Document:

KOCH*
_____________________________________________________________
KOCH NITROGEN COMPANY

January 4, 2000

Mr. Jim Wewers
President
Eldorado Chemical Company
Box 1373
Oklahoma City, Ok

Re:  Anhydrous Ammonia

Dear Jim,

Per our conversation today and pursuant to Article III, Section B
of  our  Anhydrous Ammonia Sales Agreement effective  October  1,
1999,  Koch Nitrogen and Eldorado Chemical Company agree to  sell
and  purchase,  respectively, additional  tonnage,  approximately
8,000 tons per month January through December 2000, above the new
50%  requirement  amounts.  Price for these  tons  will  be  ***.
Shipments  against the 50% requirements will be made  during  the
first  15  days of the month, the additional tonnage named  above
will  be shipped in the last 15 days of the month.  Either  party
may  cancel  the  terms of this letter agreement  with  120  days
written  notice.  All other terms and conditions as per  the  new
50% requirements contract effective October 1, 1999.

If  you are in agreement with the above terms, please sign  where
noted below.

Regards,

/s/ Mark R. Jones
Mark Jones
Koch Nitrogen

Eldorado Chemical Company

By: /s/ James L. Wewers
   ____________________________
Printed Name James L. Wewers
            ___________________
Title President
     __________________________

P.O. Box 2256    Wichita, Kansas 67201-2256   316/828-4889

*INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED FROM  THIS  PUBLIC
FILING  PURSUANT  TO  A REQUEST BY THE COMPANY  FOR  CONFIDENTIAL
TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.  THE OMITTED
INFORMATION HAS BEEN FILED SEPARATELY WITH THE SECRETARY  OF  THE
SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES OF SUCH REQUEST.

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.ANHYDROUS AMMONIA SALES AGREEMENT*

THIS AGREEMENT is entered into as of the 12th day of January,
2000, to be effective October 1, 1999, between KOCH NITROGEN
COMPANY, a Nebraska corporation, with principal offices at 4111
East 37th Street North, Wichita, Kansas 67220 (herein called
"Koch") and EL DORADO CHEMICAL COMPANY, an Oklahoma corporation,
with principal offices at 16 S. Pennsylvania, Oklahoma City,
Oklahoma 73107 (herein called "Buyer");

WITNESSETH:

WHEREAS, the parties entered into a previous agreement dated
May 29, 1997, ("Previous Agreement") and it is their intent to
terminate that Previous Agreement (except as specifically set
forth herein) and replace it with this agreement ("Agreement");
and

WHEREAS, as specified in this Agreement, Buyer and Koch desire to
enter into an anhydrous ammonia sales agreement under which Koch
agrees to supply to Buyer and Buyer agrees to purchase 50% of its
anhydrous ammonia Product Requirements, as defined herein, from
Seller; and

WHEREAS, as specified in this Agreement; Buyer will purchase
96,000 Tons of its Product Requirements by taking and paying for
them, or paying for them if not taken during the Month required
to be taken, during the term of this agreement, in addition to
purchasing at a Nola Index price from Seller the difference
between such 96,000 Tons and 50% of its Product Requirements; and

WHEREAS, as specified in this Agreement.  Buyer will take
delivery of, or pay for if not taken, the Required Yearly
Quantity in approximately equal monthly quantities throughout the
term of this Agreement; and

WHEREAS, as specified in this Agreement.  Koch shall charge Buyer
a price for each Ton based upon the pricing formulas set out in
this Agreement; and

*INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED FROM THIS PUBLIC
FILING PURSUANT TO A REQUEST BY THE COMPANY FOR CONFIDENTIAL
TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.  THE OMITTED
INFORMATION HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES OF SUCH REQUEST.
<PAGE>
WHEREAS, as specified in this Agreement, Buyer shall be
responsible for all Taxes related to such quantities of anhydrous
ammonia and for all transportation charges beyond the Delivery
Point hereunder; and

WHEREAS, the parties desire to state their agreements in writing;

NOW THEREFORE, in consideration of the mutual promises herein
contained, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

I.   DEFINITIONS

Whenever used in this Agreement.  the following term shall have
the following respective meanings:

          A.   "Additional Monthly Quantity" shall mean the
          diff6rence between (i) fifty percent (50%) of the
          Product Requirements for the Month and (ii) the
          Required Yearly Quantity divided by 12.
          B.   Additional Yearly Quantity" shall mean the
          difference between (i) fifty percent (50%) of the
          Product Requirements for the Contract Year and (ii) the
          Required Yearly Quantity.
          C.   "Agreement" shall mean this Anhydrous Ammonia
          Sales Agreement between Koch and Buyer.
          D.   "Alpha" shall mean the adjustment to the Nola
          Index Price as stated in Article VI, Section G.
          E.   "Ammonia Pipeline Transportation Charge" shall
          mean Koch's actual Product pipeline transportation cost
          from Koch's Sterlington, Louisiana ammonia production
          facility to the pipeline Delivery Point.
          F.   "Contract Price" shall mean the price stated in
          Article VI, Section B.
          G.   "Contract Year" shall mean: (i) the three (3)
          Month period from October 1, 1999 to December 31, 1999
          and (ii) each of the three (3) twelve (12) Month
          periods during the term hereof, the first of which
          shall begin on January 1, 2000 and shall end on
          December 31, 2000 and the following two (2) twelve (12)
          Month periods until December 31, 2002.
          H.   "Conversion Factor" shall mean *** and reflects
          the agreed to amount of natural gas necessary to
          produce or procure and supply one Ton of Product.
     I.   "Deficiency Volumes" shall mean the definition stated
          in Article III, Section C.

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.
                                2
<PAGE>
     J.   "Delivery Point" shall mean (i) for pipeline
          deliveries, the discharge side of the Product meter
          owned by Koch Pipeline Company, L.P. at Buyer's
          El Dorado, Arkansas chemical production facility, or
          (ii) for rail or trucking deliveries, the point at
          Buyer's facility where the truck or rail cars come to
          rest, or (iii) another delivery point along Koch
          Pipeline Company,  L.P.'s ammonia pipeline, provided
          Buyer gives Koch at least forty-five (45) days written
          notice prior to the date it wishes to begin delivery at
          such alternate delivery point.
     K    "Effective Date" shall mean October 1, 1999.
     L.   "Fixed Charge" shall mean ***, and any subsequent
          instruments pursuant to Article VI, Section E below.
     M.   "Gas Price" shall mean (MMBTU Price + Transportation
          Charge) multiplied by the Conversion Factor.
     N.   "GM Nola Low Average Price" shall mean the monthly
          average of the weekly lows of the ranges for Ammonia in
          the U.S. Gulf (NOLA) as published in "Green Markets"
          Price Scan during the Month in which delivery occurs.
          For deliveries made from the 1st through the 15th of
          the Month and for purposes of preparing the mid-Month
          invoice, a "Provisional GM Nola Low Average Price"
          shall mean the average of the weekly lows of the ranges
          as stated above and published during this fifteen (15)
          day time period.  At the end of the Month, if the GM
          Nola Low Average Price is higher or lower than the
          Provisional GM Nola Low Average Price, an adjustment
          shall be made in the end of Month invoice to correct
          for any difference between the GM Nola Low Average
          Price and the Provisional GM Nola Low Average Price.
          For deliveries made from the 16th through the end of a
          Month, the GM Nola Low Average Price, as defined above
          for the entire Month, shall apply.  In the event such
          prices cease to be published, or are no longer an
          accurate indicator of U.S. Gulf Coast market price,
          then Buyer and Koch will negotiate in good faith to
          agree upon an alternate published index which
          accurately indicates U.S. Gulf Coast market price.
     O.   "Koch Facility" shall mean Koch's anhydrous ammonia
          production facility at Sterlington, Louisiana.
     P.   "MMBTU Price" shall mean the "Henry Hub" Index price in
          MMBTU's reported under the table entitled "Market
          Center Spot-Gas Prices" in the first issue of Inside
          FERC's Gas

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                                3
<PAGE>
          Market Report for the Month of delivery.  If inside
          Inside FERC's Gas Market Report and/or the "Henry Hub"
          Index price am no longer published, the parties shall
          meet within 30 days of the date such publication ceases
          to determine a new publication and/or index.
     Q.   "Month" shall mean a calendar Month.
     R.   "Monthly Quantity" for any given Month during the term
          of this Agreement shall mean 50% of Buyer's Product
          Requirements.
     S.   "Nola index Price" shall mean the price stated in
          Article VI, Section C.
     T.   "Product" shall mean commercial anhydrous ammonia
          having the following specifications:
          Ammnia (NH3) Content:    99.5% by weight minimum
          Oil:                     5 ppm  maximum by weight
          Water:                   0.2% by weight minimum; 0.5%
                                   by Weight Maximum
          Inerts:                  0.5 cc per gram maximum
     U.   "PPI" shall mean the Producer Price Index for Chemicals
          and Allied Products published by the United States
          Department of Labor.
     V.   "Product Requirements" shall mean the Product purchased
          by Buyer for its El Dorado, Arkansas facility for
          processing either directly to Buyers account or for
          processing, tolling, or other similar arrangements for
          the account of third parties.  Such amounts are
          expected to be 160,000 - 240,000 Tons per year.
          Product delivered to Buyer by third parties for tolling
          but which is not purchased by Buyer would not be
          included as part of Buyer's requirements or Product
          Requirements.
     W    "Required Monthly Quantity" shall mean two thousand
          (2,000) Tons per Month during Contract Year 2000 and
          three thousand (3,000) Tons per Month during Contract
          Years 2001 and 2002.
     X.   "Required Yearly Quantity" shall mean twenty-four
          thousand (24,000) Tons in Contract Year 2000 and thirty-
          six thousand (36,000) Tons in Contract Years 2001 and
          2002.
     Y.   "Taxes" shall mean the definition set forth in Article
          IX, Section A.
     Z.   "Ton" shall mean a short ton of two thousand (2,000)
          pounds avoirdupois.  As used herein, the term Ton shall
          refer to a quantity of Product.

                                4
<PAGE>
     AA.  "Transportation Charge" shall mean Koch's actual
          natural gas transportation charge, including fuel, from
          Henry Hub to Koch's Sterlington, Louisiana ammonia
          facility, which as of the Effective Date of this
          Agreement is ***, subject to adjustments under Article
          VI, Section D, below.
     BB.  "Yearly Contract Price" for 1999 shall mean (i) the
          twelve (12) Month average of the Gas Price for January
          through December for 1999, plus (ii) the Fixed Charge
          for 1999, plus (iii) Ammonia Pipeline Transportation
          Charge, plus (iv) Taxes; and the "Yearly Contract
          Price" for 2000 shall mean (a) the four (4) Month
          average of the Gas Price for January through April
          2000, plus (b) the Fixed Charge for 2000, plus (a)
          Ammonia Pipeline Transportation Charge, plus (d) Taxes.

II.  TERM

     This Agreement shall continue and remain in full force and
     effect for a term of thirty-nine (39) Months commencing on
     the Effective Date and ending December 31, 2002.

III. QUANTITY TO BE SOLD AND PURCHASED

     A.   Purchase Obligation for October 1 through December 31,
          1999.   During the Contract Year from October 1, 1999
          through December 31, 1999 Koch agrees to sell and
          deliver to Buyer and Buyer agrees to purchase 100% of
          Buyer's Product Requirements from Koch.  The projected
          minimum product Requirements for this time period shall
          be as follows: 3,000 Tons in October; 1,000 Tons in
          November, and 9,000 Tons in December.  During this time
          period, Koch agrees to deliver 7,844.5 Tons (Deficiency
          Volume from 1999 under the Previous Agreement) to
          Buyer, for which Buyer has previously paid but not
          taken delivery; provided, (i) Buyer shall have put in
          place an additional letter of credit in an amount of
          *** as stated in Article VI, Section K prior to
          delivery, (ii) Buyer pays the Contract Price Supplement
          as defined in Article VI, Section A.1.a), and (iii)
          Buyer pays the Ammonia Pipeline Transportation Charge
          for the 7,844.5 Tons when delivered.  The parties
          acknowledge that the obligations of the parties under
          Article III, Section A have been fulfilled as of the
          date of execution of this Agreement.

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                                5
<PAGE>
     B.   Purchase Obligation for January 1, 2000 through
          December 31, 2002.   For the Contract Years commencing
          on January 1, 2000, January 1, 2001 and January 1,
          2002, Koch agrees to sell and deliver to Buyer and
          Buyer agrees to purchase 50% of Buyer's Product
          Requirements from Koch.  Buyer agrees to make
          reasonable commercial efforts to purchase above 50% of
          Buyer's Product Requirements from Koch during this
          period.  If Koch and Buyer agree to sell and buy
          (respectively) such Tons, the price for such Tons shall
          be as mutually agreed upon by the parties and all non-
          price provisions of this Agreement shall apply to such
          Tons.  Such Tons shall not count toward the 204,000
          Tons named in Article III Section B.2, below.  Under
          this Agreement, Koch will have no obligation to deliver
          more than 120,000 Tons in any Contract Year.  Buyer's
          total purchase obligation during each Contract Year
          shall be comprised of (i) the Required Yearly Quantity
          and (ii) the Additional Yearly Quantity.  In addition,
          Buyer's total purchase obligation during each Month
          shall be comprised of (i) the Required Monthly Quantity
          and (ii) the Additional Monthly Quantity.

          B.1  Required Purchase Obligation.  Subject to Article
               III,  Section C, Article VII, Section A and
               Article X below, during each month of each
               Contract Year, Koch agrees to sell and deliver to
               Buyer and Buyer agrees to take and pay for, or pay
               Koch the Contract Price if not taken during the
               Month required to be taken, the Required Monthly
               Quantity of Product The total Required Yearly
               Quantity during the term of this agreement shall
               total 96,000 Tons.
          B.2  Additional Purchase Obligation.  During each
               Contract Year from January 1, 2000 through
               December 31, 2002, in addition to the volumes set
               forth in Section B.1 above, Koch agrees to sell
               and deliver to Buyer and Buyer agrees to purchase
               and pay Koch the Nola Index Price for the
               Additional Yearly Quantity of Product.  In the
               event that the Additional Yearly Quantity
               purchased by Buyer for all Contract Years is less
               than *** in total, then Buyer agrees to make an
               End of Term Payment to Koch, in accordance with
               Article VI, Section J.

     C.   Make-up Rights.  Subject to Article VII, Section B
          below, if during any of the last three Contract Years
          Buyer fails to take the Required Monthly Quantity (the

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.
                                6
<PAGE>
          difference between the Required Monthly Quantity and
          the quantity actually taken during the Month, under
          Article III, Section B.1 above, shall be referred to
          hereafter as the "Deficiency Volumes"), Buyer shall
          have the fight to take delivery of the Deficiency
          Volumes during the twenty-four (24) months following
          the Contract Month it failed to take such Deficiency
          Volumes, including the time period after the term of
          this Agreement expires.  Buyer's take of any Deficiency
          Volumes shall be in addition to its take obligations of
          the Required Monthly Quantity for the subject Contract
          Year.  If Buyer elects to take delivery of Deficiency
          Volumes during the twenty-four (24) months following
          the Contract Month it failed to take the Deficiency
          Volumes, in addition to the Contract Price paid in the
          Contract Month it failed to take the Deficiency
          Volumes, Buyer shall pay Koch the product of the (i)
          difference between the Contract Price for the Month
          Buyer actually takes delivery of Deficiency Volumes and
          the Contract Price paid by Buyer in the Contract Month
          it failed to take the Deficiency Volumes multiplied by
          (ii) the Tons of Deficiency Volumes actually taken in
          the subject Month.  If Buyer elects to take Deficiency
          Volumes after this Agreement's term expires, Buyer
          shall pay Koch, in addition to the Contract Price paid
          in the Contract Month it failed to take the Deficiency
          Volumes, the product of (i) the difference between the
          Contract Price for the Month it actually takes delivery
          of any Deficiency Volumes calculated as if the term of
          this Agreement had been extended to such Month and the
          Contract Price paid by Buyer in the Contract Month it
          failed to take the Deficiency Volumes multiplied by
          (ii) the Tons of Deficiency Volumes actually taken
          during the subject Month after this Agreement's term
          expires.  If Buyer elects not to take Deficiency
          volumes as set forth in this Section C, it waives any
          rights to take the Deficiency Volumes at a later date.
     D.   No Duty to Mitigate.  It is understood and agreed by
          Buyer that its obligation to pay for any Required
          Monthly Quantity or any Required Yearly Quantity it
          elects not to take during any Contract Year is not in
          the nature of damages.  Rather, such a payment
          constitutes an alternative measure of performance
          elected by Buyer.  This alternative measure is designed
          to compensate Koch for the risk of producing, procuring
          and supplying the Required Monthly Quantity and
          Required Yearly Quantity, while it is expressly
          understood that Buyer has accepted the market risk
          associated with such a contract.  Therefore, if Buyer
          fails to take or to pay for the

                                7
<PAGE>
          Required Yearly Quantity or Required Monthly Quantity
          not taken in any Contract Year or Month respectively,
          Koch shall have no duty or obligation to resell or
          otherwise mitigate its potential losses arising from
          Buyer's failure to perform its contractual obligations.
     E.   Measurement.  The quantity of Product delivered
          hereunder to Buyer by pipeline shall be governed by the
          weights and measures taken by meters owned by Koch
          Pipeline Company, L.P. at the Delivery Point pursuant
          to Koch Pipeline Company, L.P.'s tariff in effect on
          the date of delivery, For trucking or rail deliveries,
          the quantity of Product delivered to Buyer shall be
          governed by the weights and measures taken as the
          trucks or rail cars are loaded at the Koch Facility.
          The foregoing measurements of said quantities shall be
          final and conclusive, unless proven to be in error.
     F.   Verification of Product Requirements.  If requested by
          Koch, Buyer shall provide proper documentation to Koch
          to verify that fifty percent (50%) of Buyer's Product
          Requirements have been purchased from Koch.  If such
          documentation is not satisfactory to Koch, the parties
          will mutually agree to an independent auditor which
          will be allowed to audit Buyer's books and records to
          verify that fifty percent (50%) of Buyer's Product
          Requirements have been purchased from Koch.

IV.  QUALITY

     All Product delivered hereunder shall conform to the
     specifications set forth in Section T of Article I.  All
     claims by Buyer that any Product delivered hereunder does
     not conform to the specifications set forth in said Section
     T, shall be made in writing and sent within thirty (30) days
     of Koch's delivery of such Product to the Delivery Point.
     Failure to give written notice of such claim within the
     specified time shall constitute a waiver and bar of and to
     such claim, and Buyer shall be precluded from relying on
     defects which are not stated in such notice as a basis for
     rejection or assertion of a breach.

                                8
<PAGE>
V.   WARRANTIES

     A.   Koch makes no warranty of any kind, express or implied,
          except that Product sold hereunder shall conform to the
          specifications set forth in Section T of Article I and
          that Koch will convey good title thereto, free from any
          lien or security interest.  KOCH ASSUMES NO OTHER
          LIABILITY WITH RESPECT TO PRODUCT AND MAKES NO OTHER
          WARRANTY WHETHER OF NONMERCHANTABILITY, FITNESS FOR A
          PARTICULAR PURPOSE, OR OTHERWISE, EXPRESSED OR IMPLIED,
          WITH RESPECT THERETO.
     B.   Neither party shall be liable, under any circumstances,
          for any special, indirect, incidental, consequential
          (including but not limited to, loss of profits or any
          similar damages) or punitive or exemplary damages
          arising out of this Agreement, except for third party
          personal injuries and property damage which are deemed
          by applicable law to be consequential damages.  In no
          event shall the amount of any claim by Buyer, whether
          for failure to meet the specifications for non-
          delivery, or for any other reason, be greater than the
          actual replacement costs of the Product for the
          particular shipment.  In this regard, Buyer's sole and
          exclusive remedy for any breach of this Agreement by
          Koch shall be, at Koch's option, replacement of any
          nonconforming product at the Delivery Point or payment
          not to exceed the replacement price of the Product
          Buyer shall use reasonable efforts to obtain reasonably
          priced replacement Product.

VI.       PRICE AND PAYMENT

     A.   For each Ton of Product sold to Buyer hereunder or
          provided as Deficiency Volumes, as appropriate, Koch
          shall charge, and Buyer shall pay Koch based on the
          following:

          1)   Contract Year: October 1 through December 31,
1999:
               Quantity Per Month       Price Basis
               __________________       ____________
               October (3,054.79 tons)  Contract Price Supplement
               November (7,000 tons)    Contract Price Supplement
                                        for first
                                        4,789.71 Tons and Nola
                                        Index Price for the
                                        remaining Tons
               December (9,000 tons)    Nola Index
                                        Price

               a)   Contract Price Supplement shall
               equal (i) *** per Ton multiplied by (ii) 7,944.5
               Tons (the Deficiency Volume).
          2)   Contract Year: 2000:
               Quantity Per Month       Price Basis
               __________________       ___________
               First 2,000 tons         Contract Price
               2,001 to 10,000 tons     Nola Index Price

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                                9
<PAGE>
          3)   Contract Year: 2001:
               Quantity Per Month       Price Basis
               ___________________      ____________
               First 3,000 tons         Higher of
                                        Contract Price for Month
                                        or Yearly Contract Price
               3,001 to 10,000
                                        tons      Nola Index
                                        Price

               a)   The yearly Contract Price shall be bond on
               the Yearly Contract Price for 1999.

          4)   Contract Year: 2002:
                                                  Quantity Per
                                        Month          Price
                                        Basis
               __________________       ____________
                                                  First 3,000
                                        tons           Higher of
                                        Contract Price for Month
                                        or Yearly Contract Price
                                                  3,001 to 10,000
                                        tons Nola Index Price

               a)   The Yearly Contract Price for the first
               20,000 Tons purchased during Contract Year 2002
               shall be based on the Yearly Contract Price for
               1999 and the remaining 16,000 Tons purchased
               during Contract Year 2002 shall be based on the
               Yearly Contract Price for Contract Year 2000.

     B.   Contract Price.  For each Ton of Required Yearly
          Quantity to be sold to Buyer hereunder, Koch shall
          charge and Buyer shall pay to Koch the following
          Contract Price:

               Contract Price = Gas Price + Fixed charge +
               Ammonia Pipeline Transportation Charge+ Taxes

     C.   Nola Index Price.  For each Ton of Additional Yearly
          Quantity sold to Buyer hereunder, Koch shall charge,
          and Buyer shall pay Koch the following Nola Index
          Price:

               Nola Index Price = ***

     D.   Transportation Charge Adjustment.  The Transportation
          Charge component of the Gas Price shall be increased or
          decreased whenever Koch incurs a cost change to reflect
          Koch's actual natural gas transportation costs
          (including fuel) from Henry Hub to Koch's Facility.

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                               10
<PAGE>
     F.   Fixed Charge Adjustment.  The Fixed Charge shall be
          adjusted annually beginning January 1, 2000, based on
          the annual percentage change between the PPI as it
          existed on January 1 of the year that just ended
          (Subject Contract Year), and the PPI as it existed on
          January 1 of the year prior to the year that just ended
          (Preceding Contract Year) and shall be adjusted on
          January 1 of each calendar year.  To calculate each
          annual adjustment, Buyer and Koch agree to take the
          difference in the PPI for the Subject Contract Year and
          the Preceding Contract Year and then divide by the
          Preceding Contract Year's PPI, which will yield the
          annual PPI percentage change.  The annual PPI
          percentage change shall then be multiplied by the
          current Fixed Charge to get the Fixed Charge Adjustment
          rounded to the nearest cent.  The Fixed Charge
          Adjustment will then be added to or subtracted, from
          the current Fixed Charge to establish the now Fixed
          Charge.  For an example of such calculation, see
          Addendum A for calculations used in determining the
          Fixed Charge Adjustment for 1999.  A Preliminary PPI
          Annual number, for the Subject Contract Year, may be
          used to calculate the Fixed Charge Adjustment until the
          Actual Annual PPI number, for the Subject Contract
          Year, is known.  Once actualized, then credits/debits
          would be made accordingly and the actual new Fixed
          Charge would apply.
     F.   Ammonia Pipeline Transportation Charge Adjustment. The
          Ammonia Pipeline Transportation Charge shall be
          increased or decreased whenever Koch incurs a cost
          change to reflect Koch's actual Product transportation
          costs from Koch's Facility to the Delivery Point.
     G.   Alpha.
               Alpha shall be defined as follows:
                    1)   October 1, 1999 through December 31,
               1999:
                            Additional Monthly Quantity    Alpha,
               $/Ton
                  ___________________________    ____________
                               ***

                    2)   January 1, 2000 through December 31,
               2000:
                            Additional Monthly Quantity    Alpha,
               $/Ton
                  ___________________________    ____________
                               ***

                    3)   January 1, 2001 through December 31,
               2002:
                            Additional Monthly Quantity    Alpha,
               $/Ton
                  ___________________________    ____________

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.
                               11
<PAGE>
                               ***

     H.   Rail or Truck Transportation Costs.  Notwithstanding
          any other provision of this Agreement, if ammonia
          pipeline transportation service is interrupted or
          curtailed, preventing Koch from making all or a portion
          of the required deliveries of Product hereunder, Koch
          shall use reasonable efforts to arrange rail or
          trucking transportation service from Koch's Facility to
          Buyer's Facility.  Buyer shall be responsible for and
          reimburse Koch for all rail and/or trucking
          transportation costs incurred by Koch for deliveries of
          Product hereunder, including without limitation,
          demurrage charges.  However, if Buyer is forced to pay
          a trucking and/or rail transportation rate that is
          higher than the Pipeline Transportation Charge and the
          increased transportation rate makes it uneconomical for
          Buyer to operate Buyer's Facility, forcing Buyer to
          shut down such facility, then Buyer shall have the
          right to suspend its performance hereunder by providing
          Koch with thirty (30) days written notice.  However,
          Buyer shall not be allowed to suspend its performance
          hereunder if Koch, within its sole discretion, elects
          to pay the difference between the Ammonia Pipeline
          Transportation Charge and the trucking and/or rail
          transportation charges to the Delivery Point.  If it
          remains uneconomical for Buyer to operate Buyer's
          Facility for sixty (60) consecutive days from the date
          Buyer gives Company notice solely because of the
          interruption or curtailment of pipeline Product
          deliveries hereunder and Koch elects not to pay the
          transportation differential, then Buyer shall have the
          right to terminate this Agreement by providing Koch
          with written notice within five (5) days of the end of
          the sixty (60) day period.
     I.   Payment Term. ***

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                               12
<PAGE>
          ***.  Koch shall also invoice Buyer for any additional
          amounts or refund any amounts as required by the terms
          set forth in Article I, Section N. *** Buyer agrees to
          accept facsimile copies of invoices from Koch.
     J.   End of Term Payment.  In the event Buyer has not
          purchased all Additional Yearly Quantity amounts, as
          defined in Article III, Section B.2, by December 31,
          2002, Buyer shall make an "End of Term Payment" to Koch
          in the amount equal to (i) the difference between ***
          Tons and the sum of the Additional Monthly Quantity
          amounts taken, multiplied by (ii) $*** per Ton.  In
          such case Koch shall invoice Buyer within thirty (30)
          days after December 31, 2002, and Buyer shall pay Koch
          the foregoing amount within two (2) days of the invoice
          date by Koch debiting Buyer's account, by using EFT.
     K.   Letter of Credit.  As assurance to Koch for Buyer's
          performance hereunder, Buyer agrees (i) to maintain the
          existing irrevocable standby letter of credit issued
          pursuant to the Previous Agreement in the amount of ***
          (the "LC") or an amended version of that LC in the
          amount of *** and (ii) at least one business day prior
          to the delivery by Koch of the 1998 Deficiency Volumes
          or execution of this Agreement, to deliver to Koch an
          additional Irrevocable standby letter of credit In the
          amount of ***

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                               13
<PAGE>
          (the "Additional LC") issued by a bank or other
          financial institution acceptable to the Credit
          Department of Koch.  Such LC(s) shall be in the form of
          Addendum B attached hereto and made a part hereof.
          Buyer shall annually renew or cause the renewal or the
          letters of credit at least thirty (30) days prior to
          their respective expiration dates.  Buyer shall
          maintain such letters of credit in the total amount of
          *** until such time the projected amount of the Unpaid
          Premium, as defined in Section L below, is less than
          *** at which time Koch shall allow Buyer to reduce the
          value of the letters of credit as the projected amount
          of Unpaid Premium is reduced, on a dollar for dollar
          basis.  Subject to the foregoing, the letters of credit
          shall remain effective until 30 days after the term of
          this Agreement expires.  If the bank or financial
          institution issuing one of the letters of credit shall
          at any time cease to be acceptable to the Credit
          Department of Koch as determined in its sole
          discretion, then within fifteen (15) calendar days
          after written notice from Koch, Buyer agrees it shall
          deliver to Koch a substitute irrevocable standby LC
          issued by a bank or other financial institution
          satisfactory to Koch, without terminating the original
          or then outstanding LC until such substitute LC has
          been delivered to Koch.  If Buyer fails or refuses to
          cause the renewal of an existing LC or the delivery of
          a substitute LC within the required time period, such
          failure or refusal shall constitute a material breach
          of this Agreement entitling Koch to collect damages and
          to draw on the original or then outstanding letter of
          credit.  In such event, Buyer shall have ten (10) days
          in which to cure such default and if such default is
          not cured within that time period, Koch may draw down
          on all or part of the Letter(s) of Credit, in addition
          to any other remedies Koch may be entitled to under
          this Agreement or at law or in equity.  Koch shall give
          Buyer five (5) days notice prior to drawing on the LC.
          The parties specifically agree that in such case, if
          Koch chooses to draw down on the Letter(s) of Credit in
          an amount greater than any amount then due and owing
          under this Agreement, adequate consideration for Koch
          doing so exists due to Koch foregoing its rights to
          collect amounts due and owing under the Previous
          Agreement and instead entering into this Agreement with
          Buyer.
     L.   Basis for Letter of Credit Reduction.  Koch shall
          notify Buyer ninety (90) days in advance when the
          projected amount of the Unpaid Premium shall be
          expected to be less than ***.  The "Unpaid Premium"
          shall be an amount equal

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                               14
<PAGE>
          to (i) the difference between 96,000 Tons and the sum
          of all Required Monthly Quantity Amounts paid for by
          Buyer multiplied by (ii) ***.  Current projections
          indicate this should occur around the end of March
          2001.  When the Unpaid Premium is less than ***, Buyer
          shall be allowed to reduce the total value of the
          letters of credit by the amount the Unpaid Premium is
          less than ***; provided the letters of credit at the
          beginning of any Month covers 100 percent of the Unpaid
          Premium.  In reducing letter(s) of credit pursuant to
          the above, Buyer agrees to first reduce entirely the
          most recently issued letter of credit before reducing
          the letter of credit issued earlier.
     M.   Additional Credit.  Koch may from time to time demand
          different terms of payment or additional assurance of
          payment, or other credit terms whenever Koch within its
          good faith discretion deems itself insecure because the
          prospect for payment or performance reasonably appears
          impaired.  In any such event, and upon written notice
          specifying the event warranting the change in terms of
          payment, additional assurance of payment, or credit,
          Koch may suspend further deliveries pending agreement
          to the revised terms, including, but not limited to,
          pending agreement of Buyer to the posting of an
          appropriate bond, an additional letter of credit or
          other security acceptable to Koch to further secure
          Buyer's obligations hereunder.  If Buyer fails or
          refuses to give adequate assurance of performance or
          payment upon demand therefor, Koch may treat such
          failure or refusal as a repudiation and breach of this
          Agreement, thereby entitling Koch to exercise all
          remedies provided for under this Agreement and any
          other remedy it may have at law or in equity.

VII.      DELIVERY

     A.   Required Yearly Quantity.  Subject to variations as may
          be necessitated due to a Force Majeure event as set out
          in Article X Koch shall deliver the Required Yearly
          Quantity, and Buyer shall take delivery of the Required
          Yearly Quantity in equal quantities of two thousand
          (2,000) Tons per Month during Contract Year 2000 and
          three thousand (3,000) Tons per Month during Contract
          Years 2001 and 2002.  Buyer shall notify Koch no later
          than the 1st calendar day of the Month immediately
          prior to the Month of delivery of the number of Product
          Tons it wishes to receive for such Month of delivery.
          Buyer shall promptly notify Koch in writing of any
          known or anticipated changes that will not permit Buyer
          to receive the Monthly Quantity.

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.
                               15
<PAGE>
     B.   Deficiency Volumes.  If Buyer elects to take delivery
          of Deficiency Volumes in a subsequent Contract Year or
          after the term of this Agreement expires as set forth
          in Article III, Section C above, it shall give Koch
          Fifteen (15) days written notice prior to the first day
          of the requested Month of delivery.  Unless otherwise
          agreed to by Koch, Buyer shall take delivery of such
          Deficiency Volumes in approximately equal quantities
          during each Month of the subsequent Contract Year or
          the twelve (12) Month period after the term of this
          Agreement expires, unless otherwise agreed to by Koch
          in writing.  However, in no event shall Koch be
          required to deliver more than three thousand (3,000)
          Tons of Deficiency Volumes in any given Month.
     C.   Title and Risk of Loss.   Koch shall deliver the
          Product hereunder to Buyer at the Delivery Point, and
          upon the passing of said title to Buyer, Buyer shall be
          deemed to have exclusive ownership and control of said
          Product and shall be responsible for any injuries or
          damages caused thereby.

VIII.     CONTRACT BUYOUT OPTION

     A.   Buyer Sells Business.  In the event Buyer sells its
          El Dorado, Arkansas facility to a third Party, Buyer
          shall make reasonable commercial efforts to have this
          Agreement assigned to the new buyer.  In the event the
          new buyer does not accept such an assignment, Buyer
          shall have the option to either (i) continue to be
          bound by this Agreement or (ii) make a Buy Out Payment
          to Koch, as defined in Section C below.
          Notwithstanding anything seemingly to the contrary
          herein, if Buyer makes a Buyout Payment, this Agreement
          shall be deemed automatically terminated except for
          Articles IV and V and except for the return to Buyer of
          any undrawn or partially undrawn Letters of Credit
     B.   Buyer Forms Joint Venture or Alliance with Third Party.
          In the event Buyer forms a joint venture  with another
          company to produce or market ammonium nitrate or
          concentrated nitric acid, Buyer shall have the option
          to (i) continue to be bound by this Agreement or (ii)
          make a Buyout Payment to Koch, as defined per Section C
          below.  Notwithstanding anything seemingly to the
          contrary herein, if Buyer makes a Buyout Payment, this
          Agreement shall be deemed automatically terminated
          except for Articles IV and V and except for the return
          to Buyer of any undrawn or partially undrawn Letters of
          Credit.

                               16
<PAGE>
     C.   Buy Out Payment.  In the event a Buy Out Payment is
          called for as set forth above, Koch shall send an
          invoice to Buyer for the payment in an amount equal to
          ***.  Buyer shall pay Koch the foregoing amount within
          two (2) days of the invoice date by Koch debiting
          Buyer's bank account using EFT.

IX.  TAXES

          A.   All present and future taxes, including, but not
          limited to, the Superfund Tax, (referred to herein as
          "Taxes") relating to the Product delivered hereunder,
          including all new taxes or increases in existing taxes
          including excise taxes (but excluding Koch's net
          income, excess profits, or corporate franchise taxes)
          imposed by any governmental authority upon the
          manufacture, use, sale, or delivery of the Product,
          shall be for Buyer's account, unless Buyer delivers to
          Koch current exemption certificates evidencing Buyer's
          exemption from paying such Taxes.
          B.   Buyer agrees to indemnify and hold harmless Koch
          and its successors and assigns from and against any and
          all excise taxes (but not including net income, excess
          profits, or corporate franchise taxes), inclusive of
          any penalty and interest, assessed at a future date
          against Koch by any governmental authority upon the
          manufacture, use, sale, or delivery of the Required
          Yearly Quantity and/or Additional Yearly Quantity,
          whether taken or not.

X.   FORCE MAJEURE

          A.   Neither Koch, nor Buyer, shall be liable for any
          failure or delay in performance under this Agreement,
          except for the obligation to make money payments due
          hereunder for Product already purchased, due to a Force
          Majeure event.  "Force Majeure," as used herein shall
          mean any event which may be due in whole or in part to
          any contingency, delay, failure, cause or other
          occurrence of any nature beyond a party's reasonable
          control, whether it is presently occurring or occurs in
          the future, which (i) prevents Koch from producing,
          selling, purchasing or

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                               17
<PAGE>
          transporting the Product or (ii) which prevents Product
          from being used at Buyer's chemical facility in
          El Dorado, Arkansas (referred to hereafter as Buyer's
          Facility).
          B.   The term "Force Majeure" shall not include (i) an
          event caused by a party's sole or contributory
          negligence; (ii) Koch's ability to sell or Buyer's
          ability to purchase Product at a price more
          advantageous than the Contract Price; (iii) Buyer's
          loss of markets for products produced at Buyer's
          Facility; (iv) shutdown of Seller's Facility or Buyer's
          Facility for reasons other than a Force Majeure event
          and (v) routine or scheduled maintenance at Seller's
          Facility or Buyer's Facility.
          C.   If a Force Majeure event occurs, the declaring
          party may exercise its right under this Article by
          giving timely notice thereof to the other party setting
          forth with reasonable particularity the nature of the
          Force Majeure event.  The declaring party shall use
          reasonable efforts to remedy the situation as quickly
          as possible and shall only be excused from performance
          hereunder during the duration of the Force Majeure
          event.  The declaring party shall give the other party
          prompt notice of when the Force Majeure event ends.  If
          Koch's deliveries of Product to Buyer are impeded due
          to a Force Majeure event, Koch shall have the right to
          apportion deliveries among its present and future
          customers (including regular customers not then under
          contract) and Koch's own requirements on such basis as
          may appear to Koch to be appropriate and equitable.
          Koch shall not be obligated to take any action which
          would result in increasing its performance costs under
          this Agreement beyond the costs which it would have
          incurred in the absence of such occurrence, delay or
          cause.  In this regard, should Koch be required to
          operate the Koch Facility in a manner that results in
          Koch violating an operational flow order or similar gas
          pipeline order in order to meet its obligations under
          this Agreement, and the violation triggers a penalty or
          other charge to be incurred by Koch, Koch shall have
          the right to invoice Buyer for such charge on a per Ton
          basis as follows:  ([the dollar amount per MMBTU of
          such a charge x Conversion Factor] x the number of Tons
          of Product produced using natural gas to which such
          charge applies).  Buyer agrees to pay such charge in
          addition to the Contract Price per Ton and all other
          charges to be paid by Buyer to Koch for Product under
          this Agreement until such penalty or charge is
          curtailed as against Koch, provided, that in any such
          event, Buyer will have the option of declining to take

                               18
<PAGE>
          Product that is subject to such penalty or charge.  The
          Required Yearly Quantity for the subject Contract Year
          shall be reduced by the Tons of Product Buyer declines
          to take under the preceding sentence.
          D.   If a Force Majeure event occurs, Koch shall have
          the option, but not the obligation, to reduce the
          number of Tons of Product that it is required to
          deliver and Buyer is required to take or pay for
          hereunder; provided, that such reduction shall not
          affect the obligation of Koch to deliver, nor the
          obligation of Buyer (except as provided for herein) to
          take or pay for, the remaining Tons to be taken or paid
          for hereunder.  If Koch elects to reduce the number of
          Tons Buyer is obligated to take or pay for in a
          particular Contract Year due to a Force Majeure event,
          or if the Force Majeure event continues into a
          subsequent Contract Year, Buyer's Required Yearly
          Quantity shall be reduced by number of Tons canceled by
          Koch due to the Force Majeure event.  Koch's exercise
          of its option to cancel such affected Tons must be made
          by notice in writing by Koch to Buyer no later than
          thirty (30) days after the Force Majeure event no
          longer exists.  If Koch does not exercise such option,
          the quantity of Product which was not delivered and
          received during the occurrence shall be delivered by
          Koch and received by Buyer after the Force Majeure
          event no longer exists during the term of this
          Agreement or within a reasonable period immediately
          following the expiration of this Agreement depending
          upon when Koch has Product available.  If Koch delivers
          the Product after the Force Majeure event no longer
          exists during the term hereof, the Contract Price per
          Ton, or the Nola Index Price per Ton, whichever is
          applicable, for such Product shall be as set forth in
          Article VI calculated for the Month Koch actually
          delivers the Product.  If, however, Koch delivers the
          Product after the end of this Agreement's term, the
          price for such Product shall be the Contract Price per
          Ton or the Nola Index price per Ton, whichever is
          applicable, according to the formula contained in
          Article VI and the definitions contained in Article I
          that would have been charged during the Month the
          Product is actually delivered if the term of this
          Agreement had continued in effect.  If a Force Majeure
          event exists for a period of sixty (60) days or longer,
          or the declaring party gives notice that such event
          will last more than sixty (60) days, the non-declaring
          party shall have the option to terminate this Agreement
          by written notice to the other.  Upon such termination,
          all obligations of the

                               19
<PAGE>
          parties hereunder shall terminate without liability to
          the other party, except for obligations which accrued
          prior to the effective date of the termination.
          E.   If, at any time during this Agreement's term, any
          regulatory or governmental body adopts, issues, or
          publishes any action, rule, or order which directly or
          indirectly materially and adversely affects the rights
          or obligations of Koch under this Agreement or (each of
          the events described in hereafter referred to as
          "Adverse Action"), Koch shall notify Buyer in writing
          of the Adverse Action and the parties shall enter into
          negotiations to modify this Agreement.  If negotiations
          regarding the Adverse Action do not result in Koch and
          Buyer agreeing on the terms of a modification to this
          Agreement within sixty (60) days of Koch's notice to
          Buyer, Koch shall have the right, but not the
          obligation, to suspend its performance hereunder until
          such time, if any, as the parties reach agreement on
          such a modification to this Agreement.  In the event
          such Adverse Action continues for a period of one
          hundred twenty (120) days after Koch notifies Buyer of
          the same and the parties have not resolved the handling
          of the Adverse Action, either party may, but is not
          required to, terminate this Agreement upon thirty (30)
          days written notice to the other party within one
          hundred eighty (180) days of when Koch first notified
          buyer of the Adverse Action.  Upon termination, all
          obligations by either party shall cease, except
          obligations to remit money due and payable.  In the
          event of Adverse Action, upon written request, Koch
          shall provide Buyer with data or information reasonably
          necessary for Buyer to determine that such Adverse
          Action exists, subject to the confidentiality
          obligations of Article XVI of this Agreement.

XI.  REMEDIES FOR PAYMENT BREACH

          A.   If Buyer is late in making any payment due to Koch
          under Article VI hereof, or otherwise, Koch may at its
          sole discretion by notice to Buyer elect one or more of
          the following courses of action:
                    1.   Cease to make any further deliveries
               hereunder until Buyer has made the late payment
               and has taken steps to assure Koch that there
               shall be no such delinquencies in the future;
                    2.   Refuse to make any further deliveries
               hereunder except upon cash payments before
               delivery;
                    3.   Stop delivery of goods in the possession
               of a carrier or other bailee as provided by law;

                               20
<PAGE>
          4.   Resell any Product concerned without further
notice to Buyer and without affecting or abating Buyer's other
obligations under this Agreement;
                    5.   Set off any obligations Koch may have to
               Buyer against the payments due Koch hereunder; or
                    6.   Draw upon any letter(s) of credit and/or
               other security provided by Buyer hereunder,
               provided any draw by Koch shall not exceed the
               amounts due and payable.
               If Buyer has not remedied late payments to the
          reasonable satisfaction of Koch within ten (10) days of
          such notice, Koch may at its option by notice to Buyer
          terminate this Agreement (without discharging any claim
          for breach), provided Koch shall not be allowed to
          terminate this Agreement if the amount of Buyer's
          liability to Koch does not exceed the outstanding LC
          amounts and Buyer makes up the amount drawn by Koch
          under the LC(s) within five (5) days of the date Koch
          draws on the LC(s); however, Koch shall have the right
          to suspend performance until Buyer replenishes the
          LC(s).  The election by Koch of any of the courses of
          action hereto shall in no way limit any other remedies
          available to Koch under this Agreement or otherwise at
          law or in equity.

          B.   If either party:

                    1.   Voluntarily petitions under or otherwise
               seeks the benefit of any bankruptcy,
               reorganization, arrangement or insolvency law; or
                    2.   Makes a general assignment for the
               benefit of creditors; or
                    3.   Is adjudicated bankrupt or becomes
               insolvent; or
                    4.   Allows a receiver or trustee of the
               business to be appointed; or
                    5.   Fails to perform any part of this
               Agreement (other than provided for in Section A.
               of this Article) and upon written notice of such
               failure by the other party fails to remedy the
               same within thirty (30) days of such notice, or in
               the event such failure cannot reasonably be cured
               within thirty (30) days, does not initiate and
               pursue reasonable corrective action within said
               period of time, then, in any of said events, this
               Agreement may be terminated forthwith by written
               notice at the option of the other party with such
               other party retaining all its other rights and
               remedies at law or in equity.

                               21
<PAGE>
XII. RIGHTS NOT WAIVED

     The waiver by either party hereto of any breach of this
     Agreement by the other party hereto shall not be deemed to
     be a waiver of any successive or other breach of this
     Agreement.  Each and every right, power and remedy may be
     excused from time to time and so often and in such order as
     may be deemed expedient by the party, and the exercise of
     any such right, power or remedy shall not be deemed a waiver
     of the right to exercise at the same time or thereafter, any
     other right, power or remedy.

XIII. NOTICES

     Any notices, requests or other communications required or
     permitted by any provision of this Agreement shall be in
     writing and shall be deemed delivered if delivered by hand,
     facsimile or mailed by U.S. Postal Service, postage prepaid,
     by registered or certified mail, and if to Koch, addressed
     to:

               Koch Nitrogen Company
               4111 East 37th Street North
               P.O. Box 2256
               Wichita, KS 67201
               Attention:  President

               Secretary,
               Koch Nitrogen Company
               c/o Legal Department
               4111 East 37th Street North
               P.O. Box 2256
               Wichita, KS 67201

     or, if to Buyer, addressed to:

               El Dorado Chemical Company
               16 S. Pennsylvania
               Oklahoma City, OK 73107
               Attn:  President

               El Dorado Chemical Company
               16 S. Pennsylvania
               Oklahoma City, OK 73107
               Attn:  General Counsel

     Any party may change the address to which notices are to be
     given by mailing written notice thereof to the other party
     as provided above.

                               22
<PAGE>
XIV. ASSIGNMENT

     Notwithstanding any prior provision, neither party shall
     assign or delegate, or permit by assignment or delegation,
     by operation of law or otherwise any of its rights and
     obligations under this Agreement to any third party without
     first obtaining the prior written consent of the other
     party, which shall not be unreasonably withheld.
     Notwithstanding the foregoing, either party shall be allowed
     to assign this Agreement to an Affiliate upon providing
     written notice to the other party, provided no such transfer
     shall operate to relieve the relieve the transfer party of
     its obligations hereunder.  For purposes of this Agreement
     "Affiliate" shall mean any corporation or other business
     enterprise which directly or indirectly controls, is
     controlled by, or is under common control with a party
     hereunder; and for the purpose of this definition "control"
     shall mean the ability to directly or indirectly vote fifty
     percent (50%) or more of the shares or other securities at
     the time entitled to vote for the election of directors.
     Any assignment or delegation, or attempted assignment or
     delegation, in violation of this Article XIV shall be null
     and void, shall be considered a material breach of this
     Agreement and shall permit the other party in addition to
     any other rights which it may hereunder or at law or in
     equity to terminate this Agreement and exercise any remedies
     available to the non-breaching party hereunder or at law or
     in equity.

XV.  ENTIRE AGREEMENT; AMENDMENT

     This Agreement constitutes the final and complete Agreement
     between the parties relative to the transactions
     contemplated hereby and supersedes any and all prior or
     contemporaneous agreements, understandings, correspondence
     or other agreements relating to the subject matter hereof.
     This Agreement may be amended only by a written document
     signed by duly authorized representatives or employees of
     each of the parties hereto.  Any printed term or conditions
     contained in any printed form used in placing or
     acknowledging orders hereunder, or otherwise used in any way
     in connection with the sale and purchase provided for in
     this Agreement shall not have the effect of modifying or
     amending this Agreement in any respect unless specifically
     identified and accepted in writing by a duly authorized
     representative of both parties.

                               23
<PAGE>
XVI. CONFIDENTIALITY

     If an Adverse Action, as defined in Section E of Article X
     results in Koch's suspension of its performance hereunder,
     Koch may, as provided for in said Section, provide Buyer
     with certain information ("Adverse Action Information").
     Koch and Buyer may also, in connection with their respective
     performance of this Agreement, communicate information, give
     notices and exchange documents ("Contract Related
     Information").  Buyer shall maintain in confidence the
     Adverse Action Information and the Contract Related
     Information, and Koch shall maintain in confidence the
     Contract Related Information, and such information shall be
     disclosed to no one other than (i) the receiving party's
     officers, directors, agents and other personnel who need to
     know the same in connection with this Agreement, and such
     officers, directors, agents and other personnel shall be
     advised of and bound by the confidential nature of such
     information or (ii) when disclosure is required by law or
     pursuant to a court or administrative order.  For
     disclosures required under sub-item (ii), the disclosing
     party shall immediately notify the other party of the
     required disclosure so that the other party may seek an
     appropriate protective order or other remedy and use
     reasonable efforts to limit the scope of the disclosure so
     required.  If a protective order or other remedy is not
     obtained, the disclosing party shall only furnish such
     portion or portions of the Confidential Information as it is
     legally required to furnish.  Koch and Buyer shall take all
     proper precautions to prevent such information from being
     acquired by any unauthorized person, firm, company or other
     entity.  In this regard, Koch and Buyer acknowledge
     specifically, but without limitation, that both injunctive
     relief and monetary damages, alone or in combination, am
     appropriate remedies for any breach of this Article XVI by
     Koch or.  Buyer or any person, firm, company or other entity
     obtaining such information through the recipient thereof.
     The confidentiality obligations hereunder shall continue for
     a period of seven (7) years after the termination of this
     Agreement.  Koch shall have no obligation to provide, and
     Buyer shall have no right to obtain, information regarding
     Koch's Product supply costs.

                               24
<PAGE>
XVII. ARTICLE HEADINGS

     Article headings are for the convenience of the parties and
     am not considered parts of the Agreement, it being
     stipulated that any headings in conflict with the
     substantive provisions of the Agreement shall have no force
     and effect.

XVIII.  GOVERNING LAW

     This Agreement shall be governed exclusively by the laws of
     the State of Kansas both with respect to interpretation and
     performance without giving effect to any provision which
     would direct application of the laws of another
     jurisdiction.  Koch and Buyer agree that venue and
     jurisdiction of any action or cause of action wising
     hereunder shall be exclusively in the United States District
     Court for the District of Kansas.

IX.  SEVERABILITY

     The provisions of this Agreement are severable and, if any
     provisions am determined to be void or unenforceable in
     whole or in part, the remaining provisions shall remain
     unaffected and shall be binding and enforceable in
     accordance with the terms hereof.

XX.  AUTHORITY

     A.   Buyer warrants and represents that it is a corporation
          duly organized and validly existing and in good
          standing under the laws of the State of Oklahoma and
          has all requisite power and authority to lawfully carry
          on its business as now being conducted and
          specifically, that it has all requisite power and
          authority to make, execute, deliver and perform this
          Agreement.
     B.   Koch warrants and represents that it is a corporation
          duly organized and validly existing and in good
          standing under the laws of the State of Nebraska and
          has all requisite power and authority to lawfully carry
          on its business as now being conducted and
          specifically, that it has all requisite power and
          authority to make, execute, deliver and perform this
          Agreement.

                               25
<PAGE>
XXI. LEGAL COMPLIANCE

     Each party shall be subject to all applicable laws, rules,
     regulations and ordinances issued by any national, state, or
     local regulatory or governing body and may act in accordance
     therewith until such time as the same may be hold invalid by
     final judgment in it court of competent jurisdiction.

XXII. TERMINATION OF PREVIOUS AGREEMENT

     Buyer and Koch agree that ft Previous Agreement shall be
     terminated in its entirety, except for Articles V and VIII,
     which shall survive.

     IN WITNESS WHEREOF, the parties have executed this Agreement
to be effective on the Effective Date by their respective
officers thereunto duly authorized.

                                             ("Koch")
                                   KOCH NITROGEN COMPANY

                                                            By:
                              /s/ Randy J. Morris
                                      ___________________________

Title: Director Industrial/
                                            Chemical Sales
                                         ________________________
Attest:

/s/ Vicki D. Hill/Stuart R. Collin
__________________________________
Secretary/Assistant Secretary

                                             ("Buyer")
                                   EL DORADO CHEMICAL COMPANY

By: /s/ James L. Wewers
                                      ___________________________

Title: President
                                         ________________________
Attest:

/s/ David M. Shear
_____________________________
Secretary

                               26
<PAGE>
STATE OF KANSAS     )
COUNTY OF SEDGWICK  )

     BEFORE ME, the undersigned, a Notary Public in and for said
County and State, on this ____day of ____________, 2000,
personally came and appeared__________________________, who  in
the presence of me, said authority, declared and acknowledged
that he is the identical person who executed the foregoing
instrument in writing; that his signature thereto is his own true
and genuine signature; and that he executed said instrument in
his capacity as of Koch Nitrogen Company, a Nebraska corporation,
of his own free will and accord and as the free act and deed of
said Koch Nitrogen Company for the purposes and considerations
therein set forth and expressed.

______________________________

Notary Public

My Commission Expires:_____________________

STATE OF __________ )
COUNTY OF _________ )

     BEFORE ME, the undersigned, a Notary Public in and for said
County and State, on this ____day of ____________, 2000,
personally came and appeared__________________________, who in
the presence of me, said authority, declared and acknowledged
that he is the identical person who executed the foregoing
instrument in writing, that his signature thereto is his own true
and genuine signature; and that he executed said instrument in
his capacity as of El Dorado Chemical Company, an Oklahoma
corporation, of his own fire will and accord and as the free act
and deed of said El Dorado Chemical Company, for the purposes and
considerations therein set forth and expressed.

______________________________

Notary Public

My Commission Expires:_________________________

                               28
<PAGE>
                           ADDENDUM A

         EXAMPLE OF FIXED CHARGE ADJUSTMENT CALCULATION

The following exemplifies the Procedure as set forth in Article
VI, Section E for calculating the Fixed Charge Adjustment and the
resulting Fixed Charge for calendar year 1999:

                               ***

***INDICATES INFORMATION IN THIS DOCUMENT WHICH HAS BEEN OMITTED
FROM THIS PUBLIC FILING PURSUANT TO A REQUEST BY THE COMPANY FOR
CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES
OF SUCH REQUEST.

                               28

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