Document:

ex10_2.htm

    Exhibit
10.2

    CONFIDENTIAL
TREATMENT

    Supplemental
Agreement No. 63

    

    to

    

    Purchase
Agreement No. 1810

    

    between

    

    THE
BOEING COMPANY

    

    and

    

    SOUTHWEST
AIRLINES CO.

    

    

    Relating
to Boeing Model 737-7H4 Aircraft (the Aircraft)

    

    

    THIS SUPPLEMENTAL AGREEMENT, entered
into as of March 23, 2009, by and between THE BOEING COMPANY, a Delaware
corporation with principal offices in Seattle, Washington, (Boeing) and
SOUTHWEST AIRLINES CO., a Texas corporation with principal offices in Dallas,
Texas (Buyer);

     

           
WHEREAS, the parties hereto entered into Purchase Agreement No. 1810 dated
January 19, 1994, relating to Boeing Model 737-7H4 aircraft (the Agreement)
and;

     

                    WHEREAS,
Boeing and Buyer have agreed to revise the Contract Delivery Month of two (2)
Firm Aircraft as follows (Recontracted Firm Aircraft):

    

    
      
        	
                MSN

              	
                Previous
      Contract Delivery Month

              	
                New
      Contract Delivery Month

              
	
                36968

              	
                November
      2011

              	
                June
      2014

              
	
                36971

              	
                December
      2011

              	
                November
      2014

              

      

    

     

                    
and;

     

                    
WHEREAS, Boeing and Buyer have agreed to revised the Contract Delivery Month of
three (3) Option Aircraft as follows (Recontracted Option
Aircraft):

    

    
      
        	
                January
      2012

              	
                January
      2013

              
	
                October
      2012

              	
                April
      2013

              
	
                November
      2012

              	
                May
      2013

              

      

    

    

    ***Pursuant
to 17 CFR 240.24b-2, confidential information has been omitted and has been
filed separately with the Securities and Exchange Commission pursuant to a
Confidential Treatment Application filed with the Commission.

     

            
and;

     

     

    
      
        
          P.A.
No.
1810                           
SA-63-1

          K/SWA

        

      

      
        
        

        
          

        

      

      
        
        

      

       

              
WHEREAS, Boeing and Buyer have agreed to revise Table 2 to correct the
rescheduled Delivery Month of one Option Aircraft, pursuant to Supplemental
Agreement 62, from October 2015 Delivery Month to November 2015 Delivery Month
(November 2015 Option Aircraft); and

    

    

     NOW THEREFORE, in consideration
of the mutual covenants herein contained, the parties agree to amend the
Agreement as follows:

    

    1.             
The Table of Contents of the Agreement is deleted in its entirety and a new
Table of Contents is attached hereto and incorporated into the Agreement by this
reference.

    

    2.             
Table 1 is deleted in its entirety and replaced by a new Table 1 which is
attached hereto to reflect the changes to the Contract Delivery Months of
Recontracted Firm Aircraft.

    

    3.             
Table 2 is deleted in its entirety and replaced by a new Table 2 which is
attached hereto to reflect (i) the correction of the rescheduled Delivery Month
for the November 2015 Option Aircraft;  and, (ii) the changes to the
Contract Delivery Months for the Recontracted Option Aircraft.

    

    4.             
All references in the Letter Agreements associated with Purchase Agreement No.
1810 shall be deemed to refer to the purchase by Buyer of four hundred
twenty-four (424) Model 737-7H4 Aircraft, sixty-two (62) Model 737-7H4 Option
Aircraft and fifty-four (54) Model 737-7H4 Purchase Right Aircraft, to the
extent such reference is not specifically addressed herein.

    

    The
Agreement will be deemed to be supplemented to the extent herein provided and as
so supplemented will continue in full force and effect.

    

    EXECUTED
IN DUPLICATE as of the day and year first above written.

    

    
      
        
          	
                  THE
      BOEING COMPANY

                	
                  SOUTHWEST
      AIRLINES CO.

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  By:
      /s/ Isabelle
      Session

                	
                  By:/s/ Scott
      Toppping

                
	 
      	 
      
	
                  Its:    Attorney-In-Fact

                	
                  Its:Vice President
      Treasurer

                

        

      

    

    

    

    

    

    
      
        
          P.A.
No.
1810                           
SA-63-2

          K/SWA

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    TABLE OF
CONTENTS

    

    

    
      
        	 
      	 
      	
                Page

              	
                SA

              
	 
      	 
      	
                Number

              	
                Number

              
	 
      	 
      	 
      	 
      
	
                ARTICLES

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                1.

              	
                Subject
      Matter of Sale

              	
                1-1

              	
                SA-13

              
	 
      	 
      	 
      	 
      
	
                2.

              	
                Delivery,
      Title and Risk

              	 
      	 
      
	 
      	
                of
      Loss

              	
                2-1

              	
                SA-28

              
	 
      	 
      	 
      	 
      
	
                3.

              	
                Price
      of Aircraft

              	
                3-1

              	
                SA-47

              
	 
      	 
      	 
      	 
      
	
                4.

              	
                Taxes

              	
                4-1

              	 
      
	 
      	 
      	 
      	 
      
	
                5.

              	
                Payment

              	
                5-1

              	 
      
	 
      	 
      	 
      	 
      
	
                6.

              	
                Excusable
      Delay

              	
                6-1

              	 
      
	 
      	 
      	 
      	 
      
	
                7.

              	
                Changes
      to the Detail

              	 
      	 
      
	 
      	
                Specification

              	
                7-1

              	
                SA-1

              
	 
      	 
      	 
      	 
      
	
                8.

              	
                Federal
      Aviation Requirements and

              	 
      	 
      
	 
      	
                Certificates
      and Export License

              	
                8-1

              	 
      
	 
      	 
      	 
      	 
      
	
                9.

              	
                Representatives,
      Inspection,

              	 
      	 
      
	 
      	
                Flights
      and Test Data

              	
                9-1

              	 
      
	 
      	 
      	 
      	 
      
	
                10.

              	
                Assignment,
      Resale or Lease

              	
                10-1

              	 
      
	 
      	 
      	 
      	 
      
	
                11.

              	
                Termination
      for Certain Events

              	
                11-1

              	 
      
	 
      	 
      	 
      	 
      
	
                12.

              	
                Product
      Assurance; Disclaimer and

              	 
      	 
      
	 
      	
                Release;
      Exclusion of Liabilities;

              	 
      	 
      
	 
      	
                Customer
      Support; Indemnification

              	 
      	 
      
	 
      	
                and
      Insurance

              	
                12-1

              	 
      
	 
      	 
      	 
      	 
      
	
                13.

              	
                Buyer
      Furnished Equipment and

              	 
      	 
      
	 
      	
                Spare
      Parts

              	
                13-1

              	 
      
	 
      	 
      	 
      	 
      
	
                14.

              	
                Contractual
      Notices and Requests

              	
                14-1

              	 
      
	 
      	 
      	 
      	 
      
	
                15.

              	
                Miscellaneous

              	
                15-1

              	 
      

      

    

    

    

    

    
      
        
          P.A.
No.
1810                                                                                                                                           
i                                                                                                                                                        
SA-63

          K/SWA

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE OF
CONTENTS CON'T

    

    

    
      
        	 
      	 
      	
                SA

              
	 
      	 
      	
                Number

              
	 
      	 
      	 
      
	
                TABLE

              	 
      	 
      
	 
      	 
      	 
      
	
                1.

              	
                Aircraft
      Information Table

              	
                SA-63

              
	 
      	 
      	 
      
	
                2.

              	
                Option
      Aircraft Information Table

              	
                SA-63

              
	 
      	 
      	 
      
	
                EXHIBITS

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                A

              	
                Aircraft
      Configuration

              	
                SA-61

              
	 
      	 
      	 
      
	
                B

              	
                Product
      Assurance Document

              	
                SA-1

              
	 
      	 
      	 
      
	
                C

              	
                Customer
      Support Document

              	 
      
	 
      	 
      	 
      
	
                D

              	
                Price
      Adjustments Due to

              	 
      
	 
      	
                Economic
      Fluctuations - Aircraft

              	 
      
	 
      	 
      	 
      
	
                E

              	
                Buyer
      Furnished Equipment

              	 
      
	 
      	
                Provisions
      Document

              	 
      
	 
      	 
      	 
      
	
                F

              	
                Defined
      Terms Document

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                LETTER AGREEMENTS

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                1810-1

              	
                Waiver
      of Aircraft Demonstration Flight

              	 
      

      

    

    

    
 

    
      
        
          P.A.
No.
1810                                                                                                                                           
ii                                                                                                                                                       
SA-63

          K/SWA

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    

    TABLE OF
CONTENTS CON'T

    

    
      
        	 
      	 
      	
                SA

              
	 
      	 
      	
                Number

              
	
                RESTRICTED LETTER
AGREEMENTS

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-932R2

              	
                Promotional
      Support

              	
                SA-13

              
	 
      	 
      	 
      
	
                6-1162-RLL-933R21

              	
                Option
      Aircraft

              	
                SA-60

              
	 
      	 
      	 
      
	
                6-1162-RLL-934R3

              	
                Disclosure
      of Confidential

              	
                SA-14

              
	 
      	
                Information

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-935R1

              	
                Performance
      Guarantees

              	
                SA-1

              
	 
      	 
      	 
      
	
                6-1162-NIW-890

              	
                ***

              	
                SA-39

              
	 
      	 
      	 
      
	
                6-1162-RLL-936R4

              	
                Certain
      Contractual Matters

              	
                SA-4

              
	 
      	 
      	 
      
	
                6-1162-RLL-937

              	
                Alternate
      Advance Payment Schedule

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-938

              	
                ***

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-939R1

              	
                Certification
      Flight Test Aircraft

              	
                SA-1

              
	 
      	 
      	 
      
	
                6-1162-RLL-940R1

              	
                Training
      Matters

              	
                SA-1

              
	 
      	 
      	 
      
	
                6-1162-RLL-941R2

              	
                Other
      Matters

              	
                SA-13

              
	 
      	 
      	 
      
	
                6-1162-RLL-942

              	
                Open
      Configuration Matters

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-943R1

              	
                Substitution
      Rights

              	
                SA-6

              
	 
      	 
      	 
      
	
                6-1162-RLL-944

              	
                ***

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-945

              	
                Comparison
      of 737-7H4 and 737-3H4

              	 
      
	 
      	
                Block
      Fuel Burn

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-1855R3

              	
                Additional
      Contractual Matters

              	
                SA-4

              
	 
      	 
      	 
      
	
                6-1162-RLL-1856

              	
                ***

              	
                SA-1

              
	 
      	 
      	 
      
	
                6-1162-RLL-1857

              	
                Service
      Ready Validation Program

              	
                SA-1

              
	 
      	
                Field
      Test

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-1858R1

              	
                Escalation
      Matters

              	
                SA-4

              

      

       

       

      
        
          
            P.A.
No.
1810                                                                                                                                          
iii                                                                                                                                                       
SA-63

            K/SWA

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    TABLE OF
CONTENTS CON'T

    
      
        	 
      	 
      	
                SA

              
	 
      	 
      	
                Number

              
	
                RESTRICTED LETTER
AGREEMENTS

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-2036

              	
                Amortization
      of Costs for

              	 
      
	 
      	
                Customer
      Unique Changes

              	
                SA-1

              
	 
      	 
      	 
      
	
                6-1162-RLL-2037

              	
                Reconciliation
      of the Aircraft

              	
                SA-1

              
	 
      	
                Basic
      Price

              	 
      
	 
      	 
      	 
      
	
                6-1162-RLL-2073

              	
                Maintenance
      Training Matters

              	
                SA-1

              
	 
      	 
      	 
      
	
                6-1162-KJJ-054R1

              	
                Business
      Matters

              	 
      
	 
      	 
      	 
      
	
                6-1162-KJJ-055R1

              	
                Structural
      Matters

              	
                SA-25

              
	 
      	 
      	 
      
	
                6-1162-KJJ-056

              	
                Noise
      and Emission Matters

              	
                SA-13

              
	 
      	 
      	 
      
	
                6-1162-KJJ-057

              	
                Product
      Development Matters

              	
                SA-13

              
	 
      	 
      	 
      
	
                6-1162-KJJ-058

              	
                Additional
      Substitution Rights

              	
                SA-13

              
	 
      	 
      	 
      
	
                6-1162-KJJ-150

              	
                Flight
      Control Computer & Mode

              	
                SA-14

              
	 
      	
                Control
      Panel Spares Matter

              	 
      
	 
      	 
      	 
      
	
                6-1162-MSA-185R3

              	
                Delivery
      Change Contractual

              	
                SA-21

              
	 
      	
                Matters

              	 
      
	 
      	 
      	 
      
	
                6-1162-JMG-669R9

              	
                ***

              	
                SA-54

              
	 
      	 
      	 
      
	
                6-1162-JMG-747R1

              	
                ***

              	
                SA-36

              
	 
      	 
      	 
      
	
                6-1162-CHL-217

              	
                Rescheduled
      Flight Test Aircraft

              	
                SA-32

              
	 
      	 
      	 
      
	
                6-1162-NIW-606R1

              	
                ***

              	
                SA-36

              
	
                6-1162-NIW-640

              	
                Early
      Delivery of Two April 2004   SA-35

              	 
      
	 
      	
                Aircraft

              	 
      
	 
      	 
      	 
      
	
                6-1162-NIW-889

              	
                Warranty
      - Exterior Color Schemes  SA-39

              	 
      
	 
      	
                and
      Markings for YA143 and on

              	 
      
	 
      	 
      	 
      
	
                6-1162-NIW-1142

              	
                
                  *** 
      

                

              	
                SA-43

              
	 
      	 
      	 
      
	
                6-1162-NIW-1369

              	
                ***

              	
                SA-46

              
	 
      	 
      	 
      
	
                6-1162-NIW-1983

              	
                ***

              	 
      

      

    

    

    

    

    
      
        
          P.A.
No.
1810                                                                                                                                           
iv                                                                                                                                                      
SA-63

          K/SWA

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

     

    Table
1 to

    Purchase
Agreement No. 1810

    Aircraft
Information Table

    

    
      	 
      	 
      	
              Base
      Aircraft Price

            	
              Special
      Features

            	 
      	
              Aircraft
      Basic Price

            	
              Base
      Year Dollars

            
	
              Block
      A, B, C, D & E Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1992

            
	
              Block
      F & G Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1992

            
	
              Block
      H Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1992

            
	
              Block
      I Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1992

            
	
              Block
      J Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1992

            
	
              Block
      K Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1992

            
	
              Block
      K-W Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1992

            
	
              Block
      L Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1992

            
	
              Block
      T Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1999

            
	
              Block
      T-W Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1999

            
	
              Block
      T-W-1 / T-W-1a Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1999

            
	
              Block
      T-W-2 / T-W-2a Aircraft

            	
              ***

            	
              ***

            	 
      	
              ***

            	
              July
      1999

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Block
      K-W Aircraft: Block K airplanes with production winglets
      installation

            	 
      	 
      	 
      
	
              Block
      T-W Aircraft: Block T airplanes with production winglets
      installation

            	 
      	 
      	 
      
	
              Block
      T-W-1 / T-W-1a  Aircraft: Firm Aircraft contracted to deliver
      from May 1, 2006 through June 2008 at the signing

            
	
               of
      SA-47  -- (T-W-1a Aircraft -- Advance Payment Schedule per LA
      6-1162-JGM-669)

            	 
      	 
      	 
      
	
              Block
      T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which became Firm Aircraft
      after signing of SA-47 and

            	 
      
	
              Firm
      Aircraft contracted to deliver in July 2008 forward at the signing of SA47
      --

            	 
      	 
      	 
      
	
              (T-W-2a
      Aircraft -- Advance Payment Schedule per LA
6-1162-JGM-669)

            	 
      	 
      	 
      
	
              *
      Exhibit A-2 applies to Block T-W-2 / T-W-2a Aircraft delivering through
      Dec 2009 and the first Aircraft delivering in Jan 2010

            
	
              *
      Exhibit A-3 applies to Block T-W-2 / T-W-2a Aircraft the second Aircraft
      delivering in Jan 2010 and on

            	 
      

    

    

    

    

    

    
      
        
          SWA                                                                                                                                                    
Page
1                                                                                                                                               
SA-63

        

         

      

      
         

        
          

        

      

      
         

        
           

        

      

    

    

    
      
        	 
      	 
      	 
      	
                Escalation
      Estimate

              	 
      	 
      
	
                Delivery

              	
                Number
      of

              	
                Aircraft

              	
                Adv
      Payment Base

              	 
      	 
      
	
                Date

              	
                Aircraft

              	
                Block

              	
                Price
      Per A/P

              	 
      	
                Serial
      Number

              
	
                Oct-1998

              	
                1

              	
                F

              	
                ***

              	 
      	 
      
	
                Nov-1998

              	
                2

              	
                F

              	
                ***

              	 
      	 
      
	
                Dec-1998

              	
                2

              	
                F

              	
                ***

              	 
      	 
      
	
                Mar-1999

              	
                2

              	
                G

              	
                ***

              	 
      	 
      
	
                Jun-1999

              	
                2

              	
                H

              	
                ***

              	 
      	 
      
	
                Jul-1999

              	
                1

              	
                H

              	
                ***

              	 
      	 
      
	
                Aug-1999

              	
                1

              	
                H

              	
                ***

              	 
      	 
      
	
                Sep-1999

              	
                2

              	
                H

              	
                ***

              	 
      	 
      
	
                Oct-1999

              	
                1

              	
                H

              	
                ***

              	 
      	 
      
	
                Oct-1999

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Nov-1999

              	
                2

              	
                L

              	
                ***

              	 
      	 
      
	
                Dec-1999

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Mar-2000

              	
                1

              	
                H

              	
                ***

              	 
      	 
      
	
                Apr-2000

              	
                2

              	
                H

              	
                ***

              	 
      	 
      
	
                Jun-2000

              	
                3

              	
                L

              	
                ***

              	 
      	 
      
	
                Jul-2000

              	
                3

              	
                L

              	
                ***

              	 
      	 
      
	
                Sep-2000

              	
                1

              	
                H

              	
                ***

              	 
      	 
      
	
                Sep-2000

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Oct-2000

              	
                2

              	
                H

              	
                ***

              	 
      	 
      
	
                Oct-2000

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Nov-2000

              	
                4

              	
                L

              	
                ***

              	 
      	 
      
	
                Dec-2000

              	
                2

              	
                E

              	
                ***

              	 
      	 
      
	
                Dec-2000

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Jan-2001

              	
                1

              	
                E

              	
                ***

              	 
      	 
      
	
                Jan-2001

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Feb-2001

              	
                1

              	
                E

              	
                ***

              	 
      	 
      
	
                Feb-2001

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Mar-2001

              	
                2

              	
                E

              	
                ***

              	 
      	 
      
	
                Mar-2001

              	
                2

              	
                H

              	
                ***

              	 
      	 
      
	
                Apr-2001

              	
                1

              	
                H

              	
                ***

              	 
      	 
      
	
                Jun-2001

              	
                3

              	
                E

              	
                ***

              	 
      	 
      
	
                Jul-2001

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Sep-2001

              	
                3

              	
                E

              	
                ***

              	 
      	 
      
	
                Sep-2001

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Oct-2001

              	
                3

              	
                H

              	
                ***

              	 
      	 
      
	
                Oct-2001

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Nov-2001

              	
                2

              	
                I

              	
                ***

              	 
      	 
      
	
                Nov-2001

              	
                1

              	
                T

              	
                ***

              	 
      	 
      
	
                Dec-2001

              	
                1

              	
                I

              	
                ***

              	 
      	 
      
	
                Jan-2002

              	
                1

              	
                I

              	
                ***

              	 
      	 
      
	
                Feb-2002

              	
                1

              	
                T

              	
                ***

              	 
      	 
      
	
                Mar-2002

              	
                4

              	
                I

              	
                ***

              	 
      	 
      
	
                Apr-2002

              	
                2

              	
                I

              	
                ***

              	 
      	 
      
	
                Nov-2002

              	
                1

              	
                J

              	
                ***

              	 
      	 
      

      

       

       

      
        
          
            SWA                                                                                                                                                    
Page 2                                                                                                                                               
SA-63

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

                           

    

    
      
        	
                Dec-2002

              	
                2

              	
                I

              	
                ***

              	 
      	 
      
	
                Dec-2002

              	
                1

              	
                J

              	
                ***

              	 
      	 
      
	
                Mar-2003

              	
                2

              	
                L

              	
                ***

              	 
      	 
      
	
                May-2003

              	
                1

              	
                I

              	
                ***

              	 
      	 
      
	
                Jun-2003

              	
                2

              	
                I

              	
                ***

              	 
      	 
      
	
                Jul-2003

              	
                1

              	
                I

              	
                ***

              	 
      	 
      
	
                Jul-2003

              	
                1

              	
                L

              	
                ***

              	 
      	 
      
	
                Aug-2003

              	
                1

              	
                I

              	
                ***

              	 
      	 
      
	
                Aug-2003

              	
                2

              	
                L

              	
                ***

              	 
      	 
      
	
                Sep-2003

              	
                3

              	
                I

              	
                ***

              	 
      	 
      
	
                Nov-2003

              	
                2

              	
                J

              	
                ***

              	 
      	 
      
	
                Dec-2003

              	
                2

              	
                J

              	
                ***

              	 
      	 
      
	
                Jan-2004

              	
                2

              	
                T

              	
                ***

              	 
      	 
      
	
                Feb-2004

              	
                1

              	
                T

              	
                ***

              	 
      	 
      
	
                Mar-2004

              	
                1

              	
                J

              	
                ***

              	 
      	 
      
	
                Mar-2004

              	
                1

              	
                K

              	
                ***

              	 
      	 
      
	
                Apr-2004

              	
                3

              	
                K

              	
                ***

              	 
      	 
      
	
                Apr-2004

              	
                3

              	
                T

              	
                ***

              	 
      	 
      
	
                May-2004

              	
                1

              	
                K

              	
                ***

              	 
      	 
      
	
                May-2004

              	
                1

              	
                T

              	
                ***

              	 
      	 
      
	
                Jun-2004

              	
                2

              	
                K

              	
                ***

              	 
      	 
      
	
                Jun-2004

              	
                6

              	
                T

              	
                ***

              	 
      	 
      
	
                Jul-2004

              	
                2

              	
                K

              	
                ***

              	 
      	 
      
	
                Jul-2004

              	
                2

              	
                T

              	
                ***

              	 
      	 
      
	
                Aug-2004

              	
                6

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Sep-2004

              	
                1

              	
                K-W

              	
                ***

              	 
      	 
      
	
                Sep-2004

              	
                4

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Oct-2004

              	
                4

              	
                K-W

              	
                ***

              	 
      	 
      
	
                Oct-2004

              	
                0

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Nov-2004

              	
                3

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Dec-2004

              	
                3

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Jan-2005

              	
                5

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Feb-2005

              	
                3

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Mar-2005

              	
                4

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Apr-2005

              	
                4

              	
                T-W

              	
                ***

              	 
      	 
      
	
                May-2005

              	
                2

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Jun-2005

              	
                4

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Jul-2005

              	
                2

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Aug-2005

              	
                2

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Sep-2005

              	
                3

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Oct-2005

              	
                2

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Nov-2005

              	
                2

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Dec-2005

              	
                1

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Jan-2006

              	
                1

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Feb-2006

              	
                4

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Mar-2006

              	
                3

              	
                T-W

              	
                ***

              	 
      	 
      
	
                Apr-2006

              	
                2

              	
                T-W

              	
                ***

              	 
      	 
      
	
                May-2006

              	
                5

              	
                T-W-1

              	
                ***

              	 
      	 
      

      

       

       

      
        
          
            SWA                                                                                                                                                    
Page 3                                                                                                                                               
SA-63

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

                           

    

    
      
        	
                Jun-2006

              	
                5

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Jul-2006

              	
                3

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Aug-2006

              	
                3

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Sep-2006

              	
                3

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Oct-2006

              	
                1

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Nov-2006

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Dec-2006

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Jan-2007

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Feb-2007

              	
                3

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Mar-2007

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Apr-2007

              	
                3

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                May-2007

              	
                3

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Jun-2007

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Jun-2007

              	
                1

              	
                T-W-1a

              	
                ***

              	 
      	
                36528

              
	
                Jul-2007

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Jul-2007

              	
                1

              	
                T-W-1a

              	
                ***

              	 
      	
                36610

              
	
                Aug-2007

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Aug-2007

              	
                3

              	
                T-W-1a

              	
                ***

              	 
      	
                36611,
      36632 & 36633

              
	
                Sep-2007

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Sep-2007

              	
                1

              	
                T-W-1a

              	
                ***

              	 
      	
                36612

              
	
                Oct-2007

              	
                3

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Oct-2007

              	
                1

              	
                T-W-1a

              	
                ***

              	 
      	
                36613

              
	
                Nov-2007

              	
                1

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Nov-2007

              	
                1

              	
                T-W-1a

              	
                ***

              	 
      	
                36614

              
	
                Dec-2007

              	
                2

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Dec-2007

              	
                1

              	
                T-W-1a

              	
                ***

              	 
      	
                36615

              
	
                Jan-2008

              	
                1

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Jan-2008

              	
                2

              	
                T-W-1a

              	
                ***

              	 
      	
                36616
      & 36617

              
	
                Jan-2008

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36887

              
	
                Feb-2008

              	
                1

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Feb-2008

              	
                3

              	
                T-W-1a

              	
                ***

              	 
      	
                36618,
      36619 & 36620

              
	
                Mar-2008

              	
                1

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Mar-2008

              	
                2

              	
                T-W-1a

              	
                ***

              	 
      	
                36621
      & 36622

              
	
                Mar-2008

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36888

              
	
                Apr-2008

              	
                1

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Apr-2008

              	
                2

              	
                T-W-1a

              	
                ***

              	 
      	
                36623
      & 36624

              
	
                May-2008

              	
                1

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                May-2008

              	
                2

              	
                T-W-1a

              	
                ***

              	 
      	
                36625
      & 36626

              
	
                Jun-2008

              	
                1

              	
                T-W-1

              	
                ***

              	 
      	 
      
	
                Jun-2008

              	
                2

              	
                T-W-1a

              	
                ***

              	 
      	
                36627
      & 36628

              
	
                Jul-2008

              	
                2

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jul-2008

              	
                2

              	
                T-W-2

              	
                ***

              	 
      	
                36889
      & 36890

              
	
                Aug-2008

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Oct-2008

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Nov-2008

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Dec-2008

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jan-2009

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Feb-2009

              	
                2

              	
                T-W-2a

              	
                ***

              	 
      	 
      

      

       

       

      
        
          
            SWA                                                                                                                                                    
Page 4                                                                                                                                               
SA-63

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      
        	
                Mar-2009

              	
                2

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Apr-2009

              	
                2

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Apr-2009

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36900

              
	
                May-2009

              	
                2

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jan-2010

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36913

              
	
                Feb-2010

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Mar-2010

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Mar-2010

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36918

              
	
                May-2010

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                May-2010

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36924

              
	
                Jun-2010

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jul-2010

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Aug-2010

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Oct-2010

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jan-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Feb-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Apr-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                May-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jun-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jul-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Aug-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Sep-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Oct-2011

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Oct-2011

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36966

              
	
                Jan-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Feb-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Mar-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Apr-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                May-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jun-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Jul-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Aug-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Sep-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Oct-2012

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Oct-2012

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36997

              
	
                Nov-2012

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                37005

              
	
                Dec-2012

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                37006

              
	
                Jan-2013

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36891

              
	
                Jan-2013

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Feb-2013

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Mar-2013

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	 
      
	
                Mar-2013

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Apr-2013

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                May-2013

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Jun-2013

              	
                2

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Jul-2013

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Aug-2013

              	
                2

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Sep-2013

              	
                2

              	
                T-W-2

              	
                ***

              	 
      	 
      

      

       

       

      
        
          
            SWA                                                                                                                                                    
Page 5                                                                                                                                               
SA-63

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      
        	
                Oct-2013

              	
                2

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Nov-2013

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Dec-2013

              	
                2

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Jan-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Feb-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Mar-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Apr-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                May-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Jun-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36968

              
	
                Jun-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Jul-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Aug-2014

              	
                2

              	
                T-W-2

              	
                ***

              	 
      	
                36928,
      36952

              
	
                Sep-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Oct-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	 
      
	
                Nov-2014

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36971

              
	
                Jan-2015

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36899

              
	
                Feb-2015

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36901

              
	
                Mar-2015

              	
                2

              	
                T-W-2

              	
                ***

              	 
      	
                36902,
      36936

              
	
                Apr-2015

              	
                2

              	
                T-W-2a

              	
                ***

              	 
      	
                36649,
      36652

              
	
                May-2015

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36903

              
	
                Jun-2015

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36906

              
	
                Jun-2015

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36654

              
	
                Jul-2015

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36655

              
	
                Aug-2015

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36656

              
	
                Sep-2015

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36657

              
	
                Oct-2015

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36937

              
	
                Dec-2015

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36941

              
	
                Jan-2016

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36650

              
	
                Feb-2016

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36904

              
	
                Feb-2016

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36932

              
	
                Mar-2016

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36651

              
	
                Apr-2016

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36653

              
	
                May-2016

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36658

              
	
                Jun-2016

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36916

              
	
                Jul-2016

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36921

              
	
                Aug-2016

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36661

              
	
                Sep-2016

              	
                1

              	
                T-W-2

              	
                ***

              	 
      	
                36923

              
	
                Oct-2016

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36666

              
	
                Nov-2016

              	
                1

              	
                T-W-2a

              	
                ***

              	 
      	
                36670

              

      

    

    
 

    
      
        
          SWA                                                                                                                                                    
Page 6                                                                                                                                               
SA-63

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
 

    Table
2 to Purchase Agreement No. 1810

    (Letter
Agreement No. 6-1162-RLL-933R20)

    Option
Aircraft Information Table

    

    
      
        
          
            	
                    Price
      Description of Option Aircraft:

                  	 
      	 
      	 
      
	 
      	 
      	
                    Base
      Aircraft Price

                  	
                    Special
      Features

                  	
                    Aircraft
      Basic Price

                  	
                    Base
      Year Dollars

                  
	
                    Block
      U Option Aircraft

                  	
                    ***

                  	
                    ***

                  	
                    ***

                  	
                    July
      1999

                  
	
                    (without
      Winglets)

                  	 
      	 
      	 
      	 
      
	
                    Block
      U-W Option Aircraft

                  	
                    ***

                  	
                    ***

                  	
                    ***

                  	
                    July
      1999

                  
	
                    (with
      Winglets)

                  	 
      	 
      	 
      	 
      
	
                    Block
      U-W-1 Option Aircraft

                  	
                    ***

                  	
                    ***

                  	
                    ***

                  	
                    July
      1999

                  
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                    Delivery
      of Purchase
      Right Aircraft:

                  	
                    Quantity

                  	
                    54

                  	 
      
	
                    Delivery
      Period of Purchase Right
      Aircraft:

                  	
                    Complete
      delivery not later than Dec. 31, 2018

                  
	
                    Condition
      of Offer for Purchase Right
      Aircraft:

                  	
                    Subject
      to Available Position

                  	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                    Remaining
      Option Aircraft:

                  	 
      	
                    62

                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      

          

        

      

    

    

    

    

    

    

    

     

     

     

     

     

     

    
 

    
      
        
          SWA                                                                                                                                                    
Page
1                                                                                                                                               
SA-63

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    

    Table
2 to Purchase Agreement No. 1810

    (Letter
Agreement No. 6-1162-RLL-933R20)

    Option
Aircraft Information Table

    

    
      
        	
                 

                Aircraft

              	
                 

                Number
      of

              	
                 

                Option

              	
                Adv
      Payment 

                Base
      *

              	 
      	 
      	 
      
	
                Delivery

              	
                Option

              	
                Aircraft

              	
                Price
      Per

              	 
      	 
      	 
      
	
                Mo.
      & Yr.

              	
                Aircraft

              	
                Block

              	
                Option
      Aircraft

              	
                Option
      Exercise

              	 
      	 
      
	
                Feb-2011

              	
                2

              	
                U-W-1

              	
                ***

              	
                October
      1, 2009

              	 
      	 
      
	
                Mar-2011

              	
                1

              	
                U-W-1

              	
                ***

              	
                November
      2, 2009

              	 
      	 
      
	
                May-2011

              	
                1

              	
                U-W-1

              	
                ***

              	
                January
      1, 2010

              	 
      	 
      
	
                Jun-2011

              	
                1

              	
                U-W-1

              	
                ***

              	
                February
      1, 2010

              	 
      	 
      
	
                Jul-2011

              	
                1

              	
                U-W-1

              	
                ***

              	
                March
      1, 2010

              	 
      	 
      
	
                Aug-2011

              	
                2

              	
                U-W-1

              	
                ***

              	
                April
      1, 2010

              	 
      	 
      
	
                Sep-2011

              	
                1

              	
                U-W-1

              	
                ***

              	
                May
      3, 2010

              	 
      	 
      
	
                Oct-2011

              	
                1

              	
                U-W-1

              	
                ***

              	
                June
      1, 2010

              	 
      	 
      
	
                Feb-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                October
      1, 2010

              	 
      	 
      
	
                Mar-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                November
      1, 2010

              	 
      	 
      
	
                Apr-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                December
      1, 2010

              	 
      	 
      
	
                May-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                January
      3, 2011

              	 
      	 
      
	
                Jun-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                February
      1, 2011

              	 
      	 
      
	
                Jul-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                March
      1, 2011

              	 
      	 
      
	
                Aug-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                April
      1, 2011

              	 
      	 
      
	
                Sep-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                May
      2, 2011

              	 
      	 
      
	
                Nov-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                July
      1, 2011

              	 
      	 
      
	
                Dec-2012

              	
                1

              	
                U-W-1

              	
                ***

              	
                August
      1, 2011

              	 
      	 
      
	
                Jan-2013

              	
                1

              	
                U-W-1

              	
                ***

              	
                October
      3, 2011

              	 
      	 
      
	
                Feb-2013

              	
                1

              	
                U-W-1

              	
                ***

              	
                October
      3, 2011

              	 
      	 
      
	
                Apr-2013

              	
                1

              	
                U-W-1

              	
                ***

              	
                January
      2, 2012

              	 
      	 
      
	
                May-2013

              	
                1

              	
                U-W-1

              	
                ***

              	
                February
      1, 2012

              	 
      	 
      
	
                Jan-2014

              	
                1

              	
                U-W-1

              	
                ***

              	
                September
      1, 2012

              	 
      	 
      
	
                Feb-2014

              	
                1

              	
                U-W-1

              	
                ***

              	
                October
      1, 2012

              	 
      	 
      
	
                Mar-2014

              	
                2

              	
                U-W-1

              	
                ***

              	
                November
      1, 2012

              	 
      	 
      
	
                Apr-2014

              	
                2

              	
                U-W-1

              	
                ***

              	
                December
      1, 2012

              	 
      	 
      
	
                Sep-2014

              	
                1

              	
                U-W-1

              	
                ***

              	
                May
      1, 2013

              	 
      	 
      
	
                Jan-2015

              	
                1

              	
                U-W-1

              	
                ***

              	
                September
      1, 2013

              	 
      	 
      
	
                Feb-2015

              	
                1

              	
                U-W-1

              	
                ***

              	
                October
      1, 2013

              	 
      	 
      
	
                Nov-2015

              	
                1

              	
                U-W-1

              	
                ***

              	
                July
      1, 2014

              	 
      	 
      
	
                Jan-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                September
      1, 2014

              	 
      	 
      
	
                Mar-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                November
      3, 2014

              	 
      	 
      
	
                Apr-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                December
      1, 2014

              	 
      	 
      
	
                May-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                January
      1, 2015

              	 
      	 
      
	
                Jun-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                February
      2, 2015

              	 
      	 
      
	
                Jul-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                March
      2, 2015

              	 
      	 
      
	
                Aug-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                April
      1, 2015

              	 
      	 
      
	
                Sep-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                May
      1, 2015

              	 
      	 
      
	
                Oct-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                June
      1, 2015

              	 
      	 
      
	
                Nov-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                July
      1, 2015

              	 
      	 
      
	
                Dec-2016

              	
                1

              	
                U-W-1

              	
                ***

              	
                August
      3, 2015

              	 
      	 
      
	
                Jan-2017

              	
                1

              	
                U-W-1

              	
                ***

              	
                September
      1, 2015

              	 
      	 
      
	
                Feb-2017

              	
                1

              	
                U-W-1

              	
                ***

              	
                October
      1, 2015

              	 
      	 
      
	
                Mar-2017

              	
                1

              	
                U-W-1

              	
                ***

              	
                November
      2, 2015

              	 
      	 
      

      

       

       

      
        
          
            SWA                                                                                                                                                    
Page 2                                                                                                                                               
SA-63

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      
        	
                Apr-2017

              	
                1

              	
                U-W-1

              	
                ***

              	
                December
      1, 2015

              	 
      	 
      
	
                May-2017

              	
                1

              	
                U-W-1

              	
                ***

              	
                Janaury
      1, 2016

              	 
      	 
      
	
                Jun-2017

              	
                1

              	
                U-W-1

              	
                ***

              	
                February
      1, 2016

              	 
      	 
      
	
                Jul-2017

              	
                1

              	
                U-W-1

              	
                ***

              	
                March
      1, 2016

              	 
      	 
      
	
                Aug-2017

              	
                2

              	
                U-W-1

              	
                ***

              	
                April
      1, 2016

              	 
      	 
      
	
                Sep-2017

              	
                2

              	
                U-W-1

              	
                ***

              	
                May
      2, 2016

              	 
      	 
      
	
                Oct-2017

              	
                2

              	
                U-W-1

              	
                ***

              	
                June
      1, 2016

              	 
      	 
      
	
                Nov-2017

              	
                2

              	
                U-W-1

              	
                ***

              	
                July
      1, 2016

              	 
      	 
      
	
                Dec-2017

              	
                2

              	
                U-W-1

              	
                ***

              	
                August
      1, 2016

              	 
      	 
      
	
                Total

              	
                62

              	 
      	 
      	 
      	 
      	 
      

      

    

    
 

    *
Advance Payment Base Price for Option Aircraft scheduled for delivery prior to
Jan 2015 is based on 4th Qtr 2005 forecast

    *  Advance
Payment Base Price for Option Aircraft scheduled for delivery starting in Jan
2015 is based on 4th Qtr 2007 forecast

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
          SWA                                                                                                                                                    
Page 3                                                                                                                                               
SA-63exhibit101.htm

    EXHIBIT
10.1

     

    Execution Version

     

    Third
Amended and Restated Credit Agreement

    

    Dated
as of

     

    April
14, 2009

    

    among

    

    St. Mary Land & Exploration
Company,

    as
Borrower,

    

    Wachovia Bank, National
Association,

    as
Administrative Agent,

    

     

    Bank
of America, N.A.,

    As
Syndication Agent,

     

    Comerica
Bank,

    BBVA
Compass,

    and

    JPMorgan
Chase Bank,
N.A.,

    As
Co-Documentation Agents,

     

    and

    

    The
Lenders Party Hereto

     

    with

     

    Wachovia
Capital Markets, LLC

    As
Joint Lead Arranger and

    Sole
Bookrunner

    

    and

    

    Banc
of America Securities,

    As
Joint Lead Arranger

     

    $1,000,000,000
Senior Secured

    Revolving
Credit Facility

     

    
      
        
          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    TABLE
OF CONTENTS

     

    

      
        
          
            
              
                
                  
                    
                      
                        	 	
                                Page

                              
	 	 
	
                                ARTICLE
      I DEFINITIONS AND ACCOUNTING MATTERS

                              	
                                 
      1

                              
	
                                Section
      1.01

                              	
                                Terms
      Defined Above

                              	
                                1

                              
	
                                Section
      1.02

                              	
                                Certain
      Defined Terms

                              	
                                 2

                              
	
                                Section
      1.03

                              	
                                Types
      of Loans and Borrowings

                              	
                                21

                              
	
                                Section
      1.04

                              	
                                Terms
      Generally

                              	
                                21

                              
	
                                Section
      1.05

                              	
                                Accounting
      Terms and Determinations; GAAP

                              	
                                22

                              

                      

                    

                  

                

              

            

          

        

      

      

      
        
          
            
              
                	
                        ARTICLE
      II  THE CREDITS

                      	
                        22

                      
	
                        Section
      2.01

                      	
                        Commitments

                      	
                        22

                      
	
                        Section
      2.02

                      	
                        Loans
      and Borrowings

                      	
                        22

                      
	
                        Section
      2.03

                      	
                        Requests
      for Borrowings

                      	
                        23

                      
	
                        Section
      2.04

                      	
                        Interest
      Elections

                      	
                        24

                      
	
                        Section
      2.05

                      	
                        Funding
      of Borrowings

                      	
                        26

                      
	
                        Section
      2.06

                      	
                        Termination,
      Reduction and Increase of Aggregate Commitment

                      	
                        26

                      
	
                        Section
      2.07

                      	
                        Borrowing
      Base

                      	
                        28

                      
	
                        Section
      2.08

                      	
                        Letters
      of Credit

                      	
                        31

                      
	
                        Section
      2.09

                      	
                        Swingline
      Loans

                      	
                        36

                      

              

            

          

        

      

       

      
        
          
            
              
                	
                        ARTICLE
      III  PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS;
      FEES

                      	
                        37

                      
	
                        Section
      3.01

                      	
                        Repayment
      of Loans

                      	
                        37

                      
	
                        Section
      3.02

                      	
                        Interest

                      	
                        37

                      
	
                        Section
      3.03

                      	
                        Alternate
      Rate of Interest

                      	
                        38

                      
	
                        Section
      3.04

                      	
                        Prepayments.

                      	
                        39

                      
	
                        Section
      3.05

                      	
                        Fees

                      	
                        41

                      

              

            

          

        

      

       

      
        
          
            
              
                	
                        ARTICLE
      IV  PAYMENTS; PRO RATA TREATMENT; SHARING OF
      SET-OFFS.

                      	
                        42

                      
	
                        Section
      4.01

                      	
                        Payments
      Generally; Pro Rata Treatment; Sharing of Set-offs

                      	
                        42

                      
	
                        Section
      4.02

                      	
                        Presumption
      of Payment by the Borrower

                      	
                        43

                      
	
                        Section
      4.03

                      	
                        Certain
      Deductions by the Administrative Agent

                      	
                        43

                      
	
                        Section
      4.04

                      	
                        Disposition
      of Proceeds

                      	
                        43

                      

              

            

          

        

      

       

      

      
        
          
            
              
                
                  
                    
                      	
                              ARTICLE
      V  INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES;
      ILLEGALITY

                            	
                              44

                            
	
                              Section
      5.01

                            	
                              Increased
      Costs

                            	
                              44

                            
	
                              Section
      5.02

                            	
                              Break
      Funding Payments

                            	
                              45

                            
	
                              Section
      5.03

                            	
                              Taxes

                            	
                              45

                            
	
                              Section
      5.04

                            	
                              Designation
      of Different Lending Office

                            	
                              46

                            
	
                              Section
      5.05

                            	
                              Illegality

                            	
                              47

                            
	
                              Section
      5.06

                            	
                              Replacement
      of Lenders

                            	
                              47

                            
	 	 	 
	ARTICLE
      VI CONDITIONS PRECEDENT 	48 

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
            

          

        

      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

     

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      i

    

    
       

      
        
          
            Houston
3921802v.12

          

        

        
          
          

          
          

        

        
          
          

        

      

      

        
          
          

        

        
          
          

        

        
          
            
              
                
                  
                    
                      	
                              Section
      6.01

                            	
                              Effective
      Date

                            	
                              48

                            
	
                              Section
      6.02

                            	
                              Each
      Credit Event

                            	
                              50

                            

                    

                  

                

              

            

          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

         

        
          
            
              
                
                  
                    	
                            ARTICLE
      VII  REPRESENTATIONS AND WARRANTIES

                          	
                            51

                          
	
                            Section
      7.01

                          	
                            Organization;
      Powers

                          	
                            51

                          
	
                            Section
      7.02

                          	
                            Authority;
      Enforceability

                          	
                            51

                          
	
                            Section
      7.03

                          	
                            Approvals;
      No Conflicts

                          	
                            51

                          
	
                            Section
      7.04

                          	
                            Financial
      Condition; No Material Adverse Change

                          	
                            52

                          
	
                            Section
      7.05

                          	
                            Litigation

                          	
                            52

                          
	
                            Section
      7.06

                          	
                            Environmental
      Matters

                          	
                            52

                          
	
                            Section
      7.07

                          	
                            Compliance
      with the Laws and Agreements; No Defaults

                          	
                            53

                          
	
                            Section
      7.08

                          	
                            Investment
      Company Act

                          	
                            54

                          
	
                            Section
      7.09

                          	
                            Public
      Utility Holding Company Act

                          	
                            54

                          
	
                            Section
      7.10

                          	
                            Taxes

                          	
                            54

                          
	
                            Section
      7.11

                          	
                            ERISA

                          	
                            54

                          
	
                            Section
      7.12

                          	
                            Disclosure;
      No Material Misstatements

                          	
                            55

                          
	
                            Section
      7.13

                          	
                            Insurance

                          	
                            56

                          
	
                            Section
      7.14

                          	
                            Restriction
      on Liens

                          	
                            56

                          
	
                            Section
      7.15

                          	
                            Subsidiaries

                          	
                            56

                          
	
                            Section
      7.16

                          	
                            Location
      of Business and Offices

                          	
                            56

                          
	
                            Section
      7.17

                          	
                            Properties;
      Titles, Etc

                          	
                            57

                          
	
                            Section
      7.18

                          	
                            Maintenance
      of Properties

                          	
                            58

                          
	
                            Section
      7.19

                          	
                            Gas
      Imbalances, Prepayments

                          	
                            58

                          
	
                            Section
      7.20

                          	
                            Marketing
      of Production

                          	
                            58

                          
	
                            Section
      7.21

                          	
                            Swap
      Agreements

                          	
                            58

                          
	
                            Section
      7.22

                          	
                            Use
      of Loans and Letters of Credit

                          	
                            59

                          
	
                            Section
      7.23

                          	
                            Solvency

                          	
                            59

                          
	
                            Section
      7.24

                          	
                            Material
      Agreements

                          	
                            59

                          

                  

                

              

            

          

           

          

          
            
              
                
                  
                    	
                            ARTICLE
      VIII  AFFIRMATIVE COVENANTS

                          	
                            59

                          
	
                            Section
      8.01

                          	
                            Financial
      Statements; Ratings Change; Other Information

                          	
                            60

                          
	
                            Section
      8.02

                          	
                            Notices
      of Material Events

                          	
                            62

                          
	
                            Section
      8.03

                          	
                            Existence;
      Conduct of Business

                          	
                            62

                          
	
                            Section
      8.04

                          	
                            Payment
      of Obligations

                          	
                            63

                          
	
                            Section
      8.05

                          	
                            Performance
      of Obligations under Loan Documents

                          	
                            63

                          
	
                            Section
      8.06

                          	
                            Operation
      and Maintenance of Properties

                          	
                            63

                          
	
                            Section
      8.07

                          	
                            Insurance

                          	
                            64

                          
	
                            Section
      8.08

                          	
                            Books
      and Records; Inspection Rights

                          	
                            64

                          
	
                            Section
      8.09

                          	
                            Compliance
      with Laws

                          	
                            64

                          
	
                            Section
      8.10

                          	
                            Environmental
      Matters

                          	
                            64

                          
	
                            Section
      8.11

                          	
                            Further
      Assurances

                          	
                            65

                          
	
                            Section
      8.12

                          	
                            Reserve
      Reports

                          	
                            66

                          
	
                            Section
      8.13

                          	
                            Title
      Information

                          	
                            67

                          
	
                            Section
      8.14

                          	
                            Additional
      Collateral; Additional Guarantors

                          	
                            67

                          
	
                            Section
      8.15

                          	
                            ERISA
      Compliance

                          	
                            68

                          
	
                            Section
      8.16

                          	
                            Performance
      of Material Agreements

                          	
                            69

                          

                  

                

              

            

          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

        
          
          

        

ii

    

     

    
      
        
          Houston
3921802v.12

        

      

      
        
        

        
        

      

      
        
        

      

    

    
       

      
        
        

      

      
        
        

      

      
        
        

      

      
        
          
            
              
                
                  
                    
                      
                        	ARTICLE
      IX NEGATIVE COVENANTS 	
                                69

                              
	
                                Section
      9.01

                              	
                                Financial
      Covenants

                              	
                                69

                              
	
                                Section
      9.02

                              	
                                Debt

                              	
                                69

                              
	
                                Section
      9.03

                              	
                                Liens

                              	
                                71

                              
	
                                Section
      9.04

                              	
                                Dividends,
      Distributions and Redemptions

                              	
                                71

                              
	
                                Section
      9.05

                              	
                                Investments,
      Loans and Advances

                              	
                                72

                              
	
                                Section
      9.06

                              	
                                Designation
      of Material Subsidiaries

                              	
                                73

                              
	
                                Section
      9.07

                              	
                                Nature
      of Business; International Operations

                              	
                                73

                              
	
                                Section
      9.08

                              	
                                Proceeds
      of Notes

                              	
                                73

                              
	
                                Section
      9.09

                              	
                                ERISA
      Compliance

                              	
                                74

                              
	
                                Section
      9.10

                              	
                                Sale
      or Discount of Receivables

                              	
                                75

                              
	
                                Section
      9.11

                              	
                                Mergers,
      Etc

                              	
                                75

                              
	
                                Section
      9.12

                              	
                                Sale
      of Properties

                              	
                                75

                              
	
                                Section
      9.13

                              	
                                Environmental
      Matters

                              	
                                76

                              
	
                                Section
      9.14

                              	
                                Transactions
      with Affiliates

                              	
                                76

                              
	
                                Section
      9.15

                              	
                                Subsidiaries

                              	
                                76

                              
	
                                Section
      9.16

                              	
                                Negative
      Pledge Agreements; Dividend Restrictions

                              	
                                76

                              
	
                                Section
      9.17

                              	
                                Gas
      Imbalances, Take-or-Pay or Other Prepayments

                              	
                                76

                              
	
                                Section
      9.18

                              	
                                Swap
      Agreements

                              	
                                77

                              
	
                                Section
      9.19

                              	
                                Preservation
      of Material Agreements

                              	
                                77

                              
	
                                Section
      9.20

                              	
                                Release
      of Liens

                              	
                                77

                              

                      

                    

                  

                

              

            

          

        

         

        
          
            
              
                
                  	
                          ARTICLE
      X  EVENTS OF DEFAULT; REMEDIES

                        	
                          78

                        
	
                          Section
      10.01

                        	
                          Events
      of Default

                        	
                          78

                        
	
                          Section
      10.02

                        	
                          Remedies

                        	
                          80

                        

                

              

            

          

        

         

        
          
            
              
                
                  	
                          ARTICLE
      XI  THE ADMINISTRATIVE AGENT

                        	
                          80

                        
	
                          Section
      11.01

                        	
                          Appointment;
      Powers

                        	
                          80

                        
	
                          Section
      11.02

                        	
                          Duties
      and Obligations of Administrative Agent

                        	
                          81

                        
	
                          Section
      11.03

                        	
                          Action
      by Administrative Agent

                        	
                          81

                        
	
                          Section
      11.04

                        	
                          Reliance
      by Administrative Agent

                        	
                          82

                        
	
                          Section
      11.05

                        	
                          Subagents

                        	
                          82

                        
	
                          Section
      11.06

                        	
                          Resignation
      or Removal of Administrative Agent

                        	
                          82

                        
	
                          Section
      11.07

                        	
                          Administrative
      Agent as  Lenders

                        	
                          83

                        
	
                          Section
      11.08

                        	
                          No
      Reliance

                        	
                          83

                        
	
                          Section
      11.09

                        	
                          Authority
      of Administrative Agent to Release Collateral and Liens

                        	
                          84

                        
	
                          Section
      11.10

                        	
                          Syndication
      Agent and Co-Documentation Agents

                        	
                          84

                        
	
                          Section
      11.11

                        	
                          Administrative
      Agent May File Proofs of Claim

                        	
                          84

                        

                

              

            

          

        

        

        
          
            
              
                
                  
                    	
                            ARTICLE
      XII  MISCELLANEOUS

                          	
                            85

                          
	
                            Section
      12.01

                          	
                            Notices

                          	
                            85

                          
	
                            Section
      12.02

                          	
                            Waivers;
      Amendments

                          	
                            86

                          
	
                            Section
      12.03

                          	
                            Expenses,
      Indemnity; Damage Waiver.

                          	
                            87

                          
	
                            Section
      12.04

                          	
                            Successors
      and Assigns

                          	
                            90

                          
	
                            Section
      12.05

                          	
                            Survival;
      Revival; Reinstatement

                          	
                            93

                          
	
                            Section
      12.06

                          	
                            Counterparts;
      Integration; Effectiveness

                          	
                            93

                          
	
                            Section
      12.07

                          	
                            Severability

                          	
                            94

                          

                  

                

              

            

          

        

      

       

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      iii

    

     

    
      
        
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                  Section
      12.08

                	
                  Right
      of Setoff

                	
                  94

                
	
                  Section
      12.09

                	
                  GOVERNING
      LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS

                	
                  94

                
	
                  Section
      12.10

                	
                  Headings

                	
                  96

                
	
                  Section
      12.11

                	
                  Confidentiality

                	
                  96

                
	
                  Section
      12.12

                	
                  Interest
      Rate Limitation

                	
                  97

                
	
                  Section
      12.13

                	
                  EXCULPATION
      PROVISIONS

                	
                  98

                
	
                  Section
      12.14

                	
                  Existing
      Credit Agreement

                	
                  98

                
	
                  Section
      12.15

                	
                  Collateral
      Matters; Swap Agreements

                	
                  99

                
	
                  Section
      12.16

                	
                  No
      Third Party Beneficiaries

                	
                  100

                
	
                  Section
      12.17

                	
                  USA
      Patriot Act Notice

                	
                  100

                

        

      

    

    

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

       

      Annex
I                                
List of Commitments

      Annex
II                                Existing
Letters of Credit

      

      Exhibit
A                               Form
of Note

      Exhibit
B                                Form
of Compliance Certificate

      Exhibit
C                                Security
Instruments

      Exhibit
D                               
Form of Assignment and Assumption

      Exhibit
E                                Form
of Commitment Increase Certificate

      Exhibit
F                                Form
of Additional Lender Certificate

      Exhibit
G                                Reaffirmation
Agreement

      Exhibit H               
Form of Legal Opinion of Ballard Spahr Andrews & Ingersoll LLP, special
counsel to the Borrower and Guarantors

      
        
        

      

      

      Schedule
7.05                       
Litigation

      Schedule
7.15                        Subsidiaries
and Partnerships; Non-Material Subsidiaries

      Schedule
7.19                        Gas
Imbalances

      Schedule
7.20                        Marketing
Contracts

      Schedule
7.21                        Swap
Agreements

      Schedule
7.24                        Material
Agreements

      Schedule
9.05(a)                   Investments

                     
Schedule
9.05(h)                   Existing
Investments (Non-Oil and Gas)

iv

    
      
        
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    THIS THIRD AMENDED AND RESTATED
CREDIT AGREEMENT dated as of April 14, 2009, is by and
among ST. MARY LAND
& EXPLORATION COMPANY, a corporation duly
formed and existing under the laws of the State of Delaware (the
“Borrower”);
each of the Lenders from time to time party hereto; WACHOVIA BANK, NATIONAL
ASSOCIATION (in its individual
capacity, “Wachovia”), as
administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, by operation of law or as otherwise provided
herein, the “Administrative
Agent”); Bank of America, N.A., as Syndication Agent; and Comerica Bank, BBVA
Compass and JPMorgan Chase Bank, N.A., as Co-Documentation Agents.

     

    The parties hereto agree as
follows:

     

    RECITALS

     

    (A)           The
Borrower, the Administrative Agent, the lenders from time to time party thereto
and the other agents and parties referred to therein entered into that certain
Credit Agreement dated as of January 27, 2003, (the “Original Credit
Agreement”), which was amended and restated by that certain Amended and
Restated Credit Agreement dated as of April 7, 2005, among the Borrower, the
Administrative Agent, the lenders party thereto and the other agents and parties
referred to therein, as amended by that certain First Amendment to Amended and
Restated Credit Agreement dated as of March 19, 2007, (the “First Amendment”, and
such Amended and Restated Credit Agreement, as amended by the First Amendment,
the “Amended and
Restated Credit Agreement”).

     

    (B)           The
Amended and Restated Credit Agreement was amended and restated by that certain
Second Amended and Restated Credit Agreement dated as of April 10, 2008, among
the Borrower, the Administrative Agent, the lenders party thereto and the other
agents and parties referred to therein (the “Existing Credit
Agreement”).

     

    (C)           The
Borrower, the Administrative Agent, the Lenders (as defined below) and the other
agents and parties hereto desire to amend and restate the Existing Credit
Agreement, such restatement to supplement and replace the Existing Credit
Agreement without affecting the requirements thereof with respect to periods
occurring, or measured by dates, prior to the effective date of such amendment
and restatement.

     

    (D)           In
consideration of the mutual covenants and agreements herein contained and of the
loans, extensions of credit and commitments hereinafter referred to, the parties
hereto agree as follows, in doing so amending and restating in its entirety the
Existing Credit Agreement effective as of the Effective Date without affecting
the requirements of the Existing Credit Agreement existing, or measured by dates
or periods, prior to the Effective Date, as more fully set forth
herein.

     

    ARTICLE
I

     

    Definitions
and Accounting Matters

     

    
      
        
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    Section
1.01 Terms Defined
Above.  As
used in this Third Amended and Restated Credit Agreement, each term defined
above has the meaning indicated above.

     

    Section
1.02 Certain Defined
Terms.  As
used in this Third Amended and Restated Credit Agreement, the following terms
have the meanings specified below:

     

    “ABR”, when used in
reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate determined by
reference to the Alternate Base Rate.

     

    “Additional Lender”
has the meaning assigned to such term in Section 2.06(c)(i).

     

     “Additional Lender
Certificate” has the meaning assigned to such term in Section
2.06(c)(ii)(F).

     

    “Adjusted LIBO Rate”
means, with respect to any Eurodollar Borrowing for any Interest Period, an
interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%)
equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Rate.

     

    “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied
by the Administrative Agent.

     

    “Affected Loans” has
the meaning assigned such term in Section 5.05.

     

    “Affiliate” means,
with respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified.

     

    “Aggregate Commitment”
at any time means the aggregate amount of the Commitments of all the Lenders, as
reduced, increased or terminated from time to time pursuant to the terms hereof;
provided that the Aggregate
Commitment shall not at any time exceed the Maximum Credit Amount; and provided further that, the initial
Aggregate Commitment hereunder is $678,000,000 for the period from and including
the Effective Date to but excluding the date such amount is reduced, increased
or terminated pursuant to the terms hereof.

     

    “Aggregate Revolving Credit
Exposures” at any time means the aggregate amount of the Revolving Credit
Exposures of all of the Lenders.

     

    “Agreement” means this
Third Amended and Restated Credit Agreement, as the same may from time to time
be amended, modified, supplemented or restated.

     

    “Alternate Base Rate”
means, for any day, a rate per annum equal to the greatest of (i) the Prime Rate
in effect on such day, (ii) the Federal Funds Effective Rate in effect on such
day plus 1⁄2 of 1% and (iii) the Adjusted LIBO Rate for a one month Interest
Period on such day (or if such day is not a Business Day, the immediately
preceding Business Day) plus 1.5%; provided that, for
the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the
rate appearing on the Reuters Screen LIBOR01 Page (or on any successor or
substitute page) at approximately 11:00 a.m. London time on such day (or the
immediately preceding Business Day 

     

    2

     

    
      
        
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    if such
day is not a day on which banks are open for dealings in dollar deposits in the
London interbank market).  Any change in the Alternate Base Rate due
to a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted
LIBO Rate shall be effective from and including the effective date of such
change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO
Rate, respectively.

     

    “Applicable Margin”
means, for any day, with respect to any ABR Loan or Eurodollar Loan, or with
respect to any commitment fees payable hereunder, as the case may be, the rate
per annum set forth in the Borrowing Base Utilization Grid below based upon the
Borrowing Base Utilization Percentage then in effect:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Borrowing
      Base Utilization Grid

                                            
	
                                              Borrowing
      Base Utilization Percentage

                                            	
                                              <25%

                                            	
                                              325%
      <50%

                                            	
                                              350%
      <75%

                                            	
                                              375%

                                            
	
                                              Eurodollar
      Loans

                                            	
                                               2.000%

                                            	
                                               2.250%

                                            	
                                               2.500%

                                            	
                                               2.750%

                                            
	
                                              ABR
      Loans or Swingline Loans

                                            	
                                               1.000%

                                            	
                                               1.250%

                                            	
                                               1.500%

                                            	
                                               1.750%

                                            
	
                                              Commitment
      Fee Rate

                                            	
                                               0.500%

                                            	
                                               0.500%

                                            	
                                               0.500%

                                            	
                                               0.500%

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    Each
change in the Applicable Margin shall apply during the period commencing on the
effective date of such change and ending on the date immediately preceding the
effective date of the next such change, provided, however, that if at any time
the Borrower fails to deliver a Reserve Report pursuant to Section 8.12(a), then
until such time as the Reserve Report is delivered the “Applicable Margin”
means the rate per annum set forth on the grid when the Borrowing Base
Utilization Percentage is at its highest level.

     

    “Applicable
Percentage” means, with respect to any Lender, the percentage of the
Aggregate Commitment represented by such Lender’s Commitment as such percentage
is set forth on Annex I.

     

    “Approved
Counterparty” means (a) any Lender or any Affiliate of a Lender and (b)
any other Person whose long term senior unsecured debt rating is BBB+/Baa1 by
S&P or Moody’s (or their equivalent) or higher.

     

    “Approved Petroleum
Engineers” means (a) Netherland, Sewell & Associates, Inc., (b) Ryder
Scott Company Petroleum Consultants, L.P. and (c) any other independent
petroleum engineers reasonably acceptable to the Administrative
Agent.

     

    “Assignment and
Assumption” means an assignment and assumption entered into by a Lender
and an assignee (with the consent of any party whose consent is required by
Section 12.04(b)), and accepted by the Administrative Agent, in the form of
Exhibit D or any other form approved by the Administrative Agent.

     

    “Availability Period”
means the period from and including the Effective Date to but excluding the
Termination Date.

     

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    “Board” means the
Board of Governors of the Federal Reserve System of the United States of America
or any successor Governmental Authority.

     

    “Borrowing” means (a)
Loans of the same Type, made, converted or continued on the same date and, in
the case of Eurodollar Loans, as to which a single Interest Period is in effect
or (b) a Swingline Loan.

     

    “Borrowing Base” means
at any time an amount equal to the amount determined in accordance with Section
2.07, as the same may be adjusted from time to time pursuant to Section 8.13(c),
Section 9.02(k), Section 9.11(a), Section 9.12 or Section 9.20.

     

    “Borrowing Base Utilization
Percentage” means, as of any day, the fraction expressed as a percentage,
the numerator of which is the Aggregate Revolving Credit Exposures of the
Lenders on such day, and the denominator of which is the Borrowing Base in
effect on such day.

     

    “Borrowing Request”
means a request by the Borrower for a Borrowing in accordance with Section
2.03.

     

    “Business Day” means
any day that is not a Saturday, Sunday or other day on which commercial banks in
Charlotte, North Carolina; Denver, Colorado; or Houston, Texas are authorized or
required by law to remain closed; and if such day relates to a Borrowing or
continuation of, a payment or prepayment of principal of or interest on, or a
conversion of or into, or the Interest Period for, a Eurodollar Loan or a notice
by the Borrower with respect to any such Borrowing or continuation, payment,
prepayment, conversion or Interest Period, any day which is also a day on which
dealings in dollar deposits are carried out in the London interbank
market.

     

    “Capital Leases”
means, in respect of any Person, all leases which shall have been, or should
have been, in accordance with GAAP, recorded as capital leases on the balance
sheet of the Person liable (whether contingent or otherwise) for the payment of
rent thereunder.

     

    “Casualty Event” means
any uninsured loss, uninsured casualty or other uninsured damage to, or any
nationalization, taking under power of eminent domain or by condemnation or
similar proceeding of, any Property of the Borrower or any of its Material
Subsidiaries having a fair market value in excess of $10,000,000.

     

    “Change in Control”
means (a) the acquisition of ownership, directly or indirectly, beneficially or
of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the SEC thereunder as in effect on the date
hereof), of Equity Interests representing more than 35% of the aggregate
ordinary voting power represented by the issued and outstanding Equity Interests
of the Borrower, (b) occupation of a majority of the seats (other than vacant
seats) on the board of directors of the Borrower by Persons who were neither (i)
nominated by the board of directors of the Borrower nor (ii) appointed by
directors so nominated or (c) the acquisition of direct or indirect Control of
the Borrower by any Person or group.

     

    “Change in Law” means
(a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the
interpretation or 

     

    4

     

    
      
        
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    application
thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 5.01(b)), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company,
if any) with any request, guideline or directive (whether or not having the
force of law) of any Governmental Authority made or issued after the date of
this Agreement.

     

    “CLO” means any entity
(whether a corporation, partnership, trust or otherwise) that is engaged in
making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course of its business and is administered
or managed by a Lender or an Affiliate of such Lender.

     

    “Code” means the
Internal Revenue Code of 1986, as amended from time to time, and any successor
statute.

     

    “Commitment” means,
with respect to each Lender, the commitment of such Lender to make Loans and to
acquire participations in Letters of Credit and Swingline Loans hereunder,
expressed as an amount representing the maximum aggregate amount of such
Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a)
modified from time to time pursuant to Section 2.06 and (b) modified from time
to time pursuant to assignments by or to such Lender pursuant to Section
12.04(b).  The amount representing each Lender’s Commitment shall at
any time be such Lender’s Applicable Percentage of the Aggregate
Commitment.  The amount of each Lender’s initial Commitment is set
forth opposite such Lender’s name on Annex I under the caption
“Commitment.”

     

    “Commitment Fee Rate”
has the meaning set forth in the definition of “Applicable
Margin”.

     

    “Commitment Increase
Certificate” has the meaning assigned to such term in Section
2.06(c)(ii)(E).

     

    “Consolidated Net
Income” means with respect to the Borrower and the Consolidated
Subsidiaries, for any period, the aggregate of the net income (or loss) of the
Borrower and the Consolidated Subsidiaries after allowances for taxes for such
period determined on a consolidated basis in accordance with GAAP; provided that there
shall be excluded from such net income (to the extent otherwise included
therein) the following: (a) the net income of any Person in which the Borrower
or any Consolidated Subsidiary has an interest (which interest does not cause
the net income of such other Person to be consolidated with the net income of
the Borrower and the Consolidated Subsidiaries in accordance with GAAP), except
to the extent of the amount of dividends or distributions actually paid in cash
during such period by such other Person to the Borrower or to a Consolidated
Subsidiary, as the case may be; (b) the net income (but not loss) during such
period of any Consolidated Subsidiary to the extent that the declaration or
payment of dividends or similar distributions or transfers or loans by that
Consolidated Subsidiary is not at the time permitted by operation of the terms
of its charter or any agreement, instrument or Governmental Requirement
applicable to such Consolidated Subsidiary or is otherwise restricted or
prohibited, in each case determined in accordance with GAAP; (c) any non-cash
gains or losses during such period; (d) any gains or losses attributable to
writeups or writedowns of assets, including impairments of oil and gas
properties; (e) mark-to-market 

     

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    adjustments
related to the utilization of derivative instruments; and (f) changes in the
liability associated with the future payments of amounts under the Net Profits
Interest Bonus Plan.

     

    “Consolidated
Subsidiaries” means each Subsidiary of the Borrower (whether now existing
or hereafter created or acquired) the financial statements of which shall be (or
should have been) consolidated with the financial statements of the Borrower in
accordance with GAAP.

     

    “Control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability
to exercise voting power, by contract or otherwise.  “Controlling” and
“Controlled”
have meanings correlative thereto.

     

    “Debt” means, for any
Person, the sum of the following (without duplication): (a) all obligations of
such Person for borrowed money or evidenced by bonds, bankers’ acceptances,
debentures, notes or other similar instruments; (b) all obligations of such
Person (whether contingent or otherwise) in respect of letters of credit, surety
or other bonds and similar instruments; (c) all accounts payable, accrued
expenses, liabilities or other obligations of such Person to pay the deferred
purchase price of Property or services; (d) all obligations under Capital
Leases; (e) all obligations under Synthetic Leases; (f) all Debt (as defined in
the other clauses of this definition) of others secured by a Lien on any
Property of such Person, whether or not such Debt is assumed by such Person; (g)
all Debt (as defined in the other clauses of this definition) of others
guaranteed by such Person or in which such Person otherwise assures a creditor
against loss of the Debt (howsoever such assurance shall be made) to the extent
of the lesser of the amount of such Debt and the maximum stated amount of such
guarantee or assurance against loss; (h) all obligations or undertakings of such
Person to maintain or cause to be maintained the financial position or covenants
of others or to purchase the Debt or Property of others; (i) obligations to
deliver commodities, goods or services, including, without limitation,
Hydrocarbons, in consideration of one or more advance payments, other than gas
balancing arrangements in the ordinary course of business; (j) obligations to
pay for goods or services whether or not such goods or services are actually
received or utilized by such Person; (k) any Debt of a partnership for which
such Person is liable either by agreement, by operation of law or by a
Governmental Requirement but only to the extent of such liability; (l)
Disqualified Capital Stock; and (m) the undischarged balance of any production
payment created by such Person or for the creation of which such Person directly
or indirectly received payment.  The Debt of any Person shall include
all obligations of such Person of the character described above to the extent
such Person remains legally liable in respect thereof notwithstanding that any
such obligation is not included as a liability of such Person under GAAP; provided, however, the
contingent obligations of Borrower or any Subsidiary of Borrower pursuant to any
purchase and sale agreement, stock purchase agreement, merger agreement or
similar agreement shall not constitute “Debt” within this definition so long as
none of same contains an obligation to pay money over time.  It is
hereby understood and agreed that in calculating the amount of Debt in respect
of borrowed money, the effect of Financial Accounting Standards Board Statement
No. 133 shall be disregarded.

     

    “Debtor Relief Laws”
means the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, 

     

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    rearrangement,
receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally.

     

    “Default” means any
event or condition which constitutes an Event of Default or which upon notice,
lapse of time or both would, unless cured or waived, become an Event of
Default.

     

    “Disqualified Capital
Stock” means any Equity Interest that, by its terms (or by the terms of
any security into which it is convertible or for which it is exchangeable) or
upon the happening of any event, matures or is mandatorily redeemable for any
consideration other than other Equity Interests (which would not constitute
Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise,
or is convertible or exchangeable for Debt or redeemable for any consideration
other than other Equity Interests (which would not constitute Disqualified
Capital Stock) at the option of the holder thereof, in whole or in part, on or
prior to the date that is one year after the earlier of (a) the Maturity Date
and (b) the date on which there are no Loans, LC Exposure or other obligations
hereunder outstanding and all of the Commitments are terminated.

     

    “dollars” or “$”
refers to lawful money of the United States of America.

     

    “EBITDA” means, for
any period, the sum of Consolidated Net Income for such period plus the
following expenses or charges to the extent deducted from Consolidated Net
Income in such period: interest, taxes, depreciation, depletion, amortization,
noncash impairment charges and other noncash charges, minus all noncash income
added to Consolidated Net Income.  Noncash charges include
mark-to-market adjustments related to the utilization of derivative instruments
and changes in the liability associated with the future payments of amounts
under the Net Profits Interest Bonus Plan.

     

    “Effective Date” means
the date on which the conditions specified in Section 6.01 are satisfied (or
waived in accordance with Section 12.02).

     

    “Engineering Reports”
has the meaning assigned such term in Section 2.07(c)(i).

     

    “Environmental Laws”
means any and all Governmental Requirements pertaining in any way to health,
safety, the environment or the preservation or reclamation of natural resources,
in effect in any and all jurisdictions in which the Borrower or any Subsidiary
is conducting or at any time has conducted business, or where any Property of
the Borrower or any Subsidiary is located, including without limitation, the Oil
Pollution Act of 1990 (“OPA”), as amended,
the Clean Air Act, as amended, the Comprehensive Environmental, Response,
Compensation, and Liability Act of 1980 (“CERCLA”), as amended,
the Federal Water Pollution Control Act, as amended, the Occupational Safety and
Health Act of 1970, as amended, the Resource Conservation and Recovery Act of
1976 (“RCRA”),
as amended, the Safe Drinking Water Act, as amended, the Toxic Substances
Control Act, as amended, the Superfund Amendments and Reauthorization Act of
1986, as amended, the Hazardous Materials Transportation Act, as amended, and
other environmental conservation or protection Governmental
Requirements.  The term “oil” shall have the meaning specified in OPA,
the terms “hazardous
substance” and “release” (or “threatened release”)
have the meanings specified in CERCLA, the terms “solid 

     

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    waste” and “disposal” (or “disposed”) have the
meanings specified in RCRA and the term “oil and gas waste”
shall have the meaning specified in Section 91.1011 of the Texas Natural
Resources Code (“Section 91.1011”);
provided, however, that (a) in
the event any of OPA, CERCLA, RCRA or Section 91.1011 is amended so as to
broaden the meaning of any term defined thereby, such broader meaning shall
apply subsequent to the effective date of such amendment and (b) to the extent
the laws of the state or other jurisdiction in which any Property of the
Borrower or any Subsidiary is located establish a meaning for “oil,” “hazardous substance,”
“release,”
“solid waste,”
“disposal” or
“oil and gas
waste” which is broader than that specified in either OPA, CERCLA, RCRA
or Section 91.1011, such broader meaning shall apply.

     

    “Equity Interests”
means shares of capital stock, partnership interests, joint venture interest or
interests in comparable entities, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in
a Person, and any warrants, options or other rights entitling the holder thereof
to purchase or acquire any such Equity Interest.

     

    “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended, and any successor
statute.

     

    “ERISA Affiliate”
means each trade or business (whether or not incorporated) which together with
the Borrower or a Subsidiary would be deemed to be a “single employer” within
the meaning of section 4001(b)(1) of ERISA or subsections (b), (c), (m) or (o)
of section 414 of the Code.

     

    “ERISA Event” means
(a) a “Reportable Event” described in section 4043 of ERISA and the regulations
issued thereunder, (b) the withdrawal of the Borrower, a Subsidiary or any ERISA
Affiliate from a Plan during a plan year in which it was a “substantial
employer” as defined in section 4001(a)(2) of ERISA, (c) the filing of a notice
of intent to terminate a Plan or the treatment of a Plan amendment as a
termination under section 4041 of ERISA, (d) the institution of proceedings to
terminate a Plan by the PBGC or (e) any other event or condition which might
constitute grounds under section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan.

     

    “Eurodollar”, when
used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

     

    “Event of Default” has
the meaning assigned such term in Section 10.01.

     

    “Excepted Liens”
means:  (a) Liens for Taxes, assessments or other governmental charges
or levies which are not delinquent or which are being contested in good faith by
appropriate action and for which adequate reserves have been maintained in
accordance with GAAP; (b) Liens in connection with workers’ compensation,
unemployment insurance or other social security, old age pension or public
liability obligations which are not delinquent or which are being contested in
good faith by appropriate action and for which adequate reserves have been
maintained in accordance with GAAP; (c) statutory landlord’s liens, operators’,
vendors’, 

     

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    carriers’,
warehousemen’s, repairmen’s, mechanics’, suppliers’, workers’, materialmen’s,
construction or other like Liens arising by operation of law in the ordinary
course of business or incident to the exploration, development, operation and
maintenance of Oil and Gas Properties each of which is in respect of obligations
that are not delinquent or which are being contested in good faith by
appropriate action and for which adequate reserves have been maintained in
accordance with GAAP; (d) contractual Liens which arise in the ordinary course
of business under operating agreements, joint venture agreements, oil and gas
partnership agreements, oil and gas leases, farm-out agreements, division
orders, contracts for the sale, transportation or exchange of oil and natural
gas, unitization and pooling declarations and agreements, area of mutual
interest agreements, overriding royalty agreements, marketing agreements,
processing agreements, net profits agreements, development agreements, gas
balancing or deferred production agreements, injection, repressuring and
recycling agreements, salt water or other disposal agreements, seismic or other
geophysical permits or agreements, and other agreements which are usual and
customary in the oil and gas business and are for claims which are not
delinquent or which are being contested in good faith by appropriate action and
for which adequate reserves have been maintained in accordance with GAAP,
provided that any such Lien referred to in this clause does not materially
impair the use of the Property covered by such Lien for the purposes for which
such Property is held by the Borrower or any Subsidiary or materially impair the
value of such Property subject thereto; (e) Liens arising solely by virtue of
any statutory or common law provision relating to banker’s liens, rights of
set-off or similar rights and remedies and burdening only deposit accounts or
other funds maintained with a creditor depository institution, provided that no
such deposit account is a dedicated cash collateral account or is subject to
restrictions against access by the depositor in excess of those set forth by
regulations promulgated by the Board and no such deposit account is intended by
Borrower or any of its Subsidiaries to provide collateral to the depository
institution; (f) easements, restrictions, servitudes, permits, conditions,
covenants, exceptions or reservations in any Property of the Borrower or any
Subsidiary for the purpose of roads, pipelines, transmission lines,
transportation lines, distribution lines for the removal of gas, oil, coal or
other minerals or timber, and other like purposes, or for the joint or common
use of real estate, rights of way, facilities and equipment, which in the
aggregate do not materially impair the use of such Property for the purposes of
which such Property is held by the Borrower or any Subsidiary or materially
impair the value of such Property subject thereto; (g) Liens on cash or
securities pledged to secure performance of tenders, surety and appeal bonds,
government contracts, performance and return of money bonds, bids, trade
contracts, leases, statutory obligations, regulatory obligations and other
obligations of a like nature incurred in the ordinary course of business; (h)
Liens on existing and future cash, U.S. government securities, and letters of
credit securing or supporting Swap Agreements permitted pursuant to Section
9.18; and (i) judgment and attachment Liens not giving rise to an Event of
Default, provided that any appropriate legal proceedings which may have been
duly initiated for the review of such judgment shall not have been finally
terminated or the period within which such proceeding may be initiated shall not
have expired and no action to enforce such Lien has been commenced; provided,
further that Liens described in clauses (a) through (e) shall remain “Excepted
Liens” only for so long as no action to enforce such Lien has been commenced and
no intention to subordinate the first priority Lien granted in favor of the
Administrative Agent and the Lenders is to be hereby implied or expressed by the
permitted existence of such Excepted Liens.

     

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    “Excluded Taxes”
means, with respect to the Administrative Agent, any Lender, the Issuing Bank or
any other recipient of any payment to be made by or on account of any obligation
of the Borrower or any Guarantor hereunder or under any other Loan Document, (a)
income or franchise taxes imposed on (or measured by) its net income by the
United States of America or such other jurisdiction under the laws of which such
recipient is organized or in which its principal office is located or, in the
case of any Lender, in which its applicable lending office is located, (b) any
branch profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which the Borrower or any Guarantor is
located and (c) in the case of a Foreign Lender, any withholding tax that is
imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party to this Agreement (or designates a new lending office) or
is attributable to such Foreign Lender’s failure to comply with Section 5.03(e),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to
receive additional amounts with respect to such withholding tax pursuant to
Section 5.03(a) or Section 5.03(c).

     

    “Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average (rounded upwards, if necessary, to the next 1/100
of 1%) of the quotations for such day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.

     

    “Financial Officer”
means the chief financial officer, principal accounting officer, treasurer or
controller of the Borrower.

     

    “Financial Statements”
means the financial statement or statements of the Borrower and its Consolidated
Subsidiaries referred to in Section 7.04(a).

     

    “Foreign Lender” means
any Lender that is organized under the laws of a jurisdiction other than that in
which the Borrower is located.  For purposes of this definition, the
United States of America, each State thereof and the District of Columbia shall
be deemed to constitute a single jurisdiction.

     

    “GAAP” means generally
accepted accounting principles in the United States of America as in effect from
time to time subject to the terms and conditions set forth in Section
1.05.

     

    “Governmental
Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and
any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government over the
Borrower, any Material Subsidiary, any of their Properties, any Agent, the
Issuing Bank or any Lender.

     

    “Governmental
Requirement” means any law, statute, code, ordinance, order,
determination, rule, regulation, judgment, decree, injunction, franchise,
permit, certificate, 

     

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    license,
authorization or other directive or requirement, whether now or hereinafter in
effect, including, without limitation, Environmental Laws, energy regulations
and occupational, safety and health standards or controls, of any Governmental
Authority.

     

    “Guarantors” means the
Material Subsidiaries, and each other Subsidiary that guarantees the
Indebtedness pursuant to Section 8.14(b).  As of the Effective Date,
there are no Guarantors.

     

    “Guaranty Agreement”
means an agreement executed by the Guarantors in substantially the form of
Exhibit D-2 to the Amended and Restated Credit Agreement, as the same may be
amended, modified or supplemented from time to time.

     

    “Highest Lawful Rate”
means, with respect to each Lender, the maximum nonusurious interest rate, if
any, that at any time or from time to time may be contracted for, taken,
reserved, charged or received on the Notes or on other Indebtedness under laws
of the State of Texas which are presently in effect or, to the extent allowed by
law, under such applicable laws which may hereafter be in effect and which allow
a higher maximum nonusurious interest rate than applicable laws allow as of the
date hereof.

     

    “Hydrocarbon
Interests” means all rights, titles, interests and estates now or
hereafter acquired in and to oil and gas leases, oil, gas and mineral leases, or
other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding
royalty and royalty interests, net profit interests and production payment
interests, including any reserved or residual interests of whatever
nature.

     

    “Hydrocarbons” means
oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate,
distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined
or separated therefrom.

     

    “Impacted Lender”
means (a) any Lender (i) which has defaulted in its obligation to fund Loans
hereunder within three Business Days of the date required to be funded by it
hereunder, (ii) which has failed to fund any portion of its participations
in LC Disbursements or participations in Swingline Loans required to be funded
by it hereunder within three Business Days of the date required to be funded by
it hereunder, (iii) which has otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid by
it hereunder within three Business Days of the date when due, unless the subject
of a good faith dispute, (iv) which has notified the Administrative Agent, or
has stated publicly, that such Lender will not comply with any of its funding
obligations under this Agreement, or (v) which has been deemed insolvent (by the
Administrative Agent or the Majority Lenders) or becomes the subject of a
proceeding under any Debtor Relief Law; or (b) any Lender as to which (i) the
Issuing Bank has a good faith belief that the Lender has defaulted in fulfilling
its obligations under one or more other syndicated facilities or (ii) an entity
that Controls such Lender has been deemed insolvent (by the Administrative Agent
or the Majority Lenders) or become subject to a proceeding under any Debtor
Relief Law.

     

    “Indebtedness” means
any and all amounts owing or to be owing by the Borrower or any Guarantor: (a)
to the Administrative Agent, the Issuing Bank or any Lender under any Loan
Document; (b) to any Lender or any Affiliate of a Lender under any present or
future Swap

     

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    Agreements
entered into between the Borrower or any Guarantor and any Lender or any
Affiliate of a Lender, including, without limitation, the Swap Agreements
entered into with a Lender or an Affiliate of a Lender and listed on attached
Schedule 7.21, and (c) all renewals, extensions and/or rearrangements of any of
the above.

     

    “Indemnified Taxes”
means Taxes other than Excluded Taxes.

     

    “Information
Memorandum” means the Confidential Information Memorandum dated March
2009, relating to the Borrower and the Transactions.

     

    “Initial Reserve
Report” means (a) the report of the Borrower, which includes reserve
estimates as prepared by Ryder Scott Company, L.P. and Netherland, Sewell
Associates, Inc., dated as of December 31, 2008, with respect to the value of
the Oil and Gas Properties of the Borrower and its Material Subsidiaries as of
December 31, 2008, and (b) the report of the Vice President, Engineering and
Evaluation of the Borrower dated as of December 31, 2008, with respect to the
value of the Oil and Gas Properties of the Borrower and its Material
Subsidiaries as of December 31, 2008.  

     

    “Interest Election
Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.04.

     

    “Interest Payment
Date” means (a) with respect to any ABR Loan (other than any Swingline
Loan), the last day of each calendar month, (b) with respect to any Eurodollar
Loan (other than any Swingline Loan), the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’
duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months’ duration after the first day of such Interest Period
and (c) as to any Swingline Loan, the day such Swingline Loan is
paid.

     

    “Interest Period”
means with respect to any Eurodollar Borrowing, the period commencing on the
date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter (subject to
market availability), as the Borrower may elect or, with the consent of each
Lender, nine or twelve months; provided, that (a) if any Interest Period would
end on a day other than a Business Day, such Interest Period shall be extended
to the next succeeding Business Day unless such next succeeding Business Day
would fall in the next calendar month, in which case such Interest Period shall
end on the next preceding Business Day and (b) any Interest Period pertaining to
a Eurodollar Borrowing that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day
of the last calendar month of such Interest Period.  For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

     

    “Interim
Redetermination” has the meaning assigned such term in Section
2.07(b).

     

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    “Interim Redetermination
Date” means the date on which a Borrowing Base that has been redetermined
pursuant to an Interim Redetermination becomes effective as provided in Section
2.07(d).

     

    “Investment” means,
for any Person: (a) the acquisition (whether for cash, Property, services or
securities or otherwise) of Equity Interests of any other Person or any
agreement to make any such acquisition (including, without limitation, any
“short sale” or any sale of any securities at a time when such securities are
not owned by the Person entering into such short sale); (b) the making of any
deposit with, or advance, loan or other extension of credit to, any other Person
(including the purchase of Property from another Person subject to an
understanding or agreement, contingent or otherwise, to resell such Property to
such Person, but excluding any such advance, loan or extension of credit having
a term not exceeding ninety (90) days representing the purchase price of
inventory or supplies sold by such Person in the ordinary course of business) or
(c) the entering into of any guarantee (excluding performance guarantees) of, or
other contingent obligation (including the deposit of any Equity Interests to be
sold) with respect to, Debt or other liability of any other Person and (without
duplication) any amount committed to be advanced, lent or extended to such
Person.

     

    “Issuing Bank”
means Wachovia, in its
capacity as an issuer of Letters of Credit hereunder, and Wells Fargo Bank,
N.A., in its capacity as an issuer of Letters of Credit hereunder, and their
respective successors in such capacity as provided in Section
2.08(j).  The Issuing Bank may, in its discretion, arrange for one or
more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which
case the term “Issuing
Bank” shall include any such Affiliate with respect to Letters of Credit
issued by such Affiliate.

     

    “Law” means any
statute, law, regulation, ordinance, rule, treaty, judgment, order, decree,
permit, concession, franchise, license, agreement or other governmental
restriction of the United States or any state or political subdivision thereof
or of any foreign country or any department, province or other political
subdivision thereof.  Any reference to a Law includes any amendment or
modification to such Law, and all regulations, rulings, and other Laws
promulgated under such Law.

     

    “LC Commitment” at any
time means $50,000,000.

     

    “LC Disbursement”
means a payment made by the Issuing Bank pursuant to a Letter of
Credit.

     

    “LC Exposure” means,
at any time, the sum of (a) the aggregate undrawn amount of all outstanding
Letters of Credit at such time plus (b) the aggregate amount of all LC
Disbursements that have not yet been reimbursed by or on behalf of the Borrower
at such time.  The LC Exposure of any Lender at any time shall be its
Applicable Percentage of the total LC Exposure at such time.

     

    “Lenders” means the
Persons listed on Annex I, any Person that shall have become a party hereto
pursuant to an Assignment and Assumption, other than any such Person that ceases
to be a party hereto pursuant to an Assignment and Assumption, and any Person
that shall have 

     

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    become a
party hereto pursuant to Section 2.06(c).  Unless the context
otherwise requires, the term “Lender” includes the Swingline
Lender.

     

    “Letter of Credit”
means any letter of credit issued pursuant to this Agreement, and the
outstanding letters of credit issued under the Original Credit Agreement, the
Amended and Restated Credit Agreement or the Existing Credit Agreement, more
particularly described on attached Annex II.

     

    “Letter of Credit
Agreements” means all letter of credit applications and other agreements
(including any amendments, modifications or supplements thereto) submitted by
the Borrower, or entered into by the Borrower, with the Issuing Bank relating to
any Letter of Credit.

     

    “LIBO Rate” means,
with respect to any Eurodollar Borrowing for any Interest Period, the rate
appearing on the Reuters Screen LIBOR01 Page (or on any successor or substitute
page providing rate quotations comparable to those currently provided on such
page, as determined by the Administrative Agent from time to time for purposes
of providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period.  In the
event that such rate is not available at such time for any reason, then the
“LIBO Rate”
with respect to such Eurodollar Borrowing for such Interest Period shall be the
rate at which dollar deposits of $5,000,000 and for a maturity comparable to
such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

     

    “Lien” means any
interest in Property securing an obligation owed to, or a claim by, a Person
other than the owner of the Property, whether such interest is based on the
common law, statute or contract, and whether such obligation or claim is fixed
or contingent, and including but not limited to (a) the lien or security
interest arising from a mortgage, encumbrance, pledge, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for
security purposes or (b) production payments and the like payable out of Oil and
Gas Properties.  The term “Lien” shall include
easements, restrictions, servitudes, permits, conditions, covenants, exceptions
or reservations. For the purposes of this Agreement, the Borrower and its
Subsidiaries shall be deemed to be the owner of any Property which it has
acquired or holds subject to a conditional sale agreement, or leases under a
financing lease or other arrangement pursuant to which title to the Property has
been retained by or vested in some other Person in a transaction intended to
create a financing.

     

    “Loan Documents” means
this Agreement, the Notes, the Letter of Credit Agreements, the Letters of
Credit and the Security Instruments.

     

    “Loans” means the
loans made by the Lenders to the Borrower pursuant to this
Agreement.  Unless the context otherwise requires, the term “Loans”
includes the Swingline Loans.

    
       

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    “Majority Lenders”
means, at any time while no Loans or LC Exposure is outstanding, Lenders having
more than fifty percent (50%) of the Aggregate Commitments; and at any time
while any Loans or LC Exposure is outstanding, Lenders holding more than fifty
percent (50%) of the outstanding aggregate principal amount of the Loans or
participation interests in Letters of Credit (without regard to any sale by a
Lender of a participation in any Loan under Section 12.04(c)).

     

    “Material Adverse
Effect” means a material adverse effect on (a) the business, assets,
operations, prospects or condition, financial or otherwise, of the Borrower and
the Subsidiaries taken as a whole, (b) the ability of the Borrower, any
Subsidiary or any Guarantor to perform any of its obligations under any Loan
Document or (c) the rights and remedies of or benefits available to the
Administrative Agent, the Issuing Bank or any Lender under any Loan
Document.

     

    “Material Agreements”
means each agreement (whether one or more) described or referred to on Schedule
7.24.

     

    “Material
Indebtedness” means Debt (other than the Loans and Letters of Credit), or
obligations in respect of one or more Swap Agreements, of any one or more of the
Borrower and its Subsidiaries in an aggregate principal amount exceeding
$15,000,000.  For purposes of determining Material Indebtedness, the
“principal amount” of the obligations of the Borrower or any Subsidiary in
respect of any Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Borrower or such Subsidiary
would be required to pay if such Swap Agreement were terminated at such
time.

     

    “Material Subsidiary”
means a Subsidiary of Borrower that owns a Substantial Portion of the Property
of Borrower and its Subsidiaries.

     

    “Maturity Date” means
July 31,
2012.

     

    “Maximum Credit
Amount” means at any time an amount equal to the lesser of (a) the then
effective Borrowing Base and (b) $1,000,000,000.

     

    “Moody’s” means
Moody’s Investors Service, Inc. and any successor thereto that is a nationally
recognized rating agency.

     

    “Mortgaged Property”
means any Property owned by the Borrower or any Material Subsidiary which is
subject to the Liens existing and to exist under the terms of the Security
Instruments.

     

    “Multiemployer Plan”
means a Plan which is a multiemployer plan as defined in section 3(37) or 4001
(a)(3) of ERISA.

     

    “New Borrowing Base
Notice” has the meaning assigned such term in Section
2.07(d).

     

    “Notes” means the
promissory notes of the Borrower described in Section 2.02(d) and being
substantially in the form of Exhibit A, together with all amendments,
modifications, replacements, extensions and rearrangements thereof.

     

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    “Oil and Gas
Properties” means (a) Hydrocarbon Interests; (b) the Properties now or
hereafter pooled or unitized with Hydrocarbon Interests; (c) all presently
existing or future unitization, pooling agreements and declarations of pooled
units and the units created thereby (including without limitation all units
created under orders, regulations and rules of any Governmental Authority) which
may affect all or any portion of the Hydrocarbon Interests; (d) all
operating agreements, contracts and other agreements, including production
sharing contracts and agreements, which relate to any of the Hydrocarbon
Interests or the production, sale, purchase, exchange or processing of
Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all
Hydrocarbons in and under and which may be produced and saved or attributable to
the Hydrocarbon Interests, including all oil in tanks, and all rents, issues,
profits, proceeds, products, revenues and other incomes from or attributable to
the Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and
Properties in any manner appertaining, belonging, affixed or incidental to the
Hydrocarbon Interests and (g) all Properties, rights, titles, interests and
estates described or referred to above, including any and all Property, real or
personal, now owned or hereinafter acquired and situated upon, used, held for
use or useful in connection with the operating, working or development of any of
such Hydrocarbon Interests or Property (excluding drilling rigs, automotive
equipment, rental equipment or other personal Property which may be on such
premises for the purpose of drilling a well or for other similar temporary uses)
and including any and all oil wells, gas wells, injection wells or other wells,
buildings, structures, fuel separators, liquid extraction plants, plant
compressors, pumps, pumping units, field gathering systems, tanks and tank
batteries, fixtures, valves, fittings, machinery and parts, engines, boilers,
meters, apparatus, equipment, appliances, tools, implements, cables, wires,
towers, casing, tubing and rods, surface leases, rights-of-way, easements and
servitudes together with all additions, substitutions, replacements, accessions
and attachments to any and all of the foregoing.

     

    “Other Taxes” means
any and all present or future stamp or documentary taxes or any other excise or
Property taxes, charges or similar levies arising from any payment made
hereunder or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement and any other Loan Document.

     

    “Participant” has the
meaning set forth in Section 12.04(c)(i).

     

    “PBGC” means the
Pension Benefit Guaranty Corporation, or any successor thereto.

     

    “Permitted Refinancing
Debt” means Debt (for purposes of this definition, “new Debt”) incurred
in exchange for, or proceeds of which are used to refinance, all of any other
Debt (the “Refinanced
Debt”); provided that (a) such new Debt is in an aggregate principal
amount not in excess of the sum of (i) the aggregate principal amount then
outstanding of the Refinanced Debt (or, if the Refinanced Debt is exchanged or
acquired for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration thereof, such lesser amount) and
(ii) an amount necessary to pay any fees and expenses, including premiums,
related to such exchange or refinancing; (b) such new Debt has a stated
maturity no earlier than the stated maturity of the Refinanced Debt and an
average life no shorter than the average life of the Refinanced Debt;
(c) such new Debt does not contain any covenants which are more onerous to
the Borrower and its Subsidiaries than those imposed by the Refinanced Debt and
(d) such new Debt (and any guarantees thereof) is subordinated in right of
payment to the Indebtedness (or, if 

     

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    applicable,
the Guaranty Agreement) to at least the same extent as the Refinanced Debt and
is otherwise subordinated on terms substantially reasonably satisfactory to the
Administrative Agent.

     

    “Person” means any
natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other
entity.

     

    “Plan” means any
employee pension benefit plan, as defined in section 3(2) of ERISA, which (a) is
currently or hereafter sponsored, maintained or contributed to by the Borrower,
a Subsidiary or an ERISA Affiliate or (b) was at any time during the six
calendar years preceding the date hereof, sponsored, maintained or contributed
to by the Borrower or a Subsidiary or an ERISA Affiliate.

     

    “Pledge - Borrower”
means that certain Pledge and Security Agreement from the Borrower in favor of
the Administrative Agent, pledging to the Administrative Agent as security for
the Indebtedness all equity interests held by the Borrower in any Material
Subsidiaries, in substantially the form of Exhibit D-3 to the Amended and
Restated Credit Agreement, as the same may be amended, modified or supplemented
from time to time.

     

    “Prime Rate” means the
rate of interest per annum publicly announced from time to time by Wachovia as
its prime rate in effect at its principal office in Charlotte, North Carolina;
each change in the Prime Rate shall be effective from and including the date
such change is publicly announced as being effective.  Such rate is
set by Wachovia as a
general reference rate of interest, taking into account such factors as Wachovia may
deem appropriate; it being understood that many of Wachovia’s
commercial or other loans are priced in relation to such rate, that it is not
necessarily the lowest or best rate actually charged to any customer and that
Wachovia may
make various commercial or other loans at rates of interest having no
relationship to such rate.

     

    “Property” means any
interest in any kind of property or asset, whether real, personal or mixed, or
tangible or intangible, including, without limitation, cash, securities,
accounts and contract rights.

     

    “Proposed Borrowing
Base” has the meaning assigned to such term in Section
2.07(c)(i).

     

    “Proposed Borrowing Base
Notice” has the meaning assigned to such term in Section
2.07(c)(ii).

     

    “Reaffirmation
Agreements” means that certain Reaffirmation Agreement dated as of April
10, 2008, by the Borrower in favor of the Administrative Agent, in substantially
the form of Exhibit G to the Amended and Restated Credit Agreement and that
certain Reaffirmation Agreement dated as of even date herewith, by the Borrower
in favor of the Administrative Agent, in substantially the form of Exhibit G
hereto, as the same may from time to time be amended, modified, supplemented or
restated.

     

    “Redemption” means the
repurchase, redemption, prepayment, repayment or defeasance (or the segregation
of funds with respect to any of the foregoing) of the Material Indebtedness;
provided, however, the term Redemption shall not include early termination of a
Swap 

     

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    Agreement
due to an ISDA “Termination Event” to the extent the amount due at termination
does not exceed $15,000,000.  “Redeem” has the
correlative meaning thereto.

     

    “Redetermination Date”
means, with respect to any Scheduled Redetermination or any Interim
Redetermination, the date that the redetermined Borrowing Base related thereto
becomes effective pursuant to Section 2.07(d).

     

    “Refinanced Debt” has
the meaning assigned such term in the definition of “Permitted Refinancing
Debt”.

     

    “Register” has the
meaning assigned such term in Section 12.04(b)(iv).

     

    “Regulation D” means
Regulation D of the Board, as the same may be amended, supplemented or replaced
from time to time.

     

    “Related Parties”
means, with respect to any specified Person, such Person’s Affiliates and the
respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

     

    “Remedial Work” has
the meaning assigned such term in Section 8.10(a).

     

    “Reserve Report” means
a report, in form and substance reasonably satisfactory to the Administrative
Agent, setting forth, as of each December 31st or June 30th (or
such other date in the event of an Interim Redetermination) the oil and gas
reserves attributable to the Oil and Gas Properties of the Borrower and the
Material Subsidiaries, together with a projection of the rate of production and
future net income, taxes, operating expenses and capital expenditures with
respect thereto as of such date, based upon the pricing assumptions consistent
with SEC reporting requirements at the time.

     

    “Responsible Officer”
means, as to any Person, the Chief Executive Officer, the President, any
Financial Officer or any Vice President of such Person.  Unless
otherwise specified, all references to a Responsible Officer herein shall mean a
Responsible Officer of the Borrower.

     

    “Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other
Property) with respect to any Equity Interests in the Borrower, or any payment
(whether in cash, securities or other Property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such Equity Interests in the
Borrower or any option, warrant or other right to acquire any such Equity
Interests in the Borrower.

     

    “Revolving Credit
Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Loans, its LC Exposure and its
Swingline Loans at such time.

     

    “Scheduled
Redetermination” has the meaning assigned such term in Section
2.07(b).

     

    “Scheduled Redetermination
Date” means the date on which a Borrowing Base that has been redetermined
pursuant to a Scheduled Redetermination becomes effective as provided in Section
2.07(d).

     

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    “SEC” means the
Securities and Exchange Commission or any successor Governmental
Authority.

     

    “Security Instruments”
means any Guaranty Agreement, any Pledge – Borrower, the Reaffirmation
Agreements and all assignments, mortgages, deeds of trust, amendments and
supplements to mortgages and deeds of trust, and all other agreements,
instruments or certificates described or referred to in Exhibit C, and any and
all other agreements, instruments or certificates now or hereafter executed and
delivered by the Borrower or any other Person (other than Swap Agreements with
the Lenders or any Affiliate of a Lender or participation or similar agreements
between any Lender and any other lender or creditor with respect to any
Indebtedness pursuant to this Agreement) in connection with, or as security for
the payment or performance of the Indebtedness, the Notes, this Agreement, or
reimbursement obligations under the Letters of Credit, as such agreements may be
amended, modified, supplemented or restated from time to time.

     

    “Senior Convertible
Notes” means those certain senior convertible notes issued and sold by
the Borrower in accordance with and pursuant to the terms and provisions of the
Senior Convertible Notes indenture, in the aggregate principal amount of
$287,500,000, due on or about April 1, 2027.  For purposes of this
Agreement, the Senior Convertible Notes shall not be deemed a Swap Agreement
subject to the prohibitions of Section 9.18.

     

    “S&P” means
Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies,
Inc., and any successor thereto that is a nationally recognized rating
agency.

     

    “Special
Redetermination” has the meaning assigned such term in Section
2.07(b).

     

    “Special Redetermination
Date” means the date on which a Borrowing Base that has been redetermined
pursuant to a Special Redetermination becomes effective as provided in Section
2.07(d).

     

    “Statutory Reserve
Rate” means a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the
aggregate of the maximum reserve percentages (including any marginal, special,
emergency or supplemental reserves) expressed as a decimal established by the
Board to which the Administrative Agent is subject, with respect to the Adjusted
LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board).  Such reserve percentages
shall include those imposed pursuant to such Regulation D.  Eurodollar
Loans shall be deemed to constitute eurocurrency funding and to be subject to
such reserve requirements without benefit of or credit for proration, exemptions
or offsets that may be available from time to time to any Lender under such
Regulation D or any comparable regulation.  The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in
any reserve percentage.

     

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    “Subsidiary” means:
(a) any Person of which at least a majority of the outstanding Equity Interests
having by the terms thereof ordinary voting power to elect a majority of the
board of directors, manager or other governing body of such Person (irrespective
of whether or not at the time Equity Interests of any other class or classes of
such Person shall have or might have voting power by reason of the happening of
any contingency) is at the time directly or indirectly owned or controlled by
the Borrower or one or more of its Subsidiaries and (b) any partnership of which
the Borrower or any of its Subsidiaries is a general partner.  Unless
otherwise indicated herein, each reference to the term “Subsidiary” shall
mean a Subsidiary of the Borrower.

     

    “Substantial Portion”
means, with respect to the Property of the Borrower and its Subsidiaries,
Property which represents more than 10% of the consolidated assets of the
Borrower and its Subsidiaries or property which is responsible for more than 10%
of the consolidated net sales or of the consolidated net income of the Borrower
and its Subsidiaries, in each case, as would be shown in the consolidated
financial statements of the Borrower and its Subsidiaries at the beginning of
the twelve-month period ending with the month in which such determination is
made (or if financial statements have not been delivered hereunder for that
month which begins the twelve-month period, then the financial statements
delivered hereunder for the quarter ending immediately prior to that
month).

     

    “Supermajority
Lenders” means, at any time while no Loans or LC Exposure is outstanding,
Lenders having at least sixty-six and two-thirds percent (66-2/3%) of the
Aggregate Commitments; and at any time while any Loans or LC Exposure is
outstanding, Lenders holding at least sixty-six and two-thirds percent (66-2/3%)
of the outstanding aggregate principal amount of the Loans or participation
interests in Letters of Credit (without regard to any sale by a Lender of a
participation in any Loan under Section 12.04(c)).

     

    “Swap Agreement” means
any agreement with respect to any swap, forward, future or derivative
transaction or option or similar agreement, whether exchange traded,
“over-the-counter” or otherwise, involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities,
or economic, financial or pricing indices or measures of economic, financial or
pricing risk or value or any similar transaction or any combination of these
transactions; provided that no phantom stock or similar plan providing for
payments only on account of services provided by current or former directors,
officers, employees or consultants of the Borrower or the Subsidiaries shall be
a Swap Agreement.

     

    “Swingline Lender”
means Wachovia Bank, National Association, in its capacity as a lender of
Swingline Loans hereunder and Wells Fargo Bank, N.A., in its capacity as a
lender of Swingline Loans hereunder.

     

    “Swingline Loan” means
a Loan made pursuant to Section 2.09.

     

    “Synthetic Leases”
means, in respect of any Person, all leases which shall have been, or should
have been, in accordance with GAAP, treated as operating leases on the financial
statements of the Person liable (whether contingently or otherwise) for the
payment of rent thereunder and which were properly treated as indebtedness for
borrowed money for purposes of U.S. federal income taxes, if the lessee in
respect thereof is obligated to either purchase for an amount in excess of, or
pay upon early termination an amount in excess of, 80% of the residual

     

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    value of
the Property subject to such operating lease upon expiration or early
termination of such lease.

     

    “Taxes” means any and
all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority.

     

    “Termination Date”
means the earlier of the Maturity Date and the date of termination of the
Commitments.

     

    “Total Debt” means, at
any date, all Debt of the Borrower and the Consolidated Subsidiaries on a
consolidated basis, exclusive of all accounts payable, accrued expenses,
liabilities or other obligations to pay the deferred purchase price of Property
or services to the extent any of same was included in Debt of the Borrower and
the Consolidated Subsidiaries on a consolidated basis.

     

    “Transactions” means,
with respect to (a) the Borrower, the execution, delivery and performance by the
Borrower of this Agreement, and each other Loan Document to which it is a party,
the borrowing of Loans, the use of the proceeds thereof and the issuance of
Letters of Credit hereunder, and the grant of Liens by the Borrower on Mortgaged
Properties and other Properties pursuant to the Security Instruments and (b)
each Material Subsidiary, the execution, delivery and performance by such
Material Subsidiary of each Loan Document to which it is a party, the
guaranteeing of the Indebtedness and the other obligations under the Guaranty
Agreement by such Material Subsidiary and such Material Subsidiary’s grant of
the security interests and provision of collateral thereunder, and the grant of
Liens by such Material Subsidiary on Mortgaged Properties and other Properties
pursuant to the Security Instruments.

     

    “Type” means, when
used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Alternate Base Rate or the Adjusted LIBO Rate.

     

    “Wholly-Owned
Subsidiary” means any Subsidiary of which all of the outstanding Equity
Interests (other than any directors’ qualifying shares mandated by applicable
law), on a fully-diluted basis, are owned by the Borrower or one or more of the
Wholly-Owned Subsidiaries.

     

    Section
1.03 Types of Loans and
Borrowings.  For
purposes of this Agreement, Loans and Borrowings, respectively, may be
classified and referred to by Type (e.g., a “Eurodollar Loan” or a
“Eurodollar
Borrowing”).

     

    Section
1.04 Terms
Generally.  The
definitions of terms herein shall apply equally to the singular and plural forms
of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter
forms.  The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation.”  The word
“will” shall be construed to have the same meaning and effect as the word
“shall.”  Unless the context requires otherwise (a) any definition of
or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
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    modifications
set forth herein), (b) any reference herein to any Person shall be construed to
include such Person’s successors and assigns (subject to the restrictions
contained herein), (c) the words “herein”, “hereof” and “hereunder”, and words
of similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof and (d) all references herein to
Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer
to Articles and Sections of, and Annexes, Exhibits and Schedules to, this
Agreement.

     

    Section
1.05 Accounting Terms and
Determinations; GAAP.  Unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all determinations with respect to accounting matters hereunder
shall be made, and all financial statements and certificates and reports as to
financial matters required to be furnished to the Administrative Agent or the
Lenders hereunder shall be prepared, in accordance with GAAP, applied on a basis
consistent with the Financial Statements except for changes in which Borrower’s
independent certified public accountants concur and which are disclosed to
Administrative Agent on the next date on which financial statements are required
to be delivered to the Lenders pursuant to Section 8.01(a); provided that,
unless the Borrower and the Majority Lenders shall otherwise agree in writing,
no such change shall modify or affect the manner in which compliance with the
covenants contained herein is computed such that all such computations shall be
conducted utilizing financial information presented consistently with prior
periods.

     

    ARTICLE
II

     

    The
Credits

     

    Section
2.01 Commitments.  Subject
to the terms and conditions set forth herein, each Lender agrees to make Loans
to the Borrower during the Availability Period in an aggregate principal amount
that will not result in (a) such Lender’s Revolving Credit Exposure exceeding
such Lender’s Commitment or (b) the Aggregate Revolving Credit Exposures
exceeding the lesser of (i) the Borrowing Base then in effect or (ii) the
Aggregate Commitments then in effect.  Within the foregoing limits and
subject to the terms and conditions set forth herein, the Borrower may borrow,
repay and reborrow the Loans.

     

    Section
2.02 Loans and
Borrowings.

     

    (a) Borrowings; Several
Obligations.  Each Loan shall be made as part of a Borrowing
consisting of Loans made by the Lenders ratably in accordance with their
respective Commitments.  The failure of any Lender to make any Loan
required to be made by it shall not relieve any other Lender of its obligations
hereunder; provided that the Commitments are several and no Lender shall be
responsible for any other Lender’s failure to make Loans as
required.

     

    (b) Types of
Loans.  Subject to Section 3.03, each Borrowing shall be
comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request
in accordance herewith.  Each Lender at its option may make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option shall not
affect the obligation of the Borrower to repay such Loan in accordance with the
terms of this Agreement.

     

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    (c) Minimum Amounts; Limitation
on Number of Borrowings.  At the commencement of each Interest
Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate
amount that is an integral multiple of $1,000,000 and not less than
$3,000,000.  At the time that each ABR Borrowing is made, such
Borrowing shall be in an aggregate amount that is an integral multiple of
$500,000 and not less than $1,000,000; provided that an ABR Borrowing may be in
an aggregate amount that is equal to the entire unused balance of the total
Commitments or that is required to finance the reimbursement of an LC
Disbursement as contemplated by Section 2.08(f).  Borrowings of more
than one Type may be outstanding at the same time; provided that there shall not
at any time be more than a total of six (6) Eurodollar
Borrowings outstanding.  Notwithstanding any other provision of this
Agreement, the Borrower shall not be entitled to request, or to elect to convert
or continue, any Borrowing if the Interest Period requested with respect thereto
would end after the Maturity Date.

     

    (d) Notes.  The
Loans made by each Lender shall be evidenced by a single promissory note of the
Borrower in substantially the form of Exhibit A, dated, in the case of (i) any
Lender party hereto as of the date of this Agreement, as of the date of this
Agreement, (ii) any Lender that becomes a party hereto pursuant to an Assignment
and Assumption, as of the effective date of the assignment and assumption, or
(iii) any Lender that becomes a party hereto in connection with an increase in
the Aggregate Commitment pursuant to Section 2.06(c), as of the effective date
of such increase, payable to the order of such Lender in a principal amount
equal to its Commitment as in effect on such date, and otherwise duly
completed.  In the event that any Lender’s Commitment increases or
decreases for any reason (whether pursuant to Section 2.06, Section 12.04(b) or
otherwise), the Borrower shall deliver or cause to be delivered on the effective
date of such increase or decrease, a new Note payable to the order of such
Lender in a principal amount equal to its Commitment after giving effect to such
increase or decrease, and otherwise duly completed.  The date, amount,
Type, interest rate and, if applicable, Interest Period of each Loan made by
each Lender, and all payments made on account of the principal thereof, shall be
recorded by such Lender on its books for its Note, and, prior to any transfer,
may be endorsed by such Lender on a schedule attached to such Note or any
continuation thereof or on any separate record maintained by such
Lender.  Failure to make any such notation or to attach a schedule
shall not affect any Lender’s or the Borrower’s rights or obligations in respect
of such Loans or affect the validity of such transfer by any Lender of its
Note.  

     

    Section
2.03 Requests for
Borrowings.  To
request a Borrowing, the Borrower shall notify the Administrative Agent of such
request by telephone (a) in the case of a Eurodollar Borrowing, not later than
1:00 p.m., Charlotte, North Carolina time, three Business
Days before the date of the proposed Borrowing, or (b) in the case of a ABR
Borrowing, including an ABR Borrowing to finance the reimbursement of an LC
Disbursement as contemplated by Section 2.08(f), not later than 1:00 p.m.,
Charlotte, North Carolina time, on the date of the proposed Borrowing, which
date shall be a Business Day in the United States.  Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower.  Each such telephonic and written Borrowing Request
shall specify the following information in compliance with Section
2.02:

     

    (i) the
aggregate amount of the requested Borrowing;

     

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    (ii) the date
of such Borrowing, which shall be a Business Day in the United
States;

     

    (iii) whether
such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

     

    (iv) in the
case of a Eurodollar Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of the term
“Interest Period”;

     

    (v) the
amount of the then effective Borrowing Base, the current Aggregate Revolving
Credit Exposures (without regard to the requested Borrowing) and the pro forma Aggregate Revolving
Credit Exposures (giving effect to the requested Borrowing); and

     

    (vi) the
location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section
2.05.

     

    If no
election as to the Type of Borrowing is specified, then the requested Borrowing
shall be an ABR Borrowing.  If no Interest Period is specified with
respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed
to have selected an Interest Period of one month’s duration.  Each
Borrowing Request shall constitute a representation that the amount of the
requested Borrowing shall not cause the Aggregate Revolving Credit Exposures to
exceed the Aggregate Commitments then in effect.

     

    Promptly
following receipt of a Borrowing Request in accordance with this Section 2.03,
the Administrative Agent shall advise each Lender of the details thereof and of
the amount of such Lender’s Loan to be made as part of the requested
Borrowing.

     

    Section
2.04 Interest
Elections.

     

    (a) Conversion and
Continuance.  Each Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurodollar
Borrowing, shall have an initial Interest Period as specified in such Borrowing
Request.  Thereafter, the Borrower may elect to convert such Borrowing
to a different Type or to continue such Borrowing and, in the case of a
Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in
this Section 2.04.  The Borrower may elect different options with
respect to different portions of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans
comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing.  This Section, as it refers to Types
of Loans, shall not apply to Swingline Loans, which may not be converted or
continued.

     

    (b) Interest Election
Requests.  To make an election pursuant to this Section 2.04,
the Borrower shall notify the Administrative Agent of such election by telephone
by the time that a Borrowing Request would be required under Section 2.03 if the
Borrower were requesting a Borrowing of the Type resulting from such election to
be made on the effective date of such election.  Each such telephonic
Interest Election Request shall be irrevocable and shall be confirmed promptly
by hand delivery or telecopy to the Administrative Agent of a written

     

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    Interest
Election Request in a form approved by the Administrative Agent and signed by
the Borrower.

     

    (c) Information in Interest
Election Requests.  Each telephonic and written Interest
Election Request shall specify the following information in compliance with
Section 2.02:

     

    (i) the
Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the
information to be specified pursuant to Section 2.04(c)(iii) and (iv) shall be
specified for each resulting Borrowing);

     

    (ii) the
effective date of the election made pursuant to such Interest Election Request,
which shall be a Business Day;

     

    (iii) whether
the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;
and

     

    (iv) if the
resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

     

    (d) If any
such Interest Election Request requests a Eurodollar Borrowing but does not
specify an Interest Period, then the Borrower shall be deemed to have selected
an Interest Period of one month’s duration.

     

    (e) Notice to Lenders by the
Administrative Agent.  Promptly following receipt of an
Interest Election Request, the Administrative Agent shall advise each Lender of
the details thereof and of such Lender’s portion of each resulting
Borrowing.

     

    (f) Effect of Failure to Deliver
Timely Interest Election Request and Events of Default and Borrowing Base
Deficiencies on Interest Election.  If the Borrower fails to
deliver a timely Interest Election Request with respect to a Eurodollar
Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR
Borrowing.  Notwithstanding any contrary provision hereof, if an Event
of Default has occurred and is continuing or if the Aggregate Revolving Credit
Exposures exceed the Borrowing Base then in effect:  (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing
(and any Interest Election Request that requests the conversion of any Borrowing
to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be
ineffective) and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

    
       

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    Section
2.05 Funding of
Borrowings.

     

    (a) Funding by
Lenders.  Each Lender shall make each Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately available
funds by 2:00 p.m. Charlotte, North Carolina time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders; provided that Swingline Loans shall be made as provided in
Section 2.09.  The Administrative Agent will make such Loans available
to the Borrower by promptly crediting the amounts so received, in like funds, to
an account of the Borrower maintained with the Administrative Agent in
Charlotte, North Carolina and designated by the Borrower in the applicable
Borrowing Request; provided that ABR Loans made to finance the reimbursement of
an LC Disbursement as provided in Section 2.08(f) shall be remitted by the
Administrative Agent to the Issuing Bank.

     

    (b) Presumption of Funding by
the Lenders.  Unless the Administrative Agent shall have
received written notice from a Lender prior to the proposed date of any
Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that
such Lender has made such share available on such date in accordance with
Section 2.05(a) and may, in reliance upon such assumption, make available to the
Borrower a corresponding amount.  In such event, if a Lender has not
in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such
amount is made available to the Borrower to but excluding the date of payment to
the Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation or (ii) in
the case of the Borrower, the interest rate applicable to ABR Loans; provided, however, such demands
shall be made first upon the applicable Lender and then upon the
Borrower.  If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing.

     

    Section
2.06 Termination, Reduction and
Increase of Aggregate Commitment.

     

    (a) Scheduled Termination of
Commitments.  Unless previously terminated, the Commitments
shall terminate on the Maturity Date.  If at any time the Maximum
Credit Amount or the Borrowing Base is terminated or reduced to zero, then the
Commitments shall terminate on the effective date of such termination or
reduction.

     

    (b) Optional Termination and
Reduction of Aggregate Commitment.

     

    (i) The
Borrower may at any time terminate, or from time to time reduce, the Aggregate
Commitment; provided that (A) each reduction of the Aggregate Commitment shall
be in an amount that is an integral multiple of $1,000,000 and not
less than $5,000,000 and (B)
the Borrower shall not terminate or reduce the Aggregate Commitment if, after
giving effect to any concurrent prepayment of the Loans in accordance with
Section 3.04(c), the Aggregate Revolving Credit Exposures would exceed the
Aggregate Commitments.

    
       

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    (ii) The
Borrower shall notify the Administrative Agent of any election to terminate or
reduce the Aggregate Commitment under Section 2.06(b)(i) at least three Business
Days prior to the effective date of such termination or reduction, specifying
such election and the effective date thereof.  Promptly following
receipt of any notice, the Administrative Agent shall advise the Lenders of the
contents thereof.  Each notice delivered by the Borrower pursuant to
this Section 2.06(b)(ii) shall be irrevocable.  Any termination or
reduction of the Aggregate Commitment shall be permanent and may not be
reinstated except pursuant to Section 2.06(c).  Each reduction of the
Aggregate Commitment shall be made ratably among the Lenders in accordance with
each Lender’s Applicable Percentage.

     

    (c) Optional Increase in
Aggregate Commitment.

     

    (i) Subject
to the conditions set forth in Section 2.06(c)(ii), the Borrower may increase
the Aggregate Commitment then in effect by increasing the Commitment of a Lender
or by causing a Person acceptable to the Administrative Agent that at such time
is not a Lender to become a Lender (an “Additional
Lender”).

     

    (ii) Any
increase in the Aggregate Commitment shall be subject to the following
additional conditions:

     

    (A) such
increase shall not be less than $10,000,000 unless the Administrative Agent
otherwise consents;

     

    (B) no
Default shall have occurred and be continuing at the effective date of such
increase;

     

    (C) on the
effective date of such increase, no Eurodollar Borrowings shall be outstanding
(or if any Eurodollar Borrowings are outstanding, then the effective date of
such increase shall be the last day of the Interest Period in respect of such
Eurodollar Borrowings);

     

    (D) each
Lender shall have had the option to increase its Commitment by its Applicable
Percentage of the amount of such increase; provided that, no Lender’s
Commitment may be increased without the consent of such Lender;

     

    (E) if the
Borrower elects to increase the Aggregate Commitment by increasing the
Commitment of a Lender, the Borrower and such Lender shall execute and deliver
to the Administrative Agent a certificate substantially in the form of Exhibit E
(a “Commitment
Increase
Certificate”), and further, in the event a new Note is required to
reflect the increased Commitment of such Lender, then in that case, the Borrower
shall deliver a new Note (after presentation of same to Borrower by the
Administrative Agent) payable to the order of such Lender in a principal amount
equal to its Commitment after giving effect to such increase, and otherwise duly
completed, together with a processing and recordation fee of $3,500 payable by
the Borrower to the Administrative Agent and the reimbursement by the Borrower
of the reasonable legal fees of counsel to the Administrative Agent;
and

     

    (F) If the
Borrower elects to increase the Aggregate Commitment by causing an Additional
Lender to become a party to this Agreement, then the 

     

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    Borrower and such Additional Lender shall execute and deliver to the
Administrative Agent a certificate substantially in the form of Exhibit F (an
“Additional Lender
Certificate”), together with an Administrative Questionnaire and a
processing and recordation fee of $3,500 payable by such Additional Lender and
the reimbursement by the Borrower of the reasonable legal fees of counsel to the
Administrative Agent, and the Borrower shall deliver a Note (after presentation
of same to Borrower by the Administrative Agent) payable to the order of such
Additional Lender in a principal amount equal to its Commitment, and otherwise
duly completed.

     

    (iii) Subject
to acceptance and recording thereof pursuant to Section 2.06(c)(iv), from and
after the effective date specified in the Commitment Increase Certificate or the
Additional Lender Certificate (or if any Eurodollar Borrowings are outstanding,
then the last day of the Interest Period in respect of such Eurodollar
Borrowings):  (A) the amount of the Aggregate Commitment shall be
increased as set forth therein, and (B) in the case of an Additional Lender
Certificate, any Additional Lender party thereto shall be a party to this
Agreement and the other Loan Documents and have the rights and obligations of a
Lender under this Agreement and the other Loan Documents.  In
addition, the Lender or the Additional Lender, as applicable, shall purchase a
pro rata portion of the Aggregate Revolving Credit Exposures of each of the
other Lenders (and such Lenders hereby agree to sell and to take all such
further action to effectuate such sale) such that each Lender (including any
Additional Lender, if applicable) shall hold its Applicable Percentage of the
Aggregate Revolving Credit Exposures after giving effect to the increase in the
Aggregate Commitment.

     

    (iv) Upon its
receipt of a duly completed Commitment Increase Certificate or an Additional
Lender Certificate, executed by the Borrower and the Lender or the Borrower and
the Additional Lender party thereto, as applicable, the processing and recording
fee referred to in Section 2.06(c)(ii), the Administrative Questionnaire
referred to in Section 2.06(c)(ii), if applicable, and the written consent of
the Administrative Agent to such increase required by Section 2.06(c)(i), the
Administrative Agent shall accept such Commitment Increase Certificate or
Additional Lender Certificate and record the information contained therein in
the Register required to be maintained by the Administrative Agent pursuant to
Section 12.04(b)(iv).  No increase in the Aggregate Commitment shall
be effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this Section 2.06(c)(iv).

     

    (v) After
giving effect to an increase in the Aggregate Commitment, the Aggregate
Commitment shall not exceed the Maximum Credit Amount.

     

    Section
2.07 Borrowing
Base.

     

    (a) Initial Borrowing
Base.  For the period from and including the Effective Date to
but excluding the first Redetermination Date, the amount of the Borrowing Base
shall be $900,000,000.  Notwithstanding
the foregoing, the Borrowing Base shall be subject to further adjustments from
time to time pursuant to this Section 2.07 and Section 8.13(c), Section 9.02(k),
Section 9.11(a), Section 9.12 and Section 9.20.

     

    (b) Scheduled, Interim and
Special Redeterminations.  Subject to Section 2.07(d), the
Borrowing Base shall be redetermined (a “Scheduled
Redetermination”) no later than April 1 and October 1 of each year,
commencing October 1, 2009.  In addition, the 

    
       

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    Borrower
may, by notifying the Administrative Agent thereof, and the Administrative Agent
may, at the direction of the Majority Lenders, by notifying the Borrower
thereof, elect to cause the Borrowing Base to be redetermined once between each
Scheduled Redetermination (an “Interim
Redetermination”) in accordance with this Section 2.07.  In
addition to the Scheduled Redetermination and the Interim Redetermination, the
Administrative Agent, acting alone or at the direction of the Majority Lenders,
shall be permitted to make a redetermination (a “Special
Redetermination”) of the Borrowing Base on March 15, 2012.

     

    (c) Scheduled, Interim and
Special Redetermination Procedure.

     

    (i) Each
Scheduled Redetermination, each Interim Redetermination and the Special
Redetermination shall be effectuated as follows:  Upon receipt by the
Administrative Agent of (A) the Reserve Report and the certificate required to
be delivered by the Borrower to the Administrative Agent, in the case of a
Scheduled Redetermination and the Special Redetermination, pursuant to Section
8.12(a) and (c), and, in the case of an Interim Redetermination, pursuant to
Section 8.12(b) and (c), and (B) such other reports, data and supplemental
information, including, without limitation, the information provided pursuant to
Section 8.12(c), as may, from time to time, be reasonably requested by the
Majority Lenders (the Reserve Report, such certificate and such other reports,
data and supplemental information being the “Engineering
Reports”), the Administrative Agent shall evaluate the information
contained in the Engineering Reports and shall, in good faith, propose a new
Borrowing Base (the “Proposed Borrowing
Base”) based upon such information and such other information (including
the status of title information with respect to the Oil and Gas Properties as
described in the Engineering Reports and the existence of any other Debt) as the
Administrative Agent deems appropriate and consistent with its normal oil and
gas lending criteria as it exists at the particular time.

     

    (ii) The
Administrative Agent shall notify the Borrower and the Lenders of the Proposed
Borrowing Base (the “Proposed Borrowing Base
Notice”):

     

    (A) in the
case of a Scheduled Redetermination (1) if the Administrative Agent shall have
received the Engineering Reports required to be delivered by the Borrower
pursuant to Section 8.12(a) and (c) in a timely and complete manner, then on or
before March 15th and
September 15th of such year following
the date of delivery or (2) if the Administrative Agent shall not have received
the Engineering Reports required to be delivered by the Borrower pursuant to
Section 8.12(a) and (c) in a timely and complete manner, then promptly after the
Administrative Agent has received complete Engineering Reports from the Borrower
and has had a reasonable opportunity to determine the Proposed Borrowing Base in
accordance with Section 2.07(c)(i); and

     

    (B) in the
case of an Interim Redetermination and the Special Redetermination, promptly,
and in any event, within fifteen (15) days after the Administrative Agent has
received the required Engineering Reports.

     

    (iii) Any
Proposed Borrowing Base that would increase the Borrowing Base then in effect
must be approved or deemed to have been approved by all of
the  

    
       

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    Lenders
as provided in this Section 2.07(c)(iii); and any Proposed Borrowing Base that
would decrease or maintain the Borrowing Base then in effect must be approved or
be deemed to have been approved by the Supermajority Lenders as provided in this
Section 2.07(c)(iii).  Upon receipt of the Proposed Borrowing Base
Notice, each Lender shall have fifteen (15) days to agree with the Proposed
Borrowing Base or disagree with the Proposed Borrowing Base by proposing an
alternate Borrowing Base.  If at the end of such fifteen (15) days,
any Lender has not communicated its approval or disapproval in writing to the
Administrative Agent, such silence shall be deemed to be an approval of the
Proposed Borrowing Base.  If, at the end of such 15-day period, all of
the Lenders, in the case of a Proposed Borrowing Base that would increase the
Borrowing Base then in effect, or the Supermajority Lenders, in the case of a
Proposed Borrowing Base that would decrease or maintain the Borrowing Base then
in effect, have approved or deemed to have approved, as aforesaid, then the
Proposed Borrowing Base shall become the new Borrowing Base, effective on the
date specified in Section 2.07(d).  If, however, at the end of such
15-day period, all of the Lenders or the Supermajority Lenders, as applicable,
have not approved or deemed to have approved, as aforesaid, then for purposes of
this Section 2.07, the Administrative Agent shall poll the Lenders to ascertain
the highest Borrowing Base then acceptable (aa) to the Supermajority Lenders, if
such amount would decrease the Borrowing Base then in effect, or (bb) to all of
the Lenders, if such amount would increase the Borrowing Base then in effect,
which amount shall become the new Borrowing Base, effective on the date
specified in Section 2.07(d).

     

    (iv) If any
Lender refuses to approve a Proposed Borrowing Base pursuant to Section
2.07(c)(iii), the Borrower shall have the right to cause the Commitment of such
dissenting Lender to be replaced pursuant to Section 5.06.

     

    (d) Effectiveness of a
Redetermined Borrowing Base.  After a redetermined Borrowing
Base is approved or is deemed to have been approved by all of the Lenders or the
Supermajority Lenders, as applicable, pursuant to Section 2.07(c)(iii), the
Administrative Agent shall notify the Borrower and the Lenders of the amount of
the redetermined Borrowing Base (the “New Borrowing Base
Notice”), and such amount shall become the new Borrowing Base, effective
and applicable to the Borrower, the Agents, the Issuing Bank and the
Lenders:

     

    (A) in the
case of a Scheduled Redetermination, (1) if the Administrative Agent shall have
received the Engineering Reports required to be delivered by the Borrower
pursuant to Section 8.12(a) and (c) in a timely and complete manner, then no
later than April 1 or October 1, as applicable, following such notice, or (2) if
the Administrative Agent shall not have received the Engineering Reports
required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in
a timely and complete manner, then on the Business Day next succeeding delivery
of such notice; and

     

    (B) in the
case of an Interim Redetermination and a Special Redetermination, on the
Business Day next succeeding delivery of such notice.

     

    (C) Such
amount shall then become the Borrowing Base until the next Scheduled
Redetermination Date, the next Interim Redetermination Date, the Special

    
       

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      Redetermination
Date or the next adjustment to the Borrowing Base under Section 8.13(c), Section
9.02(k), Section 9.11(a) or Section 9.12, whichever occurs
first.  Notwithstanding the foregoing, no Scheduled Redetermination,
Interim Redetermination or Special Redetermination shall become effective until
the New Borrowing Base Notice related thereto is received by the
Borrower.

    

     

    Section
2.08 Letters of
Credit.

     

    (a) General.  Subject
to the terms and conditions set forth herein, the Borrower may request the
issuance of Letters of Credit for its own account or for the account of any of
its Material Subsidiaries, in a form reasonably acceptable to the Administrative
Agent and the Issuing Bank, at any time and from time to time during the
Availability Period; provided that the Borrower may not request the issuance,
amendment, renewal or extension of Letters of Credit hereunder if the Aggregate
Revolving Exposures exceed the Borrowing Base then in effect at such time or the
Aggregate Revolving Exposures would exceed the Borrowing Base then in effect as
a result thereof.  In the event of any inconsistency between the terms
and conditions of this Agreement and the terms and conditions of any form of
letter of credit application or other agreement submitted by the Borrower to, or
entered into by the Borrower with, the Issuing Bank relating to any Letter of
Credit, the terms and conditions of this Agreement shall control.

     

    (b) Notice of Issuance,
Amendment, Renewal, Extension; Certain Conditions.  To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an
outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or
transmit by electronic communication, if arrangements for doing so have been
approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent
(not less than three (3) Business Days in advance of the requested date of
issuance, amendment, renewal or extension) a notice:

     

    (i) requesting
the issuance of a Letter of Credit or identifying the Letter of Credit to be
amended, renewed or extended;

     

    (ii) specifying
the date of issuance, amendment, renewal or extension (which shall be a Business
Day);

     

    (iii) specifying
the date on which such Letter of Credit is to expire (which shall comply with
Section 2.08(d));

     

    (iv) specifying
the amount of such Letter of Credit;

     

    (v) specifying
the name and address of the beneficiary thereof and such other information as
shall be necessary to prepare, amend, renew or extend such Letter of Credit;
and

     

    (vi) specifying
the amount of the then effective Borrowing Base, the current Aggregate Revolving
Credit Exposures (without regard to the requested Letter of Credit or the
requested amendment, renewal or extension of an outstanding Letter of Credit)
and the pro forma
Aggregate Revolving Credit Exposures (giving effect to the requested Letter of
Credit or the requested amendment, renewal or extension of an outstanding Letter
of Credit).

    
       

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    Each
notice shall constitute a representation that after giving effect to the
requested issuance, amendment, renewal or extension, as applicable, (i) the LC
Exposure shall not exceed the LC Commitment and (ii) the Aggregate Revolving
Credit Exposures shall not exceed the Aggregate
Commitments.  Notwithstanding the foregoing, the Issuing Bank shall
not at any time be obligated to issue, amend, renew or extend any Letter of
Credit if any Lender is at such time an Impacted Lender hereunder, unless (x)
the Borrower cash collateralizes such Impacted Lender’s portion of the total LC
Exposure (calculated after giving effect to the issuance, amendment, renewal or
extension of such Letter of Credit) in accordance with the procedures set forth
in Section 2.08(k) or (y) the Issuing Bank has entered into arrangements
satisfactory to the Issuing Bank in its sole discretion with the Borrower or
such Impacted Lender to eliminate the Issuing Bank’s risk with respect to such
Impacted Lender’s portion of the total LC Exposure.

     

    (c) If
requested by the Issuing Bank, the Borrower also shall submit a letter of credit
application on the Issuing Bank’s standard form in connection with any request
for a Letter of Credit.

     

    (d) Expiration
Date.  Each Letter of Credit shall expire at or prior to the
close of business on the earlier of (i) the date one year after the date of the
issuance of such Letter of Credit (or, in the case of any renewal or extension
thereof, one year after such renewal or extension) and (ii) the date that is
five Business Days prior to the Maturity Date.

     

    (e) Participations.  By
the issuance of a Letter of Credit (or an amendment to a Letter of Credit
increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and
each Lender hereby acquires from the Issuing Bank, a participation in such
Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate
amount available to be drawn under such Letter of Credit.  In
consideration and in furtherance of the foregoing, each Lender hereby absolutely
and unconditionally agrees to pay to the Administrative Agent, for the account
of the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement
made by the Issuing Bank and not reimbursed by the Borrower on the date due as
provided in Section 2.08(f), or of any reimbursement payment required to be
refunded to the Borrower for any reason.  Each Lender acknowledges and
agrees that its obligation to acquire participations pursuant to this Section
2.08(e) in respect of Letters of Credit is absolute and unconditional and shall
not be affected by any circumstance whatsoever, including any amendment, renewal
or extension of any Letter of Credit or the occurrence and continuance of a
Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.

     

    (f) Reimbursement.  If
the Issuing Bank shall make any LC Disbursement in respect of a Letter of
Credit, the Borrower shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than
12:00 noon, Charlotte, North Carolina time, on the date that such LC
Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 12:00 noon, Charlotte, North
Carolina time, on
such date, or, if such notice has not been received by the Borrower prior to
such time on such date, then not later than 12:00 noon Charlotte, North
Carolina time, on
(i) the Business Day that the Borrower receives such notice, if such notice is
received prior to 12:00 noon, Charlotte, North
Carolina time, on the day of receipt, or (ii) the Business Day immediately

    
       

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      following
the day that the Borrower receives such notice, if such notice is not received
prior to such time on the day of receipt; provided that if such LC Disbursement
is not less than $1,000,000, the Borrower may, subject to the conditions to
Borrowing set forth herein, request in accordance with Section 2.03 (or Section
2.09 in the case of a Swingline Loan) that such payment be financed with a ABR
Borrowing or a Swingline Loan in an equivalent amount and, to the extent so
financed, the Borrower’s obligation to make such payment shall be discharged and
replaced by the resulting ABR Borrowing or Swingline Loan.  If the
Borrower makes such a request (and if the Borrower fails to make such a request
and has not made the relevant reimbursement, it shall be deemed to have made
such a request), the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Borrower in respect
thereof and such Lender’s Applicable Percentage thereof.  Promptly
following receipt of such notice, each Lender shall pay to the Administrative
Agent its Applicable Percentage of the payment then due from the Borrower, in
the same manner as provided in Section 2.05 with respect to Loans made by such
Lender (and Section 2.05 shall apply, mutatis mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall promptly
pay to the Issuing Bank the amounts so received by it from the
Lenders.  Promptly following receipt by the Administrative Agent of
any payment from the Borrower pursuant to this Section 2.08(f), the
Administrative Agent shall distribute such payment to the Issuing Bank or, to
the extent that Lenders have made payments pursuant to this Section 2.08(f) to
reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their
interests may appear.

    

     

    (g) Obligations
Absolute.  The Borrower’s obligation to reimburse LC
Disbursements as provided in Section 2.08(f) shall be absolute, unconditional
and irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement under any and all circumstances whatsoever and irrespective of
(i) any lack of validity or enforceability of any Letter of Credit, any Letter
of Credit Agreement or this Agreement, or any term or provision therein, (ii)
any draft or other document presented under a Letter of Credit proving to be
forged, fraudulent or invalid in any respect or any statement therein being
untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a
Letter of Credit against presentation of a draft or other document that does not
comply with the terms of such Letter of Credit or any Letter of Credit
Agreement, or (iv) any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of this
Section 2.08(g), constitute a legal or equitable discharge of, or provide a
right of setoff against, the Borrower’s obligations
hereunder.  Neither the Administrative Agent, the Lenders nor the
Issuing Bank, nor any of their Related Parties shall have any liability or
responsibility by reason of or in connection with the issuance or transfer of
any Letter of Credit or any payment or failure to make any payment thereunder
(irrespective of any of the circumstances referred to in the preceding
sentence), or any error, omission, interruption, loss or delay in transmission
or delivery of any draft, notice or other communication under or relating to any
Letter of Credit (including any document required to make a drawing thereunder),
any error in interpretation of technical terms or any consequence arising from
causes beyond the control of the Issuing Bank; provided that the foregoing shall
not be construed to excuse the Issuing Bank from liability to the Borrower to
the extent of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Borrower to the extent permitted by
applicable law) suffered by the Borrower that are caused by the Issuing Bank’s
failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof.  The
parties hereto expressly agree that, in the absence of gross negligence or
willful misconduct on the part of the 

    
       

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      Issuing
Bank (as finally determined by a court of competent jurisdiction), the Issuing
Bank shall be deemed to have exercised all requisite care in each such
determination.  In furtherance of the foregoing and without limiting
the generality thereof, the parties agree that, with respect to documents
presented which appear on their face to be in substantial compliance with the
terms of a Letter of Credit, the Issuing Bank may, in its sole discretion,
either accept and make payment upon such documents without responsibility for
further investigation, regardless of any notice or information to the contrary,
or refuse to accept and make payment upon such documents if such documents are
not in strict compliance with the terms of such Letter of
Credit.

    

     

    (h) Disbursement
Procedures.  The Issuing Bank shall, promptly following its
receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit.  The Issuing Bank shall promptly
notify the Administrative Agent and the Borrower by telephone (confirmed by
telecopy) of such demand for payment and whether the Issuing Bank has made or
will make an LC Disbursement thereunder; provided that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Lenders with respect to any such LC
Disbursement.

     

    (i) Interim
Interest.  If the Issuing Bank shall make any LC Disbursement,
then, until the Borrower shall have reimbursed the Issuing Bank for such LC
Disbursement (either with its own funds or a Borrowing under Section 2.08(f)),
the unpaid amount thereof shall bear interest, for each day from and including
the date such LC Disbursement is made to but excluding the date that the
Borrower reimburses such LC Disbursement, at the rate per annum then applicable
to ABR Loans.  Interest accrued pursuant to this Section 2.08(i) shall
be for the account of the Issuing Bank, except that interest accrued on and
after the date of payment by any Lender pursuant to Section 2.08(f) to reimburse
the Issuing Bank shall be for the account of such Lender to the extent of such
payment.

     

    (j) Replacement of the Issuing
Bank.  The Issuing Bank may be replaced at any time by written
agreement among the Borrower, the Administrative Agent, the replaced Issuing
Bank and the successor Issuing Bank.  The Administrative Agent shall
notify the Lenders of any such replacement of the Issuing Bank.  At
the time any such replacement shall become effective, the Borrower shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 3.05(b).  From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of the Issuing Bank under this Agreement with respect to Letters of
Credit to be issued thereafter and (ii) references herein to the term “Issuing
Bank” shall be deemed to refer to such successor or to any previous Issuing
Bank, or to such successor and all previous Issuing Banks, as the context shall
require.  After the replacement of the Issuing Bank hereunder, the
replaced Issuing Bank shall remain a party hereto and shall continue to have all
the rights and obligations of the Issuing Bank under this Agreement with respect
to Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit.

     

    (k) Cash
Collateralization.  If (i) any Event of Default shall occur and
be continuing and the Borrower receives notice from the Administrative Agent or
the Majority Lenders demanding the deposit of cash collateral pursuant to this
Section 2.08(k), (ii) the Borrower is required to pay to the Administrative
Agent the excess attributable to an LC Exposure in connection with any
prepayment pursuant to Section 3.04(c), (iii) the Borrower 

    
       

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      elects to
cash collateralize the LC Exposure of any Impacted Lender pursuant to Section
2.08(b) or (iv) any Letter of Credit is outstanding at the time any Lender is an
Impacted Lender and the Borrower receives written request from the Issuing Bank
demanding the deposit of cash collateral pursuant to this Section 2.08(k), then
the Borrower shall deposit, in an account with the Administrative Agent, in the
name of the Administrative Agent and for the benefit of the Lenders, an amount
in cash equal to, in the case of an Event of Default, the LC Exposure, and in
the case of a payment required by Section 3.04(c), the amount of such excess as
provided in Section 3.04(c), and in the case of an Impacted Lender, an amount in
cash equal to such Impacted Lender’s portion of the total LC Exposure at such
time as calculated pursuant to clause (x) of Section 2.08(b) (less any amounts
already on deposit in such account representing cash collateral for any portion
of such Impacted Lender’s portion of the total LC Exposure), as of such date
plus any accrued and unpaid interest thereon; provided that the obligation to
deposit such cash collateral shall become effective immediately, and such
deposit shall become immediately due and payable, without demand or other notice
of any kind, upon the occurrence of any Event of Default with respect to the
Borrower or any Material Subsidiary described in Section 10.01(h) or Section
10.01(i).  The Borrower hereby grants to the Administrative Agent, for
the benefit of the Issuing Bank and the Lenders, an exclusive first priority and
continuing perfected security interest in and Lien on such account and all cash,
checks, drafts, certificates and instruments, if any, from time to time
deposited or held in such account, all deposits or wire transfers made thereto,
any and all investments purchased with funds deposited in such account, all
interest, dividends, cash, instruments, financial assets and other Property from
time to time received, receivable or otherwise payable in respect of, or in
exchange for, any or all of the foregoing, and all proceeds, products,
accessions, rents, profits, income and benefits therefrom, and any substitutions
and replacements therefor.  The Borrower’s obligation to deposit
amounts pursuant to this Section 2.08(k) shall be absolute and unconditional,
without regard to whether any beneficiary of any such Letter of Credit has
attempted to draw down all or a portion of such amount under the terms of a
Letter of Credit, and, to the fullest extent permitted by applicable law, shall
not be subject to any defense or be affected by a right of set-off, counterclaim
or recoupment which the Borrower or any of its Subsidiaries may now or hereafter
have against any such beneficiary, the Issuing Bank, the Administrative Agent,
the Lenders or any other Person for any reason whatsoever.  Such
deposit shall be held as collateral securing the payment and performance of the
Borrower’s and the Guarantor’s obligations under this Agreement and the other
Loan Documents.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such
account.  Other than any interest earned on the investment of such
deposits, which investments shall be made at the written request and instruction
of the Borrower but at the option and sole discretion of the Administrative
Agent and at the Borrower’s risk and expense, such deposits shall not bear
interest.  Interest or profits, if any, on such investments shall
accumulate in such account.  Moneys in such account shall be applied
by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements
for which it has not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Borrower for
the LC Exposure at such time or, if the maturity of the Loans has been
accelerated, be applied to satisfy other obligations of the Borrower and the
Guarantors under this Agreement or the other Loan Documents.  If the
Borrower is required to provide an amount of cash collateral pursuant to
paragraphs (i), (iii) or (iv) above, and the Borrower is not otherwise required
to pay to the Administrative Agent the excess attributable to an LC Exposure in
connection with any prepayment pursuant to Section 

       

         

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        3.04(c),
then such amount (to the extent not applied as aforesaid) shall be returned to
the Borrower within three Business Days after (x) in the case of cash collateral
provided pursuant to paragraph (i) above, all Events of Default have been cured
or waived and (y) in the case of cash collateral provided pursuant to paragraphs
(iii) or (iv) above, the applicable Impacted Lender is no longer an Impacted
Lender.  The Borrower may at any time request confirmation from the
Administrative Agent that an Impacted Lender is no longer an Impacted Lender,
and the Administrative Agent shall promptly confirm such request or provide
written confirmation to the Borrower that such Lender remains an Impacted Lender
and the basis for such determination.

      

    

     

    (l) Existing Letters of
Credit.  Anything to the contrary notwithstanding, Letter of
Credit # SM234314W outstanding on the Effective Date shall continue to be a
Letter of Credit hereunder until March 24, 2010 whether or not Wachovia
continues to be a Lender hereunder and Wachovia shall have all of the rights,
remedies, powers and privileges of an Issuing Bank hereunder (including, without
limitation, the right to be reimbursed for any drawing hereunder) with respect
to such existing Letter of Credit until such time as such Letter of Credit
expires, is drawn and fully reimbursed or is renewed by another Letter of Credit
issued hereunder, or any combination thereof.

     

    Section
2.09 Swingline
Loans.

     

    (a) Subject
to the terms and conditions set forth herein, the Swingline Lender agrees to
make Swingline Loans to the Borrower from time to time during the Availability
Period in an aggregate principal amount at any time outstanding that will not
result in (i) the aggregate principal amount of outstanding Swingline Loans
exceeding $25,000,000 or (ii) the Aggregate Revolving Credit Exposures exceeding
the lesser of (i) the Borrowing Base then in effect or (ii) the Aggregate
Commitments then in effect.  Within the foregoing limits and subject
to the terms and conditions set forth herein, the Borrowers may borrow, prepay
and reborrow Swingline Loans.

     

    (b) To
request a Swingline Loan, the Borrower shall notify the Administrative Agent of
such request by telephone not later than 2:00 p.m., Charlotte, North Carolina
time, on the date of the proposed Borrowing.  Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery, telecopy or transmitted by electronic communication to the Swingline
Lender of a written Borrowing Request in a form approved by the Administrative
Agent and signed by the Borrower.  Each such telephonic and written
Borrowing Request shall specify the date of such Borrowing, which shall be a
Business Day in the United States, and aggregate amount of the requested
Borrowing.  The Administrative Agent will promptly advise the
Swingline Lender of any such notice received from the Borrower.  The
Swingline Lender shall make each Swingline Loan available to the Borrower by
means of a credit to the general deposit account of the Borrower with the
Swingline Lender (or, in the case of a Swingline Loan made to finance the
reimbursement of an LC Disbursement as provided in Section 2.08(f), by
remittance to the Issuing Bank) by 4:00 p.m., Charlotte, North Carolina
time, on the date such Borrowing is requested.

     

    (c) The
Swingline Lender may by written notice given to the Administrative Agent not
later than 10:00 a.m., Charlotte, North Carolina time, on any Business Day
require the Lenders to acquire participations on such Business Day in all or a
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      outstanding.  Such
notice shall specify the aggregate amount of Swingline Loans in which Lenders
will participate.  Promptly upon receipt of such notice, the
Administrative Agent will give notice thereof to each Lender, specifying in such
notice such Lender's Applicable Percentage of such Swingline Loan or Swingline
Loans.  Each Lender hereby absolutely and unconditionally agrees, upon
receipt of notice as provided above, to pay to the Administrative Agent, for the
account of the Swingline Lender, such Lender's Applicable Percentage of such
Swingline Loan or Loans.  Each Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this
paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or Event of Default or reduction or termination of the Commitments, and that
each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.  Each Lender shall comply with its obligation
under this paragraph by wire transfer of immediately available funds, in the
same manner as provided in Section 2.05 with respect to Loans made by such
Lender (and Section 2.05 shall apply, mutatis mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall promptly
pay to the Swingline Lender the amounts so received by it from the
Lenders.  The Administrative Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and
thereafter payments in respect of such Swingline Loan shall be made to the
Administrative Agent and not to the Swingline Lender.  Any amounts
received by the Swingline Lender from the Borrower (or other party on behalf of
the Borrower) in respect of a Swingline Loan after receipt by the Swingline
Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lender, as their interests may appear; provided that any such
payment so remitted shall be repaid to the Swingline Lender or to the
Administrative Agent, as applicable, if and to the extent such payment is
required to be refunded to the Borrower for any reason.  The purchase
of participations in a Swingline Loan pursuant to this paragraph shall not
relieve the Borrower of any default in the payment thereof.

    

     

    ARTICLE
III

     

    Payments
of Principal and Interest; Prepayments; Fees

     

    Section
3.01 Repayment of
Loans.  The
Borrower hereby unconditionally promises to pay to the (a) Administrative Agent
for the account of each Lender the then unpaid principal amount of each Loan on
the Termination Date and (b) Swingline Lender the then unpaid principal
amount of each Swingline Loan on the earlier of (i) the Termination Date and
(ii) seven (7) Business Days after such Swingline Loan is made; provided that on
each date that a Loan is made, the Borrower shall repay all Swingline Loans then
outstanding.

     

    Section
3.02 Interest.

     

    (a) ABR
Loans.  The Loans comprising each ABR Borrowing shall bear
interest on the unpaid principal amount of such Loans at the Alternate Base Rate
plus the Applicable Margin, but in no event to exceed the Highest Lawful
Rate.

     

    (b) Eurodollar
Loans.  The Loans comprising each Eurodollar Borrowing shall
bear interest on the unpaid principal amount of such Loans at the Adjusted LIBO
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      the
Interest Period in effect for such Borrowing plus the Applicable Margin, but in
no event to exceed the Highest Lawful Rate.

    

     

    (c) Swingline
Loans.  Each Swingline Loan shall bear interest on the unpaid
principal amount of such Swingline Loan at the Alternate Base Rate plus the
Applicable Margin, but in no event to exceed the Highest Lawful
Rate.

     

    (d) Post-Default
Rate.  Notwithstanding the foregoing, if any principal of or
interest on any Loan or any fee or other amount payable by the Borrower or any
Guarantor hereunder or under any other Loan Document is not paid when due,
whether at stated maturity, upon acceleration or otherwise, such overdue amount
shall bear interest, after as well as before judgment, at a rate per annum equal
to two percent (2%) plus the rate applicable to ABR Loans as provided in Section
3.02(a), but in no event to exceed the Highest Lawful Rate.

     

    (e) Interest Payment
Dates.  Accrued interest on each Loan shall be payable in
arrears on each Interest Payment Date for such Loan and on the Termination Date;
provided that (i) accrued interest on any Swingline Loan shall be payable on the
earlier of (a) the Termination Date and (b) seven (7) Business Days after such
Swingline Loan is made, (ii) interest accrued pursuant to Section 3.02(d) shall
be payable on demand, (iii) in the event of any repayment or prepayment of any
Loan (other than an optional prepayment of an ABR Loan prior to the Termination
Date), accrued interest on the principal amount repaid or prepaid shall be
payable on the date of such repayment or prepayment, and (iv) in the event of
any conversion of any Eurodollar Loan prior to the end of the current Interest
Period therefor, accrued interest on such Loan shall be payable on the effective
date of such conversion.

     

    (f) Interest Rate
Computations.  All interest hereunder shall be computed on the
basis of a year of 360 days, unless such computation would exceed the Highest
Lawful Rate, in which case interest shall be computed on the basis of a year of
365 days (or 366 days in a leap year), except that interest computed by
reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of 365 days (or
366 days in a leap year), and in each case shall be payable for the actual
number of days elapsed (including the first day but excluding the last
day).  The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO
Rate shall be determined by the Administrative Agent, and such determination
shall be conclusive absent manifest error, and be binding upon the parties
hereto.

     

    Section
3.03 Alternate Rate of
Interest  If
prior to the commencement of any Interest Period for a Eurodollar
Borrowing:

     

    (a) the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining
the Adjusted LIBO Rate or the LIBO Rate for such Interest Period;
or

     

    (b) the
Administrative Agent is advised by the Majority Lenders that the Adjusted LIBO
Rate or LIBO Rate, as applicable, for such Interest Period will not adequately
and fairly reflect the cost to such Lenders of making or maintaining their Loans
included in such Borrowing for such Interest Period; then the Administrative
Agent shall give notice thereof to the Borrower and the Lenders by telephone or
telecopy as promptly as practicable thereafter and, 

     

       

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      until the
Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective,
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.

    

     

    Section
3.04 Prepayments.

     

    (a) Optional
Prepayments.  The Borrower shall have the right at any time and
from time to time to prepay any Borrowing in whole or in part, subject to prior
notice in accordance with Section 3.04(b).

     

    (b) Notice and Terms of Optional
Prepayment.  The Borrower shall notify the Administrative Agent
by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case
of prepayment of a Eurodollar Borrowing, not later than 1:00 p.m. Charlotte,
North Carolina time, three Business
Days before the date of prepayment, or (ii) in the case of prepayment of an ABR
Borrowing, not later than 11:00 a.m. Charlotte, North Carolina time, on the date
of prepayment, which date shall be a Business Day in the United
States.  Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to
be prepaid.  Promptly following receipt of any such notice relating to
a Borrowing, the Administrative Agent shall advise the Lenders of the contents
thereof.  Each partial prepayment of any Borrowing shall be in an
amount that would be permitted in the case of an advance of a Borrowing of the
same Type as provided in Section 2.02.  Each prepayment of a Borrowing
shall be applied ratably to the Loans included in the prepaid
Borrowing.  Prepayments shall be accompanied by accrued interest to
the extent required by Section 3.02.

     

    (c) Mandatory
Prepayments.

     

    (i) If, after
giving effect to any termination or reduction of the Aggregate Commitment
pursuant to Section 2.06(b), the Aggregate Revolving Credit Exposures exceed the
Aggregate Commitments, then the Borrower shall (A) prepay the Borrowings in an
aggregate principal amount equal to such excess, or add to the Mortgaged
Property, Oil and Gas Properties, having value, as determined by the
Administrative Agent and the Majority Lenders, equal to or greater than such
excess, or a combination thereof and (B) if any excess remains after prepaying
all of the Borrowings as a result of an LC Exposure, pay to the Administrative
Agent on behalf of the Lenders an amount equal to such excess to be held as cash
collateral as provided in Section 2.08(k).  The Borrower will be
obligated to make such prepayment, provide such collateral and/or deposit of
cash collateral within ninety (90) days following such termination or reduction
of the Aggregate Commitment; provided that all payments required to be made
pursuant to this Section 3.04(c)(i) must be made on or prior to the Termination
Date.

     

    (ii) Upon any
redetermination of or adjustment to the amount of the Borrowing Base in
accordance with Section 2.07 or Section 8.13(c), if the Aggregate Revolving
Credit Exposures exceed the redetermined or adjusted Borrowing Base, then the
Borrower shall either (A)(1) prepay the Borrowings in an aggregate principal
amount equal to such excess, or add to the Mortgaged Property, Oil and Gas
Properties, having value, as determined by the 

    
       

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      Administrative
Agent and the Majority Lenders, equal to or greater than such excess, or a
combination thereof and (2) if any excess remains after prepaying all of the
Borrowings as a result of an LC Exposure, pay to the Administrative Agent on
behalf of the Lenders an amount equal to such excess to be held as cash
collateral as provided in Section 2.08(k) or (B) prepay, subject to the payment
of any funding indemnification amounts required by Section 5.02 but without
premium or penalty, the principal amount of such excess in not more than six (6)
equal monthly installments plus accrued interest thereon with the first such
monthly payment being due within thirty (30) days following its receipt of the
New Borrowing Base Notice in accordance with Section 2.07(d) or the date the
adjustment occurs.  The Borrower shall be obligated to make any
prepayment pursuant to Section 3.04(c)(ii)(A)(1) and/or provide any collateral
pursuant to Section 3.04(c)(ii)(A)(1) and/or deposit cash collateral pursuant to
Section 3.04(c)(ii)(A)(2) within ninety (90) days following its receipt of the
New Borrowing Base Notice in accordance with Section 2.07(d) or the date the
adjustment occurs.  The Borrower shall be obligated to make all
payments required to be made pursuant to Section 3.04(c)(ii)(B) on or prior to
the Termination Date.  Notwithstanding any of the foregoing, all
payments, additions of mortgages on Oil and Gas Properties and cash collateral
deposits required to be made pursuant to this Section 3.04(c)(ii) must be made
on or prior to the Termination Date.

    

     

    (iii) Upon any
adjustments to the Borrowing Base pursuant to Section 9.11(a), Section 9.12 or
Section 9.20, if the Aggregate Revolving Credit Exposures exceed the Borrowing
Base as adjusted, then the Borrower shall (A) prepay the Borrowings in an
aggregate principal amount equal to such excess, or add to the Mortgaged
Property, Oil and Gas Properties, having value, as determined by the
Administrative Agent and the Majority Lenders, equal to or greater than such
excess, or a combination thereof and (B) if any excess remains after prepaying
all of the Borrowings as a result of an LC Exposure, pay to the Administrative
Agent on behalf of the Lenders an amount equal to such excess to be held as cash
collateral as provided in Section 2.08(k).  The Borrower shall be
obligated to make such prepayment, provide such collateral and/or deposit of
cash collateral within ninety (90) days following such adjustment to the
Borrowing Base (or, if sooner, on the date the Borrower receives cash proceeds
as a result of a disposition pursuant to Section 9.12); provided that all
payments required to be made pursuant to this Section
3.04(c)(iii)  must be made on or prior to the Termination
Date.

     

    (iv) Each
prepayment of Borrowings pursuant to this Section 3.04(c) shall be applied,
first, ratably to any ABR Borrowings then outstanding, and, second, to any
Eurodollar Borrowings then outstanding, and if more than one Eurodollar
Borrowing is then outstanding, to each such Eurodollar Borrowing in order of
priority beginning with the Eurodollar Borrowing with the least number of days
remaining in the Interest Period applicable thereto and ending with the
Eurodollar Borrowing with the most number of days remaining in the Interest
Period applicable thereto.

     

    (v) Each
prepayment of Borrowings pursuant to this Section 3.04(c) shall be applied
ratably to the Loans included in the prepaid Borrowings.  Prepayments
pursuant to this Section 3.04(c) shall be accompanied by accrued interest to the
extent required by Section 3.02.

     

    (d) No Premium or
Penalty.  Prepayments permitted or required under this Section
3.04 shall be without premium or penalty, except as required under Section
5.02.

     

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    Section
3.05 Fees.

     

    (a) Commitment
Fees.  The Borrower agrees to pay to the Administrative Agent
for the account of each Lender a commitment fee, which shall accrue at the
applicable Commitment Fee Rate on the daily unused amount of the Commitment of
such Lender during the period from and including the date of this Agreement to
but excluding the Termination Date.  Accrued commitment fees shall be
payable in arrears on the last day of March, June, September and December of
each year and on the Termination Date, commencing on the first such date to
occur after the date hereof.  All commitment fees shall be computed on
the basis of a year of 360 days, unless such computation would exceed the
Highest Lawful Rate, in which case interest shall be computed on the basis of a
year of 365 days (or 366 days in a leap year), and shall be payable for the
actual number of days elapsed (including the first day but excluding the last
day).  If a Lender is an Impacted Lender, commitment fees shall cease
to accrue pursuant to this Section 3.05(a) on the entire Commitment of such
Lender until such Lender is no longer an Impacted Lender.

     

    (b) Letter of Credit
Fees.  The Borrower agrees to pay (i) to the Administrative
Agent for the account of each Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Margin used to determine the interest rate applicable to Eurodollar Loans on the
average daily amount of such Lender’s LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and
including the date of this Agreement to but excluding the later of the date on
which such Lender’s Commitment terminates and the date on which such Lender
ceases to have any LC Exposure, (ii) to the Issuing Bank a fronting fee, which
shall accrue at the rate of 0.125% per annum on the average daily amount of the
LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the date of this Agreement
to but excluding the later of the date of termination of the Commitments and the
date on which there ceases to be any LC Exposure, provided that in no event
shall such fee be less than $300 during any quarter, and (iii) to the Issuing
Bank, for its own account, its standard fees with respect to the issuance,
amendment, renewal or extension of any Letter of Credit or processing of
drawings thereunder.  Participation fees and fronting fees accrued
through and including the last day of March, June, September and December of
each year shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the date of this Agreement;
provided that all such fees shall be payable on the Termination Date and any
such fees accruing after the Termination Date shall be payable on
demand.  Any other fees payable to the Issuing Bank pursuant to this
Section 3.05(b) shall be payable within 10 days after demand.  All
participation fees and fronting fees shall be computed on the basis of a year of
360 days, unless such computation would exceed the Highest Lawful Rate, in which
case interest shall be computed on the basis of a year of 365 days (or 366 days
in a leap year), and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

     

    (c) Administrative Agent
Fees.  The Borrower agrees to pay to the Administrative Agent,
for its own account, fees payable in the amounts and at the times separately
agreed upon between the Borrower and the Administrative Agent.

    
       

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    ARTICLE
IV

     

    Payments;
Pro Rata Treatment; Sharing of Set-offs.

     

    Section
4.01 Payments Generally; Pro Rata
Treatment; Sharing of Set-offs.

     

    (a) Payments by the
Borrower.  The Borrower shall make each payment required to be
made by it hereunder (whether of principal, interest, fees or reimbursement of
LC Disbursements, or of amounts payable under Section 5.01, Section 5.02,
Section 5.03 or otherwise) prior to 2:00 p.m. Charlotte, North Carolina time, on the date when
due, in immediately available funds, without defense, deduction, recoupment,
set-off or counterclaim.  Fees, once paid, shall not be refundable
under any circumstances.  Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon.  All such payments shall be made to the
Administrative Agent at its offices specified in Section 12.01, except payments
to be made directly to the Issuing Bank as expressly provided herein and except
that payments pursuant to Section 2.09, Section 5.01, Section 5.02, Section 5.03
and Section 12.03 shall be made directly to the Persons entitled
thereto.  The Administrative Agent shall distribute any such payments
received by it for the account of any other Person to the appropriate recipient
promptly following receipt thereof.  If any payment hereunder shall be
due on a day that is not a Business Day, the date for payment shall be extended
to the next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such
extension.  All payments hereunder shall be made in
dollars.

     

    (b) Application of Insufficient
Payments.  If at any time insufficient funds are received by
and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds
shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, towards
payment of principal and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such
parties.

     

    (c) Sharing of Payments by
Lenders.  If any Lender shall, by exercising any right of
set-off or counterclaim or otherwise, obtain payment in respect of any principal
of or interest on any of its Loans or participations in LC Disbursements
resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans and participations in LC Disbursements and accrued
interest thereon than the proportion received by any other Lender (other than,
in the case of Swingline Loans, the Swingline Lender), then the Lender receiving
such greater proportion shall purchase (for cash at face value) participations
in the Loans and participations in LC Disbursements of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and participations in LC
Disbursements; provided that (i) if any such participations are purchased and
all or any portion of the payment giving rise thereto is recovered, such
participations shall be rescinded and the purchase price restored to the extent
of such recovery, without interest, and (ii) the provisions of this Section
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      Borrower
to a particular Lender pursuant to and in accordance with the express terms of
this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in LC Disbursements to any assignee or participant.  The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such
participation.

    

     

    Section
4.02 Presumption of Payment by
the Borrower.  Unless
the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Administrative Agent for the account
of the Lenders or the Issuing Bank that the Borrower will not make such payment,
the Administrative Agent may assume that the Borrower has made such payment on
such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Bank, as the case may be, the amount
due.  In such event, if the Borrower has not in fact made such
payment, then each of the Lenders or the Issuing Bank, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the
amount so distributed to such Lender or Issuing Bank with interest thereon, for
each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank
compensation.

     

    Section
4.03 Certain Deductions by the
Administrative Agent.  If
any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.05(b), Section 2.08(e), Section 2.08(f) or Section 4.02 then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender’s obligations under
such Sections until all such unsatisfied obligations are fully
paid.  If at any time prior to the acceleration or maturity of the
Loans, the Administrative Agent shall receive any payment in respect of
principal of a Loan or a reimbursement of an LC Disbursement while one or more
Impacted Lenders shall be party to this Agreement, the Administrative Agent
shall apply such payment first to the Borrowing(s) for which such Impacted
Lender(s) shall have failed to fund its pro rata share until such time as such
Borrowing(s) are paid in full or each Lender (including each Impacted Lender) is
owed its Applicable Percentage of all Loans then outstanding.  After
acceleration or maturity of the Loans, all principal will be paid ratably as
provided in Section 10.02(c).

     

    Section
4.04 Disposition of
Proceeds.  The
Security Instruments contain an assignment by the Borrower and/or the Material
Subsidiaries unto and in favor of the Administrative Agent for the benefit of
the Lenders of all of the Borrower’s or each Material Subsidiary’s interest in
and to production and all proceeds attributable thereto which may be produced
from or allocated to the Mortgaged Property.  The Security Instruments
further provide in general for the application of such proceeds to the
satisfaction of the Indebtedness and other obligations described therein and
secured thereby.  Notwithstanding the assignment contained in such
Security Instruments, until the occurrence of an Event of Default, (a) the
Administrative Agent and the Lenders agree that they will neither notify the
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    nor take
any other action to cause such proceeds to be remitted to the Administrative
Agent or the Lenders, but the Lenders will instead permit such proceeds to be
paid to the Borrower and its Material Subsidiaries and (b) the Lenders hereby
authorize the Administrative Agent to take such actions as may be necessary to
cause such proceeds to be paid to the Borrower and/or such Material
Subsidiaries.

     

    ARTICLE
V

     

    Increased
Costs; Break Funding Payments; Taxes; Illegality

     

    Section
5.01 Increased
Costs.

     

    (a) Eurodollar Changes in
Law.  If any Change in Law shall:

     

    (i) impose,
modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by,
any Lender (except  any such reserve requirement reflected in the
Adjusted LIBO Rate); or

     

    (ii) impose on
any Lender or the London interbank market any other condition affecting this
Agreement or Eurodollar Loans made by such Lender;

     

    and the
result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any Eurodollar Loan (or of maintaining its obligation to
make any such Loan) or to reduce the amount of any sum received or receivable by
such Lender (whether of principal, interest or otherwise), then the Borrower
will pay to such Lender such additional amount or amounts as will compensate
such Lender for such additional costs incurred or reduction
suffered.

     

    (b) Capital
Requirements.  If any Lender or the Issuing Bank determines
that any Change in Law regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender’s or the Issuing Bank’s
capital or on the capital of such Lender’s or the Issuing Bank’s holding
company, if any, as a consequence of this Agreement or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the Issuing Bank, to a level below that which such Lender or
the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could
have achieved but for such Change in Law (taking into consideration such
Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the
Issuing Bank’s holding company with respect to capital adequacy), then from time
to time the Borrower will pay to such Lender or the Issuing Bank, as the case
may be, such additional amount or amounts as will compensate such Lender or the
Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such
reduction suffered.

     

    (c) Certificates.  A
certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company,
as the case may be, as specified in Section 5.01(a) or (b) shall be delivered to
the Borrower and shall be conclusive absent manifest error.  The
Borrower shall pay such Lender or the Issuing Bank, as the case may be, the
amount shown as due on any such certificate within 10 days after receipt
thereof.

     

    (d) Effect of Failure or Delay
in Requesting Compensation.  Failure or delay on the part of
any Lender or the Issuing Bank to demand compensation pursuant to this Section

    
      
         

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      5.01
shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to
demand such compensation.

    

     

    Section
5.02 Break Funding
Payments.  In
the event of (a) the payment of any principal of any Eurodollar Loan other than
on the last day of an Interest Period applicable thereto (including as a result
of an Event of Default), (b) the conversion of any Eurodollar Loan into an ABR
Loan other than on the last day of the Interest Period applicable thereto, or
(c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on
the date specified in any notice delivered pursuant hereto, then, in any such
event, the Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event.  In the case of a Eurodollar Loan, such
loss, cost or expense to any Lender shall be deemed to include an amount
determined by such Lender to be the excess, if any, of (i) the amount of
interest which would have accrued on the principal amount of such Loan had such
event not occurred, at the Adjusted LIBO Rate that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would
bid were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the eurodollar
market.

     

    A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section 5.02 shall be delivered to the
Borrower and shall be conclusive absent manifest error.  The Borrower
shall pay such Lender the amount shown as due on any such certificate within 10
days after receipt thereof.

     

    Section
5.03 Taxes.

     

    (a) Payments Free of
Taxes.  Any and all payments by or on account of any obligation
of the Borrower or any Material Subsidiary under any Loan Document shall be made
free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided that if the Borrower shall be required to deduct any Indemnified
Taxes or Other Taxes from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 5.03(a)),
the Administrative Agent, Lender or Issuing Bank (as the case may be) receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

     

    (b) Payment of Other Taxes by
the Borrower.  The Borrower shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

     

    (c) Indemnification by the
Borrower.  The Borrower shall indemnify the Administrative
Agent, each Lender and the Issuing Bank, within 10 days after written demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Administrative Agent, such Lender or the Issuing Bank, as the case may be,
on or with respect to any payment by or on account of any obligation of the
Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 5.03)

    
      
         

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      and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority.  A
certificate of the Administrative Agent, a Lender or the Issuing Bank as to the
amount of such payment or liability under this Section 5.03 shall be delivered
to the Borrower and shall be conclusive absent manifest
error.

    

     

    (d) Evidence of
Payments.  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority,
the Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

     

    (e) Foreign
Lenders.  Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which
the Borrower is located, or any treaty to which such jurisdiction is a party,
with respect to payments under this Agreement or any other Loan Document shall
deliver to the Borrower (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a
reduced rate.

     

    (f) Tax
Refunds.  If the Administrative Agent or a Lender determines,
in its reasonable discretion, that it has received a refund of any Taxes or
Other Taxes as to which it has been indemnified by the Borrower or with respect
to which the Borrower has paid additional amounts pursuant to this Section 5.03,
it shall pay over such refund to the Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this
Section 5.03 with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent or such
Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided, that the
Borrower, upon the request of the Administrative Agent or such Lender, agrees to
repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental
Authority.  This Section 5.03 shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.

     

    Section
5.04 Designation of Different
Lending Office.  If
any Lender requests compensation under Section 5.01, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 5.03, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 5.01 or Section 5.03, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such
Lender.  The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or
assignment.

     

    
      
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    Section
5.05 Illegality.  Notwithstanding
any other provision of this Agreement, in the event that it becomes unlawful for
any Lender or its applicable lending office to honor its obligation to make or
maintain Eurodollar Loans either generally or having a particular Interest
Period hereunder, then (a) such Lender shall promptly notify the Borrower and
the Administrative Agent thereof and such Lender’s obligation to make such
Eurodollar Loans shall be suspended (the “Affected Loans”)
until such time as such Lender may again make and maintain such Eurodollar Loans
and (b) all Affected Loans which would otherwise be made by such Lender shall be
made instead as ABR Loans (and, if such Lender so requests by notice to the
Borrower and the Administrative Agent, all Affected Loans of such Lender then
outstanding shall be automatically converted into ABR Loans on the date
specified by such Lender in such notice) and, to the extent that Affected Loans
are so made as (or converted into) ABR Loans, all payments of principal which
would otherwise be applied to such Lender’s Affected Loans shall be applied
instead to its ABR Loans.  Subject to Section 5.06, no Commitment
of any Lender shall be increased or otherwise affected solely as a result of the
operation of this Section 5.05 and, except as otherwise expressly provided
in this Section 5.05, performance by the Borrower of its obligations hereunder
and the other Loan Documents shall not be excused or otherwise modified solely
as a result of the operation of this Section 5.05.

     

    

    Section
5.06 Replacement of
Lenders.

     

    (a) If any
Lender requests compensation under Section 5.01, or if the Borrower is required
to pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 5.03, or if any Lender has Affected
Loans pursuant to Section 5.05, or if any Lender becomes an Impacted Lender, or
if any Lender refuses to approve a Proposed Borrowing Base pursuant to Section
2.07(c)(iii) and as a result, the Borrower elects to replace such dissenting
Lender pursuant to Section 2.07(c)(iv), then the Borrower may, at its sole
expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in Section 12.04(b)), all its
interests, rights and obligations under this Agreement to an assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided that (i) the Borrower shall have received the
prior written consent of the Administrative Agent, which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and participations in LC
Disbursements, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all
other amounts) and (iii) in the case of any such assignment resulting from a
claim for compensation under Section 5.01 or payments required to be made
pursuant to Section 5.03, such assignment will result in a reduction in such
compensation or payments.  A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.

    
      
         

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    ARTICLE
VI

     

    Conditions
Precedent

     

    Section
6.01 Effective
Date.  The
obligations of the Lenders to make Loans and of the Issuing Bank to issue
Letters of Credit hereunder shall not become effective until the date on which
each of the following conditions is satisfied (or waived in accordance with
Section 12.02):

     

    (a) The
Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Effective Date, including, without limitation, to the
extent invoiced, reimbursement or payment of all of the Administrative Agent’s
out-of-pocket expenses including, without limitation, the reasonable fees,
charges and disbursements of counsel for the Administrative Agent, required to
be reimbursed or paid by the Borrower hereunder.

     

    (b) The
Administrative Agent shall have received a certificate of the Secretary or an
Assistant Secretary of each of the Borrower and each Guarantor setting forth (i)
resolutions of its board of directors with respect to the authorization of the
Borrower or such Guarantor to execute and deliver the Loan Documents to which it
is a party and to enter into the transactions contemplated in those documents,
(ii) the officers of the Borrower or such Guarantor (y) who are authorized to
sign the Loan Documents to which the Borrower or such Guarantor is a party and
(z) who will, until replaced by another officer or officers duly authorized for
that purpose, act as its representative for the purposes of signing documents
and giving notices and other communications in connection with this Agreement
and the transactions contemplated hereby, (iii) specimen signatures of such
authorized officers, and (iv) that no changes to the articles or certificate of
incorporation and bylaws of the Borrower and such Guarantor have occurred since
December 18, 2008.  The Administrative Agent and the Lenders may
conclusively rely on such certificate until the Administrative Agent receives
notice in writing from the Borrower to the contrary.

     

    (c) The
Administrative Agent shall have received certificates of the appropriate State
agencies with respect to the existence, qualification and good standing of the
Borrower and each Guarantor.

     

    (d) The
Administrative Agent shall have received a compliance certificate which shall be
substantially in the form of Exhibit B, duly and properly executed by a
Responsible Officer and dated as of the Effective Date certifying compliance
(including compliance with Section 8.12) with the Existing Credit Agreement as
of such date.

     

    (e) The
Administrative Agent shall have received from each party hereto counterparts (in
such number as may be requested by the Administrative Agent) of this Agreement
signed on behalf of such party.

     

    (f) The
Administrative Agent shall have received duly executed Notes payable to the
order of each Lender in a principal amount equal to such Lender’s Commitment
dated as of the date hereof.

     

    (g) The
Administrative Agent shall have received from each party thereto duly executed
and completed counterparts (in such number as may be requested by the
Administrative Agent) of the Security Instruments, including the Reaffirmation
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      the other
Security Instruments described on Exhibit C.  In connection with the
execution and delivery of the Security Instruments, the Administrative Agent
shall:

    

     

    (i) be
reasonably satisfied that the Security Instruments create first priority,
perfected Liens (subject only to Excepted Liens identified in clauses (a) to (d)
and (f) of the definition thereof, but subject to the provisos at the end of
such definition) on at least 80% of the total value of the Oil and Gas
Properties evaluated in the Initial Reserve Report sufficient in the reasonable
opinion of the Administrative Agent to justify a Borrowing Base of $900,000,000
on the Effective Date hereof; and

     

    (ii) have
received certificates, together with undated, blank stock powers for each such
certificate, representing all of the issued and outstanding Equity Interests of
each of the Guarantors.

     

    (h) The
Administrative Agent shall have received an opinion of Ballard Spahr Andrews
& Ingersoll, LLP, special counsel to the
Borrower and the Guarantors, substantially in the form of Exhibit H hereto,
and such other
legal opinions, including opinions of local counsel, certificates, notes,
documents and other instruments as the Administrative Agent may
request.

     

    (i) The
Administrative Agent shall have received a certificate of insurance coverage of
the Borrower evidencing that the Borrower is carrying insurance in accordance
with Section 7.13.

     

    (j) The
Administrative Agent shall have received title opinions, in form and substance
satisfactory to the Administrative Agent, or other evidence of title, in form
and substance satisfactory to the Administrative Agent, setting forth the status
of title to at least 80% of the total value of the Mortgaged Properties
evaluated in the Initial Reserve Report and the Administrative Agent shall be
reasonably satisfied with the status of title reflected therein.

     

    (k) The
proceeds of the initial Loans shall be used to renew, rearrange, modify and
extend the outstanding amounts under the Existing Credit Agreement and all
“Commitments” (as defined in the Existing Credit Agreement) thereunder shall
have been terminated.

     

    (l) The
Administrative Agent shall be reasonably satisfied with the environmental
condition of the Oil and Gas Properties of the Borrower and its Material
Subsidiaries.

     

    (m) The
Administrative Agent shall have received a certificate of a Responsible Officer
of the Borrower certifying that the Borrower has received all consents and
approvals required by Section 7.03.

     

    (n) The
Administrative Agent shall have received the financial statements referred to in
Section 7.04(a) and the Initial Reserve Report accompanied by a certificate
covering the matters described in Section 8.12(c).

     

    (o) The
Administrative Agent shall have received appropriate UCC search certificates
reflecting no prior Liens encumbering the Properties of the Borrower and the

    
      
         

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    Material
Subsidiaries for each of the following jurisdictions: Colorado, Delaware,
Louisiana, Montana, New Mexico, North Dakota, Oklahoma, Texas, and
Wyoming and any other jurisdiction requested by the Administrative Agent;
other than those being assigned or released on or prior to the Effective Date or
Liens permitted by Section 9.03.

     

    (p) The
Administrative Agent shall have received a letter from Corporation Service
Company evidencing the appointment of Corporation Service Company as authorized
agent for service of process on the Borrower under each Loan Document to which
it is a party,

     

    (q) The
Administrative Agent shall have received such other documents as the
Administrative Agent or special counsel to the Administrative Agent may
reasonably request.

     

    The
Administrative Agent shall notify the Borrower and the Lenders of the Effective
Date, and such notice shall be conclusive and
binding.  Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Bank to issue Letters of Credit
hereunder shall not become effective unless each of the foregoing conditions is
satisfied (or waived pursuant to Section 12.02) at or prior to 5:00 p.m.,
Charlotte, North Carolina time, on April 15, 2009 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at
such time).

     

    Section
6.02 Each Credit
Event.  The
obligation of each Lender to make a Loan on the occasion of any Borrowing
(including the initial funding), and of the Issuing Bank to issue, amend, renew
or extend any Letter of Credit, is subject to the satisfaction of the following
conditions:

     

    (a) At the
time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no
Default shall have occurred and be continuing.

     

    (b) At the
time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no
Material Adverse Effect shall have occurred.

     

    (c) The
representations and warranties of the Borrower and the Guarantors set forth in
this Agreement and in the other Loan Documents shall be true and correct in all
material respects on and as of the date of such Borrowing or the date of
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, except to the extent any such representations and warranties are
expressly limited to an earlier date, in which case, on and as of the date of
such Borrowing or the date of issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, such representations and warranties shall
continue to be true and correct as of such specified earlier date.

     

    (d) The
making of such Loan or the issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, would not conflict with, or cause any Lender or
the Issuing Bank to violate or exceed, any applicable Governmental Requirement,
and no Change in Law shall have occurred, and no litigation shall be pending or
threatened, which does or, with respect to any threatened litigation, seeks to,
enjoin, prohibit or restrain, the making or repayment of any Loan, the issuance,
amendment, renewal, extension or repayment of any Letter 

    
      
         

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    of Credit
or any participations therein or the consummation of the transactions
contemplated by this Agreement or any other Loan Document.

     

    (e) The
receipt by the Administrative Agent of a Borrowing Request in accordance with
Section 2.03 or a request for a Letter of Credit in accordance with Section
2.08(b), as applicable.

     

    Each
Borrowing and each issuance, amendment, renewal or extension of any Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrower on the date thereof as to the matters specified in Section 6.02(a)
through (e).

     

    ARTICLE
VII

     

    Representations
and Warranties

     

    The
Borrower represents and warrants to the Lenders that:

     

    Section
7.01 Organization;
Powers.  Each
of the Borrower and the Material Subsidiaries is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority, and has all material
governmental licenses, authorizations, consents and approvals necessary, to own
its assets and to carry on its business as now conducted, and is qualified to do
business in, and is in good standing in, every jurisdiction where such
qualification is required, except where failure to have such power, authority,
licenses, authorizations, consents, approvals and qualifications could not
reasonably be expected to have a Material Adverse Effect.

     

    Section
7.02 Authority;
Enforceability.  The
Transactions are within the Borrower’s and each Guarantor’s corporate powers and
have been duly authorized by all necessary corporate and, if required,
stockholder action.  Each Loan Document to which the Borrower and each
Guarantor is a party has been duly executed and delivered by the Borrower and
such Guarantor and constitutes a legal, valid and binding obligation of the
Borrower and such Guarantor, as applicable, enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity
or at law.

     

    Section
7.03 Approvals; No
Conflicts.  The
Transactions (a) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority or any other
third Person, nor is any such consent, approval, registration, filing or other
action necessary for the validity or enforceability of any Loan Document or the
consummation of the transactions contemplated thereby, except such as have been
obtained or made and are in full force and effect other than (i) the recording
and filing of the Security Instruments as required by this Agreement and (ii)
those third party approvals or consents which, if not made or obtained, would
not cause a Default hereunder, could not reasonably be expected to have a
Material Adverse Effect or do not have an adverse effect on the enforceability
of the Loan Documents, (b) will not violate any applicable law or regulation or
the charter, by-laws or other organizational documents of the Borrower or any
Material Subsidiary or any order of any Governmental Authority, (c) will not
violate or result in a default under any indenture, agreement or other

    
      
        
           

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        instrument
binding upon the Borrower or any Material Subsidiary or its Properties, or give
rise to a right thereunder to require any payment to be made by the Borrower or
such Material Subsidiary and (d) will not result in the creation or imposition
of any Lien on any Property of the Borrower or any Material Subsidiary (other
than the Liens created by the Loan Documents).

      

    

     

    Section
7.04 Financial Condition; No
Material Adverse Change.

     

    (a) The
Borrower has heretofore furnished to the Lenders its consolidated balance sheet
and statements of income, stockholders equity and cash flows as of and for the
fiscal year ended December 31, 2008, reported on by Deloitte & Touche,
independent public accountants.  Such financial statements present
fairly, in all material respects, the financial position and results of
operations and cash flows of the Borrower and its Consolidated Subsidiaries as
of such date and for such period in accordance with GAAP.

     

    (b) Since
December 31, 2008, (i) there has been no material adverse change in the
business, assets, operations, prospects or condition, financial or otherwise, of
the Borrower and its Material Subsidiaries, taken as a whole and (ii) the
business of the Borrower and its Material Subsidiaries has been conducted only
in the ordinary course consistent with past business practices.

     

    (c) Neither
the Borrower nor any Material Subsidiary has on the date hereof (i) any material
Debt (including Disqualified Capital Stock), except as referred to or reflected
or provided for in the Financial Statements, or (ii) any contingent liabilities,
off-balance sheet liabilities or partnerships, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any
unfavorable commitments, incurred outside the ordinary course of the Borrower’s
or such Material Subsidiary’s business.

     

    Section
7.05 Litigation.

     

    (a) Except as
set forth on Schedule 7.05, there are no material actions, suits,
investigations or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting the Borrower or any Material Subsidiary (i) not fully
covered by insurance (except for normal deductibles) as to which there is a
reasonable possibility of an adverse determination that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect, or (ii) that involve any Loan Document or
the Transactions.

     

    (b) Since the
date of this Agreement, there has been no change in the status of the matters
disclosed in Schedule 7.05 that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

     

    Section
7.06 Environmental
Matters.  Except
as could not be reasonably expected to have a Material Adverse Effect (or with
respect to (c), (d) and (e) below, where the failure to take such actions could
not be reasonably expected to have a Material Adverse Effect):

     

    (a) neither
any Property of the Borrower or any Material Subsidiary nor the operations
conducted thereon violate any order or requirement of any court or Governmental
Authority or any Environmental Laws.

    
      
        
           

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    (b) no
Property of the Borrower or any Material Subsidiary nor the operations currently
conducted thereon or, to the knowledge of the Borrower, by any prior owner or
operator of such Property or operation, are in violation of or subject to any
existing, pending or threatened action, suit, investigation, inquiry or
proceeding by or before any court or Governmental Authority or to any remedial
obligations under Environmental Laws.

     

    (c) all
notices, permits, licenses, exemptions, approvals or similar authorizations, if
any, required to be obtained or filed in connection with the operation or use of
any and all Property of the Borrower and each Material Subsidiary, including
past or present treatment, storage, disposal or release of a hazardous
substance, oil and gas waste or solid waste into the environment, have been duly
obtained or filed, and the Borrower and each Material Subsidiary are in
compliance with the terms and conditions of all such notices, permits, licenses
and similar authorizations.

     

    (d) all
hazardous substances, solid waste and oil and gas waste, if any, generated at
any and all Property of the Borrower or any Material Subsidiary have in the past
been transported, treated and disposed of in accordance with Environmental Laws
and so as not to pose an imminent and substantial endangerment to public health
or welfare or the environment, and, to the knowledge of the Borrower, all such
transport carriers and treatment and disposal facilities have been and are
operating in compliance with Environmental Laws and so as not to pose an
imminent and substantial endangerment to public health or welfare or the
environment, and are not the subject of any existing, pending or threatened
action, investigation or inquiry by any Governmental Authority in connection
with any Environmental Laws.

     

    (e) the
Borrower has taken all steps reasonably necessary to determine and has
determined that no oil, hazardous substances, solid waste or oil and gas waste,
have been disposed of or otherwise released and there has been no threatened
release of any oil, hazardous substances, solid waste or oil and gas waste on or
to any Property of the Borrower or any Material Subsidiary except in compliance
with Environmental Laws and so as not to pose an imminent and substantial
endangerment to public health or welfare or the environment.

     

    (f) to the
extent applicable, all Property of the Borrower and each Material Subsidiary
currently satisfies all design, operation, and equipment requirements imposed by
the OPA, and the Borrower does not have any reason to believe that such
Property, to the extent subject to the OPA, will not be able to maintain
compliance with the OPA requirements during the term of this
Agreement.

     

    (g) neither
the Borrower nor any Material Subsidiary has any known contingent liability or
Remedial Work in connection with any release or threatened release of any oil,
hazardous substance, solid waste or oil and gas waste into the
environment.

     

    Section
7.07 Compliance with the Laws and
Agreements; No Defaults.

     

    (a) Each of
the Borrower and each Material Subsidiary is in compliance with all Governmental
Requirements applicable to it or its Property and all agreements and other
instruments binding upon it or its Property, and possesses all licenses,
permits, franchises, exemptions, approvals and other governmental authorizations
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        Property
and the conduct of its business, except where the failure to do so, individually
or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

      

    

     

    (b) Neither
the Borrower nor any Material Subsidiary is in default nor has any event or
circumstance occurred which, but for the expiration of any applicable grace
period or the giving of notice, or both, would constitute a default or would
require the Borrower or a Material Subsidiary to Redeem or make any offer to do
any of the foregoing under any indenture, note, credit agreement or instrument
pursuant to which any Material Indebtedness is outstanding or by which the
Borrower or any Material Subsidiary or any of their Properties is
bound.

     

    (c) No
Default has occurred and is continuing.

     

    Section
7.08 Investment Company
Act.  Neither
the Borrower nor any Subsidiary is an “investment company” or a company
“controlled” by an “investment company,” within the meaning of, or subject to
regulation under, the Investment Company Act of 1940, as amended.

     

    Section
7.09 Public Utility Holding
Company Act.  Neither
the Borrower nor any Subsidiary is a “holding company,” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or of
a “subsidiary company” of a “holding company,” or a “public utility” within the
meaning of, or subject to regulation under, the Public Utility Holding Company
Act of 1935, as amended.

     

    Section
7.10 Taxes.  Each
of the Borrower and its Subsidiaries has timely filed or caused to be filed all
Tax returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings and for which the Borrower or
such Subsidiary, as applicable, has set aside on its books adequate reserves in
accordance with GAAP or (b) to the extent that the failure to do so could not
reasonably be expected to result in a Material Adverse Effect.  The
charges, accruals and reserves on the books of the Borrower and its Subsidiaries
in respect of Taxes and other governmental charges are, in the reasonable
opinion of the Borrower, adequate.  No Tax Lien has been filed and, to
the knowledge of the Borrower, no claim is being asserted with respect to any
such Tax or other such governmental charge.

     

    Section
7.11 ERISA.

     

    (a) The
Borrower, the Subsidiaries and each ERISA Affiliate have complied in all
material respects with ERISA and, where applicable, the Code regarding each
Plan.

     

    (b) Each Plan
is, and has been, maintained in substan­tial compliance with ERISA and,
where applicable, the Code.

     

    (c) No act,
omission or transaction has occurred which could result in imposition on the
Borrower, any Subsidiary or any ERISA Affiliate (whether directly or indirectly)
of (i) either a civil penalty assessed pursuant to subsections (c), (i) or (l)
of section 502 of ERISA or a tax imposed pursuant to Chapter 43 of
Subtitle D of the Code or (ii) breach of fiduciary duty liability damages
under section 409 of ERISA.

    
      
        
           

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    (d) No Plan
(other than a defined contribu­tion plan) or any trust created under any
such Plan has been terminated since September 2, 1974.  No
liability to the PBGC (other than for the payment of current premiums which are
not past due) by the Borrower, any Subsidiary or any ERISA Affiliate has been or
is expected by the Borrower, any Subsidiary or any ERISA Affiliate to be
incurred with respect to any Plan.  No ERISA Event with respect to any
Plan has occurred.

     

    (e) Full
payment when due has been made of all amounts which the Borrower, the
Subsidiaries or any ERISA Affiliate is required under the terms of each Plan or
applicable law to have paid as contribu­tions to such Plan as of the date
hereof, and no accumulated funding deficiency (as defined in section 302 of
ERISA and section 412 of the Code), whether or not waived, exists with respect
to any Plan.

     

    (f) The
actuarial present value of the benefit liabili­ties under each Plan which is
subject to Title IV of ERISA does not, as of the end of the Borrower’s most
recently ended fiscal year, exceed the current value of the assets (computed on
a plan termination basis in accordance with Title IV of ERISA) of such Plan
allocable to such benefit liabilities.  The term “actuarial present
value of the benefit liabilities” shall have the meaning specified in section
4041 of ERISA.

     

    (g) Neither
the Borrower, the Subsidiaries nor any ERISA Affiliate sponsors, maintains, or
contributes to an employee welfare benefit plan, as defined in section 3(1) of
ERISA, including, without limitation, any such plan maintained to provide
benefits to former employees of such entities, that may not be terminated by the
Borrower, a Subsidiary or any ERISA Affiliate in its sole discretion at any time
without any material liability.

     

    (h) Neither
the Borrower, the Subsidiaries nor any ERISA Affiliate sponsors, maintains or
contributes to, or has at any time in the six-year period preceding the date
hereof sponsored, maintained or contributed to, any Multiemployer
Plan.

     

    (i) Neither
the Borrower, the Subsidiaries nor any ERISA Affiliate is required to provide
security under section 401(a)(29) of the Code due to a Plan amendment that
results in an increase in current liability for the Plan.

     

    Section
7.12 Disclosure; No Material
Misstatements.  The
Borrower has disclosed to the Lenders all agreements, instruments and corporate
or other restrictions to which it or any of its Material Subsidiaries is
subject, and all other matters known to it, that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse
Effect.  Neither the Information Memorandum nor any of the other
reports, financial statements, certificates or other information furnished by or
on behalf of the Borrower or any Material Subsidiary to the Administrative Agent
or any Lender or any of their Affiliates in connection with the negotiation of
this Agreement or any other Loan Document or delivered hereunder or under any
other Loan Document (as modified or supplemented by other information so
furnished) contains any material misstatement of fact or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with
respect to projected financial information, the Borrower represents only that
such information was prepared in good faith based upon assumptions believed to
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        time.  There
is no fact peculiar to the Borrower or any Material Subsidiary which could
reasonably be expected to have a Material Adverse Effect or in the future is
reasonably likely to have a Material Adverse Effect and which has not been set
forth in this Agreement or the Loan Documents or the other documents,
certificates and statements furnished to the Administrative Agent or the Lenders
by or on behalf of the Borrower or any Material Subsidiary prior to, or on, the
date hereof in connection with the transactions contemplated
hereby.  There are no material statements or conclusions in any
Reserve Report which are based upon or include misleading information or fail to
take into account material information regarding the matters reported
therein.

      

    

     

    Section
7.13 Insurance.  The
Borrower has, and has caused all its Material Subsidiaries to have, (a) all
insurance policies sufficient for the compliance by each of them with all
material Governmental Requirements and all material agreements and (b) insurance
coverage in at least amounts and against such risk (including public liability)
that are usually insured against by companies similarly situated and engaged in
the same or a similar business for the assets and operations of the Borrower and
its Material Subsidiaries.

     

    Section
7.14 Restriction on
Liens.  Neither
the Borrower nor any of the Material Subsidiaries is a party to any material
agreement or arrangement (other than Capital Leases creating Liens permitted by
Section 9.03(c), but then only on the Property subject of such Capital Lease),
or subject to any order, judgment, writ or decree, which either restricts or
purports to restrict its ability to grant Liens to the Administrative Agent and
the Lenders on or in respect of their Properties to secure the Indebtedness and
the Loan Documents.

     

    Section
7.15 Subsidiaries.  Except
as set forth on Schedule 7.15 or as disclosed in writing to the Administrative
Agent (which shall promptly furnish a copy to the Lenders), which shall be a
supplement to Schedule 7.15, the Borrower has no
Subsidiaries.  Schedule 7.15 identifies each Subsidiary that is a
Material Subsidiary, and each Material Subsidiary on such schedule is a
Wholly-Owned Subsidiary.  As of the Effective Date, there are no
Material Subsidiaries.

     

    Section
7.16 Location of Business and
Offices.  The
Borrower’s jurisdiction of organization is Delaware; the name of the Borrower as
listed in the public records of its jurisdiction of organization is St. Mary
Land & Exploration Company; and the organizational identification number of
the Borrower in its jurisdiction of organization is 44728.  The
Borrower’s principal place of business and chief executive office are located at
the address specified in Section 12.01 (or as set forth in a notice delivered
pursuant to Section 8.01(m) and Section 12.01(c)).  Each Material
Subsidiary’s jurisdiction of organization, name as listed in the public records
of its jurisdiction of organization, organizational identification number in its
jurisdiction of organization, and the location of its principal place of
business and chief executive office is stated on Schedule 7.15 (or as set forth
in a notice delivered pursuant to Section 8.01(m)).

    
      
        
           

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    Section
7.17 Properties; Titles,
Etc.  Except
for matters which could not reasonably be expected to have a Material Adverse
Effect:

     

    (a) Each of
the Borrower and the Material Subsidiaries has good and defensible title to the
Oil and Gas Properties evaluated in the most recently delivered Reserve Report
and good title to all its personal Properties, in each case, free and clear of
all Liens except Liens permitted by Section 9.03.  After giving full
effect to the Excepted Liens, the Borrower or the Material Subsidiary specified
as the owner owns the net interests in production attributable to the
Hydrocarbon Interests as reflected in the most recently delivered Reserve
Report, and the ownership of such Properties shall not in any material respect
obligate the Borrower or such Material Subsidiary to bear the costs and expenses
relating to the maintenance, development and operations of each such Property in
an amount in excess of the working interest of each Property set forth in the
most recently delivered Reserve Report that is not offset by a corresponding
proportionate increase in the Borrower’s or such Material Subsidiary’s net
revenue interest in such Property.

     

    (b) All
material leases and agreements necessary for the conduct of the business of the
Borrower and the Material Subsidiaries are valid and subsisting, in full force
and effect, and there exists no default or event or circumstance which with the
giving of notice or the passage of time or both would give rise to a default
under any such lease or leases, which would affect in any material respect the
conduct of the business of the Borrower and the Material Subsidiaries, taken as
a whole.

     

    (c) The
rights and Properties presently owned, leased or licensed by the Borrower and
the Material Subsidiaries including all easements and rights of way, include all
rights and Properties necessary to permit the Borrower and the Material
Subsidiaries to conduct their business in all material respects in the same
manner as its business has been conducted prior to the date hereof.

     

    (d) All of
the Properties of the Borrower and the Material Subsidiaries which are
reasonably necessary for the operation of their businesses are in good working
condition and are maintained in accordance with prudent business
standards.

     

    (e) The
Borrower and each Material Subsidiary owns, or is licensed to use, all
trademarks, tradenames, copyrights, patents and other intellectual Property
material to its business, and the use thereof by the Borrower and such Material
Subsidiary does not infringe upon the rights of any other Person, except for any
such infringements that, individually or in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect.  The Borrower and
its Material Subsidiaries either own or have valid licenses or other rights to
use all databases, geological data, geophysical data, engineering data, seismic
data, maps, interpretations and other technical information used in their
businesses as presently conducted, subject to the limitations contained in the
agreements governing the use of the same, which limitations are customary for
companies engaged in the business of the exploration and production of
Hydrocarbons, with such exceptions as could not reasonably be expected to have a
Material Adverse Effect.

    
      
        
           

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    Section
7.18 Maintenance of
Properties.  Except
for such acts or failures to act as could not be reasonably expected to have a
Material Adverse Effect, the Oil and Gas Properties (and Properties unitized
therewith) have been maintained, operated and developed in a good and
workmanlike manner and in conformity with all Government Requirements and in
conformity with the provisions of all leases, subleases or other contracts
comprising a part of the Hydrocarbon Interests and other contracts and
agreements forming a part of the Oil and Gas Properties.  Specifically
in connection with the foregoing, except for those as could not be reasonably
expected to have a Material Adverse Effect, (i) no Oil and Gas Property is
subject to having allowable production reduced below the full and regular
allowable (including the maximum permissible tolerance) because of any
overproduction (whether or not the same was permissible at the time) and (ii)
none of the wells comprising a part of the Oil and Gas Properties (or Properties
unitized therewith) is deviated from the vertical more than the maximum
permitted by Government Requirements, and such wells are, in fact, bottomed
under and are producing from, and the well bores are wholly within, the Oil and
Gas Properties (or in the case of wells located on Properties unitized
therewith, such unitized Properties).  All pipelines, wells, gas
processing plants, platforms and other material improvements, fixtures and
equipment owned in whole or in part by the Borrower or any of its Material
Subsidiaries that are necessary to conduct normal operations are being
maintained in a state adequate to conduct normal operations, and with respect to
such of the foregoing which are operated by the Borrower or any of its Material
Subsidiaries, in a manner consistent with the Borrower’s or its Material
Subsidiaries’ past practices (other than those the failure of which to maintain
in accordance with this Section 7.18 could not reasonably be expect to have a
Material Adverse Effect).

     

    Section
7.19 Gas Imbalances,
Prepayments.  As
of the date hereof, except as set forth on Schedule 7.19 or on the most recent
certificate delivered pursuant to Section 8.12(c), on a net basis there are no
gas imbalances, take or pay or other prepayments which would require the
Borrower or any of its Material Subsidiaries to deliver Hydrocarbons produced
from the Oil and Gas Properties at some future time without then or thereafter
receiving full payment therefor exceeding three million mcf of gas (on an mcf
equivalent basis) in the aggregate.

     

    Section
7.20 Marketing of
Production.  Except
for contracts listed and in effect on the date hereof on Schedule 7.20, and
thereafter either disclosed in writing to the Administrative Agent or included
in the most recently delivered Reserve Report (with respect to all of which
contracts the Borrower represents that it or its Material Subsidiaries are
receiving a price for all production sold thereunder which is computed
substantially in accordance with the terms of the relevant contract and are not
having deliveries curtailed substantially below the subject Property’s delivery
capacity), no material agreements exist which are not cancelable on 60 days
notice or less without penalty or detriment for the sale of production from the
Borrower’s or its Material Subsidiaries’ Hydrocarbons (including, without
limitation, calls on or other rights to purchase, production, whether or not the
same are currently being exercised) that (a) pertain to the sale of production
at a fixed price and (b) have a maturity or expiry date of longer than six (6)
months from the date hereof.

     

    Section
7.21 Swap
Agreements.  Schedule
7.21, as of the date hereof, and after the date hereof, each report required to
be delivered by the Borrower pursuant to Section 8.01(d), sets forth, a true and
complete list of all Swap Agreements of the Borrower and each Material
Subsidiary, the material terms thereof (including the type, term, effective
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        and
notional amounts or volumes), the net mark to market value thereof, all credit
support agreements relating thereto (including any margin required or supplied)
and the counterparty to each such agreement.

      

    

     

    Section
7.22 Use of Loans and Letters of
Credit.  The
proceeds of the Loans and the Letters of Credit shall be used (a) to provide
working capital for exploration, development and production operations, (b) to
finance the acquisition of Oil & Gas Properties, (c) to renew, rearrange,
modify and extend the Debt under the Existing Credit Agreement, (d) for general
corporate purposes, (e) to repay Swingline Loans and (f) to purchase or
otherwise make payments in respect of the Senior Convertible Notes subject to
the limitations on such purchases and payments provided herein.  The
Borrower and its Subsidiaries are not engaged principally, or as one of its or
their important activities, in the business of extending credit for the purpose,
whether immediate, incidental or ultimate, of buying or carrying margin stock
(within the meaning of Regulation U or X of the Board).  No part of
the proceeds of any Loan or Letter of Credit will be used for any purpose which
violates the provisions of Regulations U or X of the Board.

     

    Section
7.23 Solvency.  After
giving effect to the transactions contemplated hereby, (a) the aggregate assets
(after giving effect to amounts that could reasonably be received by reason of
indemnity, offset, insurance or any similar arrangement), at a fair valuation,
of the Borrower and the Guarantors, taken as a whole, will exceed the aggregate
Debt of the Borrower and the Guarantors on a consolidated basis, as the Debt
becomes absolute and matures, (b) each of the Borrower and the Guarantors will
not have incurred or intended to incur, and will not believe that it will incur,
Debt beyond its ability to pay such Debt (after taking into account the timing
and amounts of cash to be received by each of the Borrower and the Guarantors
and the amounts to be payable on or in respect of its liabilities, and giving
effect to amounts that could reasonably be received by reason of indemnity,
offset, insurance or any similar arrangement) as such Debt becomes absolute and
matures and (c) each of the Borrower and the Guarantors will not have (and will
have no reason to believe that it will have thereafter) unreasonably small
capital for the conduct of its business.

     

    Section
7.24 Material
Agreements.  The
Borrower has delivered or caused to be delivered to the Administrative Agent
true and correct copies of the Material Agreements.  The Material
Agreements have not been modified, terminated, assigned or pledged by Borrower
or any Material Subsidiary, as applicable, are in full force and effect and no
party is in default in the performance of its obligations thereunder in any
material respect.

     

    ARTICLE
VIII

     

    Affirmative
Covenants

     

    Until the
Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder and all other amounts payable under the
Loan Documents shall have been paid in full and all Letters of Credit shall have
expired or terminated and all LC Disbursements shall have been reimbursed, the
Borrower covenants and agrees with the Lenders that:

    
      
        
           

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    Section
8.01 Financial Statements;
Ratings Change; Other Information.  The
Borrower will furnish to the Administrative Agent for electronic or other
distribution to each Lender:

     

    (a) Annual
Financial Statements.  Within 90 days after the
end of each fiscal year of the Borrower, (i) its audited consolidated balance
sheet and related statements of operations, stockholders’ equity and cash flows
as of the end of and for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by Deloitte &
Touche or other independent public accountants of recognized national standing
(without a “going concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit) to the effect that
such consolidated financial statements present fairly in all material respects
the financial condition and results of operations of the Borrower and its
Consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied and
(ii) if dispositions of any Oil and Gas Properties exceeded $50,000,000 during
such fiscal year, its unaudited consolidated pro forma statements reflecting
such dispositions of Oil and Gas Properties during such fiscal year as of the
end of and for such fiscal year, setting forth in each case in comparative form
the figures for the previous fiscal year, all certified by one of its Financial
Officers as presenting fairly in all material respects the financial condition
and results of operations of the Borrower and its Consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently
applied.

     

    (b) Quarterly Financial
Statements.  Within 45 days after the end of each of the first
three fiscal quarters of each fiscal year of the Borrower, its consolidated
balance sheet and related statements of operations, stockholders’ equity and
cash flows as of the end of and for such fiscal quarter (including, if
dispositions of any Oil and Gas Properties exceeded $25,000,000 during such
fiscal quarter, pro forma statements reflecting such dispositions of Oil and Gas
Properties during such fiscal quarter) and the then elapsed portion of the
fiscal year, setting forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as of
the end of) the previous fiscal year, all certified by one of its Financial
Officers as presenting fairly in all material respects the financial condition
and results of operations of the Borrower and its Consolidated Subsidiaries on a
consolidated (and pro forma, where applicable) basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes.

     

    (c) Certificate of Financial
Officer – Compliance.  Concurrently with any delivery of
financial statements under Section 8.01(a) or Section 8.01(b), a certificate of
a Financial Officer in substantially the form of Exhibit B hereto (i) certifying
as to whether a Default has occurred and, if a Default has occurred, specifying
the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations demonstrating
compliance with Section 8.13(b) and Section 9.01 and (iii) stating whether any
change in GAAP or in the application thereof has occurred since the date of the
audited financial statements referred to in Section 7.04 and, if any such change
has occurred, specifying the effect of such change on the financial statements
accompanying such certificate.

     

    (d) Listing of Swap
Agreements.  Concurrently with any delivery of financial
statements under Section 8.01(a) and Section 8.01(b), a true and complete list
of all Swap Agreements of the Borrower and each Material Subsidiary as of the
last Business Day of such fiscal quarter or fiscal year, which shall depict the
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        term,
effective date, termination date and notional amounts or volumes), the net
mark-to-market value therefor, any new credit support agreements relating
thereto not listed on Schedule 7.20, any margin required or supplied under any
credit support document, and the counterparty to each such
agreement.

      

    

     

    (e) Certificate of Insurer –
Insurance Coverage.  Concurrently with any delivery of
financial statements under Section 8.01(a), a certificate of insurance coverage
from each insurer with respect to the insurance required by Section 8.07, in
form and substance satisfactory to the Administrative Agent, and, if requested
by the Administrative Agent or any Lender, all copies of the applicable
policies.

     

    (f) Other Accounting
Reports.  Promptly upon receipt thereof, a copy of each other
report or letter submitted to the Borrower or any of its Subsidiaries by
independent accountants in connection with any annual, interim or special audit
made by them of the books of the Borrower or any such Subsidiary, and a copy of
any response by the Borrower or any such Subsidiary, or the Board of Directors
of the Borrower or any such Subsidiary, to such letter or report.

     

    (g) SEC and Other Filings;
Reports to Shareholders.  Promptly after the same become
publicly available, copies of all periodic and other reports, proxy statements
and other materials filed by the Borrower or any Subsidiary with the SEC, or
with any national securities exchange, or distributed by the Borrower to its
shareholders generally, as the case may be.

     

    (h) Notices Under Material
Instruments.  Promptly after the furnishing thereof, copies of
any financial statement, report or notice furnished to or by any Person pursuant
to the terms of any preferred stock designation, indenture, loan or credit or
other similar agreement, other than this Agreement and not otherwise required to
be furnished to the Lenders pursuant to any other provision of this Section
8.01.

     

    (i) Lists of
Purchasers.  Promptly following the written request from the
Administrative Agent thereof, a list of all Persons purchasing Hydrocarbons from
the Borrower or any Material Subsidiary.

     

    (j) Notice of Sales of Oil and
Gas Properties.  In the event the Borrower or any Material
Subsidiary intends to sell, transfer, assign or otherwise dispose of any Oil or
Gas Properties or any Equity Interests in any Subsidiary in accordance with
Section 9.12 for consideration in excess of $15,000,000, prior written notice of
such disposition, the price thereof and the anticipated date of
closing.

     

    (k) Notice of Casualty
Events.  Prompt written notice, and in any event within three
Business Days, of the occurrence of any Casualty Event or the commencement of
any action or proceeding that could reasonably be expected to result in a
Casualty Event.

     

    (l) Issuance of Permitted
Refinancing Debt.  In the event the Borrower intends to
refinance any Debt with the proceeds of Permitted Refinancing Debt, prior
written notice of such intended offering therefor, the amount thereof and the
anticipated date of closing to Agent and the Borrower will furnish to Agent a
copy of the preliminary offering memorandum (if any) and the final offering
memorandum (if any).

    
      
        
           

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    (m)  Information Regarding
Borrower and Guarantors.  Prompt written notice (and in any
event within thirty (30) days upon becoming aware thereof) of any change
(i) in the Borrower or any Guarantor’s corporate name or in any trade name
used to identify such Person in the conduct of its business or in the ownership
of its Properties, (ii) in the location of the Borrower or any Guarantor’s
chief executive office or principal place of business, (iii) in the
Borrower or any Guarantor’s identity or corporate structure or in the
jurisdiction in which such Person is incorporated or formed, (iv) in the
Borrower or any Guarantor’s jurisdiction of organization or such Person’s
organizational identification number in such jurisdiction of organization, and
(v) in the Borrower or any Guarantor’s federal taxpayer identification
number.

     

    (n) Other Requested
Information.  Promptly following any request therefor, such
other information regarding the operations, business affairs and financial
condition of the Borrower or any Subsidiary (including, without limitation, any
Plan or Multiemployer Plan and any reports or other information required to be
filed under ERISA), or compliance with the terms of this Agreement or any other
Loan Document, as the Administrative Agent or any Lender may reasonably
request.

     

    Section
8.02 Notices of Material
Events.  The
Borrower will furnish to the Administrative Agent and each Lender prompt written
notice of the following:

     

    (a) the
occurrence of any Default;

     

    (b) the
filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Borrower or any
Affiliate thereof that, if adversely determined, could reasonably be expected to
result in a Material Adverse Effect;

     

    (c) the
occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability
of the Borrower and its Subsidiaries in an aggregate amount exceeding
$6,000,000; and

     

    (d) any other
development that results in, or could reasonably be expected to result in, a
Material Adverse Effect.

     

    Each
notice delivered under this Section 8.02 shall be accompanied by a statement of
a Responsible Officer setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect
thereto.

     

    Section
8.03 Existence; Conduct of
Business.  The
Borrower will, and will cause each Material Subsidiary to, do or cause to be
done all things necessary to preserve, renew and keep in full force and effect
its legal existence and the rights, licenses, permits, privileges and franchises
material to the conduct of its business and maintain, if necessary, its
qualification to do business in each other jurisdiction in which its Oil and Gas
Properties is located or the ownership of its Properties requires such
qualification, except where the failure to so qualify could not reasonably be
expected to have a Material Adverse Effect; provided that the foregoing shall
not prohibit any merger, consolidation, liquidation or dissolution permitted
under Section 9.11.

    
      
        
           

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    Section
8.04 Payment of
Obligations.  The
Borrower will, and will cause each Material Subsidiary to, pay its obligations,
including Tax liabilities of the Borrower and all of its Subsidiaries before the
same shall become delinquent or in default, except where (a) the validity or
amount thereof is being contested in good faith by appropriate proceedings, (b)
the Borrower or such Material Subsidiary has set aside on its books adequate
reserves with respect thereto in accordance with GAAP and (c) the failure to
make payment pending such contest could not reasonably be expected to result in
a Material Adverse Effect or result in the seizure or levy of any Property of
the Borrower or any Subsidiary having a fair market value, individually or in
the aggregate, in excess of $5,000,000.

     

    Section
8.05 Performance of Obligations
under Loan Documents.  The
Borrower will pay the Notes according to the reading, tenor and effect thereof,
and the Borrower will and will cause each Material Subsidiary to do and perform
every act and discharge all of the obligations to be performed and discharged by
them under the Loan Documents, including, without limitation, this Agreement, at
the time or times and in the manner specified.

     

    Section
8.06 Operation and Maintenance of
Properties.  Except
for matters that could not reasonably be expected to result in a Material
Adverse Effect, the Borrower, at its own expense, will, and will cause each
Material Subsidiary to:

     

    (a) operate
its Oil and Gas Properties and other material Properties or cause such Oil and
Gas Properties and other material Properties to be operated in a careful and
efficient manner in accordance with the practices of the industry and in
compliance with all applicable contracts and agreements and in compliance with
all Governmental Requirements, including applicable pro ration requirements and
Environmental Laws, and all applicable laws, rules and regulations of every
other Governmental Authority from time to time constituted to regulate the
development and operation of its Oil and Gas Properties and the production and
sale of Hydrocarbons and other minerals therefrom, except, in each case, where
the failure to comply could not reasonably be expected to have a Material
Adverse Effect.

     

    (b) keep and
maintain all Property material to the conduct of its business in good working
order and condition, ordinary wear and tear excepted, preserve, maintain and
keep in good repair, working order and efficiency (ordinary wear and tear
excepted) all of its material Oil and Gas Properties and other material
Properties, including all equipment, machinery and facilities.

     

    (c) promptly
pay and discharge, or make reasonable and customary efforts to cause to be paid
and discharged, all delay rentals, royalties, expenses and indebtedness accruing
under the leases or other agreements affecting or pertaining to its Oil and Gas
Properties and will do all other things necessary to keep unimpaired their
rights with respect thereto and prevent any forfeiture thereof or default
thereunder.

     

    (d) promptly
perform or make reasonable and customary efforts to cause to be performed, in
accordance with industry standards, the obligations required by each and all of
the assignments, deeds, leases, sub-leases, contracts and agreements affecting
its interests in its Oil and Gas Properties and other material
Properties.

    
      
        
           

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    (e) operate
its Oil and Gas Properties and other material Properties or cause or make
reasonable and customary efforts to cause such Oil and Gas Properties and other
material Properties to be operated in accordance with the practices of the
industry and in material compliance with all applicable contracts and agreements
and in compliance in all material respects with all Governmental
Requirements.

     

    (f) to the
extent the Borrower or a Material Subsidiary is not the operator of any
Property, the Borrower shall use reasonable efforts to cause the operator to
comply with this Section 8.06.

     

    Section
8.07 Insurance.  The
Borrower will, and will cause each Material Subsidiary to, maintain, with
financially sound and reputable insurance companies, insurance in such amounts
and against such risks as are customarily maintained by companies engaged in the
same or similar businesses operating in the same or similar
locations.

     

    Section
8.08 Books and Records;
Inspection Rights.  The
Borrower will, and will cause each Material Subsidiary to, keep proper books of
record and account in which full, true and correct entries are made of all
dealings and transactions in relation to its business and
activities.  The Borrower will, and will cause each Material
Subsidiary to, permit any representatives designated by the Administrative Agent
or any Lender, upon reasonable prior notice, to visit and inspect its
Properties, to examine and make extracts from its books and records, and to
discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably
requested.

     

    Section
8.09 Compliance with
Laws.  The
Borrower will, and will cause each Material Subsidiary to, comply with all laws,
rules, regulations and orders of any Governmental Authority applicable to it or
its Property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

     

    Section
8.10 Environmental
Matters.

     

    (a) The
Borrower shall at its sole expense: (i) comply, and shall cause its Properties
and operations and each Subsidiary and each Subsidiary’s Properties and
operations to comply, with all applicable Environmental Laws, the breach of
which could be reasonably expected to have a Material Adverse Effect; (ii) not
dispose of or otherwise release, and shall cause each Subsidiary not to dispose
of or otherwise release, any oil, oil and gas waste, hazardous substance, or
solid waste on, under, about or from any of the Borrower’s or its Subsidiaries’
Properties or any other Property to the extent caused by the Borrower’s or any
of its Subsidiaries’ operations except in compliance with applicable
Environmental Laws, the disposal or release of which could reasonably be
expected to have a Material Adverse Effect; (iii) timely obtain or file, and
shall cause each Subsidiary to timely obtain or file, all notices, permits,
licenses, exemptions, approvals, registrations or other authorizations, if any,
required under applicable Environmental Laws to be obtained or filed in
connection with the operation or use of the Borrower’s or its Subsidiaries’
Properties, which failure to obtain or file could reasonably be expected to have
a Material Adverse Effect; (iv) promptly commence and diligently prosecute to
completion, and shall cause each Subsidiary to promptly commence and diligently
prosecute to completion, any assessment, evaluation, investigation, monitoring,

    
      
        
           

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        containment,
cleanup, removal, repair, restoration, remediation or other remedial obligations
(collectively, the “Remedial Work”) in
the event any Remedial Work is required or reasonably necessary under applicable
Environmental Laws because of or in connection with the actual or suspected
past, present or future disposal or other release of any oil, oil and gas waste,
hazardous substance or solid waste on, under, about or from any of the
Borrower’s or its Subsidiaries’ Properties, which failure to commence and
diligently prosecute to completion could reasonably be expected to have a
Material Adverse Effect; and (v) establish and implement, and shall cause
each Subsidiary to establish and implement, such procedures as may be necessary
to continuously determine and assure that the Borrower’s and its Subsidiaries’
obligations under this Section 8.10(a) are timely and fully satisfied, which
failure to establish and implement could reasonably be expected to have a
Material Adverse Effect.

      

    

     

    (b) The
Borrower will promptly, but in no event later than five days of the occurrence
of a triggering event, notify the Administrative Agent and the Lenders in
writing of any threatened action, investigation or inquiry by any Governmental
Authority or any threatened demand or lawsuit by any landowner or other third
party against the Borrower or its Subsidiaries or their Properties of which the
Borrower has knowledge in connection with any Environmental Laws (excluding
routine testing and corrective action) if the Borrower reasonably anticipates
that such action will result in liability (whether individually or in the
aggregate) in excess of $10,000,000, not fully covered by insurance, subject to
normal deductibles.

     

    (c) In
connection with any future acquisitions of Oil and Gas Properties or other
Properties, the Borrower will and will cause each Subsidiary to provide
environmental audits and tests in accordance with American Society of Testing
Materials standards upon request by the Administrative Agent and the Lenders,
except in circumstances in which the Borrower or any Subsidiary is acquiring an
additional interest in an Oil and Gas Property or other Property.

     

    Section
8.11 Further
Assurances.

     

    (a) The
Borrower at its expense will, and will cause each Material Subsidiary to,
promptly execute and deliver to the Administrative Agent all such other
documents, agreements and instruments reasonably requested by the Administrative
Agent to comply with, cure any defects or accomplish the conditions precedent,
covenants and agreements of the Borrower or any Material Subsidiary, as the case
may be, in the Loan Documents, including the Notes, or to further evidence and
more fully describe the collateral intended as security for the Indebtedness, or
to correct any omissions in this Agreement or the Security Instruments, or to
state more fully the obligations secured therein, or to perfect, protect or
preserve any Liens created pursuant to this Agreement or any of the Security
Instruments or the priority thereof, or to make any recordings, file any notices
or obtain any consents, all as may be reasonably necessary or appropriate, in
the reasonable discretion of the Administrative Agent, in connection
therewith.

     

    (b) The
Borrower hereby authorizes the Administrative Agent to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Mortgaged Property without the signature of the Borrower or any
Material Subsidiary where permitted by law.  A carbon, photographic or
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        or any
financing statement covering the Mortgaged Property or any part thereof shall be
sufficient as a financing statement where permitted by law.  The
Administrative Agent will promptly send the Borrower any financing or
continuation statements it files without the signature of the Borrower or any
other Guarantor and the Administrative Agent will promptly send the Borrower the
filing or recordation information with respect thereto.

      

    

     

    Section
8.12 Reserve
Reports.

     

    (a) On or
before February 28th (or
February 29th, as
applicable) and August 31st of each
year, commencing August 31, 2009, the Borrower shall furnish to the
Administrative Agent and the Lenders a Reserve Report.  The Reserve
Report as of December 31 of each year shall have the majority of PV-10 value
prepared or audited by one or more Approved Petroleum Engineers, and the Reserve
Report as of June 30 of each year shall be prepared by or under the supervision
of the Vice President, Engineering and Evaluation of the Borrower who shall
certify such Reserve Report to be true and accurate and to have been prepared in
accordance with the procedures used in the immediately preceding December 31
Reserve Report.

     

    (b) In the
event of an Interim Redetermination, the Borrower shall furnish to the
Administrative Agent and the Lenders a Reserve Report prepared by or under the
supervision of the Vice President, Engineering and Evaluation of the Borrower
who shall certify such Reserve Report to be true and accurate and to have been
prepared in accordance with the procedures used in the immediately preceding
December 31 Reserve Report.  For any Interim Redetermination requested
by the Administrative Agent or the Borrower pursuant to Section 2.07(b), the
Borrower shall provide such Reserve Report with an “as of” date as required by
the Administrative Agent as soon as possible, but in any event no later than
thirty (30) days following the receipt of such request.

     

    (c) With the
delivery of each Reserve Report, the Borrower shall provide to the
Administrative Agent and the Lenders a certificate from a Responsible Officer
certifying that in all material respects: (i) the information contained in the
Reserve Report and any other information delivered in connection therewith is
true and correct, (ii) the Borrower or its Material Subsidiaries owns good and
defensible title to the Oil and Gas Properties evaluated in such Reserve Report
and such Properties are free of all Liens except for Liens permitted by Section
9.03, (iii) except as set forth on an exhibit to the certificate, on a net basis
there are no gas imbalances, take or pay or other prepayments in excess of the
volume specified in Section 7.19 with respect to its Oil and Gas Properties
evaluated in such Reserve Report which would require the Borrower or any
Material Subsidiary to deliver Hydrocarbons either generally or produced from
such Oil and Gas Properties at some future time without then or thereafter
receiving full payment therefor, (iv) none of their Oil and Gas Properties have
been sold since the date of the last Borrowing Base determination except as set
forth on an exhibit to the certificate, which certificate shall list all of its
Oil and Gas Properties sold and in such detail as reasonably required by the
Administrative Agent, (v) attached to the certificate is a list of all marketing
agreements entered into subsequent to the later of the date hereof or the most
recently delivered Reserve Report which the Borrower could reasonably be
expected to have been obligated to list on Schedule 7.20 had such agreement been
in effect on the date hereof and (vi) attached thereto is a schedule of the Oil
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    that are
Mortgaged Properties and demonstrating the percentage of the Borrowing Base that
the value of such Mortgaged Properties represent.

     

    Section
8.13 Title
Information.

     

    (a) On or
before the delivery to the Administrative Agent and the Lenders of each Reserve
Report required by Section 8.12(a), the Borrower will deliver title information
in form and substance acceptable to the Administrative Agent covering enough of
the Oil and Gas Properties evaluated by such Reserve Report that were not
included in the immediately preceding Reserve Report, so that the Administrative
Agent shall have received together with title information previously delivered
to the Administrative Agent, satisfactory title information on at least 80% of
the total value of the Oil and Gas Properties evaluated by such Reserve
Report.

     

    (b) If the
Borrower has provided title information for additional Properties under Section
8.13(a), the Borrower shall, within 60 days of notice from the Administrative
Agent that title defects or exceptions exist with respect to such additional
Properties, either (i) cure any such title defects or exceptions (including
defects or exceptions as to priority) which are not permitted by Section 9.03
raised by such information, (ii) substitute acceptable Mortgaged Properties with
no title defects or exceptions except for Excepted Liens (other than Excepted
Liens described in clauses (e), (g) and (h) of such definition) having an
equivalent value or (iii) deliver title information in form and substance
acceptable to the Administrative Agent so that the Administrative Agent shall
have received, together with title information previously delivered to the
Administrative Agent, satisfactory title information on at least 80% of the
value of the Mortgaged Properties evaluated by such Reserve Report.

     

    (c) If the
Borrower is unable to cure any title defect requested by the Administrative
Agent or the Lenders to be cured within the 60-day period or the Borrower does
not comply with the requirements to provide acceptable title information
covering 80% of the value of the Mortgaged Properties evaluated in the most
recent Reserve Report, such default shall not be a Default, but instead the
Administrative Agent and/or the Majority Lenders shall have the right to
exercise the following remedy in their sole discretion from time to time, and
any failure to so exercise this remedy at any time shall not be a waiver as to
future exercise of the remedy by the Administrative Agent or the
Lenders.  To the extent that the Administrative Agent or the Majority
Lenders are not satisfied with title to any Mortgaged Property after the 60-day
period has elapsed, such unacceptable Mortgaged Property shall not count towards
the 80% requirement, and the Administrative Agent may send a notice to the
Borrower and the Lenders that the then outstanding Borrowing Base shall be
reduced by an amount as determined by the Majority Lenders to cause the Borrower
to be in compliance with the requirement to provide acceptable title information
on 80% of the value of the Mortgaged Properties.  This new Borrowing
Base shall become effective immediately after receipt of such
notice.

     

    Section
8.14 Additional Collateral;
Additional Guarantors.

     

    (a) In
connection with each redetermination of the Borrowing Base, the Borrower shall
review the Reserve Report and the list of current Mortgaged Properties (as
described in Section 8.12(c)(vi)) to ascertain whether the Mortgaged Properties
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        80% of
the total value of the Oil and Gas Properties evaluated in the most recently
completed Reserve Report after giving effect to exploration and production
activities, acquisitions, dispositions and production.  In the event
that the Mortgaged Properties do not represent at least 80% of such total value,
then the Borrower shall, and shall cause its Material Subsidiaries to, grant to
the Administrative Agent as security for the Indebtedness a first-priority Lien
interest (subject only to Excepted Liens of the type described in clauses (a) to
(d) and (f) of the definition thereof, but subject to the provisos at the end of
such definition) on additional Oil and Gas Properties not already subject to a
Lien of the Security Instruments such that after giving effect thereto, the
Mortgaged Properties will represent at least 80% of such total
value.  All such Liens will be created and perfected by and in
accordance with the provisions of deeds of trust, security agreements and
financing statements or other Security Instruments, all in form and substance
reasonably satisfactory to the Administrative Agent and in sufficient executed
(and acknowledged where necessary or appropriate) counterparts for recording
purposes.  In order to comply with the foregoing, if any Material
Subsidiary places a Lien on its Oil and Gas Properties and such Material
Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with
Section 8.14(b).

      

    

     

    (b) In the
event that any Subsidiary becomes a Material Subsidiary after the Closing Date,
the Borrower shall promptly cause such Subsidiary to guarantee the Indebtedness
pursuant to the Guaranty Agreement.  In connection with any such
guaranty, the Borrower shall, or shall cause such Subsidiary to, (A) execute and
deliver a supplement to the Guaranty Agreement executed by such Subsidiary, (B)
execute and deliver a Pledge – Borrower, pledging all of the Equity Interests of
such new Subsidiary (including, without limitation, delivery of original stock
certificates evidencing the Equity Interests of such Subsidiary, together with
an appropriate undated stock powers for each certificate duly executed in blank
by the registered owner thereof) and (C) execute and deliver such other
additional closing documents, certificates and legal opinions as shall
reasonably be requested by the Administrative Agent.

     

    Section
8.15 ERISA
Compliance.  The
Borrower will promptly furnish and will cause the Subsidiaries and any ERISA
Affiliate to promptly furnish to the Administrative Agent (i) promptly after the
filing thereof with the United States Secretary of Labor, the Internal Revenue
Service or the PBGC, copies of each annual and other report with respect to each
Plan or any trust created thereunder, (ii) immediately upon becoming aware of
the occurrence of any ERISA Event or of any “prohibited transaction,” as
described in section 406 of ERISA or in section 4975 of the Code, in connection
with any Plan or any trust created thereunder, a written notice signed by the
President or the principal Financial Officer, the Subsidiary or the ERISA
Affiliate, as the case may be, specifying the nature thereof, what action the
Borrower, the Subsidiary or the ERISA Affiliate is taking or proposes to take
with respect thereto, and, when known, any action taken or proposed by the
Internal Revenue Service, the Department of Labor or the PBGC with respect
thereto, and (iii) immediately upon receipt thereof, copies of any notice of the
PBGC’s intention to terminate or to have a trustee appointed to administer any
Plan.  With respect to each Plan (other than a Multiemployer Plan),
the Borrower will, and will cause each Subsidiary and ERISA Affiliate to, (i)
satisfy in full and in a timely manner, without incurring any late payment or
underpayment charge or penalty and without giving rise to any lien, all of the
contribution and funding requirements of section 412 of the Code (determined
without regard to subsections (d), (e), (f) and (k) thereof) and of section 302
of ERISA (determined without regard to sections 303, 304 and 306 of ERISA), and
(ii) pay, or cause to be paid, to the PBGC in a timely manner, 

    
      
        
           

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        without
incurring any late payment or underpayment charge or penalty, all premiums
required pursuant to sections 4006 and 4007 of ERISA.

      

    

     

    Section
8.16 Performance of Material
Agreements.  The
Borrower will perform and observe, and cause each Material Subsidiary to perform
and observe, in all material respects each of the provisions of the Material
Agreements to which it is a party on its part to be performed or observed prior
to the termination thereof.

     

    ARTICLE
IX

     

    Negative
Covenants

     

    Until the
Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder and all other amounts payable under the Loan
Documents have been paid in full and all Letters of Credit have expired or
terminated and all LC Disbursements shall have been reimbursed, the Borrower
covenants and agrees with the Lenders that:

     

    Section
9.01 Financial
Covenants.

     

    (a) Ratio of Total Debt to
EBITDA.  The Borrower will not, at any time, permit its ratio
of Total Debt as of such time to EBITDA for the four fiscal quarters ending on
the last day of the fiscal quarter immediately preceding the date of
determination for which financial statements are available to be greater than
3.5 to 1.0.  For purposes of calculating the ratio of Total Debt to
EBITDA for any four fiscal quarter period, dispositions of Oil and Gas
Properties in excess of $50,000,000 in the aggregate during such four fiscal
quarter period shall be included on a pro forma basis, as if such dispositions
had occurred at the beginning of the four fiscal quarter period and the Borrower
may provide pro forma calculations on the same basis with respect to
acquisitions of Oil and Gas Properties during any such four fiscal quarter
period at the Borrower’s election.  Unless an Event of Default has
occurred and is continuing, for purposes of determining the ratio of Total Debt
to EBITDA as of any date of determination, the calculation of Total Debt shall
be made by subtracting therefrom an aggregate amount of cash on deposit in any
cash collateral account as of such date as a result of the existence of any
Impacted Lender.

     

    (b) Current
Ratio.  The Borrower will not permit, as of the last day of any
fiscal quarter, its ratio of (i) consolidated current assets (including the
unused amount of the total Commitments, but excluding non-cash assets under FAS
133) to (ii) consolidated current liabilities (excluding non-cash obligations
under FAS 133 and the current portion of the Aggregate Commitment) to be less
than 1.0 to 1.0.  Unless an Event of Default has occurred and is
continuing, for purposes of determining the ratio of consolidated current assets
to consolidated current liabilities the calculation of consolidated current
liabilities shall be made by subtracting therefrom the aggregate cash on deposit
in any cash collateral account as of such date as a result of the existence of
any Impacted Lender.

     

    Section
9.02 Debt.  Neither
the Borrower nor any Material Subsidiary will incur, create, assume or suffer to
exist any Debt, except:

    
      
        
           

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    (a) the Notes
or other Indebtedness arising under the Loan Documents or any guaranty of or
suretyship arrangement for the Notes or other Indebtedness arising under the
Loan Documents.

     

    (b) Debt of
the Borrower and its Material Subsidiaries existing on the date hereof that is
reflected in the Financial Statements, and any Permitted Refinancing Debt in
respect thereof.

     

    (c) accounts
payable (for the deferred purchase price of Property or services) from time to
time incurred in the ordinary course of business which are not greater than
sixty (60) days past the date of invoice or delinquent or which are being
contested in good faith by appropriate action and for which adequate reserves
have been maintained in accordance with GAAP.

     

    (d) Debt
incurred to finance the acquisition, construction or improvement of any fixed or
capital assets, including Capital Leases and any Debt assumed in connection with
the acquisition of any such assets or secured by a Lien on any such assets prior
to the acquisition thereof, and extensions, renewals and replacements of any
such Debt that do not increase the outstanding principal amount thereof; provided that
(i) in the case of any acquisition, construction or improvement of any
fixed or capital asset, such Debt (other than Capital Leases) is incurred prior
to or within 90 days after such acquisition or the completion of such
construction or improvement and (ii) the aggregate principal amount of Debt
permitted by this clause (d) shall not exceed $50,000,000 at any time
outstanding.

     

    (e) Debt
associated with bonds or surety obligations required by Governmental
Requirements in connection with the operation of the Oil and Gas
Properties.

     

    (f) intercompany
Debt between the Borrower and any Material Subsidiary or between Material
Subsidiaries to the extent permitted by Section 9.05(g); provided that such Debt
is not held, assigned, transferred, negotiated or pledged to any Person other
than the Borrower or one of its Wholly-Owned Subsidiaries, and, provided
further, that any such Debt owed by either the Borrower or a Guarantor shall be
subordinated to the Indebtedness on terms set forth in the Guaranty
Agreement.

     

    (g) endorsements
of negotiable instruments for collection in the ordinary course of
business.

     

    (h) non-recourse
Debt secured by Property other than Oil and Gas Properties evaluated by the
Lenders for purposes of establishing the Borrowing Base not to exceed
$25,000,000 in the aggregate at any one time outstanding.

     

    (i) other
Debt not to exceed $15,000,000 in the aggregate at any one time
outstanding.

     

    (j) Debt of
the Borrower evidenced by the Senior
Convertible Notes, together with any and all refinancings thereof, so long as
all of same are either unsecured or expressly subordinated to this Agreement and
all of same are scheduled to mature after the Maturity Date under this
Agreement.

    
      
        
           

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    (k) unsecured
senior Debt or subordinated Debt of the Borrower maturing (giving effect
to mandatory prepayments) no earlier than at least six months after the Maturity
Date under this Agreement; provided that effective immediately upon the issuance
of any such unsecured senior Debt or subordinated Debt, the Borrowing Base shall
be reduced by an amount equal to twenty-five percent (25%) of the aggregate
principal amount of such Debt.

     

    Section
9.03 Liens.  Neither
the Borrower nor any Material Subsidiary will create, incur, assume or permit to
exist any Lien on any of its Properties (now owned or hereafter acquired),
except:

     

    (a) Liens
securing the payment of any Indebtedness.

     

    (b) Excepted
Liens.

     

    (c) Liens
securing Capital Leases permitted by Section 9.02(d) but only on the Property
under lease.

     

    (d) Liens
securing any Permitted Refinancing Debt provided that any such Permitted
Refinancing Debt is not secured by any additional or different Property not
securing the Refinanced Debt.

     

    (e) Liens on
Property securing non-recourse Debt permitted by Section 9.02(h).

     

    Section
9.04 Dividends, Distributions and
Redemptions.  The
Borrower will not, and will not permit any of its Subsidiaries to, declare or
make, or agree to pay or make, directly or indirectly, any Restricted Payment,
return any capital to its stockholders or make any distribution of its Property
to its Equity Interest holders, except (a) the Borrower may declare and pay
dividends with respect to its Equity Interests payable solely in additional
shares of its common stock (other than Disqualified Capital Stock), (b) so long
as no Event of Default shall have occurred which is continuing, the Borrower may
declare and pay annual cash dividends not to exceed $0.25 per common share on an
annual basis, (c) Subsidiaries may declare and pay dividends ratably with
respect to their Equity Interests, (d) the Borrower may make Restricted Payments
pursuant to and in accordance with restricted stock plans, stock option plans or
other benefit plans for management or employees of the Borrower and its
Subsidiaries and (e) the Borrower may make interest payments and principal
payments on any and all issued and sold Senior Convertible Notes and deliver
cash, stock, or any combination thereof upon payment, settlement upon conversion
(whether a general or a net share settlement), or redemption of any and all
issued and sold Senior Convertible Notes so long as (i) all such cash payments,
settlements upon conversions, and redemptions are in accordance with the terms
of the Senior Convertible Notes indenture, (ii) no Default shall exist or be
occasioned by such payments, settlements upon conversions, or redemptions, and
(iii) with respect to any such cash redemptions of such Senior Convertible Notes
on the put date occurring on April 1, 2012, after giving effect to such cash
redemptions (x) the availability under this Agreement shall be no less than the
lesser of (1) 10% of the Borrowing Base or (2) $75,000,000 and (y) both before
and after giving effect to such cash redemptions, the Borrower’s ratio of Total
Debt to EBITDA for the four fiscal quarters ending on the last day of the fiscal
quarter immediately preceding the date 

    
      
        
           

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        of
determination for which financial statements are available is not greater than
3.25 to 1.0.  The calculation of Total Debt to EBITDA under Section
9.04(e) shall be made in accordance with the provisions of Section
9.01(a).

      

    

     

    Section
9.05 Investments, Loans and
Advances.  Neither
the Borrower nor any Material Subsidiary will make or permit to remain
outstanding any Investments in or to any Person, except that the foregoing
restriction shall not apply to:

     

    (a) Investments
reflected in the Financial Statements or which are disclosed to the Lenders in
Schedule 9.05(a).

     

    (b) accounts
receivable arising in the ordinary course of business.

     

    (c) direct
obligations of the United States or any agency thereof, or obligations
guaranteed by the United States or any agency thereof, in each case maturing
within one year from the date of creation thereof.

     

    (d) commercial
paper maturing within one year from the date of creation thereof rated in the
highest grade by S&P or Moody’s.

     

    (e) deposits
maturing within one year from the date of creation thereof with, including
certificates of deposit issued by, any Lender or any office located in the
United States of any other bank or trust company which is organized under the
laws of the United States or any state thereof, has capital, surplus and
undivided profits aggregating at least $100,000,000 (as of the date of such bank
or trust company’s most recent financial reports) and has a short term deposit
rating of no lower than A2 or P2, as such rating is set forth from time to time,
by S&P or Moody’s, respectively or, in the case of any Foreign Subsidiary, a
bank organized in a jurisdiction in which the Foreign Subsidiary conducts
operations having assets in excess of $500,000,000 (or its equivalent in another
currency).

     

    (f) deposits
in money market funds investing exclusively in Investments described in Section
9.05(c), Section 9.05(d) or Section 9.05(e).

     

    (g) Investments
(i) made by the Borrower in or to the Guarantors, and (ii) made by a Guarantor
in or to the Borrower or any other Guarantor.

     

    (h) subject
to the limits in Section 9.07, Investments (including, without limitation,
capital contributions) in general or limited partnerships or other types of
entities (each a “venture”) entered
into by the Borrower or a Material Subsidiary with others in the ordinary course
of business; provided that (i) any such venture is engaged exclusively in oil
and gas exploration, development, production, processing and related activities,
including transportation, except for existing Investments described or referred
to on Schedule 9.05(h) and Investments permitted by Section 9.05(i), (ii) the
interest in such venture is acquired in the ordinary course of business and on
fair and reasonable terms and (iii) such venture interests acquired and capital
contributions made (valued as of the date such interest was acquired or the
contribution made) do not exceed, in the aggregate at any time outstanding an
amount equal to $75,000,000.

    
      
        
           

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    (i) subject
to the limits in Section 9.07, additional Investments (including, without
limitation, capital contributions) in the ventures described or referred to on
Schedule 9.05(h) and new Investments (including, without limitation, capital
contributions) in ventures entered into by the Borrower or a Material Subsidiary
with others in the ordinary course of business; provided that (i) any such
venture is not engaged exclusively in oil and gas exploration, development,
production, processing and related activities, including transportation, (ii)
the interest in such venture is acquired in the ordinary course of business and
on fair and reasonable terms and (iii) such venture interests acquired and
capital contributions made (valued as of the date such interest was acquired or
the contribution made) do not exceed, in the aggregate at any time outstanding
an amount equal to $20,000,000.

     

    (j) subject
to the limits in Section 9.07, Investments in direct ownership interests in
additional Oil and Gas Properties and gas gathering systems related thereto or
related to farm-out, farm-in, joint operating, joint venture or area of mutual
interest agreements, gathering systems, pipelines or other similar arrangements
which are usual and customary in the oil and gas exploration and production
business located within the geographic boundaries of the United States of
America.

     

    (k) so long
as no Event of Default shall have occurred which is continuing, from and after
the date hereof, the Borrower may make repurchases of its stock; provided,
however, during any time the Borrower’s ratio of Total Debt to consolidated
tangible net worth is greater than 2.50 to 1.00, the aggregate amount paid by
the Borrower in connection with such repurchases shall not exceed
$50,000,000.

     

    Section
9.06 Designation of Material
Subsidiaries.  Unless
designated as a Non-Material Subsidiary on Schedule 7.15 as of the date hereof
or thereafter, assuming compliance with Section 9.15, any Person that becomes a
Subsidiary of the Borrower or any of its Material Subsidiaries shall be
classified as a Material Subsidiary.

     

    Section
9.07 Nature of Business;
International Operations.  Neither
the Borrower nor any Material Subsidiary will allow any material change to be
made in the character of its business as an independent oil and gas exploration
and production company.  From and after the date hereof, the Borrower
and its Subsidiaries will not acquire or make any other expenditure (whether
such expenditure is capital, operating or otherwise) in or related to, any Oil
and Gas Properties not located within the geographical boundaries of the United
States or Canada in excess of $10,000,000 in the aggregate.

     

    Section
9.08 Proceeds of
Notes.  The
Borrower will not permit the proceeds of the Notes to be used for any purpose
other than those permitted by Section 7.22.  Neither the Borrower nor
any Person acting on behalf of the Borrower has taken or will take any action
which might cause any of the Loan Documents to violate Regulations U or X or any
other regulation of the Board or to violate Section 7 of the Securities Exchange
Act of 1934 or any rule or regulation thereunder, in each case as now in effect
or as the same may hereinafter be in effect.  If requested by the
Administrative Agent, the Borrower will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form U-1 or such other form referred to in Regulation U or
Regulation X of the Board, as the case may be.

    
      
        
           

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    Section
9.09 ERISA
Compliance.  The
Borrower and the Subsidiaries will not at any time:

     

    (a) engage
in, or permit any ERISA Affiliate to engage in, any transaction in connection
with which the Borrower, a Subsidiary or any ERISA Affiliate could be subjected
to either a civil penalty assessed pursuant to subsections (c), (i) or (l) of
section 502 of ERISA or a tax imposed by Chapter 43 of Subtitle D of
the Code.

     

    (b) terminate,
or permit any ERISA Affiliate to terminate, any Plan in a manner, or take any
other action with respect to any Plan, which could result in any liability of
the Borrower, a Subsidiary or any ERISA Affiliate to the PBGC.

     

    (c) fail to
make, or permit any ERISA Affiliate to fail to make, full payment when due of
all amounts which, under the provisions of any Plan, agreement relating thereto
or applicable law, the Borrower, a Subsidiary or any ERISA Affiliate is required
to pay as contributions thereto.

     

    (d) permit to
exist, or allow any ERISA Affiliate to permit to exist, any accumulated funding
deficiency within the meaning of section 302 of ERISA or section 412 of the
Code, whether or not waived, with respect to any Plan.

     

    (e) permit,
or allow any ERISA Affiliate to permit, the actuarial present value of the
benefit liabilities under any Plan maintained by the Borrower, a Subsidiary or
any ERISA Affiliate which is regulated under Title IV of ERISA to exceed
the current value of the assets (computed on a plan termination basis in
accordance with Title IV of ERISA) of such Plan allocable to such benefit
liabilities.  The term “actuarial present value of the benefit
liabilities” shall have the meaning specified in section 4041 of
ERISA.

     

    (f) contribute
to or assume an obligation to contribute to, or permit any ERISA Affiliate to
contribute to or assume an obligation to contribute to, any Multiemployer
Plan.

     

    (g) acquire,
or permit any ERISA Affiliate to acquire, an interest in any Person that causes
such Person to become an ERISA Affiliate with respect to the Borrower or a
Subsidiary or with respect to any ERISA Affiliate of the Borrower or a
Subsidiary if such Person sponsors, maintains or contributes to, or at any time
in the six-year period preceding such acquisition has sponsored, maintained, or
contributed to, (1) any Multiemployer Plan, or (2) any other Plan that is
subject to Title IV of ERISA under which the actuarial present value of the
benefit liabilities under such Plan exceeds the current value of the assets
(computed on a plan termination basis in accordance with Title IV of ERISA)
of such Plan allocable to such benefit liabilities.

     

    (h) incur, or
permit any ERISA Affiliate to incur, a liability to or on account of a Plan
under sections 515, 4062, 4063, 4064, 4201 or 4204 of ERISA.

     

    (i) contribute
to or assume an obligation to contribute to, or permit any ERISA Affiliate to
contribute to or assume an obligation to contribute to, any employee welfare
benefit plan, as defined in section 3(1) of ERISA, including, without
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        maintained
to provide benefits to former employees of such entities, that may not be
terminated by such entities in their sole discretion at any time without any
material liability.

      

    

     

    (j) amend, or
permit any ERISA Affiliate to amend, a Plan resulting in an increase in current
liability such that the Borrower, a Subsidiary or any ERISA Affiliate is
required to provide security to such Plan under section 401(a)(29) of the
Code.

     

    Section
9.10 Sale or Discount of
Receivables.  Except
for receivables obtained by the Borrower or any Material Subsidiary out of the
ordinary course of business or the settlement of joint interest billing accounts
in the ordinary course of business or discounts granted to settle collection of
accounts receivable or the sale of defaulted accounts arising in the ordinary
course of business in connection with the compromise or collection thereof and
not in connection with any financing transaction, neither the Borrower nor any
Material Subsidiary will discount or sell (with or without recourse) any of its
notes receivable or accounts receivable.

     

    Section
9.11 Mergers,
Etc.  Neither
the Borrower nor any Material Subsidiary will merge into or with or consolidate
with any other Person, or sell, lease or otherwise dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its
Property to any other Person (any such transaction, a “consolidation”);
provided that

     

    (a) the
Borrower or any Material Subsidiary may participate in a consolidation with any
other Person; provided that (i) no Default is continuing, (ii) any such
consolidation would not cause a Default hereunder, (iii) if the Borrower
consolidates with any Person, the Borrower shall be the surviving Person, (iv)
if any Material Subsidiary consolidates with any Person (other than the Borrower
or a Material Subsidiary) and such Material Subsidiary is not the surviving
Person, such surviving Person shall expressly assume in writing (in form and
substance satisfactory to the Administrative Agent) all obligations of such
Material Subsidiary under the Loan Documents and (v) the Borrowing Base will be
redetermined using the procedures for an Interim Redetermination in accordance
with Section 2.07; and

     

    (b) any
Material Subsidiary may participate in a consolidation with the Borrower
(provided that the Borrower shall be the continuing or surviving corporation) or
any other Material Subsidiary and if one of such Material Subsidiaries is a
Wholly-Owned Subsidiary, then the surviving Person shall be a Wholly-Owned
Subsidiary.

     

    Section
9.12 Sale of
Properties.  The
Borrower will not, and will not permit any Material Subsidiary to, sell, assign,
farm-out, convey or otherwise transfer any Property except for (a) the sale of
Hydrocarbons in the ordinary course of business; (b) farmouts of undeveloped
acreage and assignments in connection with such farmouts; (c) the sale or
transfer of equipment that is no longer necessary for the business of the
Borrower or such Material Subsidiary or is replaced by equipment of at least
comparable value and use; (d) the sale, transfer or other disposition of Equity
Interests in non-Material Subsidiaries; (e) sales or other dispositions of Oil
and Gas Properties or any interest therein or Material Subsidiaries owning Oil
and Gas Properties; provided that (i) if such sales or other dispositions of Oil
and Gas Properties or Material Subsidiaries owning Oil and Gas Properties
included in the most recently delivered Reserve Report during any period between
two successive Scheduled Redetermination Dates has a fair market value in excess
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        individually
or in the aggregate, the Borrowing Base shall be reduced, effective immediately
upon such sale or disposition, by an amount equal to the value, if any, assigned
such Property in the most recently delivered Reserve Report and (ii) if any such
sale or other disposition is of a Material Subsidiary owning Oil and Gas
Properties, such sale or other disposition shall include all the Equity
Interests of such Material Subsidiary; and (f) sales and other dispositions of
Properties (other than Oil and Gas Properties) not regulated by Sections 9.12(a)
to (e) having a fair market value not to exceed $30,000,000 during any 12-month
period.

      

    

     

    Section
9.13 Environmental
Matters.  Neither
the Borrower nor any Material Subsidiary will cause or permit any of its
Property to be in violation of, or do anything or permit anything to be done
which will subject any such Property to any Remedial Work under any
Environmental Laws, assuming disclosure to the applicable Governmental Authority
of all relevant facts, conditions and circumstances, if any, pertaining to such
Property where such violations or remedial obligations could reasonably be
expected to have a Material Adverse Effect.

     

    Section
9.14 Transactions with
Affiliates.  Neither
the Borrower nor any Material Subsidiary will enter into any transaction,
including, without limitation, any purchase, sale, lease or exchange of Property
or the rendering of any service, with any Affiliate (other than the Guarantors
and Wholly-Owned Subsidiaries of the Borrower) unless such transactions are
otherwise permitted under this Agreement and are upon fair and reasonable terms
no less favorable to it than it would obtain in a comparable arm’s length
transaction with a Person not an Affiliate.

     

    Section
9.15 Subsidiaries.  The
Borrower shall not, and shall not permit any Material Subsidiary to, create or
acquire any additional Material Subsidiary or redesignate a Subsidiary as a
Material Subsidiary unless the Borrower gives written notice to the
Administrative Agent of such creation or acquisition and complies with Section
8.14(b).  The Borrower shall not, and shall not permit any Material
Subsidiary to, sell, assign or otherwise dispose of any Equity Interests in any
Material Subsidiary except in compliance with Section 9.12(e).

     

    Section
9.16 Negative Pledge Agreements;
Dividend Restrictions.  Neither
the Borrower nor any Material Subsidiary will create, incur, assume or suffer to
exist any contract, agreement or understanding (other than this Agreement, the
Security Instruments or Capital Leases creating Liens permitted by Section
9.03(c)) which in any way prohibits or restricts the granting, conveying,
creation or imposition of any Lien on any of its Property in favor of the
Administrative Agent and the Lenders or restricts any Material Subsidiary from
paying dividends or making distributions to the Borrower or any Guarantor, or
which requires the consent of or notice to other Persons in connection
therewith.

     

    Section
9.17 Gas Imbalances, Take-or-Pay
or Other Prepayments.  The
Borrower will not allow (on a net basis) gas imbalances, take-or-pay or other
prepayments with respect to the Oil and Gas Properties of the Borrower or any
Material Subsidiary that would require the Borrower or such Material Subsidiary
to deliver Hydrocarbons at some future time without then or thereafter receiving
full payment therefor to exceed three million mcf of gas (on an mcfe equivalent
basis) in the aggregate.

    
      
        
           

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    Section
9.18 Swap
Agreements.  Neither
the Borrower nor any Material Subsidiary will enter into any Swap Agreements
with any Person other than (a) Swap Agreements in respect of commodities (i)
with an Approved Counterparty and (ii) the notional volumes for which (when
aggregated with other commodity Swap Agreements then in effect) do not exceed,
as of the date such Swap Agreement is executed, 75% of the reasonably
anticipated projected production from proved, developed, producing Oil and Gas
Properties for each month during the period during which such Swap Agreement is
in effect, (b) Swap Agreements effectively converting interest rates from
floating to fixed (i) with an Approved Counterparty and (ii) the notional
amounts of which (when aggregated with other interest rate Swap Agreements then
in effect effectively converting interest rates from floating to fixed) do not
exceed 100% of principal amount of the Borrower’s floating rate Debt in respect
of borrowed money, (c) Swap Agreements effectively converting interest rates
from fixed to floating (i) with an Approved Counterparty and (ii) the notional
amounts of which (when aggregated with other interest rate Swap Agreements then
in effect effectively converting interest rates from fixed to floating) do not
exceed 100% of principal amount of the Borrower's fixed rate Debt in respect of
borrowed money (including, without limitation, the Borrower's Senior Convertible
Notes), and (d) Swap Agreements in respect of currencies (i) with an Approved
Counterparty, (ii) such transactions are to hedge actual or expected
fluctuations in currencies and are not for speculative purposes and (iii) such
transactions do not involve termination or expiry dates longer than six (6)
months after the trade date in respect thereof.  In no event shall any
Swap Agreement contain any requirement, agreement or covenant for the Borrower
or any Material Subsidiary to post collateral or margin to secure their
obligations under such Swap Agreement or to cover market exposures other than
usual and customary requirements to deliver letters of credit or post cash
collateral.

     

    Section
9.19 Preservation of Material
Agreements.  Except
for acts which could not reasonably be expected to have a Material Adverse
Effect or which are taken in the ordinary course of business, neither the
Borrower nor any Material Subsidiary, as the case may be, will agree to any
change, modification or amendment to or waiver of any of the terms or provisions
of any of the Material Agreements.  Neither the Borrower nor any
Material Subsidiary, as the case may be, will take any action or permit any
action to be taken by others which will release any Person from its obligations
or liabilities under any of the Material Agreements.

     

    Section
9.20 Release of
Liens.  During
any period between two successive Scheduled Redetermination Dates, the Borrower
shall be entitled to cause Mortgaged Properties having an aggregate fair market
value not to exceed seven and a half percent (7.5%) of the Borrowing Base,
individually or in the aggregate, to be released from the Liens created by and
existing under the Security Instruments without the consent of the Lenders;
provided that (a) no Event of Default shall have occurred which is continuing,
(b) following any such release, the total value of the remaining Mortgaged
Property shall be sufficient to support the Aggregate Commitment in the sole
opinion of the Administrative Agent, and (c) following any such release, the
Administrative Agent shall adjust the then current Borrowing Base to take into
account the release of such Mortgaged Properties and any mandatory prepayment
required as a result thereof shall be made at the time of such
release.

    
      
        
           

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    ARTICLE
X

     

    Events of
Default; Remedies

     

    Section
10.01 Events of
Default.  One
or more of the following events shall constitute an “Event of
Default”:

     

    (a) the
Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof, by acceleration or otherwise.

     

    (b) the
Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in Section 10.01(a)) payable under any
Loan Document, when and as the same shall become due and payable, and such
failure shall continue unremedied for a period of three Business
Days.

     

    (c) any
representation or warranty made or deemed made by or on behalf of the Borrower
or any Material Subsidiary in or in connection with any Loan Document or any
amendment or modification of any Loan Document or waiver under such Loan
Document, or in any report, certificate, financial statement or other document
furnished pursuant to or in connection with any Loan Document or any amendment
or modification thereof or waiver thereunder, shall prove to have been incorrect
in any respect material to the Borrower’s creditworthiness or to the rights or
interests of the Lenders when made or deemed made.

     

    (d) the
Borrower or any Material Subsidiary shall fail to observe or perform any
covenant, condition or agreement contained in Section 8.02, Section 8.03 or in
ARTICLE IX.

     

    (e) the
Borrower or any Material Subsidiary shall fail to observe or perform any
covenant, condition or agreement contained in this Agreement (other than those
specified in Section 10.01(a), Section 10.01(b) or Section 10.01(d)) or any
other Loan Document, and such failure shall continue unremedied for a period of
30 days after the earlier to occur of (A) notice thereof from the Administrative
Agent to the Borrower (which notice will be given at the request of any Lender)
or (B) a Responsible Officer of the Borrower or such Material Subsidiary
otherwise becoming aware of such default.

     

    (f) the
Borrower or any Material Subsidiary shall fail to make any payment (whether of
principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable (subject to
applicable grace periods), unless such payment is being contested in good faith
and by proper proceedings and against which adequate reserves are being
maintained.

     

    (g) any event
or condition occurs that results in any Material Indebtedness becoming due prior
to its scheduled maturity or that enables or permits (with or without the giving
of notice, the lapse of time or both) the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the Redemption thereof or any
offer to Redeem to be made in respect thereof, prior to its scheduled maturity
or require the Borrower or any Material Subsidiary to make an offer in

    
      
        
           

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    respect
thereof; provided, however, early termination of a Swap Agreement (that is
Material Indebtedness) due solely to an ISDA “Termination Event” is not an Event
of Default hereunder.

     

    (h) an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of the
Borrower or any Material Subsidiary or its debts, or of a substantial part of
its assets, under any  Debtor Relief Laws or (ii) the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for
the Borrower or any Material Subsidiary or for a substantial part of its assets,
and, in any such case, such proceeding or petition shall continue undismissed
for 30 days or an order or decree approving or ordering any of the foregoing
shall be entered.

     

    (i) the
Borrower or any Material Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other
relief under any Debtor Relief Laws, (ii) consent to the institution of, or fail
to contest in a timely and appropriate manner, any proceeding or petition
described in Section 10.01(h), (iii) apply for or consent to the appointment of
a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Borrower or any Material Subsidiary or for a substantial part of its
assets, (iv) file an answer admitting the material allegations of a petition
filed against it in any such proceeding, (v) make a general assignment for the
benefit of creditors or (vi) take any action for the purpose of effecting any of
the foregoing.

     

    (j) the
Borrower or any Material Subsidiary shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due.

     

    (k) one or
more judgments for the payment of money in an aggregate amount in excess of
$15,000,000
(to the extent not covered by independent third party insurance provided by
insurers of the highest claims paying rating or financial strength as to which
the insurer does not dispute coverage and is not subject to an insolvency
proceeding) shall be rendered against the Borrower, any Material Subsidiary or
any combination thereof and the same shall remain undischarged for a period of
30 consecutive days and for which execution shall not be effectively stayed, or
any action shall be legally taken by a judgment creditor to attach or levy upon
any assets of the Borrower or any Material Subsidiary to enforce any such
judgment.

     

    (l) the Loan
Documents after delivery thereof shall for any reason, except to the extent
permitted by the terms thereof, cease to be in full force and effect and valid,
binding and enforceable in accordance with their terms against the Borrower or a
Guarantor party thereto or shall be repudiated by any of them, or cease to
create a valid and perfected Lien of the priority required thereby on any of the
collateral purported to be covered thereby, except to the extent permitted by
the terms of this Agreement, or the Borrower or any Guarantor or any of their
Affiliates shall so state in writing.

     

    (m)  an
ERISA Event shall have occurred that, in the opinion of the Majority Lenders,
when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in a Material Adverse Effect.

     

    (n) a Change
in Control shall occur.

    
      
        
           

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    (o) the
Borrower shall fail to pay any mandatory prepayment or provide additional
collateral as provided in Section 3.04(c)

     

    Section
10.02 Remedies.

     

    (a) In the
case of an Event of Default other than one described in Section 10.01(h),
Section 10.01(i) or Section 10.01(j), at any time thereafter during the
continuance of such Event of Default, the Administrative Agent may, and at the
request of the Majority Lenders, shall, by notice to the Borrower, take either
or both of the following actions, at the same or different times:  (i)
terminate the Commitments, and thereupon the Commitments shall terminate
immediately, and (ii) declare the Notes and the Loans then outstanding to be due
and payable in whole (or in part, in which case any principal not so declared to
be due and payable may thereafter be declared to be due and payable), and
thereupon the principal of the Loans so declared to be due and payable, together
with accrued interest thereon and all fees and other obligations of the Borrower
and the Guarantors accrued hereunder and under the Notes and the other Loan
Documents (including, without limitation, the payment of cash collateral to
secure the LC Exposure as provided in Section 2.08(k)), shall become due and
payable immediately, without presentment, demand, protest, notice of intent to
accelerate, notice of acceleration or other notice of any kind, all of which are
hereby waived by the Borrower and each Guarantor; and in case of an Event of
Default described in Section 10.01(h), Section 10.01(i) or  Section
10.01(j), the Commitments shall automatically terminate and the Notes and the
principal of the Loans then outstanding, together with accrued interest thereon
and all fees and the other obligations of the Borrower and the Guarantors
accrued hereunder and under the Notes and the other Loan Documents (including,
without limitation, the payment of cash collateral to secure the LC Exposure as
provided in Section 2.08(k)), shall automatically become due and payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrower and each Guarantor.

     

    (b) In the
case of the occurrence of an Event of Default, the Administrative Agent and the
Lenders will have all other rights and remedies available at law and
equity.

     

    (c) All
collateral, including, without limitation, proceeds realized from the
liquidation or other disposition of collateral or otherwise received after
maturity of the Notes, whether by acceleration or otherwise, shall be
applied:  first, to reimbursement of
expenses and indemnities provided for in this Agreement and the Security
Instruments; second, to
accrued interest on the Notes; third, to fees; fourth, pari passu amongst
(i) Indebtedness owing to a Lender or an Affiliate of a Lender under any Swap
Agreement permitted hereby and (ii) principal outstanding on the Notes (to be
shared pro rata amongst the Lenders); fifth, to any other
Indebtedness; sixth, to
serve as cash collateral to be held by the Administrative Agent to secure the LC
Exposure; and any excess shall be paid to the Borrower or as otherwise required
by any Governmental Requirement.

     

    ARTICLE
XI

     

    The
Administrative Agent

     

    Section
11.01 Appointment;
Powers.  Each
of the Lenders and the Issuing Bank hereby irrevocably appoints the
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        Agent as
its agent and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof and the other Loan Documents, together with such actions and
powers as are reasonably incidental thereto.

      

    

     

    Section
11.02 Duties and Obligations of
Administrative Agent.  The
Administrative Agent shall not have any duties or obligations except those
expressly set forth in the Loan Documents.  Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except as
provided in Section 11.03, and (c) except as expressly set forth herein, the
Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Borrower or
any of its Subsidiaries that is communicated to or obtained by the bank serving
as Administrative Agent or any of its Affiliates in any capacity.  The
Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by the
Borrower or a Lender, and shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
under any other Loan Document or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein or in any other Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document, (v) the satisfaction of
any condition set forth in ARTICLE VI or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent,
(vi) the existence, value, perfection or priority of any collateral security or
the financial or other condition of the Borrower and its Subsidiaries or any
other obligor or guarantor, or (vii) any failure by the Borrower or any other
Person (other than itself) to perform any of its obligations hereunder or under
any other Loan Document or the performance or observance of any covenants,
agreements or other terms or conditions set forth herein or
therein.

     

    Section
11.03 Action by Administrative
Agent.  The
Administrative Agent shall not have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to
exercise in writing as directed by the Majority Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 12.02) and in all cases the Administrative Agent shall be
fully justified in failing or refusing to act hereunder or under any other Loan
Documents unless it shall (a) receive written instructions from the Majority
Lenders or the Lenders, as applicable, (or such other number or percentage of
the Lenders as shall be necessary under the circumstances as provided in Section
12.02) specifying the action to be taken and (b) be indemnified to its
satisfaction by the Lenders against any and all liability and expenses which may
be incurred by it by reason of taking or continuing to take any such
action.  The instructions as aforesaid and any action taken or failure
to act pursuant thereto by the Administrative Agent shall be binding on all of
the Lenders.  If a Default has occurred and is continuing, then the
Administrative Agent shall take such action with respect to such Default as
shall be directed by the requisite Lenders in the written instructions (with
indemnities) described in this Section 11.03, provided that, unless and until
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      Agent
shall have received such directions, the Administrative Agent may (but shall not
be obligated to) take such action, or refrain from taking such action, with
respect to such Default as it shall deem advisable in the best interests of the
Lenders.  In no event, however, shall the Administrative Agent be
required to take any action which exposes the Administrative Agent to personal
liability or which is contrary to this Agreement, the Loan Documents or
applicable law.  The Administrative Agent shall not be liable for any
action taken or not taken by it with the consent or at the request of the
Majority Lenders or the Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section
12.02), and otherwise shall not be liable for any action taken or not taken by
it hereunder or under any other Loan Document or under any other document or
instrument referred to or provided for herein or therein or in connection
herewith or therewith INCLUDING ITS OWN ORDINARY NEGLIGENCE, except for its own
gross negligence or willful misconduct.

    

     

    Section
11.04 Reliance by Administrative
Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon and each of the Borrower, the Lenders
and the Issuing Bank hereby waives the right to dispute the Administrative
Agent’s record of such statement, except in the case of gross negligence or
willful misconduct by the Administrative Agent.  The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.  The Administrative Agent
may deem and treat the payee of any Note as the holder thereof for all purposes
hereof unless and until a written notice of the assignment or transfer thereof
permitted hereunder shall have been filed with the Administrative
Agent.

     

    Section
11.05 Subagents.  The
Administrative Agent may perform any and all its duties and exercise its rights
and powers by or through any one or more sub-agents appointed by the
Administrative Agent.  The Administrative Agent and any such sub-agent
may perform any and all its duties and exercise its rights and powers through
their respective Related Parties.  The exculpatory provisions of the
preceding Sections of this ARTICLE XI shall apply to any such sub-agent and to
the Related Parties of the Administrative Agent and any such sub-agent, and
shall apply to their respective activities in connection with the syndication of
the credit facilities provided for herein as well as activities as
Administrative Agent.

     

    Section
11.06 Resignation or Removal of
Administrative Agent.  Subject
to the appointment and acceptance of a successor Administrative Agent as
provided in this Section 11.06, the Administrative Agent may resign at any time
by notifying the Lenders, the Issuing Bank and the Borrower, and the
Administrative Agent may be removed at any time with or without cause by the
Majority Lenders.  Upon any such resignation or removal, the Majority
Lenders shall have the right, in consultation with the Borrower, to appoint a
successor; provided, however, that, at Wachovia’s election and in its sole
discretion, upon the resignation of Wachovia as Administrative Agent, Wachovia
shall have the right to appoint any of its Affiliates as successor
Administrative Agent.  If no successor shall have been so appointed by
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      Lenders
(where applicable) and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation or removal of
the retiring Administrative Agent, then the retiring Administrative Agent may,
on behalf of the Lenders and the Issuing Bank, appoint a successor
Administrative Agent which shall be a bank with an office in New York, New York
or San Francisco, California, or an Affiliate of any such bank.  Upon
the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder.  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After the Administrative Agent’s resignation hereunder,
the provisions of this ARTICLE XI and Section 12.03 shall continue in effect for
the benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Administrative Agent.  If
the Administrative Agent is an Impacted Lender due to the circumstances
described in clause (v) of the definition of Impacted Lender, the Majority
Lenders shall have the right to appoint a successor Administrative Agent which
shall be a commercial bank or trust company that is, if no Event of Default
exists, reasonably acceptable to the Borrower.  If no successor
Administrative Agent has been so appointed and shall have accepted such
appointment by the 20th Business Day after the date the Administrative Agent
became an Impacted Lender due to the circumstances described in clause
(v) of the definition of Impacted Lender, the Administrative Agent shall be
deemed to have been replaced and the Lenders shall thereafter perform all the
duties of the Administrative Agent hereunder and under any other Loan Document
until such time, if any, as the Majority Lenders appoint a successor
Administrative Agent as provided above. After the Administrative Agent is
replaced in accordance with this Section 11.06, the provisions of this
Article XI and Section 12.03 shall continue in effect for the benefit
of such replaced Administrative Agent, its sub agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any of
them while such replaced Administrative Agent was acting as Administrative
Agent.

    

     

    Section
11.07 Administrative Agent
as  Lenders.  Wachovia,
serving as Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as
though it were not Administrative Agent, and such bank and its Affiliates may
accept deposits from, lend money to and generally engage in any kind of business
with the Borrower or any Subsidiary or other Affiliate thereof as if it were not
Administrative Agent hereunder.

     

    Section
11.08 No
Reliance.  Each
Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and each other Loan Document to which it
is a party.  Each Lender also acknowledges that it will, independently
and without reliance upon the Administrative Agent or any other Lender and based
on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document, any related
agreement or any document furnished hereunder or thereunder.  The
Administrative Agent shall not be required to keep itself informed as to the
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      any of
its Subsidiaries of this Agreement, the Loan Documents or any other document
referred to or provided for herein or to inspect the Properties or books of the
Borrower or its Subsidiaries.  Except for notices, reports and other
documents and information expressly required to be furnished to the Lenders by
the Administrative Agent hereunder or Arranger shall have any duty or
responsibility to provide any Lender with any credit or other information
concerning the affairs, financial condition or business of the Borrower (or any
of its Affiliates) which may come into the possession of the Administrative
Agent or any of its Affiliates.  In this regard, each Lender
acknowledges that Vinson & Elkins L.L.P. is acting in this transaction as
special counsel to the Administrative Agent only, except to the extent otherwise
expressly stated in any legal opinion or any Loan Document.  Each
other party hereto will consult with its own legal counsel to the extent that it
deems necessary in connection with the Loan Documents and the matters
contemplated therein.

    

     

    Section
11.09 Authority of Administrative
Agent to Release Collateral and Liens.  Each
Lender and the Issuing Bank hereby authorizes the Administrative Agent to
release any collateral that is permitted to be sold or released pursuant to the
terms of the Loan Documents.  Each Lender and the Issuing Bank hereby
authorizes the Administrative Agent to execute and deliver to the Borrower, at
the Borrower’s sole cost and expense, any and all releases of Liens, termination
statements, assignments or other documents reasonably requested by the Borrower
in connection with any sale or other disposition of Property to the extent such
sale or other disposition is permitted by the terms of Section 9.12 or is
otherwise authorized by the terms of the Loan Documents.

     

    Section
11.10 Syndication Agent and
Co-Documentation Agents.  The
Lenders identified in this Agreement as Syndication Agent and as
Co-Documentation Agents shall not have any right, power, obligation, liability,
responsibility or duty under this Agreement other than those applicable to all
Lenders as such.  Without limiting the foregoing, the Syndication
Agent and the Co-Documentation Agents shall not have or be deemed to have a
fiduciary relationship with any Lender.

     

    Section
11.11 Administrative Agent May
File Proofs of Claim.  In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Borrower or any of its Subsidiaries, the
Administrative Agent (irrespective of whether the principal of any Loan shall
then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agent shall have made any demand on
the Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

     

    (a) to file
and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans and all other Indebtedness that are owing and
unpaid and to file such other documents as may be necessary or advisable in
order to have the claims of the Lenders and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and the Administrative Agent and their respective agents and
counsel and all other amounts due the Lenders and the Administrative Agent under
Section 12.03) allowed in such judicial proceeding; and

    
      
         

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    (b) to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Section
12.03.

     

    Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the
Indebtedness or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such
proceeding.

     

    ARTICLE
XII

     

    Miscellaneous

     

    Section
12.01 Notices.

     

    (a) Except in
the case of notices and other communications expressly permitted to be given by
telephone (and subject to Section 12.01(b)), all notices and other
communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail, sent
by telecopy or, to the extent permitted in Sections 2.08(b), 2.09(b), 8.01 and
12.01(b), transmitted by electronic communication, as follows:

     

    (i)  if
to the Borrower, to it at 1776 Lincoln Street, Suite
700, Denver, Colorado 80203, Attention of Matthew J. Purchase (Telecopy
No. 303/861-0934) (E-mail Address: mpurchase@stmaryland.com);

     

    (ii) if to the
Administrative Agent, to it at 1525 W. WT Harris Blvd., Charlotte, North
Carolina 28262, Attention of Syndication Agency Services (Telecopy No.
704/590-3481), with a copy to Wachovia Securities, at 301 South College Street,
15th
Floor NC 5562, Charlotte, North Carolina 28288, Attention of Leanne Phillips
(Telecopy No. 704/383-6647)
(E-mail Address: leanne.phillips@wachovia.com);

     

    (iii) if to the
Issuing Bank, to it at 1525 W. WT Harris Blvd., Charlotte, North Carolina 28262,
Attention of Syndication Agency Services (Telecopy No.
704/590-3481);

     

    (iv) if to the Swingline Lender, to it at the address
set forth in clause (ii) above; or

     

    (v) if to any
other Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.

     

    (b) Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the
Administrative Agent; provided that the foregoing shall not apply to notices
pursuant to 

    
      
        
           

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        ARTICLE
II, ARTICLE III, ARTICLE IV and ARTICLE V unless otherwise agreed by the
Administrative Agent and the applicable Lender.  The Administrative
Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be
limited to particular notices or communications.

      

    

     

    (c) Any party
hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.  All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt.

     

    Section
12.02 Waivers;
Amendments.

     

    (a) No
failure on the part of the Administrative Agent, the Issuing Bank or any Lender
to exercise and no delay in exercising, and no course of dealing with respect
to, any right, power or privilege, or any abandonment or discontinuance of steps
to enforce such right, power or privilege, under any of the Loan Documents shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege under any of the Loan Documents preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege.  The rights and remedies of the Administrative Agent, the
Issuing Bank and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have.  No waiver of any provision of this Agreement or any
other Loan Document or consent to any departure by the Borrower therefrom shall
in any event be effective unless the same shall be permitted by Section
12.02(b), and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given.  Without
limiting the generality of the foregoing, the making of a Loan or issuance of a
Letter of Credit shall not be construed as a waiver of any Default, regardless
of whether the Administrative Agent, any Lender or the Issuing Bank may have had
notice or knowledge of such Default at the time.

     

    (b) Neither
this Agreement nor any provision hereof nor any Security Instrument nor any
provision thereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the Borrower and the Majority
Lenders or by the Borrower and the Administrative Agent with the consent of the
Majority Lenders; provided that no such agreement shall (i) increase the
Commitment of any Lender without the written consent of such Lender, (ii)
increase the Borrowing Base or modify Section 2.07, without the written consent
of all of the Lenders, or decrease or maintain the Borrowing Base then in effect
under Section 2.07, without the written consent of the Supermajority Lenders
(other than any Impacted Lender), (iii) reduce the principal amount of any Loan
or LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, or reduce any other Indebtedness hereunder or under any other
Loan Document, without the written consent of each Lender affected thereby, (iv)
postpone the scheduled date of payment of the principal amount of any Loan or LC
Disbursement, or any interest thereon, or any fees payable hereunder, or any
other Indebtedness hereunder or under any other Loan Document, or reduce the
amount of, waive or excuse any such payment, or postpone or extend the
Termination Date without the written consent of each Lender affected thereby,
(v) change Section 4.01(b), Section 4.01(c) or Section 10.02(c) in a manner that
would alter the pro rata sharing of payments required thereby, 

    
      
        
           

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        without
the written consent of each Lender, (vi) change the definition of the term
“Material Subsidiary”, without the written consent of each Lender (other than
any Impacted Lender), (vii) release any Guarantor (except as set forth in the
Guaranty Agreement), release all or substantially all of the collateral, or
reduce the percentage set forth in Section 8.14 to less than 80%, without the
written consent of each Lender (other than any Impacted Lender), (viii) change
any of the provisions of this Section 12.02(b) or the definition of “Majority
Lenders” or the definition of “Supermajority Lenders” or any other provision
hereof specifying the number or percentage of Lenders required to waive, amend
or modify any rights hereunder or under any other Loan Documents or make any
determination or grant any consent hereunder or any other Loan Documents,
without the written consent of each Lender (other than any Impacted Lender) or
(ix) increase the Aggregate Commitment above the Maximum Credit Amount without
the written consent of each Lender; provided further that no such agreement
shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent, the Swingline Lender or the Issuing Bank hereunder or
under any other Loan Document without the prior written consent of the
Administrative Agent, the Swingline Lender or the Issuing Bank, as the case may
be.  Notwithstanding the foregoing, any supplement to Schedule 7.15
(Subsidiaries) shall be effective simply by delivering to the Administrative
Agent a supplemental schedule clearly marked as such and, upon receipt, the
Administrative Agent will promptly deliver a copy thereof to the
Lenders.  Notwithstanding the foregoing, the Commitment and
outstanding Borrowings of any Impacted Lender shall be disregarded for all
purposes of any determination of whether the requisite Lenders have taken or may
take any action hereunder (including any consent to any amendment or waiver
pursuant to this Section 12.02); provided that, except
as set forth in Sections 12.02(b)(vi), (vii) and (viii), any waiver, amendment
or modification requiring the consent of all Lenders shall require the consent
of such Impacted Lender.

      

    

     

    Section
12.03 Expenses, Indemnity; Damage
Waiver.

     

    (a) The
Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including, without limitation, the
reasonable fees, charges and disbursements of counsel and other outside
consultants for the Administrative Agent, the reasonable travel, photocopy,
mailing, courier, telephone and other similar expenses, and the cost of
environmental audits and surveys and appraisals, in connection with the
syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration (both before and after the
execution hereof and including advice of counsel to the Administrative Agent as
to the rights and duties of the Administrative Agent and the Lenders with
respect thereto) of this Agreement and the other Loan Documents and any
amendments, modifications or waivers of or consents related to the provisions
hereof or thereof (whether or not the transactions contemplated hereby or
thereby shall be consummated), (ii) all costs, expenses, Taxes, assessments and
other charges incurred by the Administrative Agent or any Lender in connection
with any filing, registration, recording or perfection of any security interest
contemplated by this Agreement or any Security Instrument or any other document
referred to therein, (iii) all reasonable out-of-pocket expenses incurred by the
Issuing Bank in connection with the issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder, (iv) all
out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank,
the Swingline Lender or any other Lender, including the reasonable fees, charges
and disbursements of any counsel for the Administrative Agent, the Issuing Bank,
the Swingline Lender or any other Lender, in connection with the enforcement or
protection of 

    
      
        
           

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        its
rights in connection with this Agreement or any other Loan Document, including
its rights under this Section 12.03, or in connection with the Loans made or
Letters of Credit issued hereunder, including, without limitation, all such
out-of-pocket expenses incurred during  any workout, restructuring or
negotiations in respect of such Loans or Letters of
Credit.

      

    

     

    (b) THE
BORROWER SHALL INDEMNIFY THE ADMINISTRATIVE AGENT, THE ISSUING BANK, THE
SWINGLINE LENDER AND EACH OTHER LENDER, AND EACH RELATED PARTY OF ANY OF THE
FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST,
AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES,
LIABILITIES AND RELATED EXPENSES, INCLUDING THE REASONABLE FEES, CHARGES AND
DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST
ANY INDEMNITEE DIRECTLY ARISING OUT OF, DIRECTLY IN CONNECTION WITH, OR DIRECTLY
AS A RESULT OF (i) THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE
PERFORMANCE BY THE PARTIES HERETO OR THE PARTIES TO ANY OTHER LOAN DOCUMENT OF
THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE
TRANSACTIONS CONTEMPLATED HEREBY OR BY ANY OTHER LOAN DOCUMENT, (ii) THE FAILURE
OF THE BORROWER OR ANY RESTRICTED SUBSIDIARY TO COMPLY WITH THE TERMS OF ANY
LOAN DOCUMENT, INCLUDING THIS AGREEMENT, OR WITH ANY GOVERNMENTAL REQUIREMENT,
(iii) ANY INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OR
COVENANT OF THE BORROWER OR ANY GUARANTOR SET FORTH IN ANY OF THE LOAN DOCUMENTS
OR ANY INSTRUMENTS, DOCUMENTS OR CERTIFICATIONS DELIVERED IN CONNECTION
THEREWITH, (iv) ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS
THEREFROM, INCLUDING, WITHOUT LIMITATION, (A) ANY REFUSAL BY THE ISSUING BANK TO
HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED
IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH
LETTER OF CREDIT, OR (B) THE PAYMENT OF A DRAWING UNDER ANY LETTER OF CREDIT
NOTWITHSTANDING THE NON-COMPLIANCE, NON-DELIVERY OR OTHER IMPROPER PRESENTATION
OF THE DOCUMENTS PRESENTED IN CONNECTION THEREWITH, (v) ANY OTHER ASPECT OF THE
LOAN DOCUMENTS, (vi) THE OPERATIONS OF THE BUSINESS OF THE BORROWER AND ITS
SUBSIDIARIES BY THE BORROWER AND ITS SUBSIDIARIES, (vii) ANY ASSERTION THAT THE
LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS RECEIVED PURSUANT TO THE
SECURITY INSTRUMENTS, (viii) ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR
ANY SUBSIDIARY OR ANY OF THEIR PROPERTIES, INCLUDING WITHOUT LIMITATION, THE
PRESENCE, GENERATION, STORAGE, RELEASE, THREATENED RELEASE, USE, TRANSPORT,
DISPOSAL, ARRANGEMENT OF DISPOSAL OR TREATMENT OF OIL, OIL AND GAS WASTES, SOLID
WASTES OR HAZARDOUS SUBSTANCES ON ANY OF THEIR PROPERTIES, (ix) THE BREACH OR
NON-COMPLIANCE BY THE BORROWER OR ANY SUBSIDIARY WITH ANY ENVIRONMENTAL LAW
APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY, (x) THE PAST OWNERSHIP BY THE
BORROWER OR ANY SUBSIDIARY 

    
      
        
           

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        OF ANY OF
THEIR PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH
LAWFUL AND FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT LIABILITY,
(xi) THE PRESENCE, USE, RELEASE, STORAGE, TREATMENT, DISPOSAL, GENERATION,
THREATENED RELEASE, TRANSPORT, ARRANGEMENT FOR TRANSPORT OR ARRANGEMENT FOR
DISPOSAL OF OIL, OIL AND GAS WASTES, SOLID WASTES OR HAZARDOUS SUBSTANCES ON OR
AT ANY OF THE PROPERTIES OWNED OR OPERATED BY THE BORROWER OR ANY SUBSIDIARY OR
ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY
PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS SUBSIDIARIES, (xii) ANY
ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF ITS
SUBSIDIARIES, OR (xiii) ANY OTHER ENVIRONMENTAL, HEALTH OR SAFETY CONDITION IN
CONNECTION WITH THE LOAN DOCUMENTS, OR (xiv) ANY ACTUAL OR PROSPECTIVE CLAIM,
LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING,
WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY AND REGARDLESS OF WHETHER
ANY INDEMNITEE IS A PARTY THERETO, AND SUCH INDEMNITY SHALL EXTEND TO EACH
INDEMNITEE NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY KIND OR
CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN AFFIRMATIVE ACT OR
AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT
IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE
INDEMNITEES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR
MORE OF THE INDEMNITEES; PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY
INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES,
LIABILITIES OR RELATED EXPENSES (X) ARE DETERMINED BY A COURT OF COMPETENT
JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE OR (Y) RESULT FROM A
CLAIM BROUGHT BY THE BORROWER OR ANY GUARANTOR AGAINST AN INDEMNITEE FOR A
MATERIAL BREACH IN BAD FAITH OF SUCH INDEMNITEE'S OBLIGATIONS UNDER THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY OR THEREBY, IF THE BORROWER OR SUCH
GUARANTOR HAS OBTAINED A FINAL AND NONAPPEALABLE JUDGMENT IN ITS FAVOR ON SUCH
CLAIM AS DETERMINED BY A COURT OF COMPETENT
JURISDICTION.

      

    

     

    (c) To the
extent that the Borrower fails to pay any amount required to be paid by it to
the Administrative Agent, the Swingline Lender or the Issuing Bank under Section
12.03(a) or (b), each Lender severally agrees to pay to the Administrative
Agent, the Swingline Lender or the Issuing Bank, as the case may be, such
Lender’s Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent, the Swingline Lender or the Issuing Bank in
its capacity as such.

    
      
        
           

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    (d) To the
extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of
the proceeds thereof.

     

    (e) All
amounts due under this Section 12.03 shall be payable promptly after written
demand therefor.

     

    Section
12.04 Successors and
Assigns.

     

    (a) The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby
(including any Affiliate of the Issuing Bank that issues any Letter of Credit),
except that (i) the Borrower may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of each Lender
(and any attempted assignment or transfer by the Borrower without such consent
shall be null and void) and (ii) no Lender may assign or otherwise transfer its
rights or obligations hereunder except in accordance with this Section
12.04.  Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), Participants (to the extent
provided in Section 12.04(c)) and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agent, the Issuing Bank and
the Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

     

    (b) (i)  Subject
to the conditions set forth in Section 12.04(b)(ii), any Lender may assign to
one or more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it) with the prior written consent (such consent not to be
unreasonably withheld) of:

     

    (A) the
Borrower, provided that no consent of the Borrower shall be required for an
assignment to a Lender, an Affiliate of a Lender or, if an Event of Default has
occurred and is continuing, any other assignee; and

     

    (B) the
Administrative Agent, provided that no consent of the Administrative Agent shall
be required for an assignment to an assignee that is a Lender immediately prior
to giving effect to such assignment.

     

    (ii) Assignments
shall be subject to the following additional conditions:

     

    (A) except in
the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment,
the amount of the Commitment of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent) shall not be less
than $5,000,000, and, after giving effect thereto, the assigning Lender shall
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        least
$5,000,000, in each case, unless each of the Borrower and the Administrative
Agent otherwise consent, provided that no such consent of the Borrower shall be
required if an Event of Default has occurred and is
continuing;

      

    

     

    (B) each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement;

     

    (C) the
parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Assumption, together with a processing and recordation fee of
$3,500;

     

    (D) the
assignee, if it shall not be a Lender, shall deliver to the Administrative Agent
an Administrative Questionnaire; and

     

    (E) in the
case of an assignment to a CLO, the assigning Lender shall retain the sole right
to approve any amendment, modification or waiver of any provision of this
Agreement, provided that the Assignment and Assumption between such Lender and
such CLO may provide that such Lender will not, without the consent of such CLO,
agree to any amendment, modification or waiver described in the first proviso to
Section 12.02 that affects such CLO.

     

    (iii) Subject
to Section 12.04(b)(iv) and the acceptance and recording thereof, from and after
the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Section 5.01, Section 5.02, Section 5.03 and
Section 12.03).  Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 12.04
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section
12.04(c).

     

    (iv) The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Maximum Credit Amount of, and principal amount of the Loans
and LC Disbursements owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”).  The
entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent, the Issuing Bank and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be available for inspection by the
Borrower, the Issuing Bank and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.  In connection with any changes
to the Register, if necessary, the Administrative Agent will reflect the
revisions on Annex I and forward a copy of such revised Annex I to the Borrower,
the Issuing Bank and each Lender.

    
      
         

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    (v) Upon its
receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in Section 12.04(b) and any written consent to such
assignment required by Section 12.04(b), the Administrative Agent shall accept
such Assignment and Assumption and record the information contained therein in
the Register.  No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this
Section 12.04(b).

     

    (c)  (i)           Any
Lender may, without the consent of the Borrower, the Administrative Agent or the
Issuing Bank, sell participations to one or more banks or other entities (a
“Participant”)
in all or a portion of such Lender’s rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall
remain unchanged, (B) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (C) the
Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement.  Any agreement
or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the proviso to Section 12.02 that affects
such Participant.  In addition such agreement must provide that the
Participant be bound by the provisions of Section 12.03.  Subject to
Section 12.04(c)(ii), the Borrower agrees that each Participant shall be
entitled to the benefits of Section 5.01, Section 5.02 and Section 5.03 to the
same extent as if it were a Lender and had acquired its interest by assignment
pursuant to Section 12.04(b).  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 12.08 as though it
were a Lender, provided such Participant agrees to be subject to Section 4.01(c)
as though it were a Lender.

     

    (ii) A
Participant shall not be entitled to receive any greater payment under Section
5.01 or Section 5.03 than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless the
sale of the participation to such Participant is made with the Borrower’s prior
written consent.  A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 5.03 unless the
Borrower is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrower, to comply with Section
5.03(e) as though it were a Lender.

     

    (d) Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section 12.04(d) shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party
hereto.

    
      
         

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    (e) Notwithstanding
any of the foregoing, the Borrower will not and will not permit any of its
Affiliates to assume, purchase, or otherwise acquire, directly or indirectly,
all or any portion of any Lender’s rights and obligations under this Agreement
(including all or any portion of any Lender’s Commitment and
Loans).  Notwithstanding any of the foregoing, no Lender shall assign,
sell, sell participations, or otherwise dispose, directly or indirectly, of all
or any portion of any its rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans owing to it) to the Borrower or
to any of the Borrower’s Affiliates.

     

    Section
12.05 Survival; Revival;
Reinstatement.

     

    (a) All
covenants, agreements, representations and warranties made by the Borrower
herein and in the certificates or other instruments delivered in connection with
or pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the other parties hereto and shall survive the
execution and delivery of this Agreement and the making of any Loans and
issuance of any Letters of Credit, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that the Administrative
Agent, the Issuing Bank or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid or any Letter of Credit
is outstanding and so long as the Commitments have not expired or
terminated.  The provisions of Section 5.01, Section 5.02, Section
5.03 and Section 12.03 and ARTICLE XI shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby,
the repayment of the Loans, the expiration or termination of the Letters of
Credit and the Commitments or the termination of this Agreement, any other Loan
Document or any provision hereof or thereof.

     

    (b) To the
extent that any payments on the Indebtedness or proceeds of any collateral are
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, debtor in possession, receiver or other
Person under any bankruptcy law, common law or equitable cause, then to such
extent, the Indebtedness so satisfied shall be revived and continue as if such
payment or proceeds had not been received and the Administrative Agent’s and the
Lenders’ Liens, security interests, rights, powers and remedies under this
Agreement and each Loan Document shall continue in full force and
effect.  In such event, each Loan Document shall be automatically
reinstated and the Borrower shall take such action as may be reasonably
requested by the Administrative Agent and the Lenders to effect such
reinstatement.

     

    Section
12.06 Counterparts; Integration;
Effectiveness.

     

    (a) This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single
contract.   Delivery of an executed signature page to this
Agreement by facsimile transmission or other electronic transmission shall be as
effective as delivery of a manually executed counterpart of this
Agreement.

    
      
         

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    (b) This
Agreement, the other Loan Documents and any separate letter agreements with
respect to fees payable to the Administrative Agent constitute the entire
contract among the parties relating to the subject matter hereof and thereof and
supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof and thereof.  This Agreement and
the other Loan Documents represent the final agreement among the parties hereto
and thereto and may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements of the parties.  There are no unwritten
oral agreements between the parties.

     

    (c) Except as
provided in Section 6.01, this Agreement shall become effective when it shall
have been executed by the Administrative Agent and when the Administrative Agent
shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.  Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

     

    Section
12.07 Severability.  Any
provision of this Agreement or any other Loan Document held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof or thereof; and the invalidity of a particular provision in a
particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

     

    Section
12.08 Right of
Setoff.  If
an Event of Default shall have occurred and be continuing, each Lender and each
of its Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other obligations (of whatsoever kind, including, without limitations
obligations under Swap Agreements) at any time owing by such Lender or Affiliate
to or for the credit or the account of the Borrower or any Material Subsidiary
against any of and all the obligations of the Borrower or any Material
Subsidiary owed to such Lender now or hereafter existing under this Agreement or
any other Loan Document, irrespective of whether or not such Lender shall have
made any demand under this Agreement or any other Loan Document and although
such obligations may be unmatured.  The rights of each Lender under
this Section 12.08 are in addition to other rights and remedies (including other
rights of setoff) which such Lender or its Affiliates may have.

     

    Section
12.09 GOVERNING LAW;
JURISDICTION;
CONSENT TO SERVICE OF PROCESS.

     

    (a) THIS
AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF TEXAS EXCEPT TO THE EXTENT THAT UNITED STATES FEDERAL
LAW PERMITS ANY LENDER TO CONTRACT FOR, CHARGE, RECEIVE, RESERVE OR TAKE
INTEREST AT THE RATE ALLOWED BY THE LAWS OF THE STATE WHERE SUCH LENDER IS
LOCATED.  CHAPTER 346 OF THE TEXAS FINANCE CODE (WHICH REGULATES

    
      
         

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      CERTAIN
REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRI-PARTY ACCOUNTS) SHALL NOT APPLY
TO THIS AGREEMENT OR THE NOTES.

    

     

    (b) ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS SHALL BE BROUGHT IN THE
COURTS OF THE STATE OF TEXAS OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF TEXAS, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY
HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
COURTS.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION,
INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON
THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE
JURISDICTIONS.  THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND
DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY
COURT OTHERWISE HAVING JURISDICTION.

     

    (c) THE
BORROWER HEREBY IRREVOCABLY DESIGNATES, APPOINTS AND EMPOWERS AND HEREBY CONFERS
AN IRREVOCABLE SPECIAL POWER, AMPLE AND SUFFICIENT, TO CORPORATION SERVICE
COMPANY, WITH OFFICES ON THE DATE HEREOF AT DENVER, COLORADO AS ITS DESIGNEE,
APPOINTEE AND AGENT WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING IN TEXAS TO
RECEIVE, ACCEPT AND ACKNOWLEDGE FOR AND ON ITS BEHALF, AND IN RESPECT OF ITS
PROPERTY, SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS
WHICH MAY BE SERVED IN ANY SUCH PROCEEDING AND AGREES THAT THE FAILURE OF SUCH
AGENT TO GIVE ANY ADVICE OF ANY SUCH SERVICE OF PROCESS TO THE BORROWER SHALL
NOT IMPAIR OR AFFECT THE VALIDITY OF SUCH SERVICE OR OF ANY CLAIM BASED
THEREON.  IF FOR ANY REASON SUCH DESIGNEE, APPOINTEE AND AGENT SHALL
CEASE TO BE AVAILABLE TO ACT AS SUCH, THE BORROWER AGREES TO DESIGNATE A NEW
DESIGNEE, APPOINTEE AND AGENT IN TEXAS REASONABLY SATISFACTORY TO THE
ADMINISTRATIVE AGENT ON THE TERMS AND FOR THE PURPOSES OF THIS
PROVISION.  EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS
OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE
MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
IT AT THE ADDRESS SPECIFIED IN Section 12.01 OR SUCH OTHER ADDRESS AS IS
SPECIFIED PURSUANT TO Section 12.01 (OR ITS ASSIGNMENT AND ASSUMPTION), SUCH
SERVICE TO BECOME EFFECTIVE UPON RECEIPT.  NOTHING HEREIN SHALL AFFECT
THE RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED
AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION.

     

    (d) EACH
PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
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      AGREEMENT
OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii) IRREVOCABLY
WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO
CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES;
(iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OF COUNSEL
FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT
SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVERS, AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT, THE LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED
IN THIS Section 12.09.

    

     

    Section
12.10 Headings.  Article
and Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this
Agreement.

     

    Section
12.11 Confidentiality. Each of
the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this Agreement
or any other Loan Document, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any suit, action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section 12.11, to (i) any
assignee of or Participant in, or any prospective assignee of or Participant in,
any of its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any Swap Agreement relating to the
Borrower and its obligations, (g) with the consent of the Borrower or (h) to the
extent such Information (i) becomes publicly available other than as a result of
a breach of this Section 12.11 or (ii) becomes available to the Administrative
Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source
other than the Borrower.  For the purposes of this Section 12.11,
“Information”
means all information received from the Borrower or any Material Subsidiary
relating to the Borrower or any Material Subsidiary and their businesses, other
than any such information that is available to the Administrative Agent, the
Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the
Borrower or a Material Subsidiary; provided that, in the case of information
received from the Borrower or any Material Subsidiary after the date hereof,
such information is clearly identified at the time of delivery as
confidential.  Any Person required to maintain the confidentiality of
Information as provided in this Section 12.11 shall be considered to have
complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential
information.  Notwithstanding anything herein to the contrary,
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      Borrower’s
Subsidiaries, the Administrative Agent, each Lender and the respective
Affiliates of each of the foregoing (and the respective partners, directors,
officers, employees, agents, advisors and other representatives of the
aforementioned Persons), and any other party, may disclose to any and all
Persons, without limitation of any kind (a) any information with respect to the
U.S. federal and state income tax treatment of the transactions contemplated
hereby and any facts that may be relevant to understanding the U.S. federal or
state income tax treatment of such transactions (“tax structure”), which facts
shall not include for this purpose the names of the parties or any other person
named herein, or information that would permit identification of the parties or
such other persons, or any pricing terms or other nonpublic business or
financial information that is unrelated to such tax treatment or tax structure,
and (b) all materials of any kind (including opinions or other tax analyses)
that are provided to the Borrower, the Administrative Agent or such Lender
relating to such tax treatment or tax structure.

    

     

    Section
12.12 Interest Rate
Limitation.  It
is the intention of the parties hereto that each Lender shall conform strictly
to usury laws applicable to it.  Accordingly, if the transactions
contemplated hereby would be usurious as to any Lender under laws applicable to
it (including the laws of the United States of America and the State of Texas or
any other jurisdiction whose laws may be mandatorily applicable to such Lender
notwithstanding the other provisions of this Agreement), then, in that event,
notwithstanding anything to the contrary in any of the Loan Documents or any
agreement entered into in connection with or as security for the Notes, it is
agreed as follows:  (i) the aggregate of all consideration which
constitutes interest under law applicable to any Lender that is contracted for,
taken, reserved, charged or received by such Lender under any of the Loan
Documents or agreements or otherwise in connection with the Notes shall under no
circumstances exceed the maximum amount allowed by such applicable law, and any
excess shall be canceled automatically and if theretofore paid shall be credited
by such Lender on the principal amount of the Indebtedness (or, to the extent
that the principal amount of the Indebtedness shall have been or would thereby
be paid in full, refunded by such Lender to the Borrower); and (ii) in the event
that the maturity of the Notes is accelerated by reason of an election of the
holder thereof resulting from any Event of Default under this Agreement or
otherwise, or in the event of any required or permitted prepayment, then such
consideration that constitutes interest under law applicable to any Lender may
never include more than the maximum amount allowed by such applicable law, and
excess interest, if any, provided for in this Agreement or otherwise shall be
canceled automatically by such Lender as of the date of such acceleration or
prepayment and, if theretofore paid, shall be credited by such Lender on the
principal amount of the Indebtedness (or, to the extent that the principal
amount of the Indebtedness shall have been or would thereby be paid in full,
refunded by such Lender to the Borrower).  All sums paid or agreed to
be paid to any Lender for the use, forbearance or detention of sums due
hereunder shall, to the extent permitted by law applicable to such Lender, be
amortized, prorated, allocated and spread throughout the stated term of the
Loans evidenced by the Notes until payment in full so that the rate or amount of
interest on account of any Loans hereunder does not exceed the maximum amount
allowed by such applicable law.  If at any time and from time to time
(i) the amount of interest payable to any Lender on any date shall be computed
at the Highest Lawful Rate applicable to such Lender pursuant to this Section
12.12 and (ii) in respect of any subsequent interest computation period the
amount of interest otherwise payable to such Lender would be less than the
amount of interest payable to such Lender computed at the Highest Lawful Rate
applicable to such Lender, then the amount of interest payable to such Lender in
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      to be
computed at the Highest Lawful Rate applicable to such Lender until the total
amount of interest payable to such Lender shall equal the total amount of
interest which would have been payable to such Lender if the total amount of
interest had been computed without giving effect to this Section
12.12.  To the extent that Chapter 303 of the Texas Finance Code is
relevant for the purpose of determining the Highest Lawful Rate applicable to a
Lender, such Lender elects to determine the applicable rate ceiling under such
Chapter by the weekly ceiling from time to time in effect.  Chapter
346 of the Texas Finance Code does not apply to the Borrower’s obligations
hereunder.

    

     

    Section
12.13 EXCULPATION
PROVISIONS.  EACH
OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE
AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT
IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND
KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS
BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE
NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF
THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY
ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING
THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY.  EACH PARTY
HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR
ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH
PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

     

    Section
12.14 Existing Credit
Agreement.

     

    (a) On the
Effective Date, the Existing Credit Agreement shall be amended and restated in
its entirety by this Agreement, and the Existing Credit Agreement shall be
replaced hereby; provided that the Borrower, the Administrative Agent and the
Lenders agree that (i) on the date of the initial funding of Loans hereunder,
the loans and other Debt of the Borrower under the Existing Credit Agreement
shall be renewed, rearranged, modified and extended with the proceeds of the
initial funding and the “Commitments” of the lenders under the Existing Credit
Agreement shall be superseded by this Agreement and terminated (except as
otherwise expressly provided in Section 12.05(a) of the Existing Credit
Agreement with respect to the survival of certain covenants and agreements made
by the Borrower in the Existing Credit Agreement), (ii) the Existing Credit
Agreement shall continue to evidence the representations and warranties made by
the Borrower prior to the Effective Date, (iii) except as expressly stated
herein or amended, the other Loan Documents are ratified and confirmed as
remaining unmodified and in full force and effect with respect to all
Indebtedness, (iv) the Existing Credit Agreement shall continue to evidence and
govern any action or omission performed, required to be performed or approved
pursuant to the Existing Credit Agreement prior to the Effective Date

    
      
         

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      (including,
without limitation, any failure, prior to the Effective Date, to comply with the
covenants contained in the Existing Credit Agreement and any permitted releases
of collateral) and any act, omission or event to occur or measured by any date
or period of time commencing on, or including any date or period prior to, the
Effective Date and (v) the terms and provisions of the Existing Credit Agreement
shall continue in full force and effect to the extent provided in clause (d) of
this Section 12.14.  The amendments and restatements set forth herein
shall not cure any breach thereof or any “Default” or “Event of Default” under
and as defined in the Existing Credit Agreement existing prior to the Effective
Date.  This Agreement is not in any way intended to constitute a
novation of the obligations and liabilities existing under the Existing Credit
Agreement or evidence payment of all or any portion of such obligations and
liabilities.

    

     

    (b) The terms
and conditions of this Agreement and the Administrative Agent’s, the Lenders’
and the Issuing Banks’ rights and remedies under this Agreement and the other
Loan Documents shall apply to all of the Indebtedness incurred under the
Existing Credit Agreement and the Letters of Credit issued
thereunder.

     

    (c) On and
after the Effective Date, (i) all references to the Existing Credit Agreement
(or to any amendment or any amendment and restatement thereof) in the Loan
Documents (other than this Agreement) shall be deemed to refer to the Existing
Credit Agreement, as amended and restated hereby, (ii) all references to any
section (or subsection) of the Existing Credit Agreement or in any Loan Document
(but not herein) shall be amended to become, mutatis mutandis, references
to the corresponding provisions of this Agreement and (iii) except as the
context otherwise provides, on or after the Effective Date, all references to
this Agreement herein (including for purposes of indemnification and
reimbursement of fees) shall be deemed to be references to the Existing Credit
Agreement, as amended and restated hereby.

     

    (d) This
amendment and restatement is limited as written and is not a consent to any
other amendment, restatement or waiver, whether or not similar and, except as
expressly provided herein or in any other Loan Document, all terms and
conditions of the Loan Documents remain in full force and effect unless
specifically amended hereby or by any other Loan Document.

     

    (e) The
undersigned waive any right to receive any notice of such termination and any
right to receive any notice of prepayment of amounts owed under the Existing
Credit Agreement.  Each Lender that was a party to the Existing Credit
Agreement hereby agrees to return to the Borrower, with reasonable promptness,
any promissory note delivered by the Borrower to such Lender in connection with
the Existing Credit Agreement.

     

    Section
12.15 Collateral Matters; Swap
Agreements.  The
benefit of the Security Instruments and of the provisions of this Agreement
relating to any collateral securing the Indebtedness shall also extend to and be
available to those Lenders or their Affiliates which are counterparties to any
Swap Agreement with the Borrower or any of its Subsidiaries on a pro rata basis in respect of
any obligations of the Borrower or any of its Subsidiaries which arise under any
such Swap Agreement while such Person or its Affiliate is a Lender, but only
while such Person or its Affiliate is a Lender, including any Swap Agreements
between such Persons in existence prior to the date hereof.  No Lender
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      rights
under any Loan Document as a result of the existence of obligations owed to it
under any such Swap Agreements.

    

     

    Section
12.16 No Third Party
Beneficiaries.  This
Agreement, the other Loan Documents, and the agreement of the Lenders to make
Loans and the Issuing Bank to issue, amend, renew or extend Letters of Credit
hereunder are solely for the benefit of the Borrower, and no other Person
(including, without limitation, any Subsidiary of the Borrower, any obligor,
contractor, subcontractor, supplier or materialsman) shall have any rights,
claims, remedies or privileges hereunder or under any other Loan Document
against the Administrative Agent, any other Agent, the Issuing Bank or any
Lender for any reason whatsoever.  There are no third party
beneficiaries.

     

    Section
12.17 USA Patriot Act
Notice.  Each
Lender hereby notifies the Borrower that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender to identify the
Borrower in accordance with the Act.

    
      
         

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    The
parties hereto have caused this Agreement to be duly executed as of the day and
year first above written.

     

    
      	
              BORROWER:

            	
              ST.
      MARY LAND & EXPLORATION COMPANY

            

    

    

    

    By:        /s/ A. WADE
PURSELL

    Name:   A. Wade
Pursell

                                    Title:    
Executive Vice President and Chief Financial Officer

    
      
      

    

    

    

    

    
      
        
          [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

          Houston
3921802

        

         

      

      
         

        
        

      

      
         

      

    

    AGENTS
AND
LENDERS:                                                 WACHOVIA
BANK, NATIONAL

    ASSOCIATION, Individually and
as

    Administrative Agent

    

    

    By:       
/s/ LEANNE
PHILLIPS

    Name:   Leanne
Phillips

    Title:    
Director

    
      
        
          [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

          Houston
3921802

        

         

      

      
         

        
        

      

      
         

      

    

    BANK OF
AMERICA, N.A., Individually and as Syndication Agent

    

    

    By:        /s/ STEPHEN J.
HOFFMAN

    Name:   Stephen J.
Hoffman

    Title:    
Managing Director

    

    

    
      
        
          
            [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

            Houston
3921802

          

           

        

        
           

          
          

        

        
           

        

      

    

     

                                           
WELLS FARGO BANK, N.A.

    

    By:       
/s/ TIM
GREEN

    Name:   Tim
Green

    Title:     Vice
President

    
      
        
          [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

          Houston
3921802

        

         

      

      
         

        
        

      

      
         

      

    

    JPMORGAN CHASE BANK, N.A.

    

    

    By:        /s/ BRIAN
ORLANDO

    Name:   Brian
Orlando

    Title:     Vice
President

     

    
      
        
          
            [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

            Houston
3921802

          

           

        

        
           

          
          

        

        
           

        

      

    

     

                                    COMERICA
BANK

    

    

    By:        /s/ CAROLINE
MCCLURG

    Name:   Caroline
McClurg

    Title:     Vice
President

    

      
        
          
            [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

            Houston
3921802

          

           

        

        
           

          
          

        

        
           

        

      

    

     

                                    U.S. BANK NATIONAL
ASSOCIATION

    

    

    By:        /s/ DARIA
MAHONEY

    Name:   Daria
Mahoney

    Title:     Vice
President

    

      
        
          
            [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

            Houston
3921802

          

           

        

        
           

          
          

        

        
           

        

      

    

     

                                    BANK OF SCOTLAND
PLC

    

    

    By:        /s/ JULIA R.
FRANKLIN

    Name:   Julia R.
Franklin

    Title:    
Assistant Vice President

    

    

    By:        NA

    Name:                                                                           

    Title:                                                                           

    

    

    

    
      
        
          [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

          Houston
3921802

        

         

      

      
         

        
        

      

      
         

      

    

    ROYAL BANK OF CANADA

    

    

    By:        /s/ DON J.
MCKINNERNEY

    Name:   Don J.
McKinnerney

    Title:    
Authorized Signatory

    

      
        
          
            [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

            Houston
3921802

          

           

        

        
           

          
          

        

        
           

        

      

    

     

                                    KEYBANK NATIONAL
ASSOCIATION

    

    

    By:        /s/ TODD
COKER

    Name:   Todd
Coker

    Title:    
Assistant Vice President

    

      
        
          
            [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

            Houston
3921802

          

           

        

        
           

          
          

        

        
           

        

      

    

     

                                    BANK OF OKLAHOMA,
N.A.

    

    

    By:        /s/ GUY C.
EVANGELISTA

    Name:   Guy C.
Evangelista

    Title:    
SVP

    

      
        
          
            [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

            Houston
3921802

          

           

        

        
           

          
          

        

        
           

        

      

    

     

                                    CAPITAL ONE, NATIONAL
ASSOCIATION

    

    

    By:        /s/ SCOTT L.
JOYCE

    Name:   Scott L.
Joyce

    Title:     Senior
Vice President

    
      
        
          [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

          Houston
3921802

        

         

      

      
         

        
        

      

      
         

      

    

    BARCLAYS BANK PLC

    

    

    By:        /s/ MARIA
LUND

    Name:   Maria
Lund

    Title:     Vice
President

    
      
        
          [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

          Houston
3921802

        

         

      

      
         

        
        

      

      
         

      

    

    COMPASS BANK

    

    

    By:        /s/ GREG
DETERMANN

    Name:   Greg
Determann

    Title:     Vice
President

    
      
        
          [Signature
Page to St. Mary Land & Exploration Company Third Amended & Restated
Credit Agreement]

          Houston
3921802

        

         

      

      
         

        
        

      

      
         

      

    

    ANNEX
I

     

    LIST
OF COMMITMENTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              	
                                                                      Name
      of Lender

                                                                    	
                                                                      Applicable
      Percentage

                                                                    	
                                                                      Commitment

                                                                    
	
                                                                      Bank
      of America, N.A.

                                                                    	13.27434%                
      	
                                                                      $90,000,000

                                                                    
	
                                                                      Comerica
      Bank

                                                                    	11.06195%                
      	
                                                                      $75,000,000

                                                                    
	
                                                                      Compass
      Bank

                                                                    	11.06195%                
      	
                                                                      $75,000,000

                                                                    
	
                                                                      JPMorgan
      Chase Bank, N.A.

                                                                    	11.06195%                
      	
                                                                      $75,000,000

                                                                    
	
                                                                      U.S.
      Bank National Association

                                                                    	9.58702%                
      	
                                                                      $65,000,000

                                                                    
	
                                                                      Wachovia
      Bank, National Association

                                                                    	8.14897%                
      	
                                                                      $55,250,000

                                                                    
	
                                                                      Wells
      Fargo Bank, N.A.

                                                                    	8.14897%                
      	
                                                                      $55,250,000

                                                                    
	
                                                                      Bank
      of Scotland plc

                                                                    	6.45280%                
      	
                                                                      $43,750,000

                                                                    
	
                                                                      Royal
      Bank of Canada

                                                                    	6.45280%                
      	
                                                                      $43,750,000

                                                                    
	
                                                                      Key
      Bank National Association

                                                                    	5.89971%                
      	
                                                                      $40,000,000

                                                                    
	
                                                                      Bank
      of Oklahoma, N.A.

                                                                    	3.68732%                
      	
                                                                      $25,000,000

                                                                    
	
                                                                      Capital
      One, National Association

                                                                    	3.68732%                
      	
                                                                      $25,000,000

                                                                    
	
                                                                      Barclays
      Bank PLC

                                                                    	1.47493%                
      	
                                                                      $10,000,000

                                                                    
	
                                                                      TOTAL

                                                                    	100.00%                
      	
                                                                      $678,000,000
       

                                                                    

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

     

    
      
        
          Annex I - 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    ANNEX
II

     

    EXISTING
LETTERS OF CREDIT

     

    
      	
              1.

            	
              LC#
      SM234314W, issued in the amount of $1,280,000, in favor of Hund, Krier,
      Wilkerson & Wright, P.C., with an expiry date of
      3/24/10 

            

    

     

    

    
      
        
          Annex II - 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
A

     

    [FORM
OF] NOTE

     

    [$___________]                                                                                        [__________],
200[__]

     

    FOR VALUE
RECEIVED, St. Mary
Land & Exploration Company, a Delaware corporation (the “Borrower”) hereby
promises to pay to the order of [______________________________]
(the “Lender”),
at the principal office of Wachovia Bank, National Association (the “Administrative
Agent”), at [______________________________],
the principal sum of [______________________________]
Dollars ($[_________]) (or such lesser
amount as shall equal the aggregate unpaid principal amount of the Loans made by
the Lender to the Borrower under the Credit Agreement, as hereinafter defined),
in lawful money of the United States of America and in immediately available
funds, on the dates and in the principal amounts provided in the Credit
Agreement, and to pay interest on the unpaid principal amount of each such Loan,
at such office, in like money and funds, for the period commencing on the date
of such Loan until such Loan shall be paid in full, at the rates per annum and
on the dates provided in the Credit Agreement.

     

    The date,
amount, Type, interest rate, Interest Period and maturity of each Loan made by
the Lender to the Borrower, and each payment made on account of the principal
thereof, shall be recorded by the Lender on its books and, prior to any transfer
of this Note, may be endorsed by the Lender on the schedules attached hereto or
any continuation thereof or on any separate record maintained by the
Lender.  Failure to make any such notation or to attach a schedule
shall not affect any Lender’s or the Borrower’s rights or obligations in respect
of such Loans or affect the validity of such transfer by any Lender of this
Note.

     

    This Note
is one of the Notes referred to in the Third Amended and Restated Credit
Agreement dated as of [________
__], 2009 among the Borrower, the Administrative Agent, and the other
agents and lenders signatory thereto (including the Lender), and evidences Loans
made by the Lender thereunder (such Credit Agreement as the same may be amended,
supplemented or restated from time to time, the “Credit
Agreement”).  Capitalized terms used in this Note have the
respective meanings assigned to them in the Credit Agreement.

     

    This Note
is issued pursuant to the Credit Agreement and is entitled to the benefits
provided for in the Credit Agreement and the other Loan
Documents.  The Credit Agreement provides for the acceleration of the
maturity of this Note upon the occurrence of certain events, for prepayments of
Loans upon the terms and conditions specified therein and other provisions
relevant to this Note.

     

    THIS NOTE
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
TEXAS.

     

    
      	
               
      

            	
              ST.
      MARY LAND & EXPLORATION COMPANY

            

    

    

    By:      _________________________________     

                                                                                   
Name: _________________________________

    

      
        
          
            Exhibit A - 1

            Houston 3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      
                                                                          

                                                                                  
 Title:   _________________________________                                                                        

    
      
        
          Exhibit A - 2

          Houston 3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
B

     

    [FORM
OF]

     

    COMPLIANCE
CERTIFICATE

     

    The
undersigned hereby certifies that he/she is the [________________________]of
St. Mary Land &
Exploration Company, a Delaware corporation (the “Borrower”), and that
as such he/she is authorized to execute this certificate in the foregoing
capacity and on behalf of the Borrower.  With reference to the Third
Amended and Restated Credit Agreement dated as of [___________ __], 2009
(together with all amendments, supplements or restatements thereto being the
“Agreement”)
among the Borrower, Wachovia Bank, National
Association, as Administrative Agent, and the other agents and lenders
(the “Lenders”)
which are or become a party thereto, and such Lenders, the undersigned
represents and warrants as follows (each capitalized term used herein having the
same meaning given to it in the Agreement unless otherwise
specified):

     

    (a)           The
representations and warranties of the Borrower contained in Article VII of the
Agreement and in the Loan Documents and otherwise made in writing by or on
behalf of the Borrower pursuant to the Agreement and the Loan Documents were
true and correct when made, and are repeated at and as of the time of delivery
hereof and are true and correct in all material respects at and as of the time
of delivery hereof, except to the extent such representations and warranties are
expressly limited to an earlier date or the Majority Lenders have expressly
consented in writing to the contrary.

     

    (b)           The
Borrower has performed and complied in all material respects with all agreements
and conditions contained in the Agreement and in the Loan Documents required to
be performed or complied with by it prior to or at the time of delivery hereof
or specify default and describe.

     

    (c)           Since
[_________ __], 200[_], no change has occurred, either in any case or in the
aggregate, in the condition, financial or otherwise, of the Borrower or any
Material Subsidiary which could reasonably be expected to have a Material
Adverse Effect [or specify event].

     

    (d)           There
exists no Default or Event of Default [or specify Default and
describe].

     

    (e)           Attached
hereto are the detailed computations necessary to determine whether the Borrower
is in compliance with Section 9.01 as of the end of the [fiscal quarter][fiscal
year] ending [          ].

     

    (f)           The
representations and warranties of the Borrower contained in Section 8.14 of the
Agreement were true and correct when made, and are repeated at and as of the
time of delivery hereof and are true and correct in all material respects at and
as of the time of delivery hereof.

     

    (g)           The
representations and warranties of the Borrower contained in Section 8.12(a) of
the Agreement were true and correct when made, and are repeated at and as of the
time of delivery hereof and are true and correct in all material respects at and
as of the time of 

    

      
        
          
            Exhibit B - 1

            Houston 3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    delivery
hereof.  These representations and warranties specifically include
that the Reserve Report dated as of December 31, 2008, is and was true and
accurate, and prepared in accordance with procedures used in the immediately
preceding December 31 Reserve Report.

     

    EXECUTED
AND DELIVERED this [          ]
day of [          ].

     

    ST. MARY LAND &
EXPLORATION

    COMPANY

    

    By:      
__________________________                

                   
                                                                Name:  __________________________               

                                                   
                                Title:    __________________________             

    
      
        
          Exhibit B - 2

          Houston 3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
C

     

    SECURITY
INSTRUMENTS

     

    
      	
              1.

            	
              Reaffirmation
      Agreement dated as of April 10, 2008, by the Borrower in favor of the
      Administrative Agent.

            

    

     

    
      	
              2.

            	
              Reaffirmation
      Agreement dated as of even date herewith, by the Borrower in favor of the
      Administrative Agent.

            

    

     

    
      	
              3.

            	
              First
      Supplement and Amendment to Deed of Trust, Mortgage, Line of Credit
      Mortgage, Assignment, Security Agreement, Fixture Filing and Financing
      Statement dated effective as of January 27, 2003, from St. Mary Land &
      Exploration Company, et al.

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        	
                                                                                                Jurisdiction

                                                                                                 

                                                                                              	
                                                                                                File
      No.

                                                                                                 

                                                                                              	
                                                                                                Book/Page

                                                                                                 

                                                                                              	
                                                                                                Date
      Filed

                                                                                                 

                                                                                              
	
                                                                                                Cameron
      Parish, LA

                                                                                              	
                                                                                                279314

                                                                                              	
                                                                                                MB275

                                                                                              	
                                                                                                01-31-03

                                                                                              
	
                                                                                                Claiborne
      Parish, LA

                                                                                              	
                                                                                                406861

                                                                                              	
                                                                                                445/39

                                                                                              	
                                                                                                02-03-03

                                                                                              
	
                                                                                                Iberia
      Parish, LA

                                                                                              	
                                                                                                03-1414

                                                                                              	
                                                                                                MB-A928

                                                                                              	
                                                                                                02-03-03

                                                                                              
	
                                                                                                Lincoln
      Parish, LA

                                                                                              	
                                                                                                F44323

                                                                                              	
                                                                                                MB804/490

                                                                                              	
                                                                                                02-04-03

                                                                                              
	
                                                                                                Pointe
      Coupee Parish, LA

                                                                                              	 
      	
                                                                                                MB324/No.
      005

                                                                                              	
                                                                                                02-03-03

                                                                                              
	
                                                                                                St.
      Mary Parish, LA

                                                                                              	
                                                                                                255274

                                                                                              	
                                                                                                MB939/427

                                                                                              	
                                                                                                01-31-03

                                                                                              
	
                                                                                                Union
      Parish, LA

                                                                                              	
                                                                                                2003-00312605

                                                                                              	
                                                                                                548/15

                                                                                              	
                                                                                                01-31-03

                                                                                              
	
                                                                                                Vermilion
      Parish, LA

                                                                                              	
                                                                                                20301199

                                                                                              	 
      	
                                                                                                01-31-03

                                                                                              
	
                                                                                                Richland
      County, MT

                                                                                              	
                                                                                                516267

                                                                                              	
                                                                                                B178/584-624

                                                                                              	
                                                                                                01-31-03

                                                                                              
	
                                                                                                Roosevelt
      County, MT

                                                                                              	
                                                                                                361851

                                                                                              	
                                                                                                604/142

                                                                                              	
                                                                                                02-03-03

                                                                                              
	
                                                                                                Sheridan
      County, MT

                                                                                              	
                                                                                                459000

                                                                                              	
                                                                                                604/1307

                                                                                              	
                                                                                                01-31-03

                                                                                              
	
                                                                                                Eddy
      County, NM

                                                                                              	
                                                                                                0301183

                                                                                              	
                                                                                                489/1185

                                                                                              	
                                                                                                01-31-03

                                                                                              
	
                                                                                                Lea
      County, NM

                                                                                              	
                                                                                                33257

                                                                                              	
                                                                                                1202/609

                                                                                              	
                                                                                                02-03-03

                                                                                              
	
                                                                                                Billings
      County, ND

                                                                                              	
                                                                                                119317

                                                                                              	
                                                                                                093/393

                                                                                              	
                                                                                                02-04-03

                                                                                              
	
                                                                                                Bottineau
      County, ND

                                                                                              	
                                                                                                359181

                                                                                              	
                                                                                                295/83

                                                                                              	
                                                                                                02-04-03

                                                                                              
	
                                                                                                McKenzie
      County, ND

                                                                                              	
                                                                                                344188

                                                                                              	 
      	
                                                                                                02-04-03

                                                                                              
	
                                                                                                Williams
      County, ND

                                                                                              	
                                                                                                604707

                                                                                              	 
      	
                                                                                                02-05-03

                                                                                              
	
                                                                                                Beaver
      County, OK

                                                                                              	
                                                                                                1-2003-000419

                                                                                              	
                                                                                                1094/492-519

                                                                                              	
                                                                                                02-04-03

                                                                                              
	
                                                                                                Beckham
      County, OK

                                                                                              	
                                                                                                1-2003-000917

                                                                                              	
                                                                                                1763/414

                                                                                              	
                                                                                                02-03-03

                                                                                              
	
                                                                                                Caddo
      County, OK

                                                                                              	
                                                                                                030894

                                                                                              	
                                                                                                2430/161

                                                                                              	
                                                                                                2-03-03

                                                                                              
	
                                                                                                Canadian
      County, OK

                                                                                              	
                                                                                                2003003218

                                                                                              	
                                                                                                2680/51-79

                                                                                              	
                                                                                                2-03-03

                                                                                              
	
                                                                                                Coal
      County, OK

                                                                                              	
                                                                                                14750

                                                                                              	
                                                                                                616/313-356

                                                                                              	
                                                                                                01-31-03

                                                                                              

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

      
        
          
            Exhibit C- 1

            Houston 3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

    

      
        	
                Jurisdiction

                 

              	
                File
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Comanche
      County, OK

              	
                2003002051

              	
                3982/264-292

              	
                01-31-03

              
	
                Custer
      County, OK

              	
                1-2003-000660

              	
                1192/496-538

              	
                02-03-03

              
	
                Grady
      County, OK

              	
                1680

              	
                3456/472

              	
                02/03/03

              
	
                Roger
      Mills County, OK

              	
                1-2003-000430

              	
                1700/66

              	
                02-03-03

              
	
                Washita
      County, OK

              	
                526

              	
                955/504-870

              	
                02-03-03

              
	
                Brazoria
      County, TX

              	
                03
      006331

              	 
      	
                01-31-03

              
	
                Coke
      County, TX

              	
                007140

              	
                161/288

              	
                02-03-03

              
	
                Henderson
      County, TX

              	
                0001833

              	
                2264/001

              	
                01-31-03

              
	
                Jefferson
      County, TX

              	
                2003003623

              	 
      	
                01-31-03

              
	
                Limestone
      County, TX

              	
                030551

              	
                1103/829

              	
                02-03-03

              
	
                Nueces
      County, TX

              	
                2003004978

              	
                24

              	
                01-31-03

              
	
                Red
      River County, TX

              	
                22402

              	
                530/734

              	
                01-31-03

              
	
                Runnels
      County, TX

              	
                215

              	
                217/174

              	
                02-04-03

              
	
                Shelby
      County, TX

              	
                2003-490

              	
                955/228

              	
                01-31-03

              
	
                Ward
      County, TX

              	
                196

              	
                735/430-453

              	
                1-31-03

              
	
                Uintah
      County Recorder, UT

              	
                2003000753

              	
                825/763/788

              	
                01-31-03

              
	
                Carbon
      County, WY

              	
                0902115

              	
                1032/0060

              	
                02-04-03

              

      

    

     

    
      	
              4.

            	
              Second
      Supplement and Amendment to Deed of Trust, Mortgage, Line of Credit
      Mortgage, Assignment, Security Agreement, Fixture Filing and Financing
      Statement dated effective as of April 16, 2003, from St. Mary Land &
      Exploration Company, et al.

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      Jurisdiction

                                                       

                                                    	
                                                      File/Entry
      No.

                                                       

                                                    	
                                                      Book/Page

                                                       

                                                    	
                                                      Date
      Filed

                                                       

                                                    
	
                                                      Cameron
      Parish, LA

                                                    	
                                                      280347

                                                    	
                                                      278

                                                    	
                                                      4/25/03

                                                    
	
                                                      Claiborne
      Parish, LA

                                                    	
                                                      407719

                                                    	
                                                      452/35

                                                    	
                                                      4-23-03

                                                    
	
                                                      Pointe
      Coupee Parish,

                                                    	 
      	
                                                      328/104

                                                    	
                                                      4-23-03

                                                    
	
                                                      St.
      Mary Parish, LA

                                                    	
                                                      256,817

                                                    	
                                                      949/140

                                                    	
                                                      4-23-03

                                                    
	
                                                      Vermilion
      Parish, LA

                                                    	
                                                      20305083

                                                    	 
      	
                                                      4-29-03

                                                    
	
                                                      Eddy
      County, NM

                                                    	 
      	
                                                      503/0917

                                                    	
                                                      5-08-03

                                                    
	
                                                      Lea
      County, NM

                                                    	
                                                      37323

                                                    	
                                                      1220/841

                                                    	
                                                      4-28-03

                                                    
	
                                                      Bottineau
      County, ND

                                                    	
                                                      359989

                                                    	
                                                      298/24

                                                    	
                                                      5-05-03

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

      
        
          
            Exhibit C- 2

            Houston 3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        	
                Jurisdiction

                 

              	
                File/Entry
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Beckham
      County, OK

              	
                1-2003-004011

              	
                1772/286

              	
                4-25-03

              
	
                Caddo
      County, OK

              	
                033653

              	
                2440/481-514

              	
                4-29-03

              
	
                Coal
      County, OK

              	
                15617

              	
                619/74-129

              	
                4-28-03

              
	
                Custer
      County, OK

              	
                1-2003-002720

              	
                1202/345-373

              	
                5-01-03

              
	
                Grady
      County, OK

              	
                6012

              	
                3483-150

              	
                4-23-03

              
	
                Roger
      Mills County, OK

              	
                2003-001893

              	
                1708/217-245

              	
                4-25-03

              
	
                Washita
      County, OK

              	
                2132

              	
                960/895-939

              	
                4-25-03

              
	
                Brazoria
      County, TX

              	
                03024211

              	 
      	
                4-24-03

              
	
                Shelby
      County, TX

              	
                2003-1818

              	
                B-960-699-726

              	
                4-24-03

              
	
                Carbon
      County, WY

              	
                0903151

              	
                B-1036/P-0061

              	
                4-25-03

              

      

    

     

    
      	
              5.

            	
              Deed
      of Trust, Mortgage, Line of Credit Mortgage, Assignment, Security
      Agreement, Fixture Filing and Financing Statement dated effective as of
      January 27, 2003, from St. Mary Land & Exploration Company, et al,
      covering the Burlington Properties.

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Jurisdiction

                                               

                                            	
                                              File
      No.

                                               

                                            	
                                              Book/Page

                                               

                                            	
                                              Date
      Filed

                                               

                                            
	
                                              Richland
      County, MT

                                            	
                                              516268

                                            	
                                              B178/625-694

                                            	
                                              01-31-03

                                            
	
                                              Roosevelt
      County, MT

                                            	
                                              361852

                                            	
                                              604/143

                                            	
                                              02-03-03

                                            
	
                                              Rosebud
      County, MT

                                            	
                                              0093439

                                            	
                                              103MG/573-628

                                            	
                                              02-04-03

                                            
	
                                              Sheridan
      County, MT

                                            	
                                              459001

                                            	
                                              604/1351

                                            	
                                              01-31-03

                                            
	
                                              Wibaux
      County, MT

                                            	
                                              0100404

                                            	
                                              31/394

                                            	
                                              02-03-03

                                            
	
                                              Billings
      County, ND

                                            	
                                              119318

                                            	
                                              093/419

                                            	
                                              02-04-03

                                            
	
                                              Bowman
      County, ND

                                            	
                                              158041

                                            	 
      	
                                              02-03-03

                                            
	
                                              Burke
      County, ND

                                            	
                                              202024

                                            	
                                              174/41

                                            	
                                              02-04-03

                                            
	
                                              Divide
      County, ND

                                            	
                                              224437

                                            	
                                              218M/224

                                            	
                                              02-03-03

                                            
	
                                              Dunn
      County, ND

                                            	
                                              3007810

                                            	
                                              B137/1

                                            	
                                              02-04-03

                                            
	
                                              Golden
      Valley County, ND

                                            	
                                              89737

                                            	 
      	
                                              02-04-03

                                            
	
                                              McKenzie
      County, ND

                                            	
                                              344189

                                            	 
      	
                                              02-04-03

                                            
	
                                              Stark
      County, ND

                                            	
                                              3021953

                                            	 
      	
                                              02-03-03

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
          
            Exhibit C- 3

            Houston 3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      	
              6.

            	
              UCC-1
      Financing Statement naming NPC, Inc., as Debtor, and Wachovia Bank,
      National Association, as Secured
Party.

            

    

     

    
      
        
          	
                  Jurisdiction

                   

                	
                  File
      No.

                   

                	
                  Book/Page

                   

                	
                  Date
      Filed

                   

                
	
                  Colorado
      Secretary of State

                	
                  20032011718
      C

                	 
      	
                  01-31-03

                

        

      

    

     

    
      	
              7.

            	
              First
      Supplement and Amendment to Deed of Trust, Mortgage, Line of Credit
      Mortgage, Assignment, Security Agreement, Fixture Filing and Financing
      Statement dated effective as of April 16, 2003, from St. Mary Land &
      Exploration Company, et al.

            

    

     

    
      
        
          
            	
                    Jurisdiction

                     

                  	
                    File
      No.

                     

                  	
                    Book/Page

                     

                  	
                    Date
      Filed

                     

                  
	
                    Richland
      County, MT

                  	
                    518181

                  	
                    180/307-350

                  	
                    4-25-03

                  
	
                    Roosevelt
      County, MT

                  	
                    362400

                  	
                    604/207

                  	
                    4-25-03

                  
	
                    Sheridan
      County, MT

                  	
                    459308

                  	
                    605/766

                  	
                    4-24-03

                  
	
                    Billings
      County, ND

                  	
                    119518

                  	
                    94/115

                  	
                    4-25-03

                  
	
                    Bowman
      County, ND

                  	
                    158346

                  	 
      	
                    4-24-03

                  
	
                    Divide
      County, ND

                  	
                    224847

                  	
                    219M/146

                  	
                    5-27-03

                  
	
                    Dunn
      County, ND

                  	
                    3008107

                  	
                    138/1
      of 25

                  	
                    4-29-03

                  
	
                    McKenzie
      County, ND

                  	
                    344998

                  	 
      	
                    5-02-03

                  
	
                    Stark
      County, ND

                  	
                    3023766

                  	
                    /1
      of 23

                  	
                    4-30-03

                  

          

        

      

    

     

    
      	
              8.

            	
              Deed
      of Trust, Mortgage, Line of Credit Mortgage, Assignment, Security
      Agreement, Fixture Filing and Financing Statement dated effective as of
      April 16, 2003, from St. Mary Land & Exploration Company, et
      al.

            

    

     

    
      
        
          	
                  Jurisdiction

                   

                	
                  File
      No.

                   

                	
                  Book/Page

                   

                	
                  Date
      Filed

                   

                
	
                  Bienville
      Parish, LA

                	
                  20031493

                	
                  371/21

                	
                  4-23-03

                
	
                  LaSalle
      Parish, LA

                	
                  188236

                	
                  262/292,
      279/452

                	
                  4-25-03

                
	
                  Carbon
      County, MT

                	
                  306896

                	 
      	
                  4-24-03

                
	
                  Glacier
      County, MT

                	
                  252494

                	
                  69/283

                	
                  4-24-03

                
	
                  Powder
      River County, MT

                	
                  128180

                	
                  69/0546

                	
                  4-24-03

                
	
                  Stillwater
      County, MT

                	
                  312063

                	 
      	
                  4-24-03

                
	
                  Toole
      County, MT

                	
                  348946

                	
                  66/741

                	
                  4-24-03

                

        

      

    

     

    
      
        
          
            Exhibit C- 4

            Houston 3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        	
                Jurisdiction

                 

              	
                File
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Ward
      County, ND

              	
                2817213

              	
                Pgs
      1-54

              	
                4-25-03

              
	
                Williams
      County, ND

              	
                605875

              	
                1-56

              	
                4-29-03

              
	
                Renville
      County, ND

              	
                178019

              	
                171/293

              	
                4-25-03

              
	
                Dewey
      County, OK

              	
                001261

              	
                1191/94

              	
                4-24-03

              
	
                Stephens
      County, OK

              	
                000272

              	
                2820/272

              	
                5-07-03

              
	
                Schleicher
      County, TX

              	
                080705

              	
                434/682

              	
                5-05-03

              
	
                Galveston
      County, TX

              	
                2003025934

              	
                ###-##-####

              	
                4-23-03

              
	
                Campbell
      County, WY

              	
                815203

              	
                1862/418-531

              	
                4-25-03

              
	
                Converse
      County, WY

              	
                892472

              	
                1219/800

              	
                5-08-03

              
	
                Crook
      County, WY

              	
                561879

              	
                405/536-591

              	
                4-25-03

              
	
                Fremont
      County, WY

              	
                2003-1242358

              	 
      	
                6-24-03

              
	
                Hot
      Spring County, WY

              	
                449338

              	
                100/703-757

              	
                4-30-03

              
	
                Johnson
      County, WY

              	
                013622

              	
                295/325-379

              	
                4-25-03

              
	
                Lincoln
      County, WY

              	
                889463

              	
                518/747

              	
                4-24-03

              
	
                Natrona
      County, WY

              	
                0715663

              	
                1-61

              	
                5-06-03

              
	
                Niobrara
      County, WY

              	
                380587

              	
                413/0354

              	
                4-24-03

              
	
                Sweetwater
      County, WY

              	
                1385265

              	
                0973/1730

              	
                5-02-03

              
	
                Sublette
      County, WY

              	
                296777

              	
                100/83

              	
                4-25-03

              
	
                Uinta
      County, WY

              	
                113005

              	
                795/417-468

              	
                4-24-03

              
	
                Washakie
      County, WY

              	
                499528

              	
                93/769-820

              	
                4-24-03

              
	
                Weston
      County, WY

              	
                659277

              	
                263/985

              	
                4-25-03

              

      

    

     

    
      	
              9.

            	
              Deed
      of Trust, Mortgage, Line of Credit Mortgage, Assignment, Security
      Agreement, Fixture Filing and Financing Statement dated effective as of
      April 16, 2003, from St. Mary Land & Exploration Company, et
      al.

            

    

     

    
      
        	
                Jurisdiction

                 

              	
                File
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Cheyenne
      County, CO

              	
                2003-221982

              	
                1-51

              	
                4-25-03

              
	
                Moffat
      County, CO

              	
                2003L-1925

              	
                1
      of 60

              	
                4-24-03

              
	
                Harding
      County, SD

              	
                03-327

              	
                103
      O &G/79-129

              	
                4-29-03

              
	
                Nye
      County, NV

              	
                561302

              	 
      	
                4-24-03

              

      

    

     

    
      
        
          
            Exhibit C- 5

            Houston 3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    
      	
              10.

            	
              Deed
      of Trust, Mortgage, Line of Credit Mortgage, Assignment, Security
      Agreement, Fixture Filing and Financing Statement dated effective as of
      May 4, 2004, from St. Mary Land & Exploration Company, et
      al.

            

    

    

    
      
        	
                Jurisdiction

                 

              	
                File/Entry
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Sheridan
      County, MT

              	
                460961

              	
                608/800

              	
                5-17-04

              
	
                McKenzie
      County, ND

              	
                348516

              	 
      	
                5-14-04

              
	
                Beckham
      County, OK

              	
                I-2004-004556

              	
                1811/653

              	
                5-14-04

              
	
                Shelby
      County, TX

              	
                2004-2675

              	
                B-989/P-1

              	
                5-13-04

              

      

    

     

    
      	
              11.

            	
              Deed
      of Trust, Mortgage, Line of Credit Mortgage Assignment, Security
      Agreement, Fixture Filing and Financing Statement dated effective as of
      April 7, 2005 from St. Mary Land & Exploration Company to Wachovia
      Bank, National Association, as Administrative
  Agent.

            

    

     

    
      
        
          	
                  Jurisdiction

                   

                	
                  File/Entry
      No.

                   

                	
                  Book/Page

                   

                	
                  Date
      Filed

                   

                
	
                  Bossier
      Parish, LA

                	
                  831932

                	
                  1472

                	
                  04-18-05

                
	
                  Caddo
      Parish, LA

                	
                  1970675

                	 
      	
                  04-19-05

                
	
                  Desoto
      Parish, LA

                	
                  616921

                	
                  319/1

                	
                  04-14-05

                
	
                  Morehouse
      Parish, LA

                	
                  193172

                	
                  582/183

                	
                  04-18-05

                
	
                  Natchitoches
      Parish, LA

                	
                  M280911

                  228839

                	
                  768/261

                  590/547

                	
                  04-15-05

                
	
                  Webster
      Parish, LA

                	
                  477794

                	
                  602/772

                	
                  04-15-05

                
	
                  Richland
      County, MT

                	
                  529711

                	
                  192/318-371

                	
                  04-18-05

                
	
                  McKenzie
      County, ND

                	
                  356243

                	 
      	
                  04-25-05

                
	
                  Mountrail
      County, ND

                	
                  315745

                	
                  717/505

                	
                  4-14-05

                
	
                  Alfalfa
      County, OK

                	
                  031160

                	
                  581/734-782

                	
                  04-15-05

                
	
                  Beckham
      County, OK

                	
                  I-2005-003117

                	
                  1843/675-747

                	
                  04-15-05

                
	
                  Blaine
      County, OK

                	
                  1640

                	
                  913/470-517

                	
                  04-14-05

                
	
                  Carter
      County, OK

                	
                  2005-004091

                	
                  4285/68-141

                	
                  04-14-05

                
	
                  Coal
      County, OK

                	
                  027249

                	
                  652/494-558

                	
                  04-22-05

                
	
                  Ellis
      County, OK

                	
                  I-A-009471

                	
                  706/347-394

                	
                  04-18-05

                

        

      

    

     

    
      
        
          
            Exhibit C- 6

            Houston 3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

      
        	
                Jurisdiction

                 

              	
                File/Entry
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Garfield
      County, OK

              	
                4125

              	
                1752/927

              	
                04-15-05

              
	
                Grady
      County, OK

              	
                I-2005-005326

              	
                3720/91-141

              	
                04-15-05

              
	
                Grant
      County, OK

              	
                608

              	
                562/192

              	
                04-14-05

              
	
                Haskell
      County, OK

              	
                301537

              	
                681/101-157

              	
                04-14-05

              
	
                Hughes
      County, OK

              	
                003075

              	
                1027/1-49

              	
                04-14-05

              
	
                Latimer
      County, OK

              	
                I-2005-035223

              	
                653/178-228

              	
                04-14-05

              
	
                LeFlore
      County, OK

              	
                3842

              	
                1552/446-491

              	
                04-14-05

              
	
                Logan
      County, OK

              	
                3536

              	
                1851/45-92

              	
                04-14-05

              
	
                Murray
      County, OK

              	
                I-2005-001180

              	
                767/1-48

              	
                04-14-05

              
	
                Pittsburg
      County, OK

              	
                133088

              	
                1372/379-475

              	
                04-19-05

              
	
                Roger
      Mills, OK

              	
                I-2005-003179

              	
                1789/349

              	
                5-12-05

              
	
                Seminole
      County, OK

              	
                2563

              	
                2697/200-247

              	
                04-14-05

              
	
                Washita
      County, OK

              	
                I-2005-002861

              	
                1009/597-644

              	
                04-15-05

              
	
                Cass
      County, TX

              	
                37589

              	 
      	
                04-14-05

              
	
                Gregg
      County, TX

              	
                200507947

              	 
      	
                04-14-05

              
	
                Houston
      County, TX

              	
                051641

              	 
      	
                04-14-05

              
	
                Marion
      County, TX

              	
                1250

              	
                697/334-381

              	
                04-14-05

              
	
                Panola
      County, TX

              	
                100387

              	
                1262/467-514

              	
                04-14-05

              
	
                Rusk
      County, TX

              	
                10774

              	
                254B/432-480

              	
                04-14-05

              
	
                Smith
      County, TX

              	
                2005-R0017684

              	
                7765/818-866

              	
                04-14-05

              
	
                Sutton
      County, TX

              	
                051971

              	
                337/352-399

              	
                04-14-05

              
	
                Wheeler
      County, TX

              	
                15347

              	
                535/583-630

              	
                04-19-05

              
	
                Albany
      County, WY

              	
                2005-2399

              	 
      	
                04-14-05

              
	
                Park
      County, WY

              	
                2005-2693

              	 
      	
                04-18-05

              

      

    

     

    
      	
              12.

            	
              Supplement
      and Amendment to Deed of Trust, Mortgage, Line of Credit Mortgage,
      Assignment, Security Agreement, Fixture Filing and Financing Statement
      dated effective as of April 7, 2005, from St. Mary Land & Exploration
      Company, et al.

            

    

     

    
      
        
          	
                  Jurisdiction

                   

                	
                  File/Entry
      No.

                   

                	
                  Book/Page

                   

                	
                  Date
      Filed

                   

                
	
                  Bienville
      Parish, LA

                	
                  20051586

                	 
      	
                  4-14-05

                

        

      

    

    
       

      
        
          
            
              Exhibit C- 7

              Houston 3921802v.12

            

             

          

          
             

            
            

          

          
             

          

        

      

    

     

    
      
        	
                Jurisdiction

                 

              	
                File/Entry
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Claiborne
      Parish, LA

              	
                415336

              	
                502/128

              	
                4-14-05

              
	
                Lincoln
      Parish, LA

              	
                063713

              	
                875/179

              	
                4-15-05

              
	
                Union
      Parish, LA

              	
                2005-00326133

              	
                597/91

              	
                4-18-05

              
	
                Billings
      County, ND

              	
                124015

              	 
      	
                6-27-05

              
	
                Bottineau
      County, ND

              	
                365951

              	 
      	
                4-25-05

              
	
                Bowman
      County, ND

              	
                161240

              	 
      	
                4-26-05

              
	
                Burke
      County, ND

              	
                206034

              	
                178/309

              	
                4-25-05

              
	
                Divide
      County, ND

              	
                230283

              	
                232M/638

              	
                5-6-05

              
	
                Dunn
      County, ND

              	
                3013067

              	
                B-147/P-43

              	
                6-24-05

              
	
                Golden
      Valley County, ND

              	
                92123

              	 
      	
                4-25-05

              
	
                Stark
      County, ND

              	
                3037098

              	 
      	
                4-25-05

              
	
                Williams
      County, ND

              	
                623256

              	 
      	
                4-19-05

              
	
                Canadian
      County, OK

              	
                20058762

              	
                3049/641-665

              	
                4-18-05

              
	
                Sweetwater
      County, WY

              	
                1439819

              	
                1025/559-78

              	
                4-19-05

              

      

    
      	
              13.

            	
              Deed
      of Trust, Mortgage, Line of Credit Mortgage Assignment, Security
      Agreement, Fixture Filing and Financing Statement dated effective as of
      February 20, 2007, from St. Mary Land & Exploration Company, et
      al.

            

    

    

    
      
        	
                Jurisdiction

                 

              	
                File
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Upton
      County, TX

              	
                00140457

              	
                782/61-120

              	
                2-26-07

              
	
                Midland
      County, TX

              	
                4234

              	
                OR/02818/71

              	
                2-23-07

              

      

    

    

    
      	
              14.

            	
              Deed
      of Trust, Mortgage, Line of Credit Mortgage Assignment, Security
      Agreement, Fixture Filing and Financing Statement dated effective as of
      February 1, 2008, from St. Mary Land & Exploration
    Company

            

    

    

    
      
        	
                Jurisdiction

                 

              	
                File
      No.

                 

              	
                Book/Page

                 

              	
                Date
      Filed

                 

              
	
                Dimmit
      County, TX

              	
                9830

              	
                345/665

              	
                4/23/08

              
	
                Webb
      County, TX

              	
                995989

              	
                2540/142

              	
                3/4/08

              

      

    

     

    
      
        
          
            
              Exhibit C- 8

              Houston 3921802v.12

            

             

          

          
             

            
            

          

          
             

          

        

    

    
      	
              15.

            	
              UCC
      Financing Statement with St. Mary Land & Exploration Company as debtor
      and Wachovia Bank, National Association, as Administrative Agent, as
      secured party, with respect to item 15
above

            

    

     

    
      
        	
                Jurisdiction

              	
                File
      No.

              	
                Book/Page

              	
                Date
      Filed

              
	
                Secretary
      of State of Delaware

              	
                2008
      0765394

              	 
      	
                3/3/08

              

      

    

    

    
      	
              16.

            	
              Supplement
      and Amendment to Deed of Trust, Mortgage, Line of Credit Mortgage,
      Assignment, Security Agreement, Fixture Filing and Financing Statement
      dated effective as of April 14, 2009, from St. Mary Land & Exploration
      Company

            

    

    

    
      
        
          	
                  Jurisdiction

                   

                	
                  File
      No.

                   

                	
                  Book/Page

                   

                	
                  Date
      Filed

                   

                
	
                  Cheyenne
      County, CO

                	 
      	 
      	 
      
	
                  Moffat
      County, CO

                	 
      	 
      	 
      
	
                  Bienville
      Parish, LA

                	 
      	 
      	 
      
	
                  Bossier
      Parish, LA

                	 
      	 
      	 
      
	
                  Caddo
      Parish, LA

                	 
      	 
      	 
      
	
                  Cameron
      Parish, LA

                	 
      	 
      	 
      
	
                  Claiborne
      Parish, LA

                	 
      	 
      	 
      
	
                  Desoto
      Parish, LA

                	 
      	 
      	 
      
	
                  Iberia
      Parish, LA

                	 
      	 
      	 
      
	
                  LaSalle
      Parish, LA

                	 
      	 
      	 
      
	
                  Lincoln
      Parish, LA

                	 
      	 
      	 
      
	
                  Morehouse
      Parish, LA

                	 
      	 
      	 
      
	
                  Natchitoches
      Parish, LA

                	 
      	 
      	 
      
	
                  Pointe
      Coupee Parish, LA

                	 
      	 
      	 
      
	
                  St.
      Mary Parish, LA

                	 
      	 
      	 
      
	
                  Union
      Parish, LA

                	 
      	 
      	 
      
	
                  Vermilion
      Parish, LA

                	 
      	 
      	 
      
	
                  Webster
      Parish, LA

                	 
      	 
      	 
      
	
                  Carbon
      County, MT

                	 
      	 
      	 
      
	
                  Glacier
      County, MT

                	 
      	 
      	 
      
	
                  Powder
      River County, MT

                	 
      	 
      	 
      

        

      

    

     

    
      
        
          
            
              
                Exhibit C- 9

                Houston 3921802v.12

              

               

            

            
               

              
              

            

            
               

            

          

      

    

    
      
        
          
            	
                    Richland
      County, MT

                  	 
      	 
      	 
      
	
                    Roosevelt
      County, MT

                  	 
      	 
      	 
      
	
                    Rosebud
      County, MT

                  	 
      	 
      	 
      
	
                    Sheridan
      County, MT

                  	 
      	 
      	 
      
	
                    Stillwater
      County, MT

                  	 
      	 
      	 
      
	
                    Toole
      County, MT

                  	 
      	 
      	 
      
	
                    Wibaux
      County, MT

                  	 
      	 
      	 
      
	
                    Eddy
      County, NM

                  	 
      	 
      	 
      
	
                    Lea
      County, NM

                  	 
      	 
      	 
      
	
                    Billings
      County, ND

                  	 
      	 
      	 
      
	
                    Bottineau
      County, ND

                  	 
      	 
      	 
      
	
                    Bowman
      County, ND

                  	 
      	 
      	 
      
	
                    Burke
      County, ND

                  	 
      	 
      	 
      
	
                    Divide
      County, ND

                  	 
      	 
      	 
      
	
                    Dunn
      County, ND

                  	 
      	 
      	 
      
	
                    Golden
      Valley County, ND

                  	 
      	 
      	 
      
	
                    McKenzie
      County, ND

                  	 
      	 
      	 
      
	
                    Mountrail
      County, ND

                  	 
      	 
      	 
      
	
                    Renville
      County, ND

                  	 
      	 
      	 
      
	
                    Stark
      County, ND

                  	 
      	 
      	 
      
	
                    Ward
      County, ND

                  	 
      	 
      	 
      
	
                    Williams
      County, ND

                  	 
      	 
      	 
      
	
                    Nye
      County, NV

                  	 
      	 
      	 
      
	
                    Alfalfa
      County, OK

                  	 
      	 
      	 
      
	
                    Beaver
      County, OK

                  	 
      	 
      	 
      
	
                    Beckham
      County, OK

                  	 
      	 
      	 
      
	
                    Blaine
      County, OK

                  	 
      	 
      	 
      
	
                    Caddo
      County, OK

                  	 
      	 
      	 
      
	
                    Canadian
      County, OK

                  	 
      	 
      	 
      
	
                    Carter
      County, OK

                  	 
      	 
      	 
      
	
                    Coal
      County, OK

                  	 
      	 
      	 
      

          

        

      

    

    
       

      
        
          
            
              
                
                  Exhibit C- 10

                  Houston 3921802v.12

                

                 

              

              
                 

                
                

              

              
                 

              

            

          

        

      

    

     

    
      
        
          	
                  Comanche
      County, Ok

                	 
      	 
      	 
      
	
                  Custer
      County, OK

                	 
      	 
      	 
      
	
                  Dewey
      County, OK

                	 
      	 
      	 
      
	
                  Ellis
      County, OK

                	 
      	 
      	 
      
	
                  Garfield
      County, OK

                	 
      	 
      	 
      
	
                  Grady
      County, OK

                	 
      	 
      	 
      
	
                  Grant
      County, OK

                	 
      	 
      	 
      
	
                  Haskell
      County, OK

                	 
      	 
      	 
      
	
                  Hughes
      County, OK

                	 
      	 
      	 
      
	
                  Latimer
      County, OK

                	 
      	 
      	 
      
	
                  LeFlore
      County, OK

                	 
      	 
      	 
      
	
                  Logan
      County, OK

                	 
      	 
      	 
      
	
                  Murray
      County, OK

                	 
      	 
      	 
      
	
                  Pittsburg
      County, OK

                	 
      	 
      	 
      
	
                  Roger
      Mills County, OK

                	 
      	 
      	 
      
	
                  Seminole
      County, OK

                	 
      	 
      	 
      
	
                  Stephens
      County, OK

                	 
      	 
      	 
      
	
                  Washita
      County, OK

                	 
      	 
      	 
      
	
                  Harding
      County, SD

                	 
      	 
      	 
      
	
                  Brazoria
      County, TX

                	 
      	 
      	 
      
	
                  Cass
      County, TX

                	 
      	 
      	 
      
	
                  Coke
      County, TX

                	 
      	 
      	 
      
	
                  Dimmit
      County, TX

                	 
      	 
      	 
      
	
                  Galveston
      County, TX

                	 
      	 
      	 
      
	
                  Gregg
      County, TX

                	 
      	 
      	 
      
	
                  Henderson
      County, TX

                	 
      	 
      	 
      
	
                  Houston
      County, TX

                	 
      	 
      	 
      
	
                  Jefferson
      County, TX

                	 
      	 
      	 
      
	
                  Limestone
      County, TX

                	 
      	 
      	 
      
	
                  Marion
      County, TX

                	 
      	 
      	 
      
	
                  Midland
      County, TX

                	 
      	 
      	 
      

        

      

    

    
       

      
        
          
            
              
                
                  Exhibit C- 11

                  Houston 3921802v.12

                

                 

              

              
                 

                
                

              

              
                 

              

            

          

        

      

    

     

    
      
        	
                Nueces
      County, TX

              	 
      	 
      	 
      
	
                Panola
      County, TX

              	 
      	 
      	 
      
	
                Red
      River County, TX

              	 
      	 
      	 
      
	
                Runnels
      County, TX

              	 
      	 
      	 
      
	
                Rusk
      County, TX

              	 
      	 
      	 
      
	
                Schleicher
      County, TX

              	 
      	 
      	 
      
	
                Shelby
      County, TX

              	 
      	 
      	 
      
	
                Smith
      County, TX

              	 
      	 
      	 
      
	
                Sutton
      County, TX

              	 
      	 
      	 
      
	
                Upton
      County, TX

              	 
      	 
      	 
      
	
                Ward
      County, TX

              	 
      	 
      	 
      
	
                Webb
      County, TX

              	 
      	 
      	 
      
	
                Wheeler
      County, TX

              	 
      	 
      	 
      
	
                Uintah
      County, UT

              	 
      	 
      	 
      
	
                Albany
      County, WY

              	 
      	 
      	 
      
	
                Campbell
      County, WY

              	 
      	 
      	 
      
	
                Carbon
      County, WY

              	 
      	 
      	 
      
	
                Converse
      County, WY

              	 
      	 
      	 
      
	
                Crook
      County, WY

              	 
      	 
      	 
      
	
                Fremont
      County, WY

              	 
      	 
      	 
      
	
                Hot
      Springs County, WY

              	 
      	 
      	 
      
	
                Johnson
      County, WY

              	 
      	 
      	 
      
	
                Lincoln
      County, WY

              	 
      	 
      	 
      
	
                Natrona
      County, WY

              	 
      	 
      	 
      
	
                Niobrara
      County, WY

              	 
      	 
      	 
      
	
                Park
      County, WY

              	 
      	 
      	 
      
	
                Sweetwater
      County, WY

              	 
      	 
      	 
      
	
                Sublette
      County, WY

              	 
      	 
      	 
      
	
                Uinta
      County, WY

              	 
      	 
      	 
      
	
                Washakie
      County, WY

              	 
      	 
      	 
      
	
                Weston
      County, WY

              	 
      	 
      	 
      

      

    

    
       

      
        
          
            
              
                
                  Exhibit C- 12

                  Houston 3921802v.12

                

                 

              

              
                 

                
                

              

              
                 

              

            

          

        

      

    

     

    
      	
              17.

            	
              UCC
      Financing Statement with St. Mary Land & Exploration Company as debtor
      and Wachovia Bank, National Association, as Administrative Agent, as
      secured party, with respect to item 16
above

            

    

    

    
      
        
          	
                  Jurisdiction

                	
                  File
      No.

                	
                  Book/Page

                	
                  Date
      Filed

                
	
                  Secretary
      of State of Delaware

                	 
      	 
      	 
      

        

      

    

     

    
      
        
          Exhibit C- 13

          Houston 3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
D

     

    FORM
OF ASSIGNMENT AND ASSUMPTION

     

    Reference is made to the Third Amended
and Restated Credit Agreement dated as of [___________ __], 2009 (as the same
may from time to time be amended, modified, supplemented or restated, the “Credit Agreement”),
among St. Mary Land
& Exploration Company, the Lenders named therein and Wachovia Bank, National
Association, as Administrative Agent for the Lenders.  Terms
defined in the Credit Agreement are used herein with the same
meanings.

     

    The Assignor named on the reverse
hereof hereby sells and assigns, without recourse, to the Assignee named on the
reverse hereof, and the Assignee hereby purchases and assumes, without recourse,
from the Assignor, effective as of the Assignment Date set forth on the reverse
hereof, the interests set forth on the reverse hereof (the “Assigned Interest”)
in the Assignor’s rights and obligations under the Credit Agreement, including,
without limitation, the interests set forth on the reverse hereof in the
Commitment of the Assignor on the Assignment Date and Loans owing to the
Assignor which are outstanding on the Assignment Date, together with the
participations in Letters of Credit and LC Disbursements held by the Assignor on
the Assignment Date, but excluding accrued interest and fees to and excluding
the Assignment Date.  The Assignee hereby acknowledges receipt of a
copy of the Credit Agreement.  From and after the Assignment Date (i)
the Assignee shall be a party to and be bound by the provisions of the Credit
Agreement and, to the extent of the Assigned Interest, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent of
the Assigned Interest, relinquish its rights and be released from its
obligations under the Credit Agreement.

     

    This Assignment and Assumption is being
delivered to the Administrative Agent together with (i) if the Assignee is a
Foreign Lender, any documentation required to be delivered by the Assignee
pursuant to Section 5.03(e) of the Credit Agreement, duly completed and executed
by the Assignee, and (ii) if the Assignee is not already a Lender under the
Credit Agreement, an Administrative Questionnaire in the form supplied by the
Administrative Agent, duly completed by the Assignee.  The Assignor
shall pay the fee payable to the Administrative Agent pursuant to Section
12.04(b) of the Credit Agreement.

     

    This Assignment and Assumption shall be
governed by and construed in accordance with the laws of the State of
Texas.

     

    Date of
Assignment:

     

    Legal
Name of Assignor:

     

    Legal
Name of Assignee:

     

    Assignee’s
Address for Notices:

     

    Effective
Date of Assignment

     

    (“Assignment
Date”):

    

      
        
          
            Exhibit D- 1

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      	
               

               

               

               

               

               

               

               

              Facility

            	
               

               

               

              Principal
      Amount Assigned

            	
              Percentage
      Assigned of Facility/Commitment (set forth, to at least 8 decimals, as a
      percentage of the Facility and the aggregate Commitments of all Lenders
      thereunder)

            
	
              Commitment
      Assigned:

            	
              $

            	
              %

            
	
              Loans:

            	 
      	 
      
	 
      	 
      	 
      

    

    

     

    The terms
set forth above and on the reverse side hereof are hereby agreed
to:

     

    [Name of Assignor],
as Assignor

    

    

    By:______________________________

    Name:

    Title:

    

    

    [Name of Assignee],
as Assignee

    

    

    By:
______________________________

    Name:

    Title:

     

    

      
        
          
            Exhibit D- 2

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

    The
undersigned hereby consent to the within assignment:1

    

    
      	
              St.
      Mary Land & Exploration Company

            	
              Wachovia
      Bank, National Association, as Administrative
  Agent,

            

    

    

    

    By:
______________________                                                                                                By:
__________________________

    Name:                                                                                                                      
Name:

    Title:                                                                                                       
 Title:]

    

     

    
 

    _____________________________ 

      1 Consents to be included to the
extent required by Section 9.04(b) of the Credit
Agreement.

    

    
      
        
          Exhibit D- 3

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
E

     

    FORM
OF COMMITMENT INCREASE CERTIFICATE

     

    

    

    [          ],
200[    ]

    

    

    To:           Wachovia
Bank, National Association,

    as Administrative Agent

    

    The
Borrower, the Administrative Agent and the other Agents and certain Lenders have
heretofore entered into a Third Amended and Restated Credit Agreement, dated as
of [_________ __], 2009,
as amended from time to time (the “Credit
Agreement”).  Capitalized terms not otherwise defined herein
shall have the meaning given to such terms in the Credit Agreement.

    

    This
Commitment Increase Certificate is being delivered pursuant to Section 2.06(c)
of the Credit Agreement.

    

    Please be
advised that the undersigned has agreed to increase its Commitment under the
Credit Agreement effective [          ],
200[    ]
from $[          ]
to $[          ]
and (b) that it shall continue to be a party in all respect to the Credit
Agreement and the other Loan Documents.

    

    The
[Borrower/Lender] shall pay the fee payable to the Administrative Agent pursuant
to Section 2.06(c)(ii) of the Credit Agreement.

    

    Very truly yours,

    

    [                                                      ]

    

    

    

    By:                                                                

      Name:                                                                

      Title:                                                                

    

    

    
      
        
          Exhibit E- 1

          Houston 3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    Accepted
and Agreed:

    

    Wachovia
Bank, National Association,

      as
Administrative Agent

    

    

    

    By: _______________________________                                                               

      Name: ____________________________                                                               

      Title: _____________________________                                                               

    

    

    

    Accepted
and Agreed:

    

    St. Mary
Land & Exploration Company

    

    

    

    By: _______________________________                                                               

      Name: ____________________________                                                               

      Title: _____________________________                                                               

    

     

    

    
      
        
          Exhibit E- 2

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
F

     

    FORM
OF ADDITIONAL LENDER CERTIFICATE

     

    

    

    [          ],
200[    ]

    

    

    To:           Wachovia
Bank, National Association

    as Administrative Agent

    

    The
Borrower, the Administrative Agent and the other Agents and certain Lenders have
heretofore entered into a Third Amended and Restated Credit Agreement, dated as
of [_______ __], 2009,
as amended from time to time (the “Credit
Agreement”).  Capitalized terms not otherwise defined herein
shall have the meaning given to such terms in the Credit Agreement.

    

    This
Additional Lender Certificate is being delivered pursuant to Section 2.06(c) of
the Credit Agreement.

    

    Please be
advised that the undersigned has agreed (a) to become a Lender under the Credit
Agreement effective [          ],
200[    ]
with a Commitment of $[          ]
and (b) that it shall be a party in all respect to the Credit Agreement and the
other Loan Documents.

    

    This
Additional Lender Certificate is being delivered to the Administrative Agent
together with (i) if the Additional Lender is a Foreign Lender, any
documentation required to be delivered by such Additional Lender pursuant to
Section 5.03(e) of the Credit Agreement, duly completed and executed by the
Additional Lender, and (ii) an Administrative Questionnaire in the form supplied
by the Administrative Agent, duly completed by the Additional
Lender.  The [Borrower/Additional Lender] shall pay the fee payable to
the Administrative Agent pursuant to Section 2.06(c)(ii) of the Credit
Agreement.

    

    Very truly yours,

    

    [                                                      ]

    

    

    

    By: ______________________________                                                               

      Name: ___________________________                                                               

      Title: ____________________________                                                               

    
      
        
          Exhibit F- 1

          Houston 3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    Accepted
and Agreed:

    

    Wachovia
Bank, National Association,

      as
Administrative Agent

    

    

    

    By: _____________________________                                                               

      Name: __________________________                                                               

      Title: ___________________________                                                               

    

    

    

    Accepted
and Agreed:

    

    St. Mary
Land & Exploration Company

    

    

    

    By: _____________________________                                                               

      Name: __________________________                                                               

      Title: ___________________________                                                               

    
      
        
          Exhibit F- 2

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
G

     

    REAFFIRMATION
AGREEMENT

     

    

     

    1. This
Reaffirmation Agreement (this “Reaffirmation”) dated
as of [_______ __],
2009, is made (a) in connection with, and as a condition to, that certain Third
Amended and Restated Credit Agreement dated of even date herewith (as may be
amended, restated or otherwise modified from time to time, the “Credit Agreement”)
among ST. MARY LAND
& EXPLORATION COMPANY, a Delaware corporation (the
“Borrower”);
each of the Lenders from time to time party thereto; WACHOVIA BANK, NATIONAL
ASSOCIATION (in its individual
capacity, “Wachovia”), as
administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, the “Administrative
Agent”); and the other parties and agents signatory thereto and (b) for
the benefit of the respective secured parties and beneficiaries described in the
Security Instruments (as defined below).  Capitalized terms used
herein but not defined herein shall have the meanings ascribed to them in the
Credit Agreement.

     

    2. The
Borrower has executed certain Loan Documents to secure the Indebtedness,
including, without limitation, that certain Amended and Restated Pledge and
Security Agreement dated as of April 7, 2005, by the Borrower in favor of the
Administrative Agent (as the same may be amended, supplemented, restated or
otherwise modified from time to time, the “Pledge Agreement”),
that certain Deed of Trust, Mortgage, Line of Credit Mortgage, Assignment,
Security Agreement, Fixture Filing and Financing Statement dated as of April 7,
2005, from the Borrower to Jay Chernosky, as Trustee (“Trustee”), and to the
Administrative Agent (the “Deed of Trust”) and
that certain Supplement and Amendment to Deed of Trust, Mortgage, Line of Credit
Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement
dated as of April 7, 2005, by the Borrower to the Trustee, for the benefit of
the Administrative Agent (the “Deed of Trust
Supplement”).

     

    3. The
Borrower (a) has reviewed the Credit Agreement, (b) agrees that according to its
terms its obligations (and the security interests granted by it) under the
Pledge Agreement, Deed of Trust, Deed of Trust Supplement and each such other
Loan Document to which the Borrower is a party (collectively, the “Security
Instruments”) will continue in full force and effect to secure the
Indebtedness, and, as the same may be amended, supplemented, or otherwise
modified, and such other amounts in accordance with the terms of the Security
Instruments, (c) acknowledges, represents, warrants and agrees that the liens
and security interests created by it pursuant to the Pledge Agreement, Deed of
Trust, Deed of Trust Supplement and each other Security Instrument are valid and
subsisting and create a first priority perfected security interest to secure the
Indebtedness, (d) ratifies and affirms its obligations under, and acknowledges,
renews and extends its continued liability under, the Pledge Agreement, Deed of
Trust, Deed of Trust Supplement and each other Security Instrument to which it
is a party and agrees that the Pledge Agreement, Deed of Trust, Deed of Trust
Supplement and each other Security Instrument to which it is a party remain in
full force and effect, and (e) represents and warrants to the Lenders that as of
the date hereof:  (i) all of the representations and warranties
contained in the Pledge Agreement, Deed of Trust, Deed of Trust Supplement and
each other Security Instrument to which it is a party are true and correct,
except (x) to the extent any such representations and warranties are expressly
limited to an earlier date, in which case, such representations and

     

    
      
        
          Exhibit G- 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    warranties
shall continue to be true and correct as of such specified earlier date and (y)
except for any changes in the facts or circumstances represented thereby not
prohibited by the Pledge Agreement, Deed of Trust, Deed of Trust Supplement,
each other Security Instrument or the Existing Credit Agreement, (ii) no Default
has occurred and is continuing (iii) since the Effective Date, there has been no
event, development or circumstance that has had or could reasonably be expected
to have a Material Adverse Effect.

     

    4. Each of
the Pledge Agreement, Deed of Trust, Deed of Trust Supplement and each other
Security Instrument remains in full force and effect as executed by the parties
hereto, and nothing herein shall act as a waiver of any of the Administrative
Agent’s or other Secured Parties’ rights under the Pledge Agreement, Deed of
Trust, Deed of Trust Supplement or any other Security Instrument.

     

    5. This
Reaffirmation is a Loan Document for the purposes of the provisions of the other
Loan Documents.

     

    6. This
Reaffirmation is a Security Instrument for the purposes of the provisions of the
other Security Instruments

     

    7. This
Reaffirmation shall be governed by and construed and enforced in accordance with
the laws of the State of Texas.

     

    8. This
Reaffirmation may be signed in any number of counterparts, each of which shall
be an original.  Delivery of an executed signature page to this
Reaffirmation by facsimile transmission shall be as effective as delivery of a
manually signed counterpart of this Reaffirmation.

     

    9. THIS
REAFFIRMATION AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG
THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.

     

    10. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

     

    

    [The rest
of this page has been left blank intentionally]

     

    
      
        
          Exhibit G- 2

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    The Borrower has caused this
Reaffirmation to be duly executed as of the date first above
written.

     

    BORROWER

    

    
      	
               
      

            	
              ST.
      MARY LAND & EXPLORATION COMPANY

            

    

    

    

    

    By:  /s/ MILAM RANDOLPH
PHARO                                                              

    Name:  ______________________________

    Title:  _______________________________

    
      
        
          Exhibit G- 3 

          Houston 3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    Accepted
by:

    

    

    WACHOVIA BANK, NATIONAL
ASSOCIATION, as Administrative Agent

    

    

    

    By: /s/ LEANNE
PHILLIPS                                                                          

    Name:  Leanne
Phillips

    Title:  Director

    
      
        
          Exhibit G- 4 

          Houston 3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
H

     

    FORM
OF LEGAL OPINION OF BALLARD SPAHR ANDREWS & INGERSOLL, LLP

     

    
      
        
          Exhibit H- 1

          Houston 3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    SCHEDULE
7.05

    LITIGATION

    

     

    None.

     

    

    
      
        
          Schedule 7.05 - 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    SCHEDULE
7.15

     

    SUBSIDIARIES
AND PARTNERSHIPS; NON-MATERIAL SUBSIDIARIES

     

    

    
      	
               

              Material Subsidiaries

            	
              Jurisdiction of
Organization

            	
              Organizational Identification
      Number

            	
              Principal Place of Business

              and Chief Executive Office

            	
              Owner

            	
              Percentage Owned

            
	
              None.

            	 
      	 
      	 
      	 
      	 
      
	
              Non-Material Subsidiaries

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Belring
      GP LLC

            	
              Delaware

            	 
      	 
      	
              Borrower

            	
              100%

            
	
              Box
      Church Gas Gathering LLC

            	
              Colorado

            	 
      	 
      	
              Borrower

            	
              58.6754%

            
	
              Energy
      Leasing, Inc.

            	
              Oklahoma

            	 
      	 
      	
              Borrower

            	
              100%

            
	
              Four
      Winds Marketing LLC

            	
              Colorado

            	 
      	 
      	
              Borrower

            	
              100%

            
	
              Hilltop
      Investments

            	
              Colorado

            	 
      	 
      	
              Borrower

            	
              50%

            
	
              SMT
      Texas LLC

            	
              Colorado

            	 
      	 
      	
              Borrower

            	
              100%

            
	
              St.
      Mary Land & Exploration Acquisition, LLC

            	
              Delaware

            	 
      	 
      	
              Borrower

            	
              100%

            
	
              St.
      Mary Energy Louisiana LLC

            	
              Delaware

            	 
      	 
      	
              Borrower

            	
              100%

            
	
              St.
      Mary Land East Texas L.P.

            	
              Texas

            	 
      	 
      	
              SMT
      Texas LLC

              Borrower

            	
              99%

               

              1%

            
	
              Sycamore
      Gas System

            	
              Oklahoma

            	 
      	 
      	
              Borrower

            	
              3.11%

            
	
              Trinity
      River Services LTD

            	
              Texas

            	 
      	 
      	
              Borrower

            	
              21%

            
	
              Parish
      Ventures

            	
              Colorado

            	 
      	 
      	
              Borrower

            	
              50%

            

    

    

    
      
        
          Schedule 7.15 - 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    SCHEDULE
7.19

    GAS
IMBALANCES

     

    

    None.

    
      
        
          Schedule 7.19 - 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    SCHEDULE
7.20

    MARKETING
CONTRACTS

     

    None.

     

    
      
        
          Schedule 7.20- 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    SCHEDULE
7.21

    SWAP
AGREEMENTS

    

     

    
      	
              St.
      Mary Land & Exploration Company

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Hedges
      "In-Place"

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              As
      of March 30, 2009

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                CounterParty

                              	
                                Contract

                                Date

                              	
                                Contract #

                              	
                                Price Index

                              	
                                Area

                              	
                                Contract

                                Start

                              	
                                Contract

                                End

                              	
                                Monthly

                                Volumes

                              	
                                Remaining

                                Yearly

                                Volumes

                              	
                                %
      of

                                Hedges

                              	
                                Fixed

                                Price

                              	
                                Estimated

                                Market

                                Price

                              	 
      	
                                MtM
      Value

                                at 3/30/09

                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                GAS
      SWAPS

                              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                BNP
      Paribas

                              	
                                02/29/08

                              	
                                172761

                              	
                                IF
      CIG

                              	
                                Rockies

                              	
                                01/01/09

                              	
                                12/31/09

                              	
                                50,000

                              	
                                450,000

                              	 
      	
                                $7.03

                              	
                                $2.87

                              	 
      	
                                1,873,700

                              	 
      	 
      
	
                                BNP
      Paribas

                              	
                                05/05/08

                              	
                                180277

                              	
                                IF
      HSC

                              	
                                Arklatex

                              	
                                06/01/08

                              	
                                02/28/11

                              	
                                43,333

                              	
                                390,000

                              	 
      	
                                $9.96

                              	
                                $3.95

                              	 
      	
                                2,342,816

                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                93,333

                              	
                                840,000

                              	
                                5.30%

                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                Comerica

                              	
                                07/30/07

                              	
                                ESWP253

                              	
                                IF
      HSC

                              	
                                Gulf
      Coast

                              	
                                01/01/09

                              	
                                12/31/09

                              	
                                100,000

                              	
                                900,000

                              	 
      	
                                $8.19

                              	
                                $3.97

                              	 
      	
                                3,800,902

                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                100,000

                              	
                                900,000

                              	
                                5.67%

                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                J
      Aron & Co

                              	
                                07/30/07

                              	
                                737564622

                              	
                                IF
      HSC

                              	
                                Gulf
      Coast

                              	
                                01/01/09

                              	
                                12/31/09

                              	
                                110,000

                              	
                                990,000

                              	 
      	
                                $8.25

                              	
                                $3.97

                              	 
      	
                                4,235,760

                              	 
      	 
      
	
                                J
      Aron & Co

                              	
                                05/19/06

                              	
                                886126894

                              	
                                IF
      PEPL

                              	
                                MidCon

                              	
                                01/01/09

                              	
                                06/30/09

                              	
                                140,000

                              	
                                420,000

                              	 
      	
                                $6.98

                              	
                                $2.67

                              	 
      	
                                1,809,467

                              	 
      	 
      
	
                                J
      Aron & Co

                              	
                                06/15/06

                              	
                                886819898

                              	
                                IF
      CIG

                              	
                                Rockies

                              	
                                01/01/09

                              	
                                06/30/09

                              	
                                110,000

                              	
                                330,000

                              	 
      	
                                $6.28

                              	
                                $2.39

                              	 
      	
                                1,285,034

                              	 
      	 
      
	
                                J
      Aron & Co

                              	
                                12/22/06

                              	
                                892369629

                              	
                                IF
      NGPL

                              	
                                MidCon

                              	
                                01/01/09

                              	
                                12/31/09

                              	
                                34,444

                              	
                                310,000

                              	 
      	
                                $6.85

                              	
                                $3.32

                              	 
      	
                                1,095,497

                              	 
      	 
      
	
                                J
      Aron & Co

                              	
                                03/03/08

                              	
                                904120535

                              	
                                IF
      HSC

                              	
                                ArkLaTex

                              	
                                04/01/08

                              	
                                12/31/09

                              	
                                53,333

                              	
                                480,000

                              	 
      	
                                $8.75

                              	
                                $3.99

                              	 
      	
                                2,282,908

                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                447,777

                              	
                                2,530,000

                              	
                                15.95%

                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                JPMorgan

                              	
                                05/19/06

                              	
                                2594706

                              	
                                IF
      PEPL

                              	
                                MidCon

                              	
                                01/01/09

                              	
                                06/30/09

                              	
                                180,000

                              	
                                540,000

                              	 
      	
                                $7.24

                              	
                                $2.68

                              	 
      	
                                2,464,935

                              	 
      	 
      
	
                                JPMorgan

                              	
                                06/20/06

                              	
                                2715473

                              	
                                IF
      CIG

                              	
                                Rockies

                              	
                                01/01/09

                              	
                                07/31/09

                              	
                                150,000

                              	
                                600,000

                              	 
      	
                                $7.48

                              	
                                $2.47

                              	 
      	
                                3,006,479

                              	 
      	 
      
	
                                JPMorgan

                              	
                                11/01/06

                              	
                                4430129

                              	
                                IF
      El Paso Permian

                              	
                                Permian

                              	
                                01/01/09

                              	
                                12/31/09

                              	
                                100,000

                              	
                                900,000

                              	 
      	
                                $6.86

                              	
                                $3.32

                              	 
      	
                                3,183,623

                              	 
      	 
      
	
                                JPMorgan

                              	
                                01/09/07

                              	
                                4962486

                              	
                                IF
      ANR OK

                              	
                                MidCon

                              	
                                01/01/09

                              	
                                12/31/09

                              	
                                34,444

                              	
                                310,000

                              	 
      	
                                $7.16

                              	
                                $3.34

                              	 
      	
                                1,183,538

                              	 
      	 
      
	
                                JPMorgan

                              	
                                07/30/07

                              	
                                9673554

                              	
                                IF
      HSC

                              	
                                Gulf
      Coast

                              	
                                01/01/09

                              	
                                12/31/09

                              	
                                160,000

                              	
                                1,440,000

                              	 
      	
                                $8.27

                              	
                                $3.97

                              	 
      	
                                6,196,195

                              	 
      	 
      
	JPMorgan 	
                                02/26/08

                              	
                                13531195

                              	
                                 IF
      ANR OK

                              	
                                 MidCon

                              	01/01/09 	06/30/09 	150,000 	450,000 	 	$7.60 	$2.79
       	 	2,164,591	 	 

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            Schedule
7.21- 1

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                        CounterParty

                                                      	
                                                        Contract

                                                        Date

                                                      	
                                                        Contract #

                                                      	
                                                        Price Index

                                                      	
                                                        Area

                                                      	
                                                        Contract

                                                        Start

                                                      	
                                                        Contract

                                                        End

                                                      	
                                                        Monthly

                                                        Volumes

                                                      	
                                                        Remaining

                                                        Yearly

                                                        Volumes

                                                      	
                                                        %
      of

                                                        Hedges

                                                      	
                                                        Fixed

                                                        Price

                                                      	
                                                        Estimated

                                                        Market

                                                        Price

                                                      	 
      	
                                                        MtM
      Value

                                                        at 3/30/09

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        774,444

                                                      	
                                                        4,240,000

                                                      	
                                                        26.73%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Key
      Bank

                                                      	
                                                        07/30/07

                                                      	
                                                        183268

                                                      	
                                                        IF
      HSC

                                                      	
                                                        Gulf
      Coast

                                                      	
                                                        01/01/08

                                                      	
                                                        07/31/09

                                                      	
                                                        72,500

                                                      	
                                                        290,000

                                                      	 
      	
                                                        $7.98

                                                      	
                                                        $3.66

                                                      	 
      	
                                                        1,252,909

                                                      	 
      	 
      
	
                                                        Key
      Bank

                                                      	
                                                        08/10/07

                                                      	
                                                        184037

                                                      	
                                                        IF
      PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/08

                                                      	
                                                        08/31/09

                                                      	
                                                        180,000

                                                      	
                                                        900,000

                                                      	 
      	
                                                        $7.33

                                                      	
                                                        $2.96

                                                      	 
      	
                                                        3,935,840

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        252,500

                                                      	
                                                        1,190,000

                                                      	
                                                        7.50%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Wachovia

                                                      	
                                                        03/07/07

                                                      	
                                                        N151732

                                                      	
                                                        IF
      HSC

                                                      	
                                                        Gulf

                                                      	
                                                        03/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        77,778

                                                      	
                                                        700,000

                                                      	 
      	
                                                        $7.47

                                                      	
                                                        $3.94

                                                      	 
      	
                                                        2,467,893

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        77,778

                                                      	
                                                        700,000

                                                      	
                                                        4.41%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        07/31/07

                                                      	
                                                        207849

                                                      	
                                                        IF
      HSC

                                                      	
                                                        Gulf
      Coast

                                                      	
                                                        08/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        100,000

                                                      	
                                                        500,000

                                                      	 
      	
                                                        $8.35

                                                      	
                                                        $4.22

                                                      	 
      	
                                                        2,065,789

                                                      	 
      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        02/20/08

                                                      	
                                                        314016

                                                      	
                                                        IF
      HSC

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        256,667

                                                      	
                                                        2,310,000

                                                      	 
      	
                                                        $8.32

                                                      	
                                                        $3.93

                                                      	 
      	
                                                        10,135,271

                                                      	 
      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        03/17/08

                                                      	
                                                        323740

                                                      	
                                                        NYMEX
      HH

                                                      	
                                                        Gulf
      Coast

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        110,000

                                                      	
                                                        880,000

                                                      	 
      	
                                                        $8.71

                                                      	
                                                        $3.81

                                                      	 
      	
                                                        4,308,809

                                                      	 
      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        03/25/09

                                                      	
                                                        500075

                                                      	
                                                        NYMEX
      HH

                                                      	 
      	
                                                        07/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        75,000

                                                      	
                                                        450,000

                                                      	 
      	
                                                        $5.28

                                                      	
                                                        $5.28

                                                      	 
      	
                                                        0

                                                      	
                                                        *

                                                      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        03/25/09

                                                      	
                                                        500061

                                                      	
                                                        IF
      CENTERPOINT

                                                      	 
      	
                                                        07/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        220,000

                                                      	
                                                        1,320,000

                                                      	 
      	
                                                        $4.15

                                                      	
                                                        $4.15

                                                      	 
      	
                                                        0

                                                      	
                                                        *

                                                      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        761,667

                                                      	
                                                        5,460,000

                                                      	
                                                        34.43%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Total
      GAS SWAPS - 2009

                                                      	 
      	 
      	 
      	 
      	 
      	
                                                        1,762,222

                                                      	
                                                        15,860,000

                                                      	
                                                        100.00%

                                                      	
                                                        $7.01

                                                      	
                                                        $4.01

                                                      	 
      	
                                                        61,091,956

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        BNP
      Paribas

                                                      	
                                                        05/05/08

                                                      	
                                                        180277

                                                      	
                                                        IF
      HSC

                                                      	
                                                        Arklatex

                                                      	
                                                        06/01/08

                                                      	
                                                        02/28/11

                                                      	
                                                        30,000

                                                      	
                                                        360,000

                                                      	 
      	
                                                        $9.61

                                                      	
                                                        $5.51

                                                      	 
      	
                                                        1,474,916

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        30,000

                                                      	
                                                        360,000

                                                      	
                                                        2.23%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Comerica

                                                      	
                                                        07/30/07

                                                      	
                                                        ESWP253

                                                      	
                                                        IF
      HSC

                                                      	
                                                        Gulf
      Coast

                                                      	
                                                        01/01/10

                                                      	
                                                        08/31/10

                                                      	
                                                        100,000

                                                      	
                                                        800,000

                                                      	 
      	
                                                        $8.16

                                                      	
                                                        $5.36

                                                      	 
      	
                                                        2,240,283

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        100,000

                                                      	
                                                        800,000

                                                      	
                                                        4.95%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        J
      Aron & Co

                                                      	
                                                        07/30/07

                                                      	
                                                        737564622

                                                      	
                                                        IF
      HSC

                                                      	
                                                        Gulf
      Coast

                                                      	
                                                        01/01/10

                                                      	
                                                        04/30/10

                                                      	
                                                        110,000

                                                      	
                                                        440,000

                                                      	 
      	
                                                        $8.67

                                                      	
                                                        $5.26

                                                      	 
      	
                                                        1,500,320

                                                      	 
      	 
      
	
                                                        J
      Aron & Co

                                                      	
                                                        12/22/06

                                                      	
                                                        892369629

                                                      	
                                                        IF
      NGPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/10

                                                      	
                                                        02/28/10

                                                      	
                                                        30,000

                                                      	
                                                        60,000

                                                      	 
      	
                                                        $7.60

                                                      	
                                                        $5.00

                                                      	 
      	
                                                        155,877

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        140,000

                                                      	
                                                        500,000

                                                      	
                                                        3.09%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        JPMorgan

                                                      	
                                                        11/01/06

                                                      	
                                                        4430129

                                                      	
                                                        IF
      El Paso Permian

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                        90,833

                                                      	
                                                        1,090,000

                                                      	 
      	
                                                        $6.79

                                                      	
                                                        $5.10

                                                      	 
      	
                                                        1,839,603

                                                      	 
      	 
      
	
                                                        JPMorgan

                                                      	
                                                        01/09/07

                                                      	
                                                        4962486

                                                      	
                                                        IF
      ANR OK

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/10

                                                      	
                                                        02/28/10

                                                      	
                                                        30,000

                                                      	
                                                        60,000

                                                      	 
      	
                                                        $7.98

                                                      	
                                                        $5.04

                                                      	 
      	
                                                        175,964

                                                      	 
      	 
      
	
                                                        JPMorgan

                                                      	
                                                        07/30/07

                                                      	
                                                        9673554

                                                      	
                                                        IF
      HSC

                                                      	
                                                        Gulf
      Coast

                                                      	
                                                        01/01/10

                                                      	
                                                        08/31/10

                                                      	
                                                        160,000

                                                      	
                                                        1,280,000

                                                      	 
      	
                                                        $8.23

                                                      	
                                                        $5.36

                                                      	 
      	
                                                        3,675,958

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        280,833

                                                      	
                                                        2,430,000

                                                      	
                                                        15.03%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          
            Schedule
7.21- 2

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      	
                                                              CounterParty

                                                            	
                                                              Contract

                                                              Date

                                                            	
                                                              Contract#

                                                            	
                                                              Price
      Index

                                                            	
                                                              Area

                                                            	
                                                              Contract

                                                              Start

                                                            	
                                                              Contract

                                                              End

                                                            	
                                                              Monthly

                                                              Volumes

                                                            	
                                                              Remaining

                                                              Yearly

                                                              Volumes

                                                            	
                                                              %
      of

                                                              Hedges

                                                            	
                                                              Fixed

                                                              Price

                                                            	
                                                              Estimated

                                                              Market

                                                              Price

                                                            	 
      	
                                                              MtM
      Value

                                                              at 3/30/09

                                                            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              Key
      Bank

                                                            	
                                                              03/25/09

                                                            	
                                                              231621

                                                            	
                                                              IF
      NGPL

                                                            	
                                                              MidCon

                                                            	
                                                              01/01/10

                                                            	
                                                              12/31/11

                                                            	
                                                              77,500

                                                            	
                                                              930,000

                                                            	 
      	
                                                              $5.37

                                                            	
                                                              $5.37

                                                            	 
      	
                                                              0

                                                            	
                                                              *

                                                            	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                              77,500

                                                            	
                                                              930,000

                                                            	
                                                              5.75%

                                                            	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              Wachovia

                                                            	
                                                              03/07/07

                                                            	
                                                              N151732

                                                            	
                                                              IF
      HSC

                                                            	
                                                              Gulf

                                                            	
                                                              01/01/10

                                                            	
                                                              02/28/10

                                                            	
                                                              70,000

                                                            	
                                                              140,000

                                                            	 
      	
                                                              $8.37

                                                            	
                                                              $5.25

                                                            	 
      	
                                                              435,783

                                                            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                              70,000

                                                            	
                                                              140,000

                                                            	
                                                              0.87%

                                                            	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              Wells
      Fargo

                                                            	
                                                              07/31/07

                                                            	
                                                              207849

                                                            	
                                                              IF
      HSC

                                                            	
                                                              Gulf
      Coast

                                                            	
                                                              01/01/10

                                                            	
                                                              08/31/10

                                                            	
                                                              100,000

                                                            	
                                                              800,000

                                                            	 
      	
                                                              $8.12

                                                            	
                                                              $5.36

                                                            	 
      	
                                                              2,208,719

                                                            	 
      	 
      
	
                                                              Wells
      Fargo

                                                            	
                                                              02/20/08

                                                            	
                                                              314016

                                                            	
                                                              IF
      HSC

                                                            	
                                                              MidCon

                                                            	
                                                              01/01/10

                                                            	
                                                              12/31/10

                                                            	
                                                              188,333

                                                            	
                                                              2,260,000

                                                            	 
      	
                                                              $8.42

                                                            	
                                                              $5.48

                                                            	 
      	
                                                              6,658,711

                                                            	 
      	 
      
	
                                                              Wells
      Fargo

                                                            	
                                                              03/17/08

                                                            	
                                                              323740

                                                            	
                                                              NYMEX
      HH

                                                            	
                                                              Gulf
      Coast

                                                            	
                                                              01/01/10

                                                            	
                                                              12/31/10

                                                            	
                                                              120,000

                                                            	
                                                              1,440,000

                                                            	 
      	
                                                              $8.66

                                                            	
                                                              $5.88

                                                            	 
      	
                                                              4,005,819

                                                            	 
      	 
      
	
                                                              Wells
      Fargo

                                                            	
                                                              03/25/09

                                                            	
                                                              500075

                                                            	
                                                              NYMEX
      HH

                                                            	 
      	
                                                              01/01/10

                                                            	
                                                              12/31/10

                                                            	
                                                              192,500

                                                            	
                                                              2,310,000

                                                            	 
      	
                                                              $6.18

                                                            	
                                                              $6.18

                                                            	 
      	
                                                              0

                                                            	
                                                              *

                                                            	 
      
	
                                                              Wells
      Fargo

                                                            	
                                                              03/25/09

                                                            	
                                                              500061

                                                            	
                                                              IF
      CENTERPOINT

                                                            	 
      	
                                                              01/01/10

                                                            	
                                                              12/31/10

                                                            	
                                                              350,000

                                                            	
                                                              4,200,000

                                                            	 
      	
                                                              $5.32

                                                            	
                                                              $5.32

                                                            	 
      	
                                                              0

                                                            	
                                                              *

                                                            	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                              950,833

                                                            	
                                                              11,010,000

                                                            	
                                                              68.09%

                                                            	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              Total
      GAS SWAPS - 2010

                                                            	 
      	 
      	 
      	 
      	 
      	
                                                              1,347,500

                                                            	
                                                              16,170,000

                                                            	
                                                              100.00%

                                                            	
                                                              $4.75

                                                            	
                                                              $3.24

                                                            	 
      	
                                                              24,371,953

                                                            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              BNP
      Paribas

                                                            	
                                                              05/05/08

                                                            	
                                                              180277

                                                            	
                                                              IF
      HSC

                                                            	
                                                              Arklatex

                                                            	
                                                              06/01/08

                                                            	
                                                              02/28/11

                                                            	
                                                              20,000

                                                            	
                                                              40,000

                                                            	 
      	
                                                              $9.98

                                                            	
                                                              $6.49

                                                            	 
      	
                                                              139,634

                                                            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                              20,000

                                                            	
                                                              40,000

                                                            	
                                                              0.70%

                                                            	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              JPMorgan

                                                            	
                                                              11/01/06

                                                            	
                                                              4430129

                                                            	
                                                              IF
      El Paso Permian

                                                            	
                                                              Permian

                                                            	
                                                              01/01/11

                                                            	
                                                              10/31/11

                                                            	
                                                              88,000

                                                            	
                                                              880,000

                                                            	 
      	
                                                              $6.34

                                                            	
                                                              $5.64

                                                            	 
      	
                                                              612,332

                                                            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                              88,000

                                                            	
                                                              880,000

                                                            	
                                                              15.41%

                                                            	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              Key
      Bank

                                                            	
                                                              03/25/09

                                                            	
                                                              231621

                                                            	
                                                              IF
      NGPL

                                                            	
                                                              MidCon

                                                            	
                                                              01/01/11

                                                            	
                                                              12/31/11

                                                            	
                                                              40,000

                                                            	
                                                              480,000

                                                            	 
      	
                                                              $5.98

                                                            	
                                                              $5.98

                                                            	 
      	
                                                              0

                                                            	
                                                              *

                                                            	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                              40,000

                                                            	
                                                              480,000

                                                            	
                                                              8.41%

                                                            	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              Wells
      Fargo

                                                            	
                                                              02/20/08

                                                            	
                                                              314016

                                                            	
                                                              IF
      HSC

                                                            	
                                                              MidCon

                                                            	
                                                              01/01/11

                                                            	
                                                              12/31/11

                                                            	
                                                              160,000

                                                            	
                                                              320,000

                                                            	 
      	
                                                              $8.89

                                                            	
                                                              $6.46

                                                            	 
      	
                                                              775,023

                                                            	 
      	 
      
	
                                                              Wells
      Fargo

                                                            	
                                                              03/25/09

                                                            	
                                                              500075

                                                            	
                                                              NYMEX
      HH

                                                            	 
      	
                                                              01/01/11

                                                            	
                                                              12/31/11

                                                            	
                                                              177,500

                                                            	
                                                              2,130,000

                                                            	 
      	
                                                              $6.72

                                                            	
                                                              $6.72

                                                            	 
      	
                                                              0

                                                            	
                                                              *

                                                            	 
      
	
                                                              Wells
      Fargo

                                                            	
                                                              03/25/09

                                                            	
                                                              500061

                                                            	
                                                              IF
      CENTERPOINT

                                                            	 
      	
                                                              01/01/11

                                                            	
                                                              12/31/11

                                                            	
                                                              155,000

                                                            	
                                                              1,860,000

                                                            	 
      	
                                                              $5.96

                                                            	
                                                              $5.96

                                                            	 
      	
                                                              0

                                                            	
                                                              *

                                                            	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                              492,500

                                                            	
                                                              4,310,000

                                                            	
                                                              75.48%

                                                            	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                              Total
      GAS SWAPS - 2011

                                                            	 
      	 
      	 
      	 
      	 
      	
                                                              475,833

                                                            	
                                                              5,710,000

                                                            	
                                                              100.00%

                                                            	
                                                              $2.05

                                                            	
                                                              $1.78

                                                            	 
      	
                                                              1,526,989

                                                            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    

      
        
          
            Schedule
7.21- 3

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                        CounterParty

                                                      	
                                                        Contract

                                                        Date

                                                      	
                                                        Contract
#

                                                      	
                                                        Price
    Index

                                                      	
                                                        Area

                                                      	
                                                        Contract

                                                        Start

                                                      	
                                                        Contract

                                                        End

                                                      	
                                                        Monthly

                                                        Volumes

                                                      	
                                                        Remaining

                                                        Yearly

                                                        Volumes

                                                      	
                                                        %
      of

                                                        Hedges

                                                      	
                                                        Fixed

                                                        Price

                                                      	
                                                        Estimated

                                                        Market

                                                        Price

                                                      	 
      	
                                                        MtM
      Value

                                                        at 3/30/09

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        GAS
      COLLARS

                                                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        BNP
      Paribas

                                                      	
                                                        10/12/05

                                                      	
                                                        93594
      (FLOOR)

                                                      	
                                                        PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        152,778

                                                      	
                                                        1,375,000

                                                      	 
      	
                                                        $5.30

                                                      	
                                                        $2.12

                                                      	 
      	
                                                        2,916,051

                                                      	 
      	 
      
	
                                                        BNP
      Paribas

                                                      	
                                                        10/12/05

                                                      	
                                                        93594
      (CAP)

                                                      	
                                                        PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        (152,778)

                                                      	
                                                        (1,375,000)

                                                      	 
      	
                                                        $9.20

                                                      	
                                                        ($0.01)

                                                      	 
      	
                                                        (12,416)

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        152,778

                                                      	
                                                        1,375,000

                                                      	
                                                        20.18%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Comerica

                                                      	
                                                        10/13/05

                                                      	
                                                        ECAP0220
      (FLOOR)

                                                      	
                                                        PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        155,000

                                                      	
                                                        1,395,000

                                                      	 
      	
                                                        $5.300

                                                      	
                                                        $2.12

                                                      	 
      	
                                                        2,961,322

                                                      	 
      	 
      
	
                                                        Comerica

                                                      	
                                                        10/13/05

                                                      	
                                                        ECAP0220
      (CAP)

                                                      	
                                                        PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        (155,000)

                                                      	
                                                        (1,395,000)

                                                      	 
      	
                                                        $9.390

                                                      	
                                                        ($0.01)

                                                      	 
      	
                                                        (11,175)

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        155,000

                                                      	
                                                        1,395,000

                                                      	
                                                        20.47%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        JP
      Morgan

                                                      	
                                                        10/10/05

                                                      	
                                                        1568646
      (FLOOR)

                                                      	
                                                        CIG

                                                      	
                                                        Rockies

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        200,000

                                                      	
                                                        1,800,000

                                                      	 
      	
                                                        $4.75

                                                      	
                                                        $1.99

                                                      	 
      	
                                                        3,577,286

                                                      	 
      	 
      
	
                                                        JP
      Morgan

                                                      	
                                                        10/10/05

                                                      	
                                                        1568646
      (CAP)

                                                      	
                                                        CIG

                                                      	
                                                        Rockies

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        (200,000)

                                                      	
                                                        (1,800,000)

                                                      	 
      	
                                                        $8.82

                                                      	
                                                        ($0.01)

                                                      	 
      	
                                                        (10,358)

                                                      	 
      	 
      
	
                                                        JP
      Morgan

                                                      	
                                                        10/12/05

                                                      	
                                                        1589334
      (FLOOR)

                                                      	
                                                        NYMEX
      HH

                                                      	
                                                        Gulf
      Coast

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        30,000

                                                      	
                                                        240,000

                                                      	 
      	
                                                        $6.00

                                                      	
                                                        $2.14

                                                      	 
      	
                                                        513,946

                                                      	 
      	 
      
	
                                                        JP
      Morgan

                                                      	
                                                        10/12/05

                                                      	
                                                        1589334
      (CAP)

                                                      	
                                                        NYMEX
      HH

                                                      	
                                                        Gulf
      Coast

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        (30,000)

                                                      	
                                                        (240,000)

                                                      	 
      	
                                                        $10.35

                                                      	
                                                        ($0.02)

                                                      	 
      	
                                                        (5,092)

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        230,000

                                                      	
                                                        2,040,000

                                                      	
                                                        29.93%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Wachovia

                                                      	
                                                        10/11/05

                                                      	
                                                        1258100
      (FLOOR)

                                                      	
                                                        PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        152,778

                                                      	
                                                        1,375,000

                                                      	 
      	
                                                        $5.300

                                                      	
                                                        $2.12

                                                      	 
      	
                                                        2,916,051

                                                      	 
      	 
      
	
                                                        Wachovia

                                                      	
                                                        10/11/05

                                                      	
                                                        1258100
      (CAP)

                                                      	
                                                        PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        (152,778)

                                                      	
                                                        (1,375,000)

                                                      	 
      	
                                                        $9.170

                                                      	
                                                        ($0.01)

                                                      	 
      	
                                                        (12,641)

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        152,778

                                                      	
                                                        1,375,000

                                                      	
                                                        20.18%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        10/12/05

                                                      	
                                                        COP2506
      (FLOOR)

                                                      	
                                                        HSC

                                                      	
                                                        Arklatex

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        70,000

                                                      	
                                                        630,000

                                                      	 
      	
                                                        $5.570

                                                      	
                                                        $1.78

                                                      	 
      	
                                                        1,122,403

                                                      	 
      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        10/12/05

                                                      	
                                                        COP2506
      (CAP)

                                                      	
                                                        HSC

                                                      	
                                                        Arklatex

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        (70,000)

                                                      	
                                                        (630,000)

                                                      	 
      	
                                                        $9.490

                                                      	
                                                        ($0.02)

                                                      	 
      	
                                                        (10,939)

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        70,000

                                                      	
                                                        630,000

                                                      	
                                                        9.24%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Total
      GAS COLLARS - 2009

                                                      	 
      	 
      	 
      	 
      	 
      	
                                                        757,222

                                                      	
                                                        6,815,000

                                                      	
                                                        100.00%

                                                      	 
      	 
      	 
      	
                                                        13,944,438

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Comerica

                                                      	
                                                        10/12/05

                                                      	
                                                        ECAP0222
      (FLOOR)

                                                      	
                                                        PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                        100,000

                                                      	
                                                        1,200,000

                                                      	 
      	
                                                        $5.31

                                                      	
                                                        $1.07

                                                      	 
      	
                                                        1,285,152

                                                      	 
      	 
      
	
                                                        Comerica

                                                      	
                                                        10/12/05

                                                      	
                                                        ECAP0222
      (CAP)

                                                      	
                                                        PEPL

                                                      	
                                                        MidCon

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                        (100,000)

                                                      	
                                                        (1,200,000)

                                                      	 
      	
                                                        $7.60

                                                      	
                                                        ($0.28)

                                                      	 
      	
                                                        (336,610)

                                                      	 
      	 
      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            Schedule
7.21- 4

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      CounterParty

                                                    	
                                                      Contract

                                                      Date

                                                    	
                                                      Contract #

                                                    	
                                                      Price Index

                                                    	
                                                      Area

                                                    	
                                                      Contract

                                                      Start

                                                    	
                                                      Contract

                                                      End

                                                    	
                                                      Monthly

                                                      Volumes

                                                    	
                                                      Remaining

                                                      Yearly

                                                      Volumes

                                                    	
                                                      %
      of

                                                      Hedges

                                                    	
                                                      Fixed

                                                      Price

                                                    	
                                                      Estimated

                                                      Market

                                                      Price

                                                    	 
      	
                                                      MtM
      Value

                                                      at 3/30/09

                                                    	 
      	 
      
	
                                                      Comerica

                                                    	
                                                      10/12/05

                                                    	
                                                      ECAP0221
      (FLOOR)

                                                    	
                                                      NYMEX
      HH

                                                    	
                                                      Gulf
      Coast

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      20,000

                                                    	
                                                      240,000

                                                    	 
      	
                                                      $6.00

                                                    	
                                                      $1.11

                                                    	 
      	
                                                      266,363

                                                    	 
      	 
      
	
                                                      Comerica

                                                    	
                                                      10/12/05

                                                    	
                                                      ECAP0221
      (CAP)

                                                    	
                                                      NYMEX
      HH

                                                    	
                                                      Gulf
      Coast

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      (20,000)

                                                    	
                                                      (240,000)

                                                    	 
      	
                                                      $8.38

                                                    	
                                                      ($0.39)

                                                    	 
      	
                                                      (93,571)

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      120,000

                                                    	
                                                      1,440,000

                                                    	
                                                      18.40%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      JP
      Morgan

                                                    	
                                                      10/10/05

                                                    	
                                                      1568647
      (FLOOR)

                                                    	
                                                      CIG

                                                    	
                                                      Rockies

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      170,000

                                                    	
                                                      2,040,000

                                                    	 
      	
                                                      $4.85

                                                    	
                                                      $0.98

                                                    	 
      	
                                                      2,002,445

                                                    	 
      	 
      
	
                                                      JP
      Morgan

                                                    	
                                                      10/10/05

                                                    	
                                                      1568647
      (CAP)

                                                    	
                                                      CIG

                                                    	
                                                      Rockies

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      (170,000)

                                                    	
                                                      (2,040,000)

                                                    	 
      	
                                                      $7.08

                                                    	
                                                      ($0.26)

                                                    	 
      	
                                                      (526,554)

                                                    	 
      	 
      
	
                                                      JP
      Morgan

                                                    	
                                                      10/13/05

                                                    	
                                                      1591124
      (FLOOR)

                                                    	
                                                      PEPL

                                                    	
                                                      MidCon

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      160,000

                                                    	
                                                      1,920,000

                                                    	 
      	
                                                      $5.31

                                                    	
                                                      $1.07

                                                    	 
      	
                                                      2,056,243

                                                    	 
      	 
      
	
                                                      JP
      Morgan

                                                    	
                                                      10/13/05

                                                    	
                                                      1591124
      (CAP)

                                                    	
                                                      PEPL

                                                    	
                                                      MidCon

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      (160,000)

                                                    	
                                                      (1,920,000)

                                                    	 
      	
                                                      $7.69

                                                    	
                                                      ($0.27)

                                                    	 
      	
                                                      (519,657)

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      330,000

                                                    	
                                                      3,960,000

                                                    	
                                                      50.61%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      Wachovia

                                                    	
                                                      10/12/05

                                                    	
                                                      1266587
      (FLOOR)

                                                    	
                                                      HSC

                                                    	
                                                      Arklatex

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      50,000

                                                    	
                                                      600,000

                                                    	 
      	
                                                      $5.570

                                                    	
                                                      $1.02

                                                    	 
      	
                                                      613,125

                                                    	 
      	 
      
	
                                                      Wachovia

                                                    	
                                                      10/12/05

                                                    	
                                                      1266587
      (CAP)

                                                    	
                                                      HSC

                                                    	
                                                      Arklatex

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      (50,000)

                                                    	
                                                      (600,000)

                                                    	 
      	
                                                      $7.880

                                                    	
                                                      ($0.36)

                                                    	 
      	
                                                      (216,546)

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      50,000

                                                    	
                                                      600,000

                                                    	
                                                      7.67%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      Wells
      Fargo

                                                    	
                                                      10/11/05

                                                    	
                                                      COP2507
      (FLOOR)

                                                    	
                                                      PEPL

                                                    	
                                                      MidCon

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      152,083

                                                    	
                                                      1,825,000

                                                    	 
      	
                                                      $5.300

                                                    	
                                                      $1.06

                                                    	 
      	
                                                      1,942,878

                                                    	 
      	 
      
	
                                                      Wells
      Fargo

                                                    	
                                                      10/11/05

                                                    	
                                                      COP2507
      (CAP)

                                                    	
                                                      PEPL

                                                    	
                                                      MidCon

                                                    	
                                                      01/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      (152,083)

                                                    	
                                                      (1,825,000)

                                                    	 
      	
                                                      $7.540

                                                    	
                                                      ($0.29)

                                                    	 
      	
                                                      (524,993)

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      152,083

                                                    	
                                                      1,825,000

                                                    	
                                                      23.32%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      Total
      GAS COLLARS - 2010

                                                    	 
      	 
      	 
      	 
      	 
      	
                                                      652,083

                                                    	
                                                      7,825,000

                                                    	
                                                      100.00%

                                                    	 
      	 
      	 
      	
                                                      5,948,275

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      BNP

                                                    	
                                                      10/10/05

                                                    	
                                                      93595
      (FLOOR)

                                                    	
                                                      CIG

                                                    	
                                                      Rockies

                                                    	
                                                      01/01/11

                                                    	
                                                      12/31/11

                                                    	
                                                      150,000

                                                    	
                                                      1,800,000

                                                    	 
      	
                                                      $5.00

                                                    	
                                                      $0.79

                                                    	 
      	
                                                      1,422,019

                                                    	 
      	 
      
	
                                                      BNP

                                                    	
                                                      10/10/05

                                                    	
                                                      93595
      (CAP)

                                                    	
                                                      CIG

                                                    	
                                                      Rockies

                                                    	
                                                      01/01/11

                                                    	
                                                      12/31/11

                                                    	
                                                      (150,000)

                                                    	
                                                      (1,800,000)

                                                    	 
      	
                                                      $6.32

                                                    	
                                                      ($0.74)

                                                    	 
      	
                                                      (1,323,435)

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      150,000

                                                    	
                                                      1,800,000

                                                    	
                                                      27.17%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      Comerica

                                                    	
                                                      10/12/05

                                                    	
                                                      ECAP0223
      (FLOOR)

                                                    	
                                                      NYMEX
      HH

                                                    	
                                                      Gulf
      Coast

                                                    	
                                                      01/01/11

                                                    	
                                                      12/31/11

                                                    	
                                                      10,000

                                                    	
                                                      120,000

                                                    	 
      	
                                                      $6.00

                                                    	
                                                      $0.91

                                                    	 
      	
                                                      109,040

                                                    	 
      	 
      
	
                                                      Comerica

                                                    	
                                                      10/12/05

                                                    	
                                                      ECAP0223
      (CAP)

                                                    	
                                                      NYMEX
      HH

                                                    	
                                                      Gulf
      Coast

                                                    	
                                                      01/01/11

                                                    	
                                                      12/31/11

                                                    	
                                                      (10,000)

                                                    	
                                                      (120,000)

                                                    	 
      	
                                                      $7.25

                                                    	
                                                      ($1.00)

                                                    	 
      	
                                                      (119,409)

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      10,000

                                                    	
                                                      120,000

                                                    	
                                                      1.81%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    

      
        
          
            Schedule
7.21- 5

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    CounterParty

                                                  	
                                                    Contract

                                                    Date

                                                  	
                                                    Contract #

                                                  	
                                                    Price Index

                                                  	
                                                    Area

                                                  	
                                                    Contract

                                                    Start

                                                  	
                                                    Contract

                                                    End

                                                  	
                                                    Monthly

                                                    Volumes

                                                  	
                                                    Remaining

                                                    Yearly

                                                    Volumes

                                                  	
                                                    %
      of

                                                    Hedges

                                                  	
                                                    Fixed

                                                    Price

                                                  	
                                                    Estimated

                                                    Market

                                                    Price

                                                  	 
      	
                                                    MtM
      Value

                                                    at 3/30/09

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    JP
      Morgan

                                                  	
                                                    10/13/05

                                                  	
                                                    1591128
      (FLOOR)

                                                  	
                                                    PEPL

                                                  	
                                                    MidCon

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    200,000

                                                  	
                                                    2,400,000

                                                  	 
      	
                                                    $5.31

                                                  	
                                                    $0.83

                                                  	 
      	
                                                    1,983,604

                                                  	 
      	 
      
	
                                                    JP
      Morgan

                                                  	
                                                    10/13/05

                                                  	
                                                    1591128
      (CAP)

                                                  	
                                                    PEPL

                                                  	
                                                    MidCon

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    (200,000)

                                                  	
                                                    (2,400,000)

                                                  	 
      	
                                                    $6.58

                                                  	
                                                    ($0.82)

                                                  	 
      	
                                                    (1,959,506)

                                                  	 
      	 
      
	
                                                    JP
      Morgan

                                                  	
                                                    10/12/05

                                                  	
                                                    1589331
      (FLOOR)

                                                  	
                                                    HSC

                                                  	
                                                    Arklatex

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    40,000

                                                  	
                                                    480,000

                                                  	 
      	
                                                    $5.57

                                                  	
                                                    $0.80

                                                  	 
      	
                                                    385,466

                                                  	 
      	 
      
	
                                                    JP
      Morgan

                                                  	
                                                    10/12/05

                                                  	
                                                    1589331
      (CAP)

                                                  	
                                                    HSC

                                                  	
                                                    Arklatex

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    (40,000)

                                                  	
                                                    (480,000)

                                                  	 
      	
                                                    $6.77

                                                  	
                                                    ($0.98)

                                                  	 
      	
                                                    (468,773)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    240,000

                                                  	
                                                    2,880,000

                                                  	
                                                    43.47%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Wachovia

                                                  	
                                                    10/11/05

                                                  	
                                                    1258101
      (FLOOR)

                                                  	
                                                    PEPL

                                                  	
                                                    MidCon

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    152,083

                                                  	
                                                    1,825,000

                                                  	 
      	
                                                    $5.30

                                                  	
                                                    $0.82

                                                  	 
      	
                                                    1,499,868

                                                  	 
      	 
      
	
                                                    Wachovia

                                                  	
                                                    10/112005

                                                  	
                                                    1258101
      (CAP)

                                                  	
                                                    PEPL

                                                  	
                                                    MidCon

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    (152,083)

                                                  	
                                                    (1,825,000)

                                                  	 
      	
                                                    $6.42

                                                  	
                                                    ($0.86)

                                                  	 
      	
                                                    (1,568,252)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    152,083

                                                  	
                                                    1,825,000

                                                  	
                                                    27.55%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Total
      GAS COLLARS - 2011

                                                  	 
      	 
      	 
      	 
      	 
      	
                                                    552,083

                                                  	
                                                    6,625,000

                                                  	
                                                    100.00%

                                                  	 
      	 
      	 
      	
                                                    (39,378)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Oil
      SWAPS

                                                  	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    BNP
      Paribas

                                                  	
                                                    10/12/06

                                                  	
                                                    118518

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    09/30/09

                                                  	
                                                    1,000

                                                  	
                                                    6,045

                                                  	 
      	
                                                    $66.38

                                                  	
                                                    $53.24

                                                  	 
      	
                                                    79,449

                                                  	 
      	 
      
	
                                                    BNP
      Paribas

                                                  	
                                                    10/26/06

                                                  	
                                                    119702

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    20,000

                                                  	
                                                    180,909

                                                  	 
      	
                                                    $67.35

                                                  	
                                                    $55.52

                                                  	 
      	
                                                    2,139,505

                                                  	 
      	 
      
	
                                                    BNP
      Paribas

                                                  	
                                                    12/21/06

                                                  	
                                                    124753

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    2,000

                                                  	
                                                    18,091

                                                  	 
      	
                                                    $68.06

                                                  	
                                                    $55.45

                                                  	 
      	
                                                    228,040

                                                  	 
      	 
      
	
                                                    BNP
      Paribas

                                                  	
                                                    10/27/06

                                                  	
                                                    119812

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                              10,000

                                                  	
                                                                  90,455

                                                  	 
      	
                                                    $67.56

                                                  	
                                                    $55.48

                                                  	 
      	
                                                    1,093,072

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    33,000

                                                  	
                                                    295,500

                                                  	
                                                    25.36%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    8/3/2006

                                                  	
                                                    ESWP237

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    09/30/09

                                                  	
                                                    2,000

                                                  	
                                                    12,091

                                                  	 
      	
                                                    $74.49

                                                  	
                                                    $51.94

                                                  	 
      	
                                                    272,658

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    11/6/2006

                                                  	
                                                    ESWP247

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    18,000

                                                  	
                                                    162,818

                                                  	 
      	
                                                    $67.25

                                                  	
                                                    $55.53

                                                  	 
      	
                                                    1,908,570

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    3/5/2008

                                                  	
                                                    ESWP273

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    04/01/08

                                                  	
                                                    12/31/09

                                                  	
                                                    17,667

                                                  	
                                                    159,727

                                                  	 
      	
                                                    $97.13

                                                  	
                                                    $53.13

                                                  	 
      	
                                                    7,028,286

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    37,667

                                                  	
                                                    334,636

                                                  	
                                                    28.72%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    J
      Aron & Co

                                                  	
                                                    09/25/06

                                                  	
                                                    889669056

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    09/30/09

                                                  	
                                                    2,000

                                                  	
                                                    12,091

                                                  	 
      	
                                                    $65.03

                                                  	
                                                    $53.42

                                                  	 
      	
                                                    140,400

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    2,000

                                                  	
                                                    12,091

                                                  	
                                                    1.04%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    JPMorgan

                                                  	
                                                    10/27/2006

                                                  	
                                                    4389629

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                                 8,000

                                                  	
                                                                  72,364

                                                  	 
      	
                                                    $67.76

                                                  	
                                                    $55.46

                                                  	 
      	
                                                    890,140

                                                  	 
      	 
      
	
                                                    JPMorgan

                                                  	
                                                    10/27/06

                                                  	
                                                    14481873

                                                  	
                                                    NYMEX

                                                  	
                                                    Permian

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    23,000

                                                  	
                                                    208,045

                                                  	 
      	
                                                    $67.52

                                                  	
                                                    $55.49

                                                  	 
      	
                                                    2,502,366

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    8,000

                                                  	
                                                    280,409

                                                  	
                                                    24.07%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            Schedule
7.21- 6

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                        CounterParty

                                                      	
                                                        Contract

                                                        Date

                                                      	
                                                        Contract
      #

                                                      	
                                                        Price Index

                                                      	
                                                        Area

                                                      	
                                                        Contract

                                                        Start

                                                      	
                                                        Contract

                                                        End

                                                      	
                                                        Monthly

                                                        Volumes

                                                      	
                                                        Remaining

                                                        Yearly

                                                        Volumes

                                                      	
                                                        %
      of

                                                        Hedges

                                                      	
                                                        Fixed

                                                        Price

                                                      	
                                                        Estimated

                                                        Market

                                                        Price

                                                      	 
      	
                                                        MtM
      Value

                                                        at 3/30/09

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Key
      Bank

                                                      	
                                                        10/27/2006

                                                      	
                                                        168462

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                                  10,000

                                                      	
                                                                      90,455

                                                      	 
      	
                                                        $67.47

                                                      	
                                                        $55.49

                                                      	 
      	
                                                        1,083,707

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        10,000

                                                      	
                                                        90,455

                                                      	
                                                        7.76%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Wachovia

                                                      	
                                                        10/27/2006

                                                      	
                                                        1618348

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                                  13,000

                                                      	
                                                                    117,773

                                                      	 
      	
                                                        $67.47

                                                      	
                                                        $54.52

                                                      	 
      	
                                                        1,524,642

                                                      	 
      	 
      
	
                                                        Wachovia

                                                      	
                                                        6/21/2007

                                                      	
                                                        N220968

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/09

                                                      	
                                                        07/31/09

                                                      	
                                                                     4,000

                                                      	
                                                                      16,182

                                                      	 
      	
                                                        $72.04

                                                      	
                                                        $49.42

                                                      	 
      	
                                                        365,958

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        17,000

                                                      	
                                                        133,955

                                                      	
                                                        11.50%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        10/27/06

                                                      	
                                                        137532

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/09

                                                      	
                                                        12/31/09

                                                      	
                                                        2,000

                                                      	
                                                        18,091

                                                      	 
      	
                                                        $67.64

                                                      	
                                                        $55.47

                                                      	 
      	
                                                        220,086

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        2,000

                                                      	
                                                        18,091

                                                      	
                                                        1.55%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Total
      OIL SWAPS - 2009

                                                      	 
      	 
      	 
      	 
      	 
      	
                                                        97,095

                                                      	
                                                        1,165,137

                                                      	
                                                        100.00%

                                                      	
                                                        $71.64

                                                      	
                                                        $54.92

                                                      	 
      	
                                                        19,476,879

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        BNP
      Paribas

                                                      	
                                                        10/26/06

                                                      	
                                                        119702

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                        20,000

                                                      	
                                                        240,000

                                                      	 
      	
                                                        $66.57

                                                      	
                                                        $64.69

                                                      	 
      	
                                                        450,943

                                                      	 
      	 
      
	
                                                        BNP
      Paribas

                                                      	
                                                        12/21/06

                                                      	
                                                        124753

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                        2,000

                                                      	
                                                        24,000

                                                      	 
      	
                                                        $67.54

                                                      	
                                                        $64.71

                                                      	 
      	
                                                        68,009

                                                      	 
      	 
      
	
                                                        BNP
      Paribas

                                                      	
                                                        10/27/06

                                                      	
                                                        119812

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                                  10,000

                                                      	
                                                                    120,000

                                                      	 
      	
                                                        $66.85

                                                      	
                                                        $64.69

                                                      	 
      	
                                                        258,888

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        32,000

                                                      	
                                                        384,000

                                                      	
                                                        30.99%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Comerica

                                                      	
                                                        11/6/2006

                                                      	
                                                        ESWP247

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                        18,000

                                                      	
                                                        216,000

                                                      	 
      	
                                                        $66.24

                                                      	
                                                        $64.68

                                                      	 
      	
                                                        336,727

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        18,000

                                                      	
                                                        216,000

                                                      	
                                                        17.43%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        JPMorgan

                                                      	
                                                        10/27/2006

                                                      	
                                                        4389629

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                                     5,000

                                                      	
                                                                      60,000

                                                      	 
      	
                                                        $66.57

                                                      	
                                                        $64.69

                                                      	 
      	
                                                        112,909

                                                      	 
      	 
      
	
                                                        JPMorgan

                                                      	
                                                        10/27/06

                                                      	
                                                        14481873

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                        23,000

                                                      	
                                                        276,000

                                                      	 
      	
                                                        $66.42

                                                      	
                                                        $64.69

                                                      	 
      	
                                                        478,620

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        28,000

                                                      	
                                                        336,000

                                                      	
                                                        27.12%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Key
      Bank

                                                      	
                                                        10/27/2006

                                                      	
                                                        168462

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                                  10,000

                                                      	
                                                                    120,000

                                                      	 
      	
                                                        $66.35

                                                      	
                                                        $64.68

                                                      	 
      	
                                                        199,938

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        10,000

                                                      	
                                                        120,000

                                                      	
                                                        9.69%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Wachovia

                                                      	
                                                        10/27/2006

                                                      	
                                                        1618348

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                                  14,250

                                                      	
                                                                    171,000

                                                      	 
      	
                                                        $66.33

                                                      	
                                                        $64.64

                                                      	 
      	
                                                        288,303

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        14,250

                                                      	
                                                        171,000

                                                      	
                                                        13.80%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                        Wells
      Fargo

                                                      	
                                                        10/27/06

                                                      	
                                                        137532

                                                      	
                                                        NYMEX

                                                      	
                                                        Permian

                                                      	
                                                        01/01/10

                                                      	
                                                        12/31/10

                                                      	
                                                        1,000

                                                      	
                                                        12,000

                                                      	 
      	
                                                        $66.56

                                                      	
                                                        $64.69

                                                      	 
      	
                                                        22,453

                                                      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                        1,000

                                                      	
                                                        12,000

                                                      	
                                                        0.97%

                                                      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            Schedule
7.21- 7

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	
                                                                CounterParty

                                                              	
                                                                Contract

                                                                Date

                                                              	
                                                                Contract#

                                                              	
                                                                Price Index

                                                              	
                                                                Area

                                                              	
                                                                Contract

                                                                Start

                                                              	
                                                                Contract

                                                                End

                                                              	
                                                                Monthly

                                                                Volumes

                                                              	
                                                                Remaining

                                                                Yearly

                                                                Volumes

                                                              	
                                                                %
      of

                                                                Hedges

                                                              	
                                                                Fixed

                                                                Price

                                                              	
                                                                Estimated

                                                                Market

                                                                Price

                                                              	 
      	
                                                                MtM
      Value

                                                                at 3/30/09

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                Total
      OIL SWAPS - 2010

                                                              	 
      	 
      	 
      	 
      	 
      	
                                                                137,667

                                                              	
                                                                1,239,000

                                                              	
                                                                100.00%

                                                              	
                                                                $66.47

                                                              	
                                                                $64.68

                                                              	 
      	
                                                                2,216,790

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                BNP
      Paribas

                                                              	
                                                                10/26/06

                                                              	
                                                                119702

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                11/30/11

                                                              	
                                                                20,000

                                                              	
                                                                220,000

                                                              	 
      	
                                                                $65.47

                                                              	
                                                                $69.13

                                                              	 
      	
                                                                (804,611)

                                                              	 
      	 
      
	
                                                                BNP
      Paribas

                                                              	
                                                                12/21/06

                                                              	
                                                                124753

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                01/31/11

                                                              	
                                                                2,000

                                                              	
                                                                2,000

                                                              	 
      	
                                                                $67.21

                                                              	
                                                                $67.68

                                                              	 
      	
                                                                (931)

                                                              	 
      	 
      
	
                                                                BNP
      Paribas

                                                              	
                                                                10/27/06

                                                              	
                                                                119812

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                11/30/11

                                                              	
                                                                10,000

                                                              	
                                                                            110,000

                                                              	 
      	
                                                                $65.98

                                                              	
                                                                $69.14

                                                              	 
      	
                                                                (347,513)

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                32,000

                                                              	
                                                                332,000

                                                              	
                                                                32.17%

                                                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                Comerica

                                                              	
                                                                11/6/2006

                                                              	
                                                                ESWP247

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                11/30/11

                                                              	
                                                                18,000

                                                              	
                                                                198,000

                                                              	 
      	
                                                                $65.02

                                                              	
                                                                $69.11

                                                              	 
      	
                                                                (809,540)

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                18,000

                                                              	
                                                                198,000

                                                              	
                                                                19.19%

                                                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                JPMorgan

                                                              	
                                                                10/27/2006

                                                              	
                                                                4389629

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                11/30/11

                                                              	
                                                                4,000

                                                              	
                                                                              44,000

                                                              	 
      	
                                                                $65.33

                                                              	
                                                                $69.12

                                                              	 
      	
                                                                (166,650)

                                                              	 
      	 
      
	
                                                                JPMorgan

                                                              	
                                                                10/27/06

                                                              	
                                                                14481873

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                11/30/11

                                                              	
                                                                23,000

                                                              	
                                                                253,000

                                                              	 
      	
                                                                $65.28

                                                              	
                                                                $69.11

                                                              	 
      	
                                                                (969,874)

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                27,000

                                                              	
                                                                297,000

                                                              	
                                                                28.78%

                                                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                Key
      Bank

                                                              	
                                                                10/27/2006

                                                              	
                                                                168462

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                11/30/11

                                                              	
                                                                10,000

                                                              	
                                                                            110,000

                                                              	 
      	
                                                                $65.20

                                                              	
                                                                $69.11

                                                              	 
      	
                                                                (430,148)

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                10,000

                                                              	
                                                                110,000

                                                              	
                                                                10.66%

                                                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                Wachovia

                                                              	
                                                                10/27/2006

                                                              	
                                                                1618348

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                10/30/11

                                                              	
                                                                             8,400

                                                              	
                                                                              84,000

                                                              	 
      	
                                                                $65.42

                                                              	
                                                                $68.50

                                                              	 
      	
                                                                (259,091)

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                8,400

                                                              	
                                                                84,000

                                                              	
                                                                8.14%

                                                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                Wells
      Fargo

                                                              	
                                                                10/27/06

                                                              	
                                                                137532

                                                              	
                                                                NYMEX

                                                              	
                                                                Permian

                                                              	
                                                                01/01/11

                                                              	
                                                                11/30/11

                                                              	
                                                                1,000

                                                              	
                                                                11,000

                                                              	 
      	
                                                                $65.33

                                                              	
                                                                $69.12

                                                              	 
      	
                                                                (41,730)

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                1,000

                                                              	
                                                                11,000

                                                              	
                                                                1.07%

                                                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                Total
      OIL SWAPS - 2011

                                                              	 
      	 
      	 
      	 
      	 
      	
                                                                86,000

                                                              	
                                                                1,032,000

                                                              	
                                                                100.00%

                                                              	
                                                                $65.35

                                                              	
                                                                $69.07

                                                              	 
      	
                                                                (3,830,088)

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                Oil
      COLLARS

                                                              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                BNP
      Paribas

                                                              	
                                                                10/12/05

                                                              	
                                                                93578
      (FLOOR)

                                                              	
                                                                NYMEX

                                                              	
                                                                Williston

                                                              	
                                                                01/01/09

                                                              	
                                                                12/31/09

                                                              	
                                                                15,300

                                                              	
                                                                138,205

                                                              	 
      	
                                                                $50.00

                                                              	
                                                                $3.59

                                                              	 
      	
                                                                496,334

                                                              	 
      	 
      
	
                                                                BNP
      Paribas

                                                              	
                                                                10/12/05

                                                              	
                                                                93578
      (CAP)

                                                              	
                                                                NYMEX

                                                              	
                                                                Williston

                                                              	
                                                                01/01/09

                                                              	
                                                                12/31/09

                                                              	
                                                                (15,300)

                                                              	
                                                                (138,205)

                                                              	 
      	
                                                                $69.15

                                                              	
                                                                ($3.03)

                                                              	 
      	
                                                                (418,926)

                                                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                15,300

                                                              	
                                                                138,205

                                                              	
                                                                11.96%

                                                              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                Comerica

                                                              	
                                                                10/11/05

                                                              	
                                                                ECAP0208
      (FLOOR)

                                                              	
                                                                NYMEX

                                                              	
                                                                Williston

                                                              	
                                                                01/01/09

                                                              	
                                                                12/31/09

                                                              	
                                                                15,300

                                                              	
                                                                138,205

                                                              	 
      	
                                                                $50.00

                                                              	
                                                                $3.59

                                                              	 
      	
                                                                496,334

                                                              	 
      	 
      

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
       

      
        
          
            Schedule
7.21- 8

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

    

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    CounterParty

                                                  	
                                                    Contract

                                                    Date

                                                  	
                                                    Contract#

                                                  	
                                                    Price Index

                                                  	
                                                    Area

                                                  	
                                                    Contract

                                                    Start

                                                  	
                                                    Contract

                                                    End

                                                  	
                                                    Monthly

                                                    Volumes

                                                  	
                                                    Remaining

                                                    Yearly

                                                    Volumes

                                                  	
                                                    %
      of

                                                    Hedges

                                                  	
                                                    Fixed

                                                    Price

                                                  	
                                                    Estimated

                                                    Market

                                                    Price

                                                  	 
      	
                                                    MtM
      Value

                                                    at 3/30/09

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/11/05

                                                  	
                                                    ECAP0208
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    (15,300)

                                                  	
                                                    (138,205)

                                                  	 
      	
                                                    $67.65

                                                  	
                                                    ($3.37)

                                                  	 
      	
                                                    (465,974)

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/13/05

                                                  	
                                                    ECAP0209
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    5,500

                                                  	
                                                    49,750

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $3.59

                                                  	 
      	
                                                    178,367

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/13/05

                                                  	
                                                    ECAP0209
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    (5,500)

                                                  	
                                                    (49,750)

                                                  	 
      	
                                                    $67.350

                                                  	
                                                    ($3.44)

                                                  	 
      	
                                                    (171,064)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    20,800

                                                  	
                                                    187,955

                                                  	
                                                    16.27%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    JP
      Morgan

                                                  	
                                                    10/10/05

                                                  	
                                                    1567755/56
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    45,900

                                                  	
                                                    414,614

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $3.59

                                                  	 
      	
                                                    1,489,005

                                                  	 
      	 
      
	
                                                    JP
      Morgan

                                                  	
                                                    10/10/05

                                                  	
                                                    1567755/56
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    (45,900)

                                                  	
                                                    (414,614)

                                                  	 
      	
                                                    $65.75

                                                  	
                                                    ($3.85)

                                                  	 
      	
                                                    (1,596,342)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    45,900

                                                  	
                                                    414,614

                                                  	
                                                    35.89%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    RBC

                                                  	
                                                    10/12/05

                                                  	
                                                    26597
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    15,300

                                                  	
                                                    138,205

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $3.59

                                                  	 
      	
                                                    496,334

                                                  	 
      	 
      
	
                                                    RBC

                                                  	
                                                    10/12/05

                                                  	
                                                    26597
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    (15,300)

                                                  	
                                                    (138,205)

                                                  	 
      	
                                                    $69.10

                                                  	
                                                    ($3.04)

                                                  	 
      	
                                                    (420,394)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    15,300

                                                  	
                                                    138,205

                                                  	
                                                    11.96%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Wachovia

                                                  	
                                                    10/11/05

                                                  	
                                                    1258089
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    15,300

                                                  	
                                                    138,205

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $3.59

                                                  	 
      	
                                                    496,334

                                                  	 
      	 
      
	
                                                    Wachovia

                                                  	
                                                    10/11/05

                                                  	
                                                    1258089
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    (15,300)

                                                  	
                                                    (138,205)

                                                  	 
      	
                                                    $68.00

                                                  	
                                                    ($3.29)

                                                  	 
      	
                                                    (454,551)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    15,300

                                                  	
                                                    138,205

                                                  	
                                                    11.96%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Wells
      Fargo

                                                  	
                                                    10/11/05

                                                  	
                                                    COP2497
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    15,300

                                                  	
                                                    138,205

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $3.59

                                                  	 
      	
                                                    496,334

                                                  	 
      	 
      
	
                                                    Wells
      Fargo

                                                  	
                                                    10/11/05

                                                  	
                                                    COP2497
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/09

                                                  	
                                                    12/31/09

                                                  	
                                                    (15,300)

                                                  	
                                                    (138,205)

                                                  	 
      	
                                                    $67.35

                                                  	
                                                    ($3.44)

                                                  	 
      	
                                                    (475,959)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    15,300

                                                  	
                                                    138,205

                                                  	
                                                    11.96%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Total
      OIL Collars - 2009

                                                  	 
      	 
      	 
      	 
      	 
      	
                                                    96,282

                                                  	
                                                    1,155,389

                                                  	
                                                    100.00%

                                                  	 
      	 
      	 
      	
                                                    145,832

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    BNP
      Paribas

                                                  	
                                                    10/12/05

                                                  	
                                                    93579
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    15,208

                                                  	
                                                    182,500

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.46

                                                  	 
      	
                                                    814,106

                                                  	 
      	 
      
	
                                                    BNP
      Paribas

                                                  	
                                                    10/12/05

                                                  	
                                                    93579
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    (15,208)

                                                  	
                                                    (182,500)

                                                  	 
      	
                                                    $67.00

                                                  	
                                                    ($9.40)

                                                  	 
      	
                                                    (1,714,801)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    15,208

                                                  	
                                                    182,500

                                                  	
                                                    13.35%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/11/05

                                                  	
                                                    ECAP0210
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    15,208

                                                  	
                                                    182,500

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.46

                                                  	 
      	
                                                    814,106

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/11/05

                                                  	
                                                    ECAP0210
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    (15,208)

                                                  	
                                                    (182,500)

                                                  	 
      	
                                                    $65.50

                                                  	
                                                    ($10.02)

                                                  	 
      	
                                                    (1,829,427)

                                                  	 
      	 
      

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
       

      
        
          
            Schedule
7.21- 9

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    CounterParty

                                                  	
                                                    Contract

                                                    Date

                                                  	
                                                    Contract#

                                                  	
                                                    Price Index

                                                  	
                                                    Area

                                                  	
                                                    Contract

                                                    Start

                                                  	
                                                    Contract

                                                    End

                                                  	
                                                    Monthly

                                                    Volumes

                                                  	
                                                    Remaining

                                                    Yearly

                                                    Volumes

                                                  	
                                                    %
      of

                                                    Hedges

                                                  	
                                                    Fixed

                                                    Price

                                                  	
                                                    Estimated

                                                    Market

                                                    Price

                                                  	 
      	
                                                    MtM
      Value

                                                    at 3/30/09

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/13/05

                                                  	
                                                    ECAP0211
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    7,500

                                                  	
                                                    90,000

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.46

                                                  	 
      	
                                                    401,446

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/13/05

                                                  	
                                                    ECAP0211
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    (7,500)

                                                  	
                                                    (90,000)

                                                  	 
      	
                                                    $65.15

                                                  	
                                                    ($10.17)

                                                  	 
      	
                                                    (914,937)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    22,708

                                                  	
                                                    272,500

                                                  	
                                                    19.93%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    JP
      Morgan

                                                  	
                                                    10/10/05

                                                  	
                                                    1568315/16
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    30,417

                                                  	
                                                    365,000

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.46

                                                  	 
      	
                                                    1,628,213

                                                  	 
      	 
      
	
                                                    JP
      Morgan

                                                  	
                                                    10/10/05

                                                  	
                                                    1568315/16
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    (30,417)

                                                  	
                                                    (365,000)

                                                  	 
      	
                                                    $62.95

                                                  	
                                                    ($11.19)

                                                  	 
      	
                                                    (4,084,654)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    30,417

                                                  	
                                                    365,000

                                                  	
                                                    26.69%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    RBC

                                                  	
                                                    10/11/05

                                                  	
                                                    26595
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    15,208

                                                  	
                                                    182,500

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.46

                                                  	 
      	
                                                    814,106

                                                  	 
      	 
      
	
                                                    RBC

                                                  	
                                                    10/11/05

                                                  	
                                                    26595
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    (15,208)

                                                  	
                                                    (182,500)

                                                  	 
      	
                                                    $65.70

                                                  	
                                                    ($9.94)

                                                  	 
      	
                                                    (1,813,678)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    15,208

                                                  	
                                                    182,500

                                                  	
                                                    13.35%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Wachovia

                                                  	
                                                    10/10/05

                                                  	
                                                    1258090
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    15,208

                                                  	
                                                    182,500

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.46

                                                  	 
      	
                                                    814,106

                                                  	 
      	 
      
	
                                                    Wachovia

                                                  	
                                                    10/10/05

                                                  	
                                                    1258090
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    (15,208)

                                                  	
                                                    (182,500)

                                                  	 
      	
                                                    $64.00

                                                  	
                                                    ($10.70)

                                                  	 
      	
                                                    (1,951,937)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    15,208

                                                  	
                                                    182,500

                                                  	
                                                    13.35%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Wells
      Fargo

                                                  	
                                                    10/11/05

                                                  	
                                                    COP2498
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    15,208

                                                  	
                                                    182,500

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.46

                                                  	 
      	
                                                    814,106

                                                  	 
      	 
      
	
                                                    Wells
      Fargo

                                                  	
                                                    10/11/05

                                                  	
                                                    COP2498
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/10

                                                  	
                                                    12/31/10

                                                  	
                                                    (15,208)

                                                  	
                                                    (182,500)

                                                  	 
      	
                                                    $66.15

                                                  	
                                                    ($9.75)

                                                  	 
      	
                                                    (1,778,775)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    15,208

                                                  	
                                                    182,500

                                                  	
                                                    13.35%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Total
      OIL Collars - 2010

                                                  	 
      	 
      	 
      	 
      	 
      	
                                                    113,958

                                                  	
                                                    1,367,500

                                                  	
                                                    100.00%

                                                  	 
      	 
      	 
      	
                                                    (7,988,020)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    BNP
      Paribas

                                                  	
                                                    10/13/05

                                                  	
                                                    93580
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    11,750

                                                  	
                                                    141,000

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.92

                                                  	 
      	
                                                    693,039

                                                  	 
      	 
      
	
                                                    BNP
      Paribas

                                                  	
                                                    10/13/05

                                                  	
                                                    93580
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    (11,750)

                                                  	
                                                    (141,000)

                                                  	 
      	
                                                    $64.25

                                                  	
                                                    ($15.15)

                                                  	 
      	
                                                    (2,135,800)

                                                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                    11,750

                                                  	
                                                    141,000

                                                  	
                                                    11.41%

                                                  	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/11/05

                                                  	
                                                    ECAP0212
      (FLOOR)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    15,208

                                                  	
                                                    182,500

                                                  	 
      	
                                                    $50.00

                                                  	
                                                    $4.92

                                                  	 
      	
                                                    897,224

                                                  	 
      	 
      
	
                                                    Comerica

                                                  	
                                                    10/11/05

                                                  	
                                                    ECAP0212
      (CAP)

                                                  	
                                                    NYMEX

                                                  	
                                                    Williston

                                                  	
                                                    01/01/11

                                                  	
                                                    12/31/11

                                                  	
                                                    (15,208)

                                                  	
                                                    (182,500)

                                                  	 
      	
                                                    $64.60

                                                  	
                                                    ($14.97)

                                                  	 
      	
                                                    (2,732,773)

                                                  	 
      	 
      

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
       

      
        
          
            Schedule
7.21- 10

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	
                                                            CounterParty

                                                          	
                                                            Contract

                                                            Date

                                                          	
                                                            Contract#

                                                          	
                                                            Price Index

                                                          	
                                                            Area

                                                          	
                                                            Contract

                                                            Start

                                                          	
                                                            Contract

                                                            End

                                                          	
                                                            Monthly

                                                            Volumes

                                                          	
                                                            Remaining

                                                            Yearly

                                                            Volumes

                                                          	
                                                            %
      of

                                                            Hedges

                                                          	
                                                            Fixed

                                                            Price

                                                          	
                                                            Estimated

                                                            Market

                                                            Price

                                                          	 
      	
                                                            MtM
      Value

                                                            at 3/30/09

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                            15,208

                                                          	
                                                            182,500

                                                          	
                                                            14.77%

                                                          	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            JP
      Morgan

                                                          	
                                                            10/10/05

                                                          	
                                                            1568321/29
      (FLOOR)

                                                          	
                                                            NYMEX

                                                          	
                                                            Williston

                                                          	
                                                            01/01/11

                                                          	
                                                            12/31/11

                                                          	
                                                            30,417

                                                          	
                                                            365,000

                                                          	 
      	
                                                            $50.00

                                                          	
                                                            $4.92

                                                          	 
      	
                                                            1,794,450

                                                          	 
      	 
      
	
                                                            JP
      Morgan

                                                          	
                                                            10/10/05

                                                          	
                                                            1568321/29
      (CAP)

                                                          	
                                                            NYMEX

                                                          	
                                                            Williston

                                                          	
                                                            01/01/11

                                                          	
                                                            12/31/11

                                                          	
                                                            (30,417)

                                                          	
                                                            (365,000)

                                                          	 
      	
                                                            $62.05

                                                          	
                                                            ($16.33)

                                                          	 
      	
                                                            (5,960,475)

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                            30,417

                                                          	
                                                            365,000

                                                          	
                                                            29.53%

                                                          	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            RBC

                                                          	
                                                            10/11/05

                                                          	
                                                            26594
      (FLOOR)

                                                          	
                                                            NYMEX

                                                          	
                                                            Williston

                                                          	
                                                            01/01/11

                                                          	
                                                            12/31/11

                                                          	
                                                            15,208

                                                          	
                                                            182,500

                                                          	 
      	
                                                            $50.00

                                                          	
                                                            $4.92

                                                          	 
      	
                                                            897,224

                                                          	 
      	 
      
	
                                                            RBC

                                                          	
                                                            10/11/05

                                                          	
                                                            26594
      (CAP)

                                                          	
                                                            NYMEX

                                                          	
                                                            Williston

                                                          	
                                                            01/01/11

                                                          	
                                                            12/31/11

                                                          	
                                                            (15,208)

                                                          	
                                                            (182,500)

                                                          	 
      	
                                                            $64.75

                                                          	
                                                            ($14.90)

                                                          	 
      	
                                                            (2,718,644)

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                            15,208

                                                          	
                                                            182,500

                                                          	
                                                            14.77%

                                                          	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            Wachovia

                                                          	
                                                            10/10/05

                                                          	
                                                            1258091
      (FLOOR)

                                                          	
                                                            NYMEX

                                                          	
                                                            Williston

                                                          	
                                                            01/01/11

                                                          	
                                                            12/31/11

                                                          	
                                                            15,208

                                                          	
                                                            182,500

                                                          	 
      	
                                                            $50.00

                                                          	
                                                            $4.92

                                                          	 
      	
                                                            897,224

                                                          	 
      	 
      
	
                                                            Wachovia

                                                          	
                                                            10/10/05

                                                          	
                                                            1258091
      (CAP)

                                                          	
                                                            NYMEX

                                                          	
                                                            Williston

                                                          	
                                                            01/01/11

                                                          	
                                                            12/31/11

                                                          	
                                                            (15,208)

                                                          	
                                                            (182,500)

                                                          	 
      	
                                                            $63.10

                                                          	
                                                            ($15.76)

                                                          	 
      	
                                                            (2,876,698)

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                            15,208

                                                          	
                                                            182,500

                                                          	
                                                            14.77%

                                                          	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            Wells
      Fargo

                                                          	
                                                            10/11/05

                                                          	
                                                            COP2499
      (FLOOR)

                                                          	
                                                            NYMEX

                                                          	
                                                            Williston

                                                          	
                                                            01/01/11

                                                          	
                                                            12/31/11

                                                          	
                                                            15,208

                                                          	
                                                            182,500

                                                          	 
      	
                                                            $50.00

                                                          	
                                                            $4.92

                                                          	 
      	
                                                            897,224

                                                          	 
      	 
      
	
                                                            Wells
      Fargo

                                                          	
                                                            10/11/05

                                                          	
                                                            COP2499
      (CAP)

                                                          	
                                                            NYMEX

                                                          	
                                                            Williston

                                                          	
                                                            01/01/11

                                                          	
                                                            12/31/11

                                                          	
                                                            (15,208)

                                                          	
                                                            (182,500)

                                                          	 
      	
                                                            $65.25

                                                          	
                                                            ($14.64)

                                                          	 
      	
                                                            (2,671,791)

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                            15,208

                                                          	
                                                            182,500

                                                          	
                                                            14.77%

                                                          	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            Total
      OIL Collars - 2011

                                                          	 
      	 
      	 
      	 
      	 
      	
                                                            103,000

                                                          	
                                                            1,236,000

                                                          	
                                                            100.00%

                                                          	 
      	 
      	 
      	
                                                            (13,019,796)

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            Natural
      Gas Liquid Swaps

                                                          	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            J
      Aron & Co

                                                          	
                                                            11/08/06

                                                          	
                                                            891043169

                                                          	
                                                            OPIS

                                                          	
                                                            Permian

                                                          	
                                                            01/01/09

                                                          	
                                                            10/31/09

                                                          	
                                                            1,166,262

                                                          	
                                                            8,201,455

                                                          	 
      	
                                                            $0.86

                                                          	
                                                            $0.66

                                                          	 
      	
                                                            1,612,103

                                                          	 
      	 
      
	
                                                            J
      Aron & Co

                                                          	
                                                            09/17/07

                                                          	
                                                            900695221

                                                          	
                                                            OPIS

                                                          	
                                                            Gulf
      Coast

                                                          	
                                                            01/01/09

                                                          	
                                                            08/31/09

                                                          	
                                                            1,795,706

                                                          	
                                                            9,036,457

                                                          	 
      	
                                                            $0.97

                                                          	
                                                            $0.52

                                                          	 
      	
                                                            4,052,435

                                                          	 
      	 
      
	
                                                            J
      Aron & Co

                                                          	
                                                            02/21/08

                                                          	
                                                            903761699

                                                          	
                                                            OPIS

                                                          	
                                                            ArkLaTex

                                                          	
                                                            03/01/09

                                                          	
                                                            12/31/09

                                                          	
                                                            38,647

                                                          	
                                                            349,071

                                                          	 
      	
                                                            $1.13

                                                          	
                                                            $0.51

                                                          	 
      	
                                                            217,947

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                            1,758,698

                                                          	
                                                            17,586,983

                                                          	
                                                            75.58%

                                                          	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            JP
      Morgan

                                                          	
                                                            05/05/08

                                                          	
                                                            15095291

                                                          	
                                                            OPIS

                                                          	
                                                            ArkLaTex

                                                          	
                                                            03/01/09

                                                          	
                                                            02/28/10

                                                          	
                                                            629,074

                                                          	
                                                            5,681,957

                                                          	 
      	
                                                            $1.25

                                                          	
                                                            $0.50

                                                          	 
      	
                                                            4,252,004

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                            629,074

                                                          	
                                                            5,681,957

                                                          	
                                                            24.42%

                                                          	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                            NGL
      Swaps - 2009

                                                          	 
      	 
      	 
      	 
      	 
      	 
      	
                                                            1,939,078

                                                          	
                                                            23,268,940

                                                          	
                                                            100.00%

                                                          	 
      	
                                                            $0.57

                                                          	 
      	
                                                            10,134,489

                                                          	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
       

      
        
          
            Schedule
7.21- 11

            Houston
3921802v.12

          

           

        

        
           

          
          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      CounterParty

                                                    	
                                                      Contract

                                                      Date

                                                    	
                                                      Contract#

                                                    	
                                                      Price Index

                                                    	
                                                      Area

                                                    	
                                                      Contract

                                                      Start

                                                    	
                                                      Contract

                                                      End

                                                    	
                                                      Monthly

                                                      Volumes

                                                    	
                                                      Remaining

                                                      Yearly

                                                      Volumes

                                                    	
                                                      %
      of

                                                      Hedges

                                                    	
                                                      Fixed

                                                      Price

                                                    	
                                                      Estimated

                                                      Market

                                                      Price

                                                    	 
      	
                                                      MtM
      Value

                                                      at 3/30/09

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      J
      Aron & Co

                                                    	
                                                      02/21/08

                                                    	
                                                      903761394

                                                    	
                                                      OPIS

                                                    	
                                                      ArkLaTex

                                                    	
                                                      03/01/10

                                                    	
                                                      12/31/10

                                                    	
                                                      27,400

                                                    	
                                                      274,000

                                                    	 
      	
                                                      $1.08

                                                    	
                                                      $0.64

                                                    	 
      	
                                                      120,270

                                                    	 
      	 
      
	
                                                      J
      Aron & Co

                                                    	
                                                      02/21/08

                                                    	
                                                      903761699

                                                    	
                                                      OPIS

                                                    	
                                                      ArkLaTex

                                                    	
                                                      01/01/10

                                                    	
                                                      02/28/10

                                                    	
                                                      31,443

                                                    	
                                                      62,885

                                                    	 
      	
                                                      $1.13

                                                    	
                                                      $0.61

                                                    	 
      	
                                                      32,830

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      33,689

                                                    	
                                                      336,885

                                                    	
                                                      5.74%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      JP
      Morgan

                                                    	
                                                      05/05/08

                                                    	
                                                      15095291

                                                    	
                                                      OPIS

                                                    	
                                                      ArkLaTex

                                                    	
                                                      03/01/09

                                                    	
                                                      02/28/10

                                                    	
                                                      512,015

                                                    	
                                                      1,024,029

                                                    	 
      	
                                                      $1.25

                                                    	
                                                      $0.61

                                                    	 
      	
                                                      651,092

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      512,015

                                                    	
                                                      1,024,029

                                                    	
                                                      17.45%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      JP
      Morgan

                                                    	
                                                      05/05/08

                                                    	
                                                      15095392

                                                    	
                                                      OPIS

                                                    	
                                                      ArkLaTex

                                                    	
                                                      03/01/10

                                                    	
                                                      02/28/11

                                                    	
                                                      450,748

                                                    	
                                                      4,507,479

                                                    	 
      	
                                                      $1.17

                                                    	
                                                      $0.64

                                                    	 
      	
                                                      2,410,365

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      450,748

                                                    	
                                                      4,507,479

                                                    	
                                                      76.81%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      NGL
      Swaps - 2010

                                                    	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      489,033

                                                    	
                                                      5,868,393

                                                    	
                                                      100.00%

                                                    	 
      	
                                                      $0.63

                                                    	 
      	
                                                      3,214,557

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      J
      Aron & Co

                                                    	
                                                      02/21/08

                                                    	
                                                      903761394

                                                    	
                                                      OPIS

                                                    	
                                                      ArkLaTex

                                                    	
                                                      01/01/11

                                                    	
                                                      02/28/11

                                                    	
                                                      23,703

                                                    	
                                                      47,405

                                                    	 
      	
                                                      $1.080

                                                    	
                                                      $0.69

                                                    	 
      	
                                                      18,639

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      23,703

                                                    	
                                                      47,405

                                                    	
                                                      5.75%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      JP
      Morgan

                                                    	
                                                      05/05/08

                                                    	
                                                      15095392

                                                    	
                                                      OPIS

                                                    	
                                                      ArkLaTex

                                                    	
                                                      03/01/10

                                                    	
                                                      02/28/11

                                                    	
                                                      388,791

                                                    	
                                                      777,582

                                                    	 
      	
                                                      $1.17

                                                    	
                                                      $0.68

                                                    	 
      	
                                                      379,561

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      388,791

                                                    	
                                                      777,582

                                                    	
                                                      94.25%

                                                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                      NGL
      Swaps - 2011

                                                    	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      68,749

                                                    	
                                                      824,987

                                                    	
                                                      100.00%

                                                    	 
      	
                                                      $0.68

                                                    	 
      	
                                                      398,200

                                                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                      Total
      Net Asset/(Liability) for Gas, Oil, & Natural Gas Liquid
      Hedges

                                                    	 
      	
                                                      $117,593,076.00

                                                    	 
      	 
      
	
                                                      *

                                                    	
                                                      Trade
      recently entered into. MTM value estimated to be $0.00 as of
      03/25/09.

                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                                      Forward
      curve was similar on 03/30/2009.

                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    
      
        
          Schedule
7.21- 12

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    SCHEDULE
7.24

    MATERIAL
AGREEMENTS

     

    
      	
              1.  

            	
              Senior
      Convertible Notes indenture, in the aggregate principal amount of
      $287,500,000, due on or about April 1,
2027.

            

    

     

    
      	
              2.  

            	
              And
      the agreements set forth on the exhibit list to the Company’s Form 10-K
      for the year ended December 31, 2008, as material contracts included as
      exhibits 10.1 through 10.38.

            

    

     

    

     

    
      
        
          Schedule 7.24 - 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    SCHEDULE
9.05(a)

    INVESTMENTS

     

    None.

     

    
      
        
          Schedule 9.05(a) - 1

          Houston
3921802v.12

        

         

      

      
         

        
        

      

      
         

      

    

    SCHEDULE
9.05(h)

    EXISTING
INVESTMENTS (NON-OIL AND GAS)

     

    
      	
              1.  

            	
              50%
      general partnership interest in Hilltop Investments holding approximately
      41 acres of undeveloped land in Jefferson County at C-470 and
      Quincy.

            

    

     

    
      	
              2.  

            	
              Residual
      net profits interest in land located in Grand Junction, Colorado if
      reclaimed by gravel operator and sold as lots in Mid-America Business
      Park, a rail served industrial
park.

            

    

     

    
      
        
          Schedule 9.05(h) - 1

          Houston
3921802v.12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]