay to the persons entitled
        -------
thereto  all  royalties,  overriding  royalties,  bonus  payments and production
payments due with respect to the gas sold or delivered hereunder. Seller further
agrees  to  defend,  indemnify  and hold Buyer harmless from all suits, actions,
debts,  accounts, damages, costs (including court costs and reasonable attorneys
fees),  losses  and  expenses  arising  from  or  out of any of said payments.

16.     DRIP  -  Buyer  shall  keep  reasonably  clear  of  obstruction  all its
        ----
pipelines  through  which  said gas is being delivered and shall own all liquids
collecting  in  such  lines.

17.     FORCE  MAJEURE-  In  the  event  of  either  party hereto being rendered
        --------------
unable,  wholly  or in part, by force majeure to carry out its obligations under
this  Agreement,  other  than to make payments due hereunder, the obligations of
the  party  suffering  force  majeure,  so  as  they  are affected by such force
majeure,  shall  be  suspended  to  the  extent and for the period of such force
majeure condition. Such party suffering force majeure shall give notice and full
particulars  of such force majeure in writing or by telegraph to the other party
as  soon  as possible after the occurrence of the cause. Such cause shall as far
as  possible  he remedied with all reasonable dispatch. The term "force majeure"
as employed herein shall mean acts of God, strikes, lockouts or other industrial
disputes  or  disturbances,  acts  of  the  public  enemy,  wars,  blockades,
insurrections,  riots,  epidemics,  landslides,  lightning,  earthquakes, fires,
storms,  floods,  washouts,  arrests  and  restraints of governments and people,
civil  disturbances,  explosions, breakage or accidents to machinery or lines of
pipe, the making of repairs or alterations to lines of pipe or plants, inability
to  secure  labor  or  materials, freezing of wells or lines of pipe, partial or
entire  failure  of wells or gas supply, necessity for compliance with any court
order,  or  any  law,  statute,  ordinance, regulation or order promulgated by a
governmental  authority having jurisdiction, inclement weather that necessitates
extraordinary  measures  and  expense  to  construct  facilities and/or maintain
operations  and  any  other  causes,  whether  of  the kind enumerated herein or
otherwise,  not within the control of the party claiming suspension and which by
the  exercise of due diligence such party is unable to prevent or overcome. Such
term  shall likewise include (a) in those instances where either party hereto is
required  to  obtain  servitudes,  right-of-way  grants,  permits or licenses to
enable  such  party  to fulfill its obligations hereunder, the inability of such
party  to  acquire,  or  delays  on  the  part  of  such  party in acquiring, at
reasonable cost and after the exercise of reasonable diligence, such servitudes,
right-of-way  grants,  permits  or  licenses,  and  (b) in those instances where
either  party  hereto  is  required  to  furnish  materials and supplies for the
purpose  of  constructing  or  maintaining  facilities  or is required to secure
permits  or  permissions  from  any  governmental agency to enable such party to
fulfill  its  obligations  hereunder, the inability of such party to acquire, or
delays  on the part of such party in acquiring, at reasonable cost and after the
exercise  of  reasonable  diligence,  such  materials,  supplies,  permits  and
permissions.  It  is  understood  and  agreed  that the settlement of strikes or
lockouts  shall  be  entirely  within  the  discretion  of  the party having the
difficulty,  and  that  the  above  requirements that any force majeure shall be
remedied  with  all  reasonable  dispatch  shall  not  require the settlement of
strikes  or  lockouts  by  acceding  to  the demands of opposing party when such
course  is  inadvisable in the discretion of the party having difficulty. Either
party  may briefly interrupt its performance hereunder for the purpose of making
necessary  or  desirable  inspections,  alterations  and  repairs; and the party
requiring  such  relief  shall  give to the other party reasonable notice of its
intention  to  suspend  its  performance hereunder, except in cases of emergency
where such notice is impracticable or in cases where the operations of the other
party  will  not  be  affected the party requiring such relief shall endeavor to
arrange  such  interruptions so as to inconvenience the other party as little as
possible. Service interruptions on the part of either party which are sanctioned
by  this  provision  are  expressly  included  within  the  definition of "force
majeure"  for  the  purposes  of  this  contract.

In  the  event that during the term of this Agreement Seller claims a suspension
of  its  obligation to deliver gas to Buyer for thirty (30) or more days for the
reason  of  one or more events of force majeure, then the term of this Agreement
shall  he  extended  for  the  number  of  days  during which such force majeure
condition  is  claimed.

                                        8
<PAGE>
                                                                  162 (7-85)/GPC

18.     UNPROFITABLE GAS- If, in Buyer's sole judgment, the gas available at any
        ----------------
delivery  point  provided  for hereunder is or becomes insufficient in volume or
liquefiable  hydrocarbons  content,  or  for  any  other  cause  is  or  becomes
unprofitable  for  the  extraction  of liquefiable hydrocarbons therefrom, Buyer
shall  not  be required to take such gas so long as such condition exists. If at
any time the volume and/or liquefiable hydrocarbons content of the gas available
to  Buyer, or any other cause beyond Buyer's control, shall render the operation
of  Buyer's  plant  or the gas gathering lines to Seller's lease unprofitable in
Buyer's  sole  judgment,  Buyer may by thirty (30) days written notice to Seller
cancel  this  contract.

19.     PRIORITY  RIGHTS  OF SELLER - Seller may, at any time, without liability
        ---------------------------
to  Buyer clean out, deepen, or abandon any well or wells on the above-described
properties,  or  may  use  any  efficient,  modern,  or  improved method for the
production  of oil or gas. Before any well or wells are taken out of service for
any  reason  whatsoever  Seller  agrees  to  first  shut  off  the  same  from
communication  with  Buyer's  gathering  system.

20.     INDEMNITY  - Seller agrees to defend, indemnify and save harmless Buyer,
        ---------
from and against any and all loss, damage, injury, liability and claims thereof,
for  injury to or death of any person (including an employee of Seller or Buyer)
or  for  loss or damage to property (including the property of Buyer), resulting
from  Seller's  performance  of  this  Agreement,  including  such loss, damage,
injury,  liability  and  claims  as  are attributable to the gas covered by this
Agreement,  prior  to  the  delivery  of said gas to Buyer. This indemnity shall
apply  regardless  of whether liability without fault is imposed or sought to be
imposed  on  Buyer. This indemnity shall not apply to the extent that said loss,
damage,  injury,  liability  and  claims  arise  from  personal injury, death or
property  damage  which  is  caused  by  or  results from the sole or concurrent
negligence  of Buyer, or an individual contractor directly responsible to Buyer.
Seller  and Buyer specifically intend that the foregoing obligation of Seller to
defend, indemnify and save harmless shall cover and apply to, but is not limited
to, all loss, damage, injury, liability and claims as are caused by, result from
or  are  attributable  to  the  sole,  comparative,  contributory  or concurrent
negligence  of  Seller  or  any  third  party.

21.     SCOPE  -  In  the  event the above-described property is covered by more
        -----
than one lease,                   this contract shall be construed as a separate
contract  as  to  each  lease.

22.     TAXES  - Seller shall bear all taxes imposed upon Seller with respect to
        -----
the  gas  delivered  hereunder and Buyer shall bear all taxes imposed upon Buyer
with  respect to such gas after delivery thereof to Buyer. If required by law or
requested  by Seller, Buyer shall remit taxes to the proper authority and deduct
Seller's  portion  thereof  from  Buyer's  payment  to  Seller.

23.     LAWS  AND  REGULATIONS- This contract and all provisions herein shall be
        ----------------------
subject  to  and performed in accordance with all present and future, applicable
and  valid  orders,  laws, rules or regulations of any duly constituted federal,
state  or local governmental authority now or hereafter having jurisdiction over
the parties, their facilities, the gas delivered hereunder, or this Agreement.

24.     TERM  - This Agreement will become effective on the date hereof and will
        ----
remain  in full force and effect for a period of five (5) years from the date of
initial  delivery  of  gas  hereunder. At the end of such period, this Agreement
will  continue in effect from year-to-year thereafter, until canceled by written
notice  given  by either party to the other not less than one (1) month prior to
the  end  of  the initial five (5) year term or any subsequent anniversary date.
However,  in  the  event  the  oil  and  gas  lease covering the above-described
property  should  terminate before the expiration of the term of this Agreement,
then this Agreement shall be canceled contemporaneously with such termination.
Upon  termination, this Agreement will cease to have any force or effect, except
as to unsatisfied obligations or liabilities of either party attributable to the
period prior to 12:00 midnight on the date of termination, or arising thereafter
as  a  result  of  such  termination.

                                        9
                                                     (HAND WRITTEN)   C - 162158
<PAGE>
                                                                  162 (7-85)/GPC

25.     ASSIGNMENT-  The  provisions of this Agreement shall be binding upon and
        ----------
inure to the benefit of the parties hereto, their heirs, successors and assigns.
If  Seller  assigns or conveys all or any part of the leases or other properties
covered  hereby,  Seller  shall  provide  in  any  instrument  of  assignment or
conveyance  that the leases or other properties are assigned or conveyed subject
to  the  terms and conditions of this Agreement and that the party or parties to
whom  such  assignment or conveyance is made shall be bound by the terms of this
Agreement.  No  assignment  of  any  of Seller's rights or obligations hereunder
shall  be  made  without  the consent of Buyer, except to any company with which
Seller  is  affiliated  or to a trustee or trustees, individual or corporate, as
security  for bonds, security or other obligations. No transfer of or succession
to  the  interest of Seller hereunder, wholly or partially, shall Affect or bind
Buyer until Buyer shall have been furnished with written notice and the original
instrument  or  a certified copy or an acceptable photocopy of the instrument or
instruments  effecting  such  changes  of  ownership.

26.     PRODUCTION  IN  CONFORMANCE  WITH  FLOW  SCHEDULE - In order to maintain
        -------------------------------------------------
maximum  plant  efficiency on a 24-hour operating schedule, it is desired by the
parties  hereto  to  maintain  a  reasonably uniform rate of flow of gas to said
plant  over  each 24-hour period. It is, therefore, agreed that Seller shall, at
its  option, either (1) regulate its producing schedule so that the gas shall be
supplied from Seller's lease at a reasonably uniform rate of flow; or (2) accept
and  follow  a  producing  schedule  to  be  established  by Buyer for all wells
connected  to  Buyer's  plant,  provided that Buyer shall consider the wishes of
Seller  in  establishing  the  producing  schedule  for  Seller's well or wells.
Anything  else  contained  in  this  agreement  to the contrary notwithstanding,
Seller  hereby  agrees  that  in  the  event  it  fails to comply with the above
provisions  of  this  paragraph, such failure shall give Buyer the right, at its
option,  to  refuse to accept delivery of Seller's gas during any period of such
non-compliance.

27.     COUNTERPART SIGNATURES - This Agreement may be executed in any number of
        ----------------------
counterparts,  each  of  which,  when  executed by [any] Buyer and [any] Seller,
shall  be  deemed  to  be  an original, binding agreement between such Buyer and
Seller,  as  of  the  effective date hereof, regardless of any failure by one or
more  parties  to  execute  such  contract.

28.     CANDELLATION OF PRIOR CONTRACTS - Upon commencement of deliveries of gas
        -------------------------------
hereunder,  this  Agreement  shall  supersede  any  prior  gas contracts and any
amendments  thereto  effective  between  the  parties  hereto  insofar  as  such
contracts  cover  the  properties  hereinbefore  described.

          IN  WITNESS  WHEREOF the parties have hereunto subscribed their names.

                                   WARREN  PETROLEUM  COMPANY,
                                   A  Division  of  Chevron  U.S.A.  Inc.

                                   By            (SIGNED)
                                     ---------------------------------
                                             Attorney-in-Fact

                                                 "BUYER'

ATTEST:                              JUBILEE  OIL & GAS CORPORA'I'ION

 Juanda Harrell (SIGNED)             Sidney W. Sers, President(SIGNED)
 -----------------------             ---------------------------------

                                     Sidney  W.  Sers,  President
                                     ---------------------------------

                                                 "SELLER"

                                       10
                                                      (HAND WRITTEN)  C - 162158
<PAGE>

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