Document:

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                                                                    EXHIBIT 10.2

                                ESCROW AGREEMENT

         This Escrow Agreement (herein so called), dated February 16, 2004, made
by and between Mewbourne Development Corporation, a Delaware Corporation ("MD"),
and Regions Bank - Tyler ("Escrow Agent");

         WHEREAS, MD will serve as the Managing Partner of Mewbourne Energy
Partners 04-A, L.P. and Mewbourne Energy Partners 05-A, L.P., (the
"Partnerships"), in which general and limited partnership interests
(collectively, the "Interests") are to be offered and sold in an offering
pursuant to the Securities Act of 1933 as amended;

         WHEREAS, the Partnership(s) will participate with MD and Mewbourne Oil
Company ("MOC"), in a program for the purpose of developing oil and gas
prospects through drilling and producing oil and gas thereon (the "Programs");

         WHEREAS, the Form S-1 Registration Statement (the "Statement") dated
______________, 2004, relating to the interests to be sold provides that
subscription proceeds for such Interests ("Subscription Proceeds") from
investors who are initially approved by MD will be deposited in an escrow
account with Escrow Agent and may not be contributed to the capital of a
Partnership unless at the end of the subscription period the aggregate
Subscription Proceeds of over $1,000,000 have been received and accepted for the
Partnership and certain other conditions have been met;

         WHEREAS, the Statement relating to the Interests to be sold provides
that investors desiring to purchase Interests in a Partnership shall provide MD
with certain information concerning their suitability for investment in the
Partnership by completing the Subscription Agreement (the "Subscription
Agreement"); and

         WHEREAS, MD desires that Escrow Agent provide procedures for the
deposit and safekeeping of the Subscription Proceeds and delivery of the
Subscription Agreement to MD subject to the terms of this Escrow Agreement;

         NOW, THEREFORE, in consideration of the mutual promises herein set
forth, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto covenant and
agree as follows:

         1. Escrow Period. The term of this Escrow Agreement shall begin on the
effective date of the Statement and shall terminate in accordance with Section 7
below.

         2. Escrow Account and Deposit of Escrow Funds. For each Partnership,
Escrow Agent shall open a special trust account (the "Account") at Regions Bank
- Tyler for and in the name of Regions Bank - Tyler as Escrow Agent under this
Escrow Agreement. Following receipt by Escrow Agent of the Subscription
Agreement and Subscription Proceeds for the purchase of Interests in a
Partnership, the Subscription Agreement shall be promptly delivered to MD and
the instruments representing the Subscription Proceeds shall be deposited and
maintained by Escrow Agent in accordance with the terms of this Escrow
Agreement. The Subscription Proceeds so deposited, together with any and all
interest earned thereon, are referred to as the "Escrow Funds".

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         3. Duties of Escrow Agent. The Escrow Agent shall have the following
general duties: (a) to promptly deliver the Subscription Agreement to MD; (b) to
deposit and safely maintain the Escrow Funds in the Account, guarding at all
times against the commingling thereof with any funds of MD or its affiliates
during the term of this Escrow Agreement; (c) at the direction of MD, to invest
the Escrow Funds in investments that are permissible under rule 15c2-4
promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended, including, without limitation (if
permissible), time deposits, short-term bank certificates of deposit, short-term
governmental obligations and bank money market accounts to be held by Escrow
Agent; (d) to prepare and maintain true and complete records with respect to the
Escrow Funds, including the name of each subscriber and the portion of the
Escrow Funds from time to time attributable to him; and (e) to disburse the
Escrow Funds in accordance with the terms of this Escrow Agreement.

         4. Payment of Escrow Funds. The Escrow Funds, or portions thereof,
shall be paid out by Escrow Agent in accordance with written instructions from
MD as follows: (a) to each subscriber, if any, whose subscription has been
rejected by MD within five business days after the clearance of those Escrow
Funds, that portion of the Escrow Funds attributable to that subscriber as shown
on Escrow Agent's records, including any interest earned thereon; (b) to each
subscriber, if any, whose Subscription Proceeds have not been contributed to the
Partnership prior to the termination of the offering period for Interests in the
Partnership, and any subscriber who may be rejected as an Investor Partner
subsequent to the period described in Subsection (a) of this Section 4, that
portion of the Escrow Funds attributable to the rejected subscriber as shown on
Escrow Agent's records together with any interest attributable thereto (as
calculated by MD); (c) to each subscriber, if any, whose subscription has been
reduced, that portion of the Escrow Funds equal to the amount of such reduction
attributable thereto as shown on Escrow Agent's records; (d) to MD for
distribution to each subscriber within 60 days of closing of the Partnership,
that portion of accrued and unpaid interest on the Escrow Funds relating to such
Partnership, which Escrow Funds were deposited no fewer than five business days
prior to the termination of the offering of Interests in the Partnership,
attributable to that subscriber as shown on Escrow Agent's records; and (e) to
an account for the Partnership all remaining Escrow Funds attributable to the
Partnership. Notwithstanding the foregoing, no portion of the Escrow Funds may
be paid to the Partnership unless the Escrow Agent shall have in excess of
$1,000,000 in Escrow Funds with respect to the Partnership and MD informs the
Escrow Agent in writing that aggregate Subscription Proceeds for Interests in
the Partnership of $1,000,000 or more have been received and cleared from
subscribers that MD initially approves as suitable to be Investor Partners (as
such term is defined in the Statement) in that Partnership. Notwithstanding the
provisions of this Section 4, or any other provision of this Escrow Agreement,
after the Escrow Agent shall have in excess of $1,000,000 in Escrow Funds with
respect to that Partnership and MD informs the Escrow Agent in writing that
aggregate Subscription Proceeds for Interests in such Partnership of $1,000,000
or more have been received and cleared by Escrow Agent, upon the written request
of MD, Escrow Agent shall disburse all or any portion of the Escrow Funds to an
account established by MD for the Partnership.

         Notwithstanding anything contained herein to the contrary, it is
expressly contemplated by MD and the Escrow Agent that MD shall be solely
responsible for all computations and disbursements of interest and the
preparation and mailing of all forms with respect thereto,

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including without limitation Form 1099 as is contemplated in Subsections (b),
(c), and (d) of this Section 4.

         The Escrow Agent shall deliver to MD from time to time such records and
information which are available to Escrow Agent and are necessary to make the
computations of interest contemplated herein.

         5. Expenses and Compensation. All expenses incurred by Escrow Agent in
connection with this Escrow Agreement and the compensation of Escrow Agent set
forth in Exhibit 1 hereto shall be charged to MD and MD agrees to pay promptly
all such expenses and compensation following receipt of an invoice therefor.

         6. Escrow Agent. MD and Escrow Agent agree that the following
provisions shall control with respect to the rights, duties, liabilities,
privileges and immunities of Escrow Agent: (a) Escrow Agent is not a party to,
and is not bound by, any agreement or other document out of which this Escrow
Agreement may arise; (b) Escrow Agent is not responsible or liable in any manner
whatsoever for the sufficiency, correctness, genuineness, or validity of the
subject matter of this Escrow Agreement; (c) Escrow Agent shall be protected in
acting upon any written notice, request, waiver, consent, certificate, receipt,
authorization, agreement, power of attorney, or other instrument that Escrow
Agent in good faith believes to be genuine and what it purports to be.

         As between MD and the Escrow Agent, MD agrees to indemnify the Escrow
Agent and its officers, directors, employees, agents and attorneys
(collectively, the "Indemnified Parties") against and hold the Indemnified
Parties harmless from any and all losses, costs, damages, expenses, claims, and
attorney's fees suffered or incurred by the Indemnified Parties as a result of,
in connection with or arising from or out of the acts or omissions of any
Indemnified Party in performance of or pursuant to this Escrow Agreement, except
such acts or omissions as may result from such Indemnified Party's willful
misconduct or gross negligence.

         All protections and indemnities benefitting the Escrow Agent (and any
other Indemnified Party) are cumulative of any other rights it (or they) may
have by law or otherwise, and shall survive the termination of the Escrow
Agreement or the resignation or removal of the Escrow Agent.

         7. Termination. This Escrow Agreement shall terminate upon the first to
occur of any one of the following: December 31, 2005; (a) the full disbursement
of the Escrow Funds with respect to the final Partnership; (b) the written
agreement of termination by MD and Escrow Agent; or (c) the dissolution,
insolvency, or involuntary bankruptcy of MD or an affiliate thereof.

         8. Miscellaneous.

                  (a) All notices, demands, requests, and other communications
required or permitted hereunder shall be in writing and shall be deemed to be
delivered when actually received at the address of the addressee set forth below
its name on the signature page of this Escrow Agreement. The rights and
obligations under this Escrow Agreement may not be assigned or delegated by any
party hereto without the prior written consent of the other party hereto. This
Escrow Agreement constitutes the entire agreement and supersedes all other prior

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agreements and understandings, whether oral or written, between the parties
hereto with respect to the subject matter hereof;

                  (b) The Escrow Agent may consult with and rely on the advice
of counsel satisfactory to it at any time in respect to any question relating to
its duties or responsibilities hereunder or otherwise in connection herewith,
and shall not be liable for any action taken suffered, or omitted by the Escrow
Agent in good faith upon the advice of such counsel, and shall be fully
protected in doing so, and shall be fully compensated for all costs and expenses
in doing so. The Escrow Agent may act through its officers, employees, agents
and attorneys;

                  (c) Any check included in the Escrow Funds shall be collected
by the Escrow Agent and the proceeds held as part of the Escrow Funds. No monies
shall be disbursed by the Escrow Agent until it has collected funds. The Escrow
Agent may pay out monies held in escrow by its check. The Escrow Agent shall not
be obligated to take any legal action to enforce payment of any item deposited
with it in escrow;

                  (d) The Escrow Agent shall not be liable for any action that
it may do or refrain from doing in connection herewith, except on account of its
own gross negligence or willful misconduct;

                  (e) The Escrow Agent's only duty, liability and responsibility
shall be to deliver the Subscription Agreements to MD and to hold the property
as herein directed and to pay and deliver the same to such persons and under
such conditions as are herein set forth;

                  (f) Should any controversy arise between any party with
respect to this agreement, the Escrow Agent shall have the right to institute a
bill of interpleader in any court of competent jurisdiction to determine the
rights of the parties. Should a bill of interpleader be instituted, or should
the Escrow Agent become involved in litigation in any manner whatsoever on
account of this Agreement or the escrow deposit made hereunder, the obligor, its
successors and assigns shall pay the Escrow Agent reasonable attorneys' fees
incurred by the Escrow Agent and shall indemnify and save the Escrow Agent
harmless from any other disbursements, expenses, losses, costs and damages in
connection with and resulting from such litigation, except such amounts as shall
have been caused by the Escrow Agent's gross negligence or willful misconduct;

                  (g) The Escrow Agent shall be obligated to perform only such
duties as are expressly set forth herein, and no implied covenants or
obligations shall be inferred from this Agreement;

                  (h) The Escrow Agent, or any successor to it hereafter
appointed, may at any time resign by giving prior written notice in writing to
the other parties hereto and shall be discharged from its duties hereunder upon
the appointment of a successor Escrow Agent as hereinafter provided. In the
event of any such resignation, a successor Escrow Agent shall be appointed by
the written consent of the parties hereto. In the event that the parties hereto
fail to appoint a successor Escrow Agent within 30 days of the Escrow Agent's
resignation, the Escrow agent shall have the right to petition a court of
competent jurisdiction to appoint a successor Escrow Agent. Any successor Escrow
Agent shall deliver to the parties hereto a written

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instrument accepting the appointment hereunder, and thereupon it shall succeed
to all the rights and duties of the Escrow Agent hereunder and shall be entitled
to receive all of the Escrow Funds then held by the predecessor Escrow Agent
hereunder;

                  (i) THIS ESCROW AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCEPT THAT THE PORTIONS OF
THE TEXAS TRUST CODE, SECTION 111.001, ET SEQ. OF THE PROPERTY CODE, V.A.T.S.
CONCERNING FIDUCIARY DUTIES AND LIABILITIES OF TRUSTEES SHALL NOT APPLY TO THIS
AGREEMENT. THE PARTIES EXPRESSLY WAIVE SUCH DUTIES AND LIABILITIES, IT BEING
THEIR INTENT TO CREATE SOLELY AN AGENCY RELATIONSHIP AND HOLD ESCROW AGENT
LIABLE ONLY IN THE EVENT OF ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT IN ORDER
TO OBTAIN THE LOWER FEE SCHEDULE RATES AS SPECIFICALLY NEGOTIATED WITH ESCROW
AGENT. ANY LITIGATION CONCERNING THE SUBJECT MATTER OF THIS AGREEMENT SHALL BE
EXCLUSIVELY PROSECUTED IN THE COURTS OF DALLAS COUNTY, TEXAS, AND ALL PARTIES
CONSENT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THOSE COURTS.

         IN WITNESS WHEREOF, the undersigned parties have caused this Escrow
Agreement to be signed and attested to by its duly authorized officers, all as
of the date first written above.

                                    ESCROW AGENT:

                                    REGIONS BANK - TYLER

                                    By: _______________________________________
                                        Raymond W. Cozby III,
                                        Vice President and Trust Officer

                                    Address: Regions Bank - Trust
                                             P.O. Box 2020
                                             Tyler, TX 75710
                                             Telephone No.: (903) 535-4200
                                             Fax No.: (903) 535-4327

                                    MEWBOURNE DEVELOPMENT CORPORATION

                                    By: ________________________________________
                                        John Roe Buckley
                                        Treasurer

                                    Address: 3901 South Broadway
                                             Tyler, Texas 75701
                                             Telephone No.: (903) 561-2900
                                             Fax No.: (903) 561-1515

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                                                                    EXHIBIT 10.3

                                  ATTACHMENT A

                           TAX PARTNERSHIP PROVISIONS

         1.       Relationship of the Parties. This Attachment and the Drilling
Program Agreement of which it is a part (in this Attachment called the
"Agreement") is not intended to create, nor shall such be construed as creating,
any mining partnership, commercial partnership or other partnership relation or
joint venture among the parties, and the liabilities of each of the parties
hereto shall be several and not joint or collective. The relationship created by
this Attachment and the Agreement shall be considered as a partnership solely
for United States federal and state income tax reporting purposes (and shall be
a partnership for those purposes only so long as this Attachment remains in
effect), as provided in paragraph 2 hereinbelow, and such relationship shall not
be a partnership to any other extent or for any other purpose. The relationship
of the parties hereunder is sometimes herein called the "tax partnership".

         2.       Elections with Respect to Tax Status. Notwithstanding anything
to the contrary in this Attachment or in the Agreement, each party hereto
agrees, so long as the provisions of this Attachment remain in effect, with
respect to all operations conducted under the Agreement, (a) not to elect any
status under Treasury Regulation Section 301.7701-3 other than as a partnership
for federal tax purposes, (b) not to elect to be excluded from the application
of Subchapter K of Chapter 1 of Subtitle A of the Code, and any provisions of
applicable state laws comparable to Subchapter K of Chapter 1 of Subtitle A of
the Code, and (c) to join in the execution of such additional documents and
elections as may be required in order to effectuate the foregoing. With respect
to activities conducted on Leases in which parties other than the Participants
have an interest, the Program Manager shall be authorized to elect on behalf of
all Participants that any joint operation with respect to any such Lease shall
be excluded from the application of Subchapter K of Chapter 1 of Subtitle A of
the Code, but no such election by the Program Manager shall have any impact on
or result in any change in the relationship among the Participants as set forth
in the first sentence of this paragraph 2. (Capitalized terms used in this
paragraph 2, if not otherwise defined in this Attachment, shall have the same
meanings as are provided in the Agreement.)

         3.       Term. The provisions of this Attachment shall be effective as
of the effective date of the Agreement and shall continue in full force and
effect from and after such date until the earlier of (a) the termination of the
Agreement among the parties pursuant to its terms, (b) upon the mutual agreement
of the parties, or (c) upon the occurrence of an event described in Section
708(b)(1) of the Code. Upon the occurrence of any of the above-enumerated
events, the provisions of paragraph 9 hereinbelow shall be applicable.

         4.       Capital Contributions and Capital Accounts.

                  (a)      The capital contributions of each party shall be all
amounts paid by it pursuant to the Agreement. With respect to each oil and gas
property and the related assets subject to the Agreement, each party shall be
treated as having contributed to the tax partnership an amount of cash equal to
such party's share of any Lease acquisition or other property costs and the tax
partnership shall be treated as having purchased such property from the party to
whom such amounts are paid.

                  (b)      An individual capital account shall be maintained for
each party in accordance with the following:

                           (i)      The capital account of each party shall,
         except as otherwise provided herein, be (A) credited by the amount of
         cash and fair market value of any property contributed to the tax
         partnership (net of any liabilities assumed by the parties hereto or to
         which such property is subject at the time of contribution) as provided
         in subparagraph (a) of this paragraph 4, and (B) credited with the
         amount of any item of taxable income or gain and the amount of any item
         of income or gain exempt from tax allocated to such party.

                           (ii)     The capital account of each party shall be
         debited by (A) the amount of any item of tax deduction or loss
         allocated to such party, (B) such party's allocable share of
         expenditures not deductible in computing taxable income and not
         properly chargeable as capital expenditures, including any

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         non-deductible book amortizations of capitalized costs, and (C) the
         amount of cash or the fair market value of any property (net of any
         liabilities assumed by such party or to which such property is subject
         at the time of distribution) distributed to such party (after making
         the adjustment provided in subparagraph (b)(iii) in this paragraph 4).

                           (iii)    Immediately prior to any distribution of
         property that is not pursuant to a liquidation of the tax partnership,
         the parties' capital accounts shall be adjusted by assuming that the
         distributed assets were sold for cash at their respective fair market
         values as of the date of distribution and crediting or debiting each
         party's capital account with its respective share of the hypothetical
         gains or losses resulting from such assumed sales determined in the
         same manner as gains or losses provided for under paragraphs 4(b)(iv)
         and 6 for actual sales of such properties.

                           (iv)     The allocation of basis prescribed by
         Section 613A(c)(7)(D) of the Code and provided for in paragraph 6
         hereinbelow and each party's depletion deductions shall not reduce such
         party's capital account, but such party's capital account shall be
         decreased by an amount equal to the product of (A) the depletion
         deductions that would otherwise be allocable to the tax partnership in
         the absence of Section 613A(c)(7)(D) of the Code (computed without
         regard to any limitations which theoretically could apply to any party)
         and (B) such party's percentage share of the adjusted basis of the
         property with respect to which such depletion is claimed (herein called
         "Simulated Depletion"). The tax partnership's basis in any oil or gas
         property, as adjusted from time to time for Simulated Depletion, is
         herein called "Simulated Basis." No party's capital account shall be
         decreased, however, by Simulated Depletion deductions attributable to
         any depletable property to the extent such deductions exceed such
         party's remaining Simulated Basis in such property. Upon the sale or
         other disposition of an interest in a depletable property, each party's
         capital account shall be credited with the gain ("Simulated Gain") or
         debited with the loss ("Simulated Loss") determined by subtracting from
         its allocable share of the amount realized on such sale or disposition
         its Simulated Basis, as adjusted by Simulated Depletion.

                           (v)      Any adjustments of basis of property
         provided for under Sections 734 and 743 of the Code and comparable
         provisions of state law (resulting from an election under Section 754
         of the Code or comparable provisions of state law) shall not affect the
         capital accounts of the parties, and the parties' capital accounts
         shall be debited or credited as if no such election had been made
         unless otherwise required by applicable Treasury Regulations.

                           (vi)     Capital accounts shall be adjusted, in a
         manner consistent with subparagraph (b) of this paragraph 4, to reflect
         any adjustments in items of income, gain, loss or deduction that result
         from amended returns filed by the tax partnership or pursuant to an
         agreement with the Internal Revenue Service or a final court decision.

                           (vii)    In the case of property contributed to the
         tax partnership by a party, the parties' capital accounts shall be
         debited or credited for items of depreciation, Simulated Depletion,
         amortization and gain or loss with respect to such property computed in
         the same manner as such items would be computed if the adjusted tax
         basis of such property were equal to its fair market value on the date
         of its contribution to the tax partnership, in lieu of the capital
         account adjustments provided above for such items, all in accordance
         with Section 704(c) of the Code and Treasury Regulation
         1.704-1(b)(2)(iv)(g).

         5.       Federal and State Income Tax Returns and Elections.

                  (a)      The parties agree that the Program Manager shall
prepare and file the necessary federal and state partnership income tax returns
and each party agrees to furnish the Program Manager all pertinent information
relating to operations under the Agreement and this Attachment which is
necessary for the Program Manager to prepare and file such returns.

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                  (b)      The parties hereby authorize and direct the Program
Manager to make the following elections on the appropriate returns prepared and
filed under subparagraph (a) of this paragraph 5:

                           (i)      To elect to adopt the accrual method of
         accounting, and such accounting shall be maintained on a calendar year
         basis;

                           (ii)     To elect, in accordance with Section 263(c)
         of the Code and applicable federal income tax regulations and
         comparable provisions of state law, to expense all intangible drilling
         and development costs;

                           (iii)    To elect to compute the allowance for
         depreciation or cost recovery under the most accelerated tax
         depreciation method and using the shortest life authorized by law with
         respect to all depreciable assets; and

                           (iv)     To make such other elections as may be
         deemed appropriate by the Program Manager.

                  (c)      The Program Manager shall be designated the tax
matters partner (in this paragraph 5(c) called the "TMP") as such term is
defined in Section 6231(a)(7) of the Code with respect to operations conducted
pursuant to the Agreement and shall be indemnified by the other parties as
provided in the Drilling Program Agreement. The TMP is authorized to take such
actions and to execute and file all statements and forms on behalf of the tax
partnership which may be permitted or required by the applicable provisions of
the Code or Treasury regulations issued thereunder, and the parties to the
Agreement will take all other action that may be necessary or appropriate to
effect the designation of the Program Manager as the TMP. In the event of an
audit of the tax partnership's income tax returns by the Internal Revenue
Service, the TMP may, at the expense of the parties to the Agreement, retain
accountants and other professionals to participate in the audit.

         6.       Allocations. The parties agree that for United States federal
and state income tax reporting purposes the distributive share of each of the
parties in each item of income, gain, loss, deduction or credit, including,
without limitation, the items specifically mentioned below, shall be determined
as follows:

                  (a)      Income realized from the sale of production of oil,
gas or other hydrocarbon substances shall be allocated to each party to whom
proceeds from the sale of such production are allocated or to whom such
production is distributed under the terms of the Agreement.

                  (b)      Deductions attributable to intangible drilling and
development and production costs shall be allocated to each party in accordance
with its respective contributions to the payment of such costs.

                  (c)      Depreciation or cost recovery deductions with respect
to tangible equipment shall be allocated to each party in accordance with its
contribution to the adjusted basis (within the meaning of Section 1011 of the
Code) of such equipment.

                  (d)      The depletion deductions with respect to each oil and
gas property (as such term is defined in Section 614 of the Code) subject to the
Agreement shall be computed separately by each party. For purposes of such
computation, each party shall be considered to own, and shall be allocated, its
proportionate share of the adjusted basis in each oil and gas property subject
to the Agreement. A party's proportionate share of the adjusted basis of an oil
or gas property shall be equal to its relative interest in either (i) the
capital used to acquire (and capitalized in the adjusted basis of) such property
(if the property is acquired other than by way of a capital contribution by one
or more parties), or (ii) the adjusted basis of such property (if the property
is considered a capital contribution by one or more parties). Each party shall
separately keep records of its share of the adjusted basis in each oil and gas
property, adjust such share of the adjusted basis for any cost or percentage
depletion allowable on such property, and use such adjusted basis in the
computation of its gain or loss on the disposition of such property. For
purposes of computing such gain or loss, and notwithstanding anything in the
Agreement to the contrary, the amount realized from the sale or other taxable
disposition of a depletable oil and gas property (other than production of oil,
gas or other hydrocarbon substances) and depreciable tangible property, shall be
allocated in accordance with

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the allocation of revenues from the sale or other taxable disposition of such
properties under Section 4(b) of the Agreement. Upon the request of the Program
Manager, each party shall advise the Program Manager of its adjusted basis in
each oil and gas property as computed in accordance with the provisions of this
subparagraph (d).

                  (e)      Gains and losses from each sale, abandonment or other
disposition of property (other than depletable oil and gas properties and
depreciable tangible properties as provided in subparagraph (d) of this
paragraph 6 and production of oil, gas or other hydrocarbon substances as
provided in subparagraph (a) of this paragraph 6) shall be allocated to the
parties in such manner as will reflect the gains and the losses that would have
been includable in their respective income tax returns if such property were not
subject to the Agreement. In computing each party's gains and losses, each party
shall take into account its share of the proceeds derived from each sale,
abandonment or other disposition of such property during the year, selling
expenses and its respective contributions to the unadjusted cost basis of such
property, less any allowed or allowable depreciation, cost recovery,
amortization, or other deductions which have been allocated to it with respect
to such property as provided herein.

                  (f)      Gains or losses realized on the taxable disposition
of property subject to this Agreement in excess of the gains or losses allocated
under subparagraphs (d) and (e) of this paragraph 6 with respect to such
property, if any, shall be allocated to the contributing party to the extent of
such party's pre-contribution gain or loss with respect to such property.

                  (g)      All recapture of income tax deductions resulting from
the sale or other disposition of any property subject to the Agreement shall be
allocated among the parties in the ratios in which the deductions giving rise to
such recapture were allocated, but each party shall be allocated recapture only
to the extent that such party is allocated any gain from the sale or other
disposition of such property. The balance of such recapture, if any, shall be
allocated to the parties whose share of gain exceeds their share of recapture
("excess gain") and such balance shall be allocated among such parties in the
proportion which the excess gain of such party bears to the excess gains of all
parties.

                  (h)      Income resulting from any dry hole or bottom hole
monetary contribution obtained from a third party in connection with the
drilling of a well or wells on the oil and gas properties subject to the
Agreement shall be allocated in the same manner as the costs of drilling such
well or wells are allocated.

                  (i)      All other items of deduction and credit not falling
within subparagraphs (b) through (h) of this paragraph 6 shall be allocated to
and accounted for by each party in accordance with its respective contribution
to the costs resulting in such deductions and credits.

         7.       Sale of Program Prospects. The parties agree that any sale by
a party of any ownership interest in a Prospect held by such party as part of
the Program and subject to the Agreement shall be deemed to be a sale of all or
a portion of such party's interest in this tax partnership.

         8.       Termination of Party's Interest. Any distribution in
termination of any party's interest in the tax partnership other than pursuant
to paragraph 9 shall be in an amount of cash or fair market value of property
equal to the capital account balance of such party at the time such interest is
terminated, after such capital account balance has been adjusted in accordance
with paragraph 4 and the applicable Treasury Regulations under Section 704(b) of
the Code, and shall be made by the later of (i) the end of the tax partnership
taxable year in which such termination occurs or (ii) within 90 days after the
date of such termination; provided, however, that if such capital account
balance is less than zero after taking into account such adjustments and the
distribution provided for in this paragraph 8, such party shall contribute an
amount of cash to the tax partnership sufficient to cause its capital account to
have a zero balance by the later of (i) the end of the tax partnership taxable
year in which such termination occurs or (ii) within 90 days after the date of
such termination.

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         9.       Distributions upon Termination. Upon termination of the
provisions of this Attachment pursuant to paragraph 3 above, the activities of
the parties under this Attachment shall be concluded and the assets subject to
the Agreement and this Attachment shall be distributed to the parties in the
manner and in the order set forth below:

                  (a)      Debts of the parties created pursuant to operations
under the Agreement, other than to the parties, shall be paid.

                  (b)      Debts owed among the parties with respect to
operations pursuant to the Agreement shall be paid.

                  (c)      All cash on hand representing unexpended
contributions by any party shall be returned to the contributor.

                  (d)      The parties' capital accounts shall be adjusted by
(i) assuming the sale of all remaining assets subject to the Agreement for cash
at their respective fair market values as of the date of termination of the
Agreement and (ii) debiting or crediting each party's capital account with the
party's respective share of the hypothetical gains or losses resulting from such
assumed sales in the same manner as such party's capital account would be
debited or credited under subparagraph (b) of paragraph 4 for gains or losses on
actual dispositions of such properties.

                  (e)      If the capital account of any party (stated as a
percentage of the aggregate capital accounts of all parties) is less than that
party's undivided interest in Leases owned by the Participants, as set forth in
Section 2(a) of the Agreement, then such party may elect, upon ten days notice
to the other parties, to contribute cash to the tax partnership for distribution
to the other parties in an amount sufficient to cause such contributing party's
capital account (stated as a percentage of the aggregate capital accounts of all
parties) and its undivided interest in Leases owned by the Participants, as set
forth in Section 2(a) of the Agreement, to be equal.

                  (f)      Thereafter, all remaining assets shall be distributed
to the parties by the later of (i)the end of the tax partnership taxable year in
which the termination occurs or (ii) 90 days after the date of such termination,
in accordance with their respective capital account balances as so adjusted;
provided, however that any party that has a capital account of less than zero
after taking into account the adjustments and distributions provided for
pursuant to and in the subparagraphs of this paragraph 9 shall contribute an
amount of cash to the tax partnership sufficient to cause its capital account to
have a zero balance by the later of (i) the end of the tax partnership taxable
year in which the termination occurs or (ii) 90 days after the date of such
termination. Any such contributions by parties having deficit capital account
balances shall be distributed to the remaining parties in accordance with their
respective positive capital account balances by the later of (i) the end of the
tax partnership taxable year in which the termination occurs or (ii) 90 days
after the date of such termination.

         If property subject to the Agreement is distributed pursuant to this
paragraph, the amount of the distribution shall be equal to the fair market
value of the distributed property. In the event the parties do not agree as to
the fair market value of such property, the Program Manager shall cause a
qualified independent petroleum engineer to prepare an evaluation of the fair
market value of such property.

         It is understood and agreed that it shall be the obligation of each
party to make such assignments as are required upon termination of the
provisions of this Attachment in accordance with the provisions of this
paragraph 9. Such assignments shall be made subject to the liability of each
assignee for costs, expenses and liabilities theretofore incurred or for which
commitment had been made by the Program Manager prior to the date of termination
and such costs, expenses and liabilities shall be allocated to such assignee
pursuant to this Attachment.

         10.      Effect of this Attachment. It is understood and agreed that in
the event the terms of this Attachment conflict with any of the terms and
conditions of the Agreement as between the parties hereto the terms of this
Attachment shall control with respect to the terms in conflict.

                                        5

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