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Exhibit 10.2    
    

 
 

HILAND PARTNERS
  LONG-TERM INCENTIVE PLAN    

        SECTION
1.    Purpose of the Plan.  

        The Hiland Partners Long-Term Incentive Plan (the "Plan") has been adopted by Hiland Partners GP, L.L.C., a Delaware limited liability company (the
"Company"), the general partner of Hiland Partners, L.P., a Delaware limited partnership (the "Partnership"), and is intended to promote the interests of the Partnership and the Company by providing
to Employees and Directors of the Company and its Affiliates incentive compensation awards for superior performance that are based on Units. The Plan is also contemplated to enhance the ability of the
Company, the Partnership and their Affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Partnership and to encourage them to devote
their best efforts to advancing the business of the Partnership and their respective employers. 

        SECTION
2.    Definitions.  

        As used in the Plan, the following terms shall have the meanings set forth below: 

        "Affiliate"
means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with,
the Person in question. As used herein, the term "control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise. 

        "Award"
means an Option, Restricted Unit, Phantom Unit, or Substitute Award granted under the Plan, and shall include any tandem DERs granted with respect to a Phantom Unit or Option. 

        "Award
Agreement" means the written agreement by which an Award shall be evidenced. 

        "Board"
means the Board of Directors of the Company. 

        "Change
of Control" means, and shall be deemed to have occurred upon the occurrence of one or more of the following events: (i) any sale, lease, exchange or other transfer or
disposition (in one transaction or a series of related transactions) of all or substantially all of the assets of the Partnership or the Company to any Person and/or its Affiliates, other than to
Harold Hamm, the Harold Hamm DST Trust, the Harold Hamm HJ Trust, any other trust primarily for the benefit of Harold Hamm and/or his family (together, the "Hamm Parties"), the Partnership, the
Company and/or any of their Affiliates; (ii) the consolidation, reorganization, merger or other transaction pursuant to which pursuant to which (a) less than 35% of the outstanding
Class A Units are beneficially owned (as beneficial ownership is defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) by the Hamm
Parties, or (b) any "person" or "group", within the meaning of Section 13(d) or 14(d)(2) of the Exchange Act, becomes the ultimate beneficial owner (as beneficial ownership is defined in
Rule 13d-3 under the Exchange Act) of more of the outstanding Class A Units than are beneficially owned by the Hamm Parties;; or (iii) the Company (or an Affiliate
thereof) ceasing to be the general partner of the Partnership. 

        "Committee"
means the Compensation Committee of the Board or other Committee of the Board serving as a compensation committee or, if there is no Compensation Committee or other such
Committee, the Board.. 

        "DER"
means a contingent right, granted in tandem with a specific Option or Phantom Unit, to receive an amount in cash equal to the cash distributions made by the Partnership with
respect to a Unit during the period such Award is outstanding. 

        "Director"
means a member of the Board who is not an Employee. 

        "Employee"
means any employee of the Company or an Affiliate. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

        "Fair
Market Value" means the closing sales price of a Unit on the last trading date preceding the applicable date (or if there is no trading in the Units on such date, on the next
preceding date on which there was trading) as reported in The Wall Street Journal (or other reporting service approved by the Committee). In the event
Units are not publicly traded at the time a determination of fair market value is required to be made hereunder, the determination of fair market value shall be made in good faith by the Committee. 

        "Option"
means an option to purchase Units granted under the Plan. 

 

        "Participant"
means any Employee or Director granted an Award under the Plan. 

        "Partnership
Agreement" means the Amended and Restated Agreement of Limited Partnership of Hiland Partners, L.P., as it may be amended or amended and restated from time to time. 

        "Person"
means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity. 

        "Phantom
Unit" means a phantom (notional) Unit granted under the Plan which upon vesting entitles the Participant to receive a Unit or an amount of cash equal to the Fair Market Value of
a Unit, as determined by the Committee in its discretion. 

        "Restricted
Period" means the period established by the Committee with respect to an Award during which the Award remains subject to forfeiture and is either not exercisable by or
payable to the Participant, as the case may be. 

        "Restricted
Unit" means a Unit granted under the Plan that is subject to a Restricted Period. 

        "Rule 16b-3"
means Rule 16b-3 promulgated by the SEC under the Exchange Act, or any successor rule or regulation thereto as in effect from time to
time. 

        "SEC"
means the Securities and Exchange Commission, or any successor thereto. 

        "Substitute
Award" means an award granted pursuant to Section 6(d)(viii) of the Plan. 

        "UDR"
means a distribution made by the Partnership with respect to a Restricted Unit. 

        "Unit"
means a Common Unit of the Partnership. 

        SECTION
3.    Administration.  

        The Plan shall be administered by the Committee. A majority of the Committee shall constitute a quorum, and the acts of the members of the Committee who are
present at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in writing, shall be the acts of the Committee. Subject to the following and
applicable law, the Committee, in its sole discretion, may delegate any or all of its powers and duties under the Plan, including the power to grant Awards under the Plan, to the Chief Executive
Officer of the Company, subject to such limitations on such delegated powers and duties as the Committee may impose, if any. Upon any such delegation all references in the Plan to the "Committee",
other than in Section 7, shall be deemed to include the Chief Executive Officer; provided, however, that such delegation shall not limit the Chief Executive Officer's right to receive Awards
under the Plan. Notwithstanding the foregoing, the Chief Executive Officer may not grant Awards to, or take any action with respect to any Award previously granted to, a person who is an officer
subject to Rule 16b-3 or a member of the Board. Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the
Committee by the Plan, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant;
(iii) determine the number of Units to be covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what
circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and administer the Plan and any instrument or agreement relating to an Award made under the Plan;
(vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (viii) make any
other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final,
conclusive, and binding upon all Persons, including the Company, the Partnership, any Affiliate, any Participant, and any beneficiary of any Award. 

        SECTION
4.    Units.  

        (a)    Limits on Units Deliverable.    Subject to adjustment as provided in
Section 4(c), the number of Units that may be delivered with respect to Awards under the Plan is 680,000 of which no more than 225,000 may be delivered with respect to vested Restricted Unit
and Phantom Unit awards. If any Award is forfeited, cancelled, exercised or otherwise terminated without the actual delivery of Units pursuant to such Award, including any Award under which Units are
held back to cover the exercise price or tax withholding, such Units shall be 

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available
to satisfy future Awards under the Plan. There shall not be any limitation on the number of Awards that may be granted and paid in cash. 

        (b)    Sources of Units Deliverable Under Awards.    Any Units delivered pursuant to an Award shall consist, in whole
or in part, of Units acquired in the open market, from any Affiliate, the Partnership or any other Person, or any combination of the foregoing, as determined by the Committee in its discretion. 

        (c)    Adjustments.    In the event of any distribution (whether in the form of cash, Units, other securities, or
other property), recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other
securities of the Partnership, issuance of warrants or other rights to purchase Units or other securities of the Partnership, or other similar transaction or event, the Committee shall, in such manner
as it may deem equitable, adjust the number and type of Units (or other securities or property) with respect to which Awards may be granted. 

        SECTION
5.    Eligibility.  

        Any Employee, Consultant or Director shall be eligible to be designated a Participant and receive an Award under the Plan. 

        SECTION
6.    Awards.  

        (a)    Options.    The Committee shall have the authority to determine the Employees and
Directors to whom Options shall be granted, the number of Units to be covered by each Option, whether DERs are granted with respect to such Option, the purchase price therefor and the conditions and
limitations applicable to the exercise of the Option, including the following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent
with the provisions of the Plan. 

        (i)    Exercise Price.    The purchase price per Unit purchasable under an Option shall be determined by the Committee
at the time the Option is granted but, except with respect to a Substitute Award, may not be less than its Fair Market Value as of the date of grant. 

        (ii)    Time and Method of Exercise.    The Committee shall determine the Restricted Period, i.e., the time or times
at which an Option may be exercised in whole or in part, which may include, without limitation, accelerated vesting upon the achievement of specified performance goals, and the method or methods by
which payment of the exercise price with respect thereto may be made or deemed to have been made, which may include, without limitation, cash, check acceptable to the Company, a "cashless-broker"
exercise through procedures approved by the Company, other securities or other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise
price. 

        (iii)    Forfeitures.    Except as otherwise provided in the terms of the Option grant, upon termination of a
Participant's employment with or consulting services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all
Options shall be forfeited by the Participant. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant's Options. 

        (iv)    Option DERs.    To the extent provided by the Committee, in its discretion, a grant of Options may include a
tandem DER grant, which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject
to the same vesting restrictions as the tandem Options Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion. 

        (b)    Restricted Units and Phantom Units.    The Committee shall have the authority to determine the Employees and
Directors to whom Restricted Units or Phantom Units shall be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant, the Restricted Period, the conditions
under which the Restricted Units or Phantom Units may become vested or forfeited and such other terms and conditions as the Committee may establish with respect to such Awards, including whether DERs
are granted with respect to the Phantom Units. 

        (i)    DERs.    To the extent provided by the Committee, in its discretion, a grant of Phantom Units may include a
tandem DER grant, which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject
to the same vesting restrictions as the tandem Phantom Unit Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion. 

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        (ii)    UDRs.    To the extent provided by the Committee, in its discretion, a grant of Restricted Units may provide
that distributions made by the Partnership with respect to the Restricted Units shall be subject to the same forfeiture and other restrictions as the Restricted Unit and, if restricted, such
distributions shall be held, without interest, until the Restricted Unit vests or is forfeited with the UDR being paid or forfeited at the same time, as the case may be. Absent such a restriction on
the UDRs in the grant agreement, UDRs shall be paid to the holder of the Restricted Unit without restriction. 

        (iii)    Forfeitures.    Except as otherwise provided in the terms of the Restricted Units or Phantom Units grant,
upon termination of a Participant's employment with the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all
outstanding Restricted Units and Phantom Units awarded the Participant shall be automatically forfeited on such termination. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant's Restricted Units and/or Phantom Units. 

        (iv)    Lapse of Restrictions.    

        (A)    Phantom Units.    Upon or as soon as reasonably practical following the vesting of each Phantom Unit, subject
to the provisions of Section 8(b), the Participant shall be entitled to receive from the Company one Unit or cash equal to the Fair Market Value of a Unit, as determined by the Committee in its
discretion. 

        (B)    Restricted Units.    Upon or as soon as reasonably practical following the vesting of each Restricted Unit,
subject to the provisions of Section 8(b), the Participant shall be entitled to have the restrictions removed from his or her Unit certificate so that the Participant then holds an unrestricted
Unit. 

        (v)    Cancellation of Outstanding Options.    Notwithstanding anything in the Plan or an Award Agreement to the
contrary, the Committee may, in its sole discretion, cancel all or some of the Options then outstanding by paying
the holder an amount of cash equal to the excess of the Fair Market Value of a Unit over the exercise price of such Option. 

        (c)    General.    

        (i)    Awards May Be Granted Separately or Together.    Awards may, in the discretion of the Committee, be granted
either alone or in addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate. Awards granted
in addition to or in tandem with other Awards or awards granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of
such other Awards or awards. 

        (ii)    Limits on Transfer of Awards.    

        (A)  Except
as provided in (C) below, each Option shall be exercisable only by the Participant during the Participant's lifetime, or by the person to whom the
Participant's rights shall pass by will or the laws of descent and distribution. 

        (B)  Except
as provided in (C) below, no Award and no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company, the Partnership or any
Affiliate. 

        (C)  To
the extent specifically provided by the Committee with respect to an Option, an Option may be transferred by a Participant without consideration to immediate family
members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish. 

        (iii)    Term of Awards.    The term of each Award shall be for such period as may be determined by the Committee. 

        (iv)    Unit Certificates.    All certificates for Units or other securities of the Partnership delivered under the
Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations,
and other requirements of the SEC, any stock exchange upon which such Units or other securities are then listed, and 

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any
applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

        (v)    Consideration for Grants.    Awards may be granted for such consideration, including services, as the Committee
determines. 

        (vi)    Delivery of Units or other Securities and Payment by Participant of Consideration.    Notwithstanding anything
in the Plan or any grant agreement to the contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of
the Committee, the Company is not reasonably able to obtain Units to deliver pursuant to such Award without violating the rules or regulations of any applicable law or securities exchange. No Units or
other securities shall be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award grant agreement (including, without
limitation, any exercise price or tax withholding) is received by the Company. 

        (vii)    Change of Control.    Unless specifically provided otherwise in the Award agreement, upon a Change of Control
all outstanding Awards shall automatically vest and be payable or become exercisable in full, as the case may be. 

        (viii)    Substitute Awards.    Awards may be granted under the Plan in substitution of similar awards held by
individuals who become Employees or Directors as a result of a merger, consolidation or acquisition by the Company or an Affiliate of another entity or the assets of another entity. Such substitute
awards that are Options may have exercise prices less than the Fair Market Value of a Unit on the date of such substitution. 

        SECTION
7.    Amendment and Termination. 

        Except
to the extent prohibited by applicable law: 

        (a)    Amendments to the Plan.    Except as required by the rules of the principal securities exchange on which the
Units are traded and subject to Section 7(b) below, the Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner, including increasing the number of
Units available for Awards under the Plan, without the consent of any partner, Participant, other holder or beneficiary of an Award, or other Person. 

        (b)    Amendments to Awards.    Subject to Section 7(a), the Committee may waive any conditions or rights
under, amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant to Section 7(c), in any Award shall materially reduce the benefit to Participant
without the consent of such Participant. 

        (c)    Actions Upon the Occurrence of Certain Events.    In connection with any event described in Section 4(c)
of the Plan, or a Change of Control, any changes in applicable laws, regulations, or accounting principles affecting the financial statements of the Partnership, the Committee, in its sole discretion
and on such terms and conditions as it deems appropriate, may take any one or more of the following actions in order to prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan or an outstanding Award: 

        (A)  provide
for either (i) the termination of any Award in exchange for an amount of cash, if any, equal to the amount that would have been attained upon the exercise
of such Award or realization of the Participant's rights (and, for the avoidance of doubt, if as of the date of the occurrence of such transaction or event the Committee determines in good faith that
no amount would have been attained upon the exercise of such Award or realization
of the Participant's rights, then such Award may be terminated by the Company without payment) or (ii) the replacement of such Award with other rights or property selected by the Committee in
its sole discretion; 

        (B)  provide
that such Award be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or be substituted for by similar options, rights or awards
covering the equity of the successor or survivor, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of equity interests and prices; 

        (C)  make
adjustments in the number and type of Units (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Awards and/or
in the terms and conditions of (including the exercise price), and the vesting/performance criteria included in, outstanding Awards; 

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        (D)  provide
that such Award shall be exercisable or payable, notwithstanding anything to the contrary in the Plan or the applicable Award Agreement; and 

        (E)  provide
that the Award cannot be exercised or become payable after such event, i.e., shall terminate upon such event. 

        SECTION
8.    General Provisions.  

        (a)    No Rights to Award.    No Person shall have any claim to be granted any Award under the
Plan, and there is no obligation for uniformity of treatment of Participants. The terms and conditions of Awards need not be the same with respect to each recipient. 

        (b)    Tax Withholding.    The Company or any Affiliate is authorized to withhold from any Award, from any payment due
or transfer made under any Award or from any compensation or other amount owing to a Participant the amount (in cash, Units, other securities, Units that would otherwise be issued pursuant to such
Award or other property) of any applicable taxes payable in respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the
Plan and to take such other action as may be necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes. 

        (c)    No Right to Employment or Services.    The grant of an Award shall not be construed as giving a Participant the
right to be retained in the employ of the Company or any Affiliate or to remain on the Board, as applicable. Further, the Company or an Affiliate may at any time dismiss a Participant from employment
free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award agreement or other agreement. 

        (d)    Governing Law.    The validity, construction, and effect of the Plan and any rules and regulations relating to
the Plan shall be determined in accordance with the laws of the State of Delaware without regard to its conflict of laws principles. 

        (e)    Severability.    If any provision of the Plan or any award is or becomes or is deemed to be invalid, illegal,
or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any award under any law deemed applicable by the Compensation Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Compensation Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or award and the remainder of the Plan and any such Award shall remain in full force and effect. 

        (f)    Other Laws.    The Committee may refuse to issue or transfer any Units or other consideration under an Award
if, in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal securities
exchange on which the Units are then traded, or entitle the Partnership or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a
Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 

        (g)    No Trust or Fund Created.    Neither the Plan nor any award shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or any participating Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to
receive payments from the Company or any participating Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or any
participating Affiliate. 

        (h)    No Fractional Units.    No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and
the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto
shall be canceled, terminated, or otherwise eliminated. 

        (i)    Headings.    Headings are given to the Sections and subsections of the Plan solely as a convenience to
facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 

        (j)    Facility Payment.    Any amounts payable hereunder to any person under legal disability or who, in the judgment
of the Committee, is unable to properly manage his financial affairs, may be paid to the legal 

6

 

representative
of such person, or may be applied for the benefit of such person in any manner which the Committee may select, and the Company shall be relieved of any further liability for payment of
such amounts. 

        (k)    Participation by Affiliates.    In making Awards to Employees employed by an entity other than by the Company,
the Committee shall be acting on behalf of the Affiliate, and to the extent the Partnership has an obligation to
reimburse the Company for compensation paid to Employees for services rendered for the benefit of the Partnership, such payments or reimbursement payments may be made by the Partnership directly to
the Affiliate, and, if made to the Company, shall be received by the Company as agent for the Affiliate. 

        (l)    Gender and Number.    Words in the masculine gender shall include the feminine gender, the plural shall include
the singular and the singular shall include the plural. 

        (m)    Compliance with Section 409A.    Nothing in the Plan or any Award Agreement shall operate or be
construed to cause the Plan or an Award to fail to comply with the requirements of Section 409A of the Internal Revenue Code. The applicable provisions of Section 409A and the
regulations thereunder are hereby incorporated by reference and shall control over any Plan or Award Agreement provision in conflict therewith. 

        SECTION
9.    Term of the Plan.  

        The Plan shall be effective on the date of its approval by the Board and shall continue until the earliest of (i) the date terminated by the Board,
(ii) all available Units under the Plan have been paid to Participants, or (iii) the 10th anniversary of the date the Plan is approved by the unitholders of the Company. However, unless
otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award granted prior to such termination, and the authority of the Board or the Committee to amend, alter, adjust,
suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date. 

7

QuickLinks

Exhibit 10.2

HILAND PARTNERS LONG-TERM INCENTIVE PLANQuickLinks
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Exhibit 10.3    
    

COMPRESSION SERVICES AGREEMENT  

BETWEEN

HILAND PARTNERS, LP  

"Hiland" 

AND

CONTINENTAL RESOURCES INC.  

"Continental" 

Effective
as of: [                        ], 2005 

 
 
 

TABLE OF CONTENTS    
    

	 
	 	Page
	 	 

	ARTICLE I DEFINITIONS	 	1	 	 
	ARTICLE II INDEPENDENCE OF THE PARTIES	 	2	 	 
	ARTICLE III REPRESENTATIONS OF THE PARTIES	 	2	 	 
	ARTICLE IV RESPONSIBILITIES OF THE PARTIES	 	3	 	 
	ARTICLE V OPERATING FEE	 	4	 	 
	ARTICLE VI BILLING AND PAYMENT	 	5	 	 
	ARTICLE VII FORCE MAJEURE	 	5	 	 
	ARTICLE VIII INDEMNITY AND INSURANCE	 	5	 	 
	ARTICLE IX TERM	 	6	 	 
	ARTICLE X DEFAULT	 	6	 	 
	ARTICLE XI ASSIGNMENT	 	7	 	 
	ARTICLE XII ADDRESS	 	7	 	 
	ARTICLE XIII NON-WAIVER	 	7	 	 
	ARTICLE XIV MERGER	 	7	 	 
	ARTICLE XV GOVERNING LAW, VENUE	 	7	 	 
	ARTICLE XVI MUTUAL DRAFTSMANSHIP	 	8	 	 
	ARTICLE XVII MISCELLANEOUS	 	8	 	 
	EXHIBIT A	 	10	 	 
	EXHIBIT B	 	11	 	 
	EXHIBIT C	 	12	 	 
	

Exhibits	
 	

 	
 	

 
	"A"—Delivery Points	 	 	 	 
	"B"—Operating Fee	 	 	 	 
	"C"—Insurance	 	 	 	 

i

  

 
 

COMPRESSION SERVICES AGREEMENT    
    

        THIS COMPRESSION SERVICES AGREEMENT ("Agreement"), effective as
of                        , 2005 (the
"Effective Date"), by and between Hiland Partners, LP ("Hiland") and Continental Resources, Inc.
("Continental"). Hiland and Continental are sometimes referred to herein individually as a "Party" or
collectively as the "Parties". 

 
 

RECITALS:    
    

        A. Continental desires to have Hiland provide compression services with respect to air and water for use in its secondary recovery operations located in Bowman
and Slope Counties in North Dakota and in Fallon County, Montana (the Services"). 

        B.
Hiland agrees to provide compression services with respect to air and water and Continental agrees to accept such compression services with respect to air and water subject to the
terms and conditions set forth herein. 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein contained, Hiland and Continental agree as follows: 

 
 

ARTICLE I
  DEFINITIONS    
    

        "Adjusted Guarantee Percentage" shall have the meaning given to such term in Section 4.3(c)(iii). 

        "Adjusted Performance Guarantee" shall have the meaning given to such term in Section 4.3(c)(ii). 

        "Agreement" shall have the meaning given to such term in the introduction. 

        "Assets" shall have the meaning given to such term in Section 9.2. 

        "Business Day" shall mean any day on which the banks in Houston, Texas are open. 

        "Cedar Air" shall mean the compressed air delivered from the Cedar Hills Air Injection facility listed on  Exhibit A.  

        "Cedar Water" shall mean the pressurized water delivered from the Cedar Hills Water Injection facility listed on  Exhibit A.  

        "Commodity" shall mean each of the Cedar Air, Cedar Water, and HC Air. 

        "Continental" shall mean Continental Resources Inc. 

        "Continental Permit" shall mean air permit number No.-O97008 for the Horse Creek Compressor Station. 

        "day" as used herein shall mean a period of 24 consecutive hours, beginning at 7:00 a.m. Central Standard or Daylight time, as the
case may be. 

        "Delivery Point" shall mean each of the points specified on Exhibit A attached
hereto. 

        "Dispute" shall have the meaning given to such term in Section 17.5. 

        "Due Date" shall have the meaning given to such term in Section 6.1. 

        "Entity" shall mean a corporation, limited liability company, partnership (including a general partnership, joint venture, limited
partnership, limited liability partnership, or partnership association), trust (including a business trust), estate, Government
Authority, or any other entity. 

        "Effective Date" shall have the meaning given to such term in the introduction. 

        "Force Majeure" shall have the meaning given to such term in Section 7.2. 

        "Governmental Authority" shall mean a federal, state, local, or foreign governmental authority; a state, province, commonwealth,
territory, or district thereof; a county or parish; a city, town, township, village, or other municipality; a district, ward, or other subdivision of any of the foregoing; any executive, legislative,
or other governing body of any of the foregoing; any agency, authority, board, department, system, service, office, commission, committee, council, or other administrative body of any of the
foregoing; any court or other judicial body; and any officer, official, or other representative of any of the foregoing. 

1

 

        "Guarantee Percentage" shall have the meaning given to such term in Section 4.3(a). 

        "HC Air" shall mean the compressed air delivered from the Horse Creek Compressor Station listed on  Exhibit A.  

        "Hadley Compressor Station" shall mean that certain compressor station owned by Hiland in Bowman County, North
Dakota. 

        "Hiland" shall mean Hiland Partners, LP. 

        "Indemnified Party" shall have the meaning given to such term in Section 8.2. 

        "Indemnifying Party" shall have the meaning given to such term in Section 8.2. 

        "LD Cap" shall have the meaning given to such term in Section 4.3(f). 

        "Liquidated Damages" shall have the meaning given to such term in Section 4.3(c). 

        "Monthly Delivery Notice" shall have the meaning given to such term in Section 4.1(b). 

        "Operating Fee" shall mean individually each of the monthly fees set forth for a Commodity on Exhibit B.  

        "Party" or "Parties" shall have the meanings given to such terms
in the introduction. 

        "Performance Guarantee" and "Performance Guarantees" shall have the meaning given to such
terms in Section 4.3(a). 

        "Person" shall mean a natural person or an Entity. 

        "Prime Rate" shall have the meaning given to such term in Section 6.2. 

        "Proceeding" shall mean a judicial, administrative, or arbitral proceeding (including a lawsuit or an investigation by a Government
Authority), commencing with the institution of such proceeding through the issuance, service, or delivery of the applicable claim or other applicable event. 

        "Services" shall have the meaning given to such term in Recital A. 

 
 

ARTICLE II
  INDEPENDENCE OF THE PARTIES    
    

        Hiland shall be an independent contractor and not an agent of Continental, except to the limited extent and for those limited purposes specifically set forth
herein. Nothing in this Agreement or the arrangement for which it is written shall constitute or create a joint venture, partnership, or any other similar agreement between Hiland and Continental, nor
shall it be deemed to limit the Parties to perform similar activities with third parties even while this Agreement is in full force and effect. 

 
 

ARTICLE III
  REPRESENTATIONS OF THE PARTIES    
    

        3.1   In
order to induce Hiland to enter into this Agreement, Continental represents and warrants to Hiland that, as of the Effective Date: 

        (a)   Continental
is a corporation duly formed, validly existing and in good standing under the laws of the State of Oklahoma. Continental has the power to own its property
and to execute, deliver and perform this Agreement and to carry on its business as it is currently being conducted. 

        (b)   The
execution, delivery and performance by Continental of this Agreement have been duly authorized by all necessary action of Continental. This Agreement is the legal,
valid and binding obligation of Continental, duly enforceable against Continental in accordance with its terms (subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium,
and similar laws from time to time in effect relating to the rights and remedies of creditors as well as to general principles of equity). 

        (c)   The
execution, delivery and performance by Continental of this Agreement do not and will not result in a violation of, conflict with or default under (i) the
terms of Continental's organizational, formation or governing documents; (ii) any applicable law; or (iii) any contract, agreement, or other obligation or restriction to which
Continental may be bound; nor, to the best of Continental's knowledge after due inquiry, 

2

 

does
there exist any condition that, upon the passage of time, the giving of notice or both, would cause any such violation, conflict or default. 

        (d)   Except
for the transfer of the Continental Permit to Hiland, no approval, consent, waiver, order or authorization of, or registration, qualification, declaration, or
filing with, or notice to, any Governmental Authority or other third party is required on the part of Continental in connection with the execution of this Agreement or the consummation of the
transactions contemplated hereby. 

        (e)   There
are no Proceedings pending or, to the best of Continental's knowledge after due inquiry, threatened against Continental that would adversely affect its ability to
execute, deliver and perform this Agreement. 

        3.2   In
order to induce Continental to enter into this Agreement, Hiland represents and warrants to Continental that, as of the Effective Date: 

        (a)   Hiland
is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware. Hiland has the power to own its property and
to execute, deliver and perform this Agreement and to carry on its business as it is currently being conducted. 

        (b)   The
execution, delivery and performance by Hiland of this Agreement have been duly authorized by all necessary action of Hiland. This Agreement is the legal, valid and
binding obligation of Hiland, duly enforceable against Hiland in accordance with its terms (subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium, and similar laws
from time to time in effect relating to the rights and remedies of creditors as well as to general principles of equity). 

        (c)   The
execution, delivery and performance by Hiland of this Agreement do not and will not result in a violation of, conflict with or default under (i) the terms of
Hiland's organizational, formation or governing documents; (ii) any applicable law; or (iii) any contract, agreement, or other obligation or restriction to which Hiland may be bound;
nor, to the best of Hiland's knowledge after due inquiry, does there exist any condition that, upon the passage of time, the giving of notice or both, would cause any such violation, conflict or
default. 

        (d)   Except
for the transfer of the Continental Permit to Hiland, no approval, consent, waiver, order or authorization of, or registration, qualification, declaration, or
filing with, or notice to, any Governmental Authority or other third party is required on the part of Hiland in connection with the execution of this Agreement or the consummation of the transactions
contemplated hereby. 

        (e)   There
are no Proceedings pending or, to the best of Hiland's knowledge after due inquiry, threatened against Hiland that would adversely affect its ability to execute,
deliver and perform this Agreement. 

 
 

ARTICLE IV
  RESPONSIBILITIES OF THE PARTIES    
    

        4.1   (a)
Hiland agrees to provide the Services in a manner that results in the delivery to Continental at the Delivery Points, on a monthly basis, of the quantities of Cedar
Air, Cedar Water, and HC Air requested by Continental for each Commodity set forth in the Monthly Delivery Notice. This monthly quantity at any one site will not exceed the maximum output from all
equipment located at any one site, as determined from the original design. 

              (b)
Continental will nominate the volumes of Cedar Air, Cedar Water, and HC Air that it will request at the Delivery Points for any calendar month on or
before the 25th (23rd in the month of February) day of the preceding calendar month in an email to a designated Hiland representative (the "Monthly Delivery
Notice"). 

        4.2   (a)
Continental agrees to provide, at no cost to Hiland, all fuel, whether gas or electric, and water, in the quantities necessary for Hiland to provide the Services
required to deliver each of the Commodities as set forth in Section 4.1 above. 

              (b)
Hiland agrees to obtain written consent from the then designated Continental manager before starting up more than 4 of the 6 compressors at the Hadley
Compressor Station. Should Hiland fail to obtain such consent, Hiland agrees to pay the actual excess demand and usage charges for electricity incurred by Continental related to such
start-up and operations. 

3

 

        4.3   (a)
Subject to: (i) Article VII below; (ii) the provision of fuel (including, but not limited to, consent as necessary to start-up
additional compressors at the Hadley Compressor Station), and water by Continental as required in Section 4.2 above; Hiland guarantees the provision of Services adequate to produce 96.5% (the
"Guarantee Percentage") of the quantities of Cedar Air, Cedar Water, and HC Air set forth in each Monthly Delivery Notice for such calendar month (for
each Commodity, the "Performance Guarantee," and collectively the "Performance Guarantees") as
determined in accordance with Section 4.3(c) below. 

              (b)
Hiland will use its best efforts to inform Continental 30 days in advance of the dates when it expects its equipment to be down for scheduled
maintenance. 

              (c)
In the event that Hiland is not able to meet the Performance Guarantee for any particular Commodity in any month, Hiland shall credit or pay to
Continental an amount determined as follows: 

          (i)  Within
15 days after the end of each calendar month, the Continental Baker District Area Supervisor (or designee) and the Hiland designee will perform a
performance review of each Hiland location that produces a Commodity; 

         (ii)  If,
as a result of the performance review, it is determined that the quantity of a Commodity produced at such location for the preceding month was equal to or greater
than the Performance Guarantee for such Commodity for such month less quantities attributable to the times during such month Hiland was unable to deliver such Commodity due to an event set forth in
4.3(a)(i), (ii) above (the "Adjusted Performance Guarantee"), no further calculation will be made and no Liquidated Damages will be assessed for
such Commodity; 

        (iii)  If
the quantity for a Commodity determined in accordance with Section 4.3(c)(ii) above is less than the Adjusted Performance Guarantee, and the
run-time data for the particular Hiland location which was used to produce such Commodity is equal to or greater than the Guarantee Percentage as adjusted for the percentage of time during
such month Hiland was unable to deliver such Commodity due to an event set forth in 4.3(a)(i), or (ii) above (the "Adjusted Guarantee
Percentage"), no further calculation will be made and no Liquidated Damages will be assessed for such Commodity; 

        (iv)  If
the quantity for a Commodity determined in accordance with Section 4.3(c)(ii) above is less than the Adjusted Performance Guarantee, and the
run-time data for the particular Hiland location which was used to produce such Commodity is less than the Adjusted Guarantee Percentage, Hiland will credit or pay (as set forth in
Section 4.3(d) below) an amount determined by (I) subtracting from 1 the amount determined by dividing the actual percentage of such Commodity delivered during such month by the Adjusted
Performance Guarantee for such Commodity for such month and (II) multiplying such number times the Operating Fee for such Commodity, as liquidated damages (the
"Liquidated Damages"). 

              (d)
The Liquidated Damages, if any, shall be determined within 30 days after the end of the calendar month in which such occurred and credited on the
next invoice from Continental to Hiland after their determination, or paid to Continental within 15 days after such determination at the address set forth in Section 12.1. 

              (e)
The sums payable by Hiland to Continental as Liquidated Damages have been calculated as representing the anticipated loss to Continental as a result of
any failure to achieve the Performance Guarantees and, except as provided in Section 10.2, shall be Continental's sole and exclusive remedy for Hiland's failure to meet the Performance
Guarantees. The Parties agree (i) that Continental's damages arising out of such performance failure are impossible to calculate with precision and (ii) that the terms and amount set
forth above for Liquidation Damages are reasonable. 

              (f)
Notwithstanding anything else in this Agreement to the contrary, Hiland shall not be obligated to pay Liquidated Damages in any Contract Year in excess of
the aggregate of the Operating Fees for each Commodity for such Contract Year (the "LD Cap"). 

 
 

ARTICLE V
  OPERATING FEE    
    

        In consideration for Hiland making available the necessary equipment and labor to perform the Services, and for the actual provision of the Services in the manner
and on the terms set forth in this Agreement, Continental shall pay to Hiland the Operating Fees per month set forth on Exhibit B in accordance
with the terms set forth in Article VI. 

4

 

 
 

ARTICLE VI
  BILLING AND PAYMENT    
    

        6.1   Hiland
will invoice Continental for the Operating Fees less a credit for Liquidated Damages, if any, at the address provided in Section 12.1 on or before the 5th
of each month for Services performed in the preceding month, and Continental agrees to make payment to Hiland by wire transfer to the account set forth in Section 12.1 or by other means to be
received by Hiland within 15 days of the date of receipt of Hiland's invoice (the "Due Date"). When the Due Date falls on a day that is not a
Business Day, Continental shall cause such payment to be actually received by Hiland on or before the next Business Day after such date. In the event Hiland's invoice is disputed, Continental shall
pay the undisputed amounts on or before the Due Date and give Hiland written notification setting forth the disputed amounts and the basis therefor by the Due Date. Hiland and Continental shall use
reasonable diligence to resolve any disputed amounts. Any disputed amounts which become undisputed and due to one Party shall be subject to interest from the other Party as described in
Section 6.2 below from the original Due Date for such amounts. 

        6.2   If
Continental fails to make timely payment of all undisputed amounts so billed, simple interest on the unpaid portion of the invoice shall accrue at the lower of the
Prime Rate plus 2% or the maximum lawful rate. For the purpose of this article, the term "Prime Rate" shall mean the rate charged by JPMorgan Chase Bank
to their most credit-worthy customers for each month in which such payment is outstanding. 

 
 

ARTICLE VII
  FORCE MAJEURE    
    

        7.1   In
the event that any Party hereto is rendered unable, wholly or in part, by Force Majeure to carry out its obligations under this Agreement, other than the obligation
to make payment of amounts due hereunder, the obligations of such Party, so far as they are affected by the Force Majeure, shall be suspended during the continuance of the Force Majeure. The Party
impacted by a Force Majeure shall, upon such occurrence of a Force Majeure, (a) give verbal notice to the other Party followed by written notice within a reasonable period of time of the
particulars of the Force Majeure and (b) take commercially reasonable steps to remedy the Force Majeure. 

        7.2   The
term "Force Majeure" means any event outside the control of the affected Party that cannot, despite the exercise of
commercially reasonable precautions, remediation and mitigation efforts, be prevented, avoided or removed and that prevents the total or partial performance of the obligations of the affected Party
under this Agreement. The following events, the list of which is not exhaustive, shall be considered to be cases of Force Majeure to the extent they present the characteristics described above:
(a) lightning, earthquake, hurricane, storm, cyclone, typhoon, tsunami, peril of the sea, wind, drought, abnormal weather condition, or other similar natural calamities or acts of God;
(b) fire, explosion, chemical contamination, or vandalism; (c) epidemic or plague; (d) act of war (declared or undeclared), invasion, armed conflict or act of foreign enemy,
blockade, economic sanction or embargo, revolution, sabotage, riot, insurrection, civil unrest or disturbance, military or guerilla action, banditry, terrorist activity or a threat of terrorist
activity, or tribal, religious or sectarian unrest; (e) radioactive contamination; (f) strikes, lockouts and work stoppages; (g) damage to or failure of equipment; and
(h) other acts or omissions of Governmental Authorities. 

 
 

ARTICLE VIII
  INDEMNITY AND INSURANCE    
    

        8.1   AS BETWEEN CONTINENTAL AND HILAND, HILAND SHALL BE DEEMED TO BE IN CONTROL AND POSSESSION OF THE COMPRESSED AIR AND PRESSURIZED WATER UNTIL SUCH
TIME AS SAID PRODUCTS ARE DELIVERED TO THE DELIVERY POINTS AND AFTER SUCH TIME CONTINENTAL SHALL BE DEEMED TO BE IN CONTROL AND POSSESSION OF THE COMPRESSED AIR AND PRESSURIZED WATER.  

         8.2   EXCEPT AS EXPRESSLY SET FORTH IN SECTIONS 4.3, 8.3, 8.4 AND 8.5 BELOW, EACH PARTY (THE "INDEMNIFYING PARTY") SHALL
DEFEND, INDEMNIFY AND HOLD HARMLESS THE OTHER PARTY (THE "INDEMNIFIED PARTY") FROM AND AGAINST ANY AND ALL LOSSES, COSTS, DAMAGES, INJURIES,
LIABILITIES, CLAIMS, DEMANDS, AND PENALTIES (INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEYS' FEES AND EXPENSES) SUSTAINED OR INCURRED BY THE INDEMNIFIED PARTY TO THE EXTENT (a) RESULTING
FROM THE NEGLIGENCE, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT OF THE INDEMNIFYING PARTY OR (b) RELATING TO THE COMPRESSED AIR AND  

5

 

 PRESSURIZED WATER DURING THE PERIOD THAT THE INDEMNIFYING PARTY HAS CONTROL AND POSSESSION OF SUCH IN ACCORDANCE WITH SECTION 8.1.  

         8.3   CONTINENTAL SHALL DEFEND, INDEMNIFY, AND HOLD HARMLESS HILAND FROM AND AGAINST ALL LOSSES, COSTS, DAMAGES, INJURIES, LIABILITIES, CLAIMS, DEMANDS, AND PENALTIES
(INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEYS' FEES AND EXPENSES) SUSTAINED OR INCURRED BY HILAND RELATING TO THE MANAGEMENT, MAINTENANCE, REPAIR, AND OPERATION OF EQUIPMENT FOR THE PROVISION
OF SERVICES (INCLUDING, BUT NOT LIMITED TO, FAILURE TO OBTAIN AND COMPLY WITH ALL NECESSARY PERMITS) BY CONTINENTAL OR ANY OTHER PERSON FOR CONTINENTAL PRIOR TO THE EFFECTIVE
DATE. 

        8.4   EACH INDEMNIFYING PARTY SHALL DEFEND, INDEMNIFY, AND HOLD HARMLESS THE INDEMNIFIED PARTY FROM AND AGAINST ANY AND ALL LOSSES, COSTS, DAMAGES,
INJURIES, LIABILITIES, CLAIMS, DEMANDS, AND PENALTIES (INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEYS' FEES AND EXPENSES) FOR DAMAGE TO OR LOSS OF THE INDEMNIFYING PARTY'S PROPERTY, EXCEPT TO THE
EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTY.  

        8.5   IN NO EVENT, WHETHER AS A RESULT OF BREACH OF CONTRACT, TORT LIABILITY (INCLUDING NEGLIGENCE AND GROSS NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE, SHALL EITHER
PARTY BE
LIABLE TO THE OTHER FOR SPECIAL, PUNITIVE, INCIDENTAL, INDIRECT, EXEMPLARY, OR CONSEQUENTIAL DAMAGES OF ANY NATURE WHATSOEVER, INCLUDING LOSS OF PROFITS. THE PARTIES ALSO INTEND AND AGREE THAT THE
PROVISIONS OF THIS AGREEMENT WITH RESPECT TO INDEMNITIES AND LIMITATIONS SHALL CONTINUE IN FULL FORCE AND EFFECT NOTWITHSTANDING THE TERMINATION, SUSPENSION, CANCELLATION, OR EXPIRATION OF THIS
AGREEMENT. THE PROVISIONS OF THIS SECTION 8.5 SHALL NOT PRECLUDE THE RECOVERY, WHERE APPLICABLE, OF LIQUIDATED DAMAGES.  

        8.6   IT IS THE PARTIES' INTENT THAT, EXCEPT AS PROVIDED IN SECTION 8.2, THE INDEMNITY OBLIGATIONS IN THIS ARTICLE VIII ARE WITHOUT REGARD TO THE CAUSES OF THE
INDEMNIFIED
CLAIMS, INCLUDING THE NEGLIGENCE (BUT WITH REGARD TO SECTION 8.4, NOT THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTY, WHETHER SUCH NEGLIGENCE IS SOLE, JOINT, OR CONCURRENT, OR
ACTIVE OR PASSIVE OR THE STRICT LIABILITY OF THE INDEMNIFIED PARTY.

        8.7   During
the term of this Agreement and any extension, Hiland shall maintain the insurances set forth on Exhibit C.  

  
 

    ARTICLE IX
  TERM    
    

        The term of this Agreement shall be for a period of four years commencing on the Effective Date and ending at midnight Central time on the day prior to the fourth
anniversary of the Effective Date and thereafter this Agreement shall automatically renew for additional one month terms unless terminated by either Party by the giving of notice to the other Party of
such termination no less than 15 days prior to the end of the then current term. 

 
 

ARTICLE X
  DEFAULT    
    

        10.1 If
Continental shall fail to pay Hiland any amounts due under this Agreement within 10 days after notice from Hiland of such failure, Hiland, in addition to any
other rights and remedies it may have, shall have the right to terminate this Agreement. 

        10.2 If
Hiland fails to provide any Services, for 20 consecutive days, and such failure is not the result of force majeure or of Continental's failure to provide the fuel
and water as set forth in Section 4.2, Continental may, upon 10 days notice to Hiland, terminate this Agreement. 

6

 

 
 

ARTICLE XI
  ASSIGNMENT    
    

        This Agreement shall extend to and be binding upon the Parties hereto, their heirs, administrators, successors, and assigns. Neither Party shall be entitled to
assign in whole or in part any of its rights and obligations under this Agreement without the prior written consent of the other party. Notwithstanding such consent, no such transfer of the interest
of one Party hereunder, wholly or partially, shall affect or bind the other Party until it has been furnished, at the address specified in Article XII below, with (a) a copy of the
original documentation of such transfer or succession and (b) an acknowledgement and acceptance of the terms of this Agreement in a form reasonably acceptable to the non-assigning
Party by the assignee of such interest. 

 
 

ARTICLE XII
  ADDRESS    
    

        12.1 All
notices or other communications between the Parties given under or in relation to this Agreement shall be delivered physically or by facsimile to the respective
parties at the following addresses or facsimile numbers: 

Continental Resources, Inc.

P.O. Box 1032

Enid, Oklahoma 73702

Attn: General Counsel

Phone: (580) 548-5137

Facsimile: (580) 242-4703 

Hiland Partners, LP

P.O. Box 5122

Enid, Oklahoma 73702

Phone: (580) 234-0473

Facsimile: (580) 548-5188 

        12.2 Any
notice or other communication shall be effective upon actual receipt if received during the recipient's normal business hours, or at the beginning of the next
Business Day after receipt if not received during the recipient's normal business hours. 

        12.3 Either
Party may change its address for notice purposes by written notice to that effect delivered to the other Party in accordance with this Article. 

 
 

ARTICLE XIII
  NON-WAIVER    
    

        The failure of either Party at any time to exercise any right or to require performance by the other Party of any provision hereof shall in no way affect the
right of such Party thereafter to enforce the same, nor shall the waiver by either Party hereto of any breach of any provision hereof by the other Party be a waiver of any other breach of such
provision, or as a waiver of the provision itself. 

 
 

ARTICLE XIV
  MERGER    
    

        This Agreement terminates and supersedes any prior agreements pertaining to equipment or services related to the compression of air or water between the Parties
hereto or their successors-in-interest effective as of the Effective Date (each a "Prior Agreement"). This Agreement does not
release or discharge any obligation or debt pertaining to any Prior Agreement (including, but not limited to, any equipment leases) which arose prior to the Effective Date. 

 
 

ARTICLE XV
  GOVERNING LAW, VENUE    
    

        15.1 This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Oklahoma, except for the conflicts of laws provisions thereof
which would refer resolution of any dispute to the laws of another jurisdiction. 

7

 

        15.2 Each
Party irrevocably and unconditionally submits, for itself and its property to the nonexclusive jurisdiction of the courts of the State of Oklahoma sitting in
Garfield County, Enid, Oklahoma, and of the United States District Court sitting in Western District of Oklahoma, Oklahoma City, Oklahoma, in any action or proceeding arising out of or relating to
this Agreement or for recognition or enforcement of any judgment, and each Party hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard
and determined in such Oklahoma State Court or, to the fullest extent permitted by applicable law, in such Federal Court. Each Party agrees that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 

        15.3 Each
Party irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of
venue of any action or proceeding arising out of or related to this Agreement in any court referred to in Section 15.2 above. Each Party hereby irrevocably waives, to the fullest extent
permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

 
 

ARTICLE XVI
  MUTUAL DRAFTSMANSHIP    
    

        This Agreement was prepared jointly by the Parties hereto, and not by either to the exclusion of the other. 

 
 

ARTICLE XVII
  MISCELLANEOUS    
    

        17.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties covering the subject matter
hereof, and there are no other agreements, modifications, conditions, or understanding, written or oral, expressed or implied, pertaining to the subject matter hereof which are not contained herein.
Provided however, if there is any conflict between a provision in the body of this Agreement and any Exhibit thereto, the provisions contained in the body of this Agreement shall govern. 

        17.2 Headings and Subheadings. The headings and subheadings contained in this Agreement are used solely for convenience and
do not constitute a part of the Agreement between the Parties hereto nor should they be used to aid in any manner in construing this Agreement. 

        17.3 Rights Enforceable. The provisions of this Agreement shall not impart rights enforceable by any person, entity, or
organization not a Party hereto or not a successor or assignee of a Party to this Agreement. 

        17.4 Amendments. All amendments and modifications to this Agreement shall be in writing and shall be executed by duly
authorized representatives of both Parties. 

        17.5 Disputes. If any dispute or difference shall arise between the Parties out of or relating to this Agreement or a breach
hereof, including any dispute or difference arising in connection with the existence or termination of this Agreement (each a "Dispute"), the Parties
shall attempt to resolve the same through referral to senior management of each Party. In the event such Dispute is not resolved within 30 days after referral to the senior management of each
Party, the Parties may agree to mediation of the Dispute in a mutually acceptable manner, including, but not limited to selection of a third party mediator and establishment of the period of time for
such mediation. If the Dispute is not resolved by such mediation, either Party may seek to resolve the Dispute in any lawful manner. 

8

 

        IN
WITNESS WHEREOF, this Agreement may be executed in any number of counterparts, each of which shall be considered an original. 

	
 	
 	

CONTINENTAL RESOURCES, INC.
	

 	
 	
By:	

/s/  G. B. SMITH      
 G. B. Smith

Sr. Vice President Drilling and Production
	

 	
 	
HILAND PARTNERS, LP
	

 	
 	

 	

 
	

 	
 	

By:	

Hiland Partners, GP, LLC,

its general partner
	

 	
 	

        By:
	 	 	 	/s/  RANDY MOEDER      
        Randy Moeder

        President

9

 
 
 

EXHIBIT A
  DELIVERY POINTS    
    

	 
	Location

	
 	

 
	

Cedar Hills Air Injection ("Cedar Air")	

The five-4" main discharge block valves immediately downstream of the compressors, located inside the Hadley Compression Station Building
	

Cedar Hills Water Injection ("Cedar Water")	

The 8" "2500 series" flange located on the discharge line immediately downstream of the pumps inside the Bradac Water Station Building
	

Horse Creek Compressor Station ("HC Air")	

The 4" high pressure valve located on the North side of the Horse Creek Compression Station Building

10

 
 
 

EXHIBIT B
  OPERATING FEE    
    

	Commodity
	 	Fee per Month

	Cedar Air—Cedar Hills North	 	$	293,162.36
	Cedar Water—Cedar Hills North	 	$	45,376.43
	HC Air—SMPHU	 	$	63,085.42

11

 
 
 

EXHIBIT C
  INSURANCE    
    

	Location
 
	 	Occupancy
	 	Description

of Property
	 	Limit
	 	Insured Value

	Cedar Air—Cedar Hills North	 	 	 	 	 	 	 	 	$	13,820,500
	 	 	Five Compressors—Ariel JGC/4 with Cooler	 	Compressor	 	$	5,453,000	 	 	 
	 	 	Five Compressors—Joy/Cooper TAE-100MR2	 	Compressor	 	$	4,487,500	 	 	 
	 	 	Motor Control Center	 	 	 	$	1,989,000	 	 	 
	 	 	115 KV/7.2 KV Substation	 	Substation	 	$	1,891,000	 	 	 
	Cedar Water—Cedar Hills North	 	 	 	 	 	 	 	 	$	979,000
	 	 	Compressor Building	 	Building	 	$	274,000	 	 	 
	 	 	Injection Pumps	 	Pumps	 	$	525,000	 	 	 
	 	 	Water Injection Building	 	Building	 	$	180,000	 	 	 
	HC Air—SMPHU	 	 	 	 	 	 	 	 	$	2,000,000
	 	 	Superior Clean Burn II Model 16SGTB, 2650 HP	 	Compressor	 	$	950,000	 	 	 
	 	 	Superior Clean Burn II Model 16SGTB, 2650 HP	 	Compressor	 	$	950,000	 	 	 
	 	 	Compressor Building	 	Building	 	$	100,000	 	 	 
	 	Total Compression Assets	 	 	 	 	 	 	 	 	$	16,799,500

12

QuickLinks

Exhibit 10.3

TABLE OF CONTENTS

COMPRESSION SERVICES AGREEMENT

RECITALS

ARTICLE I DEFINITIONS

ARTICLE II INDEPENDENCE OF THE PARTIES

ARTICLE III REPRESENTATIONS OF THE PARTIES

ARTICLE IV RESPONSIBILITIES OF THE PARTIES

ARTICLE V OPERATING FEE

ARTICLE VI BILLING AND PAYMENT

ARTICLE VII FORCE MAJEURE

ARTICLE VIII INDEMNITY AND INSURANCE

ARTICLE IX TERM

ARTICLE X DEFAULT

ARTICLE XI ASSIGNMENT

ARTICLE XII ADDRESS

ARTICLE XIII NON-WAIVER

ARTICLE XIV MERGER

ARTICLE XV GOVERNING LAW, VENUE

ARTICLE XVI MUTUAL DRAFTSMANSHIP

ARTICLE XVII MISCELLANEOUS

EXHIBIT A DELIVERY POINTS

EXHIBIT B OPERATING FEE

EXHIBIT C INSURANCE

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