Document:

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                                                                    EXHIBIT 10.7

                          TECHNICAL SERVICES AGREEMENT

                                 by and between

                             PLAINS RESOURCES INC.,

                             CALUMET FLORIDA, L.L.C.

                                       and

                  PLAINS EXPLORATION & PRODUCTION COMPANY, L.P.

                                   Dated as of
                                  July 3, 2002

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                          TECHNICAL SERVICES AGREEMENT

                                TABLE OF CONTENTS

RECITALS...............................................................1

ARTICLE I DEFINITIONS..................................................1

ARTICLE II SERVICES....................................................2
   2.1   Services......................................................2
   2.2   Charges and Payment...........................................3
   2.3   General Obligations; Standard of Care.........................3
   2.4   Certain Limitations...........................................5
   2.5   Confidentiality...............................................5
   2.6   Term; Early Termination.......................................5
   2.7   Disclaimer, Limitation of Liability and Indemnification.......6
   2.8   Representatives...............................................7

ARTICLE III MISCELLANEOUS..............................................8
   3.1   Entire Agreement..............................................8
   3.2   Governing Law.................................................8
   3.3   Notices.......................................................8
   3.4   Counterparts..................................................8
   3.5   Binding Effect; Assignment....................................8
   3.6   Severability..................................................8
   3.7   Failure or Indulgence not Waiver; Remedies Cumulative.........8
   3.8   Waivers, Modifications, Amendment.............................9
   3.9   Headings......................................................9
   3.10  Relationship of Parties.......................................9
   3.11  Provisions Unaffected.........................................9
   3.12  No Third-Party Beneficiaries..................................9
   3.13  Rights of the Parties.........................................9
   3.14  Records.......................................................9
   3.15  Dispute Resolution............................................9
   3.16  Taxes.........................................................9

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                          TECHNICAL SERVICES AGREEMENT

     THIS TECHNICAL SERVICES AGREEMENT (this "Agreement"), dated as of July __,
2002 (the "Effective Date"), is between Plains Resources Inc., a Delaware
corporation ("Plains"), Calumet Florida, L.L.C., a Delaware limited liability
company and wholly-owned Subsidiary of Plains ("Calumet" and, along with Plains
and Spinco, the "Parties"), and Plains Exploration & Production Company, L.P., a
California limited partnership ("Plains Exploration"). Undefined capitalized
terms herein are defined in the Separation Agreement (as defined below).

                                    RECITALS

     WHEREAS, on the date hereof, Stocker Inc. owns a 2.5% general partner
interest in Plains Exploration and Plains owns a 97.5% limited partner interest
in Plains Exploration; and

     WHEREAS, Plains and Stocker Inc. currently contemplate that Plains
Exploration will (collectively, the "Conversion") (1) convert from a California
limited partnership to a Delaware limited partnership, and immediately
thereafter (2) convert from a Delaware limited partnership to a Delaware
corporation (such corporation, the "Converted Corporation"); and

     WHEREAS, the Board of Directors of Plains has determined that it is in the
best interests of Plains to separate Plains' existing businesses into two
independent business groups;

     WHEREAS, to effectuate the foregoing, Plains and Spinco have entered into a
Master Separation Agreement, dated as of the date hereof (the "Separation
Agreement"), pursuant to which, among other things, Plains will transfer certain
assets to Spinco (which will not include Plains' interests in Calumet) and
Spinco will assume certain Liabilities of Plains; and

     WHEREAS, the Separation Agreement provides, among other things, for Plains
and Spinco to enter into this Agreement to set forth the terms on which Spinco
will provide to Calumet the Services described herein; and

     WHEREAS, this Agreement is being entered into on an arms-length basis for
the consideration described herein.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements herein contained, the Parties, intending to be legally bound,
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     For the purpose of this Agreement the following terms shall have the
following meanings:

     "Additional Services" is defined in Section 2.1(b).

     "Agreement" is defined in the preamble to this Agreement.

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     "Calumet" is defined in the preamble to this Agreement.

     "Conversion" is defined in the recitals to this Agreement.

     "Converted Corporation" is defined in the recitals to this Agreement.

     "Effective Date" means the date of this Agreement.

     "Impracticable" (and words of similar import) is defined in Section 2.4(b).

     "Parties" is defined in the preamble to this Agreement.

     "Plains" is defined in the preamble to this Agreement.

     "Plains Exploration" is defined in the preamble to this Agreement.

     "Representative" of any Party means a managerial level employee appointed
by such Party to have the responsibilities and authority set forth in Section
2.8.

     "Separation Agreement" is defined in the recitals to this Agreement.

     "Service" is defined in Section 2.1(b).

     "Spinco" means, as the case may be, Plains Exploration or the Converted
Corporation.

                                   ARTICLE II
                                    SERVICES

     2.1  Services.

          (a) Initial Services. Except as otherwise provided herein, during the
     applicable term determined pursuant to Section 2.6 hereof the following
     "Initial Services" shall be provided by Spinco to Calumet:

               (i) Technical services consisting of engineering and technical
          support services required to support operation and maintenance of the
          oil and gas properties owned by Calumet, including: (A) providing
          geological, geophysical, surveying, drilling and operations oversight
          and/or services; (B) providing environmental, regulatory and safety
          compliance and reporting oversight; providing other government or
          regulatory compliance related to oil and gas activities; and (C) other
          oil and gas engineering services as requested from time to time by
          Calumet.

               (ii) Accounting services consisting of those services typically
          provided by operators of oil and gas properties, including accounting
          for the operating costs

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          and revenue distributions to royalty owners, maintaining and
          supporting accounting records of the oil and gas properties owned by
          Calumet and such other accounting services related to the properties
          as requested.

          (b) Additional Services. From time to time after the Effective Date,
     the Parties may, by mutual agreement, identify additional services that
     Spinco will provide to Calumet in accordance with the terms of this
     Agreement (the "Additional Services" and, together with the Initial
     Services, the "Services"). In such case, the Parties shall create an
     Exhibit for each Additional Service setting forth a description of the
     Service, the time period during which the Service will be provided and any
     other terms applicable thereto.

          (c) Services Performed by Others. At its option, Spinco may cause any
     Service it is required to provide hereunder to be provided by another
     member of the Spinco Group or by any other Person that is providing, or may
     from time to time provide, the same or similar services for members of the
     Spinco Group, Plains or Calumet. Spinco shall remain responsible, in
     accordance with the terms of this Agreement, for performance of any Service
     it causes to be so provided by others.

     2.2  Charges and Payment.

          (a) Charges for Services. Subject to Section 2.2(b), Spinco will
     charge Plains, and Plains will pay Spinco, for the costs incurred in
     providing the Services, including (A) allocable salary and wages,
     incentives, paid absences, payroll taxes, payroll additives (insurance
     premiums, social security, health care and retirement benefits and the
     like) and similar expenses and (B) reimbursement of out-of-pocket third
     party costs and expenses.

          (b) Payment Terms. Spinco shall bill Plains monthly for all charges
     pursuant to this Agreement and Plains shall pay Spinco for all Services
     within 30 days after receipt of an invoice therefor. Late payments shall
     bear interest at an annual rate of the prime rate as reported in the Wall
     Street Journal on the date such payment is due plus two percent (2%) per
     annum.

     2.3  General Obligations; Standard of Care.

          (a) Performance Metrics: Spinco. Spinco shall maintain sufficient
     resources to perform its obligations hereunder and shall perform such
     obligations in a commercially reasonable manner. Specific performance
     metrics for Spinco may be set forth in Exhibits referred to herein. Where
     none is set forth, Spinco shall provide Services in accordance with the
     policies, procedures and practices in effect for the provision of similar
     services in support of the operation and maintenance of the properties
     owned by Calumet before the date of this Agreement and shall exercise the
     same care and skill as it exercises in performing similar services
     hereafter for operations conducted by members of the Spinco Group and shall
     not, in situations in which common personnel, equipment or facilities are
     used in performing Services hereunder and such similar Services for members
     of the Spinco Group, favor either Plains or a member of the Spinco Group.

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          (b) Performance Metrics: Plains. Specific performance metrics for
     Calumet may be set forth in Exhibits referred to herein. Where none is set
     forth, Calumet shall, in connection with receiving Services, follow the
     policies, procedures and practices in effect before the date of this
     Agreement including providing information and documentation sufficient for
     Spinco to perform the Services as they were performed before the date of
     this Agreement and making available, as reasonably requested by Spinco,
     sufficient resources and timely decisions, approvals and acceptances so
     that Spinco may accomplish its obligations hereunder in a timely manner.

          (c) Transitional Nature of Services; Changes. The Parties acknowledge
     the transitional nature of the Services and that Spinco may make changes
     from time to time in the manner of performing the Services if Spinco is
     making similar changes in performing similar services for members of the
     Spinco Group and if Spinco furnishes to Calumet substantially the same
     notice Spinco shall provide members of the Spinco Group respecting such
     changes.

          (d) Responsibility for Errors; Delays. Spinco's sole responsibility to
     Calumet:

               (i) for errors or omissions in Services, shall be to furnish
          correct information and/or adjustment in the Services, at no
          additional cost or expense to Calumet; provided, Calumet must promptly
          advise Spinco of any such error or omission of which it becomes aware
          after having used Reasonable Efforts to detect any such errors or
          omissions in accordance with the standard of care set forth in Section
          2.3(b); and provided, further, that the responsibility to furnish
          correct information or an adjustment of services at no additional cost
          or expense to Calumet shall not be construed to require Spinco to make
          any payment or incur any Liability for which it is not responsible, or
          with respect to which it is provided indemnity, under Section 2.7; and

               (ii) for failure to deliver any Service because of
          Impracticability, shall be to use Reasonable Efforts, subject to
          Section 2.4(b), to make the Services available and/or to resume
          performing the Services as promptly as reasonably practicable.

          (e) Good Faith Cooperation; Consents. The Parties will use good faith
     efforts to cooperate with each other in all matters relating to the
     provision and receipt of Services. Such cooperation shall include
     exchanging information, providing electronic access to systems used in
     connection with Services to the extent the systems in use are designed and
     configured to permit such access, performing true-ups and adjustments and
     obtaining all consents, licenses, sublicenses or approvals necessary to
     permit each Party to perform its obligations hereunder. The Parties will
     cooperate with each other in making such information available as needed in
     the event of a tax audit or Regulatory Proceeding, whether in the United
     States or any other country.

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     2.4  Certain Limitations.

          (a) Service Boundaries and Scope. The Services will be available only
     for purposes of supporting the oil and gas operations of Calumet
     substantially in the manner conducted prior to the Effective Date.

          (b) Impracticability. Spinco shall not be required to provide any
     Service to the extent the performance of such Service becomes
     "Impracticable" as a result of a cause or causes outside the reasonable
     control of Spinco, including armed conflict or economic dislocation
     resulting therefrom; embargoes; shortages of labor, production facilities
     or transportation; labor difficulties; civil disorders of any kind; action
     of any civil or military authorities; fires; floods; and accidents or to
     the extent the performance of such Services would require Spinco to violate
     any laws, rules or regulations or would result in the breach of any
     contract.

          (c) Sale, Transfer, Assignment. Calumet may not sell, transfer, assign
     or otherwise use the Services provided hereunder, in whole or in part, for
     the benefit of any Person.

     2.5  Confidentiality.

          (a) Information Subject to Other Obligations. The Parties agree that
     all Information regarding the Services, including, price, costs and methods
     of operation, shall be maintained in confidence and shall be subject to
     Section 9.9 of the Separation Agreement.

          (b) Internal Use; Title, Copies, Return. Plains and Calumet agree
     that:

               (i) all systems, procedures and related materials provided to
          Plains and Calumet by Spinco in connection with the Services are for
          Plains' and Calumet's internal use only and only as related to the
          Services or any of the underlying systems used to provide the
          Services;

               (ii) title to all systems used in performing the Services
          provided hereunder shall remain in Spinco or its third party vendors;
          and

               (iii) upon the termination of any of the Services, Plains and
          Calumet shall return to Spinco, as soon as practicable, any equipment
          or other property of Spinco relating to the Services that are owned or
          leased by it and are or were in Plains' and Calumet's possession or
          control.

          (c) Survival. The Parties' obligations under this Section 2.5 shall
     survive the termination of this Agreement.

     2.6  Term; Early Termination.

          (a) Term. The term of this Agreement shall commence on the date hereof
     and shall remain in effect through the earlier of (i) the date Calumet is
     no longer a Subsidiary

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     of Plains, (ii) the date Calumet transfers all or substantially all of its
     assets to a Person that is not a Subsidiary of Plains, and (iii) the third
     anniversary of the Effective Date or until such earlier time as all
     Services are terminated as provided in this Section. This Agreement shall
     automatically renew at the end of the initial term for successive one-year
     terms unless either Party sets forth in writing its desire to terminate
     this Agreement at least 30 days in advance of such termination.

          (b) Termination by Plains. Calumet may terminate this Agreement either
     with respect to all, or with respect to any one or more, of the Services
     provided hereunder at any time and from time to time, for any reason or no
     reason, by giving written notice to Spinco at least 90 days in advance of
     the effective date of the termination.

          (c) Termination of Less Than all Services. In the event of any
     termination with respect to one or more, but less than all, Services, this
     Agreement shall continue in full force and effect with respect to any
     Services not terminated hereby.

     2.7  Disclaimer, Limitation of Liability and Indemnification.

          (a) Disclaimer. Spinco shall provide the Services with substantially
     the same degree of care as it employs in making the same services available
     for its own operations; provided, however, that Spinco shall not be liable
     to Plains, Calumet or any other Person for any loss, damage or expense that
     may result therefrom or from any change in the manner in which Spinco
     renders such services, so long as Spinco deems such change necessary or
     desirable in the conduct of its own operations. SPINCO DISCLAIMS ALL
     WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED
     WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH
     RESPECT TO THE SERVICES. SPINCO MAKES NO REPRESENTATIONS OR WARRANTIES AS
     TO THE QUALITY, SUITABILITY OR ADEQUACY OF THE SERVICES FOR ANY PURPOSE OR
     USE.

          (b) Indemnification of Plains. Spinco and its Subsidiaries shall have
     no Liability to Plains and Calumet with respect to their furnishing any of
     the Services hereunder except for Liabilities arising out of or resulting
     from the gross negligence or willful misconduct occurring after the
     Effective Date of Spinco or any member of the Spinco Group. Spinco will
     indemnify, defend and hold harmless Plains and Calumet in respect of all
     such Liabilities arising out of or resulting from such gross negligence or
     willful misconduct. Such indemnification obligation shall be a Liability of
     Spinco for purposes of the Separation Agreement and the provisions of
     Article III of the Separation Agreement with respect to indemnification
     shall govern with respect thereto.

          (c) Indemnification of Spinco. Plains and the other members of the
     Plains Group shall indemnify and hold harmless Spinco and its Subsidiaries
     in respect of all Liabilities arising out of or resulting from Spinco's
     furnishing or failing to furnish the Services to Plains provided for in
     this Agreement, other than Liabilities arising out of or resulting from the
     gross negligence or willful misconduct of Spinco or any other member of the
     Spinco Group. The provisions of this indemnity shall apply only to Losses
     that relate directly to the provision of Services. Such indemnification
     obligation shall be a

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     Liability of Plains and Calumet (and a Spinco Excluded Liabilities) for
     purposes of the Separation Agreement and the provisions of Article III of
     the Separation Agreement with respect to indemnification shall govern with
     respect thereto.

          (d) Third Party Claims. Any third party claims resulting from or
     arising out of or in connection with this Agreement or the performance of
     or failure to perform the Services will be resolved according to the
     procedures set forth in the Separation Agreement.

          (e) Limitation of Liability. IN NO EVENT SHALL PLAINS OR SPINCO, OR
     ANY MEMBER OF THE PLAINS GROUP OR THE SPINCO GROUP OR THEIR RESPECTIVE
     DIRECTORS, OFFICERS AND EMPLOYEES BE LIABLE TO PLAINS OR SPINCO, OR ANY
     OTHER MEMBER OF THE PLAINS GROUP OR THE SPINCO GROUP FOR ANY SPECIAL,
     CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS,
     HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE)
     ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS
     BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT
     THE FOREGOING LIMITATIONS SHALL NOT LIMIT EACH PARTY'S INDEMNIFICATION
     OBLIGATIONS FOR LIABILITIES TO THIRD PARTIES AS SET FORTH IN THE SEPARATION
     AGREEMENT OR ANY ANCILLARY AGREEMENT. THE INDEMNIFICATION PROVIDED IN THIS
     ARTICLE II WILL BE APPLICABLE WHETHER OR NOT THE SOLE, JOINT OR
     CONTRIBUTING NEGLIGENCE OF THE INDEMNITEE IS ALLEGED OR PROVEN. THE PARTIES
     AGREE THE PRECEDING SENTENCE IS COMMERCIALLY CONSPICUOUS.

          (f) Subrogation of Rights vis-a-vis Third Party Contractors. If any
     Liability arises from the performance of Services hereunder by a third
     party contractor, Plains and Calumet shall be subrogated to such rights, if
     any, as Spinco may have against such third party contractor with respect to
     the Services provided by such third party contractor to or on behalf of
     Plains or Calumet. Subrogation under this Section 2.7(f) shall not affect
     the obligation of Spinco to perform Services under this Agreement.

          (g) Survival. The Parties' obligations under this Section 2.7 shall
     survive the termination of this Agreement.

     2.8 Representatives. Each Party shall by notice to the other appoint one or
more Representatives to facilitate communications and performance under this
Agreement. Each Party may treat an act of a Representative of the other Party as
being authorized by the other Party without inquiring behind such act or
ascertaining whether such Representative had authority to so act. Each Party may
at any time and from time to time to replace any of its Representatives by
giving notice in writing to the other Party setting forth the name of (i) each
Representative to be replaced and (ii) the replacement, and certifying that the
replacement Representative is authorized to act for the Party giving the notice
in all matters relating to this Agreement (or matters relating to one category
of Services as aforesaid).

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                                   ARTICLE III
                                  MISCELLANEOUS

     3.1 Entire Agreement. This Agreement, the Separation Agreement, the other
Ancillary Agreements and the Exhibits and Schedules referenced or attached
hereto and thereto, constitute the entire agreement between the Parties with
respect to the subject matter hereof and shall supersede all prior written and
oral and all contemporaneous oral agreements and understandings with respect to
the subject matter hereof.

     3.2 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas without regard to its principles
of conflicts of law.

     3.3 Notices. Unless expressly provided herein, all notices, claims,
certificates, requests, demands and other communications hereunder shall be in
writing and shall be deemed to be duly given (i) when personally delivered or
(ii) if mailed registered or certified mail, postage prepaid, return receipt
requested, on the date the return receipt is executed or the letter refused by
the addressee or its agent or (iii) if sent by overnight courier which delivers
only upon the signed receipt of the addressee, on the date the receipt
acknowledgment is executed or refused by the addressee or its agent or (iv) if
sent by facsimile, on the date confirmation of transmission is received
(provided that a copy of any notice delivered pursuant to this clause (iv) shall
also be sent pursuant to clause (ii) or (iii)), addressed to the attention of
the addressee's Chief Executive Officer at the address of its principal
executive office or to such other address or facsimile number for a party as it
shall have specified by like notice.

     3.4 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original but all of which shall constitute one
and the same agreement.

     3.5 Binding Effect; Assignment. This Agreement shall inure to the benefit
of and be binding upon the Parties and their respective legal representatives
and successors and nothing in this Agreement, express or implied, is intended to
confer upon any other Person any rights or remedies of any nature whatsoever
under or by reason of this Agreement. Except as contemplated by Section 2.1(c),
this Agreement may not be assigned by any Party without the prior written
consent of the other Party, which may be withheld for any or no reason.

     3.6 Severability. The provisions of this Agreement will be deemed severable
and the invalidity or unenforceability of any provision will not affect the
validity or enforceability of the other provisions hereof; provided that if any
provision of this Agreement, as applied to any Party or to any circumstance, is
adjudged by a Governmental Authority, arbitrator, or mediator not to be
enforceable in accordance with its terms, the Parties agree that the
Governmental Authority, arbitrator or mediator making such determination will
have the power to modify the provision in a manner consistent with its
objectives such that it is enforceable, and/or to delete specific words or
phrases, and in its reduced form, such provision will then be enforceable and
will be enforced.

     3.7 Failure or Indulgence not Waiver; Remedies Cumulative. No failure or
delay on the part of either Party in the exercise of any right hereunder shall
impair such right or be construed to be a waiver of, or acquiescence in, any
breach of any representation, warranty or

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agreement herein, nor shall any single or partial exercise of any such right
preclude other or further exercise thereof or of any other right. All rights and
remedies existing under this Agreement are cumulative to, and not exclusive of,
any rights or remedies otherwise available.

     3.8 Waivers, Modifications, Amendment. No provision of this Agreement may
be amended, modified or waived, except in the manner set forth in the Separation
Agreement.

     3.9 Headings. The heading references herein are for convenience purposes
only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof.

     3.10 Relationship of Parties. Nothing in this Agreement shall be deemed or
construed by the Parties or any third party as creating the relationship of
principal and agent, partnership or joint venture between the Parties, and no
provision contained herein, and no act of the Parties, shall be deemed to create
any relationship between the Parties other than the relationship of independent
contractor nor be deemed to vest any rights, interest or claims in any third
parties.

     3.11 Provisions Unaffected. Nothing contained in this Agreement shall
affect the rights and obligations of Plains, Calumet or Spinco under the
Separation Agreement.

     3.12 No Third-Party Beneficiaries. This Agreement is solely for the benefit
of the Parties and should not be deemed to Confer upon third parties any remedy,
claim, Liability, reimbursement, claim of action or other right in excess of
those existing without reference to this Agreement.

     3.13 Rights of the Parties. Nothing expressed or implied in this Agreement
is intended or will be construed to confer upon or give any Person, other than
the Parties and to the extent provided herein their respective Subsidiaries, any
rights or remedies under or by reason of this Agreement or any transaction
contemplated thereby.

     3.14 Records. Each Party shall create and maintain full and accurate books
and records in connection with the provision of Services, and all other records
relevant to this Agreement, and upon reasonable notice from the other Party
shall make available for inspection and copy by such other Party's agents such
records during reasonable business hours.

     3.15 Dispute Resolution. If a Dispute results from or arises out of or in
connection with this Agreement or the performance of, or failure to perform, the
Services, the Parties will use the procedures set forth in Article VIII of the
Separation Agreement, in lieu of other available remedies, to resolve the same.

     3.16 Taxes.

          (a) General. Plains and Calumet shall bear all taxes, duties and other
     similar charges (and any related interest and penalties), imposed as a
     result of its receipt of Services under this Agreement, including any tax
     that Plains or Calumet is required to withhold or deduct from payments to
     Spinco, except any net income tax imposed upon

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     Spinco by the country of its incorporation or any governmental entity
     within its country of incorporation.

          (b) Sales Tax Liability and Payment. Notwithstanding Section 3.1(a),
     Plains and Calumet are liable for and will indemnify and hold harmless
     Spinco from all sales, use and similar taxes (plus any penalties, fines or
     interest thereon) (collectively, "Sales Taxes") assessed, levied or imposed
     by any governmental or taxing authority on the providing of Services by
     Spinco to Calumet. Spinco shall collect from Plains or Calumet any Sales
     Tax that is due on the Service it provides to Calumet and shall pay such
     Sales Tax so collected to the appropriate governmental or taxing authority.

                            [Signature Page Follows]

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     IN WITNESS WHEREOF, the parties have executed this Technical Services
Agreement as of the date first above written.

                             PLAINS RESOURCES INC.

                             By:    /s/ Jere C. Overdyke, Jr.
                                    --------------------------------------------
                             Name:  Jere C. Overdyke, Jr.
                             Title: Vice President and Treasurer

                             CALUMET FLORIDA, L.L.C.

                             By:    Plains Resources Inc., its sole member

                                    By:    /s/ Jere C. Overdyke, Jr.
                                           -------------------------------------
                                    Name:  Jere C. Overdyke, Jr.
                                    Title: Vice President and Treasurer

                             PLAINS EXPLORATION & PRODUCTION COMPANY, L.P.

                             By:    Stocker Resources, Inc., its general partner

                                    By:    /s/ Jere C. Overdyke, Jr.
                                           -------------------------------------
                                    Name:  Jere C. Overdyke, Jr.
                                    Title: Vice President and Treasurer

                                       11<PAGE>

                                                                    EXHIBIT 10.8

                         INTELLECTUAL PROPERTY AGREEMENT

                                 by and between

                              PLAINS RESOURCES INC.

                                       and

                  PLAINS EXPLORATION & PRODUCTION COMPANY, L.P.

                                   Dated as of
                                  July 3, 2002

<PAGE>

                         INTELLECTUAL PROPERTY AGREEMENT

     THIS INTELLECTUAL PROPERTY AGREEMENT (the "Agreement") is entered into as
of July _____, 2002 (the "Effective Date"), by and between Plains Resources
Inc., a Delaware corporation ("Plains" and, along with Spinco, the "Parties"),
and Plains Exploration & Production Company, L.P., a California limited
partnership ("Plains Exploration"). Undefined capitalized terms herein are
defined in the Master Separation Agreement, dated as of the Effective Date, by
and between the Parties and the other signatories thereto (the "Separation
Agreement").

                                    RECITALS

     WHEREAS, Plains is the owner at common law of, or has rights under common
law in, certain trade names, trademarks, service marks and associated goodwill
(the "Trademarks"), as set forth on Schedule A attached hereto, in relation to
the Plains Business and the Spinco Business; and

     WHEREAS, Plains and Spinco have entered into the Separation Agreement to
provide for, among other things, the Separation and Distribution; and

     WHEREAS, Plains desires to transfer and assign to Spinco all of Plains'
right, title and interest in and to the Trademarks and the goodwill associated
with the Trademarks, and Spinco desires to own and use the Trademarks in
connection with the Spinco Business; and

     WHEREAS, Plains desires to use the trademarks set forth on Schedule B (the
"Plains Marks") in connection with the Plains Business, and Spinco is willing to
grant to Plains the right to use the Plains Marks in connection with the Plains
Business, subject to the terms and conditions of this Agreement.

     NOW THEREFORE, in consideration of the foregoing and the covenants and
agreements set forth below, the Parties hereto agree as follows:

                                   ARTICLE I.
                    TRANSFER OF TRADEMARKS; GRANT OF LICENSE

     1.1 Plains hereby transfers and assigns to Spinco all of Plains' right,
title and interest in and to the Trademarks, the goodwill associated with the
Trademarks, and the right to recover for past infringement of the right, title,
and interest in and to the Trademarks.

     1.2 Spinco hereby grants to Plains, and Plains hereby accepts, a worldwide,
perpetual, fully-paid-up, royalty-free license to use the Plains Marks in
connection with the Plains Business, subject to the limitations set forth in
this Agreement. Spinco agrees not to license the Plains Marks for any purpose to
any Person other than Plains.

<PAGE>

     1.3 The grant of license in Section 1.2 includes the right for Plains to
grant sublicenses within the scope of such license to Plains' Subsidiaries, but
only for so long as each remains a Subsidiary of Plains.

     1.4 Except as provided in this Article I, all licenses granted herein shall
be nontransferable and nonassignable without Spinco's prior written consent.

                                   ARTICLE II.
                      OWNERSHIP AND USE OF THE PLAINS MARKS

     2.1 Plains acknowledges that Spinco owns the Plains Marks and all rights
therein and that, except as provided in Section 1.2, nothing in this Agreement
shall give Plains any right, title or interest in or to the Plains Marks.

     2.2 Plains agrees that it will do nothing inconsistent with Spinco's
ownership of the Plains Marks and shall not claim adversely to Spinco, or assist
any third party in attempting to claim adversely to Spinco, with regards to such
ownership. Plains agrees that it will not challenge the title of Spinco to the
Plains Marks, oppose any registration thereof, or challenge the validity of this
Agreement or the licenses granted herein. Furthermore, Plains will not register,
nor attempt to register, any trade name or trademark that, in whole or in part,
incorporates or is confusingly similar to the Plains Marks, and use of the
Plains Marks by Plains and sublicensees of Plains shall inure to the benefit of
Spinco.

     2.3 Plains' use of the Plains Marks must be in accordance with the design
standards for style, design, color, and form as established by Spinco (the
"Design Standards").

     2.4 Plains shall not use the Plains Marks in connection with any business
activity unrelated to the Plains Business.

     2.5 Notwithstanding the license granted herein and any of the provisions
hereof, no rights nor licenses are granted to Plains with respect to any other
trademark, service mark, and/or trade name not listed on Schedule B.

     2.6 Plains agrees to assist Spinco in recording this Agreement with
appropriate Governmental Authorities where such recording is required by law or
regulation or where such recording is permitted or desired by Spinco.

     2.7 All costs associated with recording this Agreement, the license granted
herein and registering, maintaining, or renewing the Plains Marks used solely by
Plains shall be borne by Plains. All costs associated with registering,
maintaining or renewing any Plains Marks also used by Spinco shall be borne by
Spinco.

                                       2

<PAGE>

                                  ARTICLE III.
                               QUALITY PROVISIONS

     3.1 Plains agrees that the nature and quality of all of Plains' products
and services bearing or offered in connection with the Plains Marks shall
conform to the standards set by and under the control of Spinco (hereinafter,
the "Quality Standards"). Such Quality Standards shall be reasonable and shall
be at least equal in quality to the Plains products and services sold by Plains
prior to the Separation.

     3.2 To enable Spinco to ensure that use of the Plains Marks conforms to the
Design Standards and that Plains' products and services bearing or offered in
connection with the Plains Marks conform to the Quality Standards, Plains shall
(a) deliver to Spinco, upon Spinco's request and without charge to Spinco,
representative samples of products, labels, containers, advertisements,
catalogs, letterhead, and the like, bearing or containing the Plains Marks; and
(b) upon reasonable notice to Plains by Spinco, permit Spinco to inspect Plains'
facilities where products bearing the Plains Marks are made.

     3.3 Plains shall comply with all applicable laws and regulations and shall
obtain all appropriate governmental or regulatory approvals pertaining to the
sale, distribution and/or advertising of Plains products and services offered in
connection with the Plains Marks.

     3.4 Any Plains products and services intended to be marketed under the
Plains Marks that fail to meet the Quality Standards shall, at the expense of
Plains, be withdrawn from production and corrected or destroyed.

                                   ARTICLE IV.
                       DURATION OF LICENSE AND TERMINATION

     4.1 This Agreement and the license granted herein shall be effective as of
the Effective Date and shall remain in effect until terminated in accordance
with this Article IV.

     4.2 Should Plains ever discontinue the use of any Plains Marks with the
intent not to resume such use, Plains shall promptly notify Spinco in writing of
such action. As to any Plains Marks with respect to which use is or has been
discontinued without the intent to resume by Plains, Spinco may terminate the
license with respect to such Plains Marks upon 90 days prior written notice to
Plains. Should Spinco ever discontinue use of the name "Plains" and derivatives
thereof (the "Names"), Spinco shall promptly notify Plains in writing of such
action. Within a reasonable time after such use is discontinued, Spinco will
transfer and assign its right, title and interest in and to the Names to Plains.

     4.3 Spinco shall have the right to terminate the license granted herein
with respect to any Plains Marks upon 60 days prior written notice to Plains if
Plains breaches any provision of this Agreement, including failure by Plains to
comply with the Quality Standards established under Article III, if such breach
shall be continuing at the end of such 60 day period.

                                       3

<PAGE>

     4.4 Spinco shall have the right to terminate immediately this Agreement, or
any or all licenses granted herein, upon written notice to Plains in the event
of the winding-up, transfer of all or substantially all assets, insolvency,
consolidation or merger involving Plains, or any sequestration by Governmental
Authority of Plains.

     4.5 Upon the termination of this Agreement with respect to the Plains
Marks, or the termination of all licenses under this Agreement, Plains agrees to
immediately discontinue all use of such Plains Marks and/or any similar trade
name that contains "Plains" as a part thereof, as the case may be. In this
connection, Plains agrees:

          (a) that it will immediately take all steps to refrain, as promptly as
possible, from using the Plains Marks as part of Plains' company name, and shall
refrain from using the Plains Marks in advertising, commercial registers,
directories, internet and company web-sites, telephone listings, and all other
similar listings; and

          (b) to use its best efforts and due diligence to obtain whatever
approvals are necessary, either governmental or otherwise, to change its company
name to exclude the Plains Marks therefrom, such change to be effected within
180 days after the termination of this Agreement.

                                   ARTICLE V.
                                   PROTECTION

     5.1 At the request of Plains, Spinco shall apply to register any
unregistered Plains Marks in the name of Spinco for the Plains products and
services provided in connection therewith; shall use its reasonably best efforts
to obtain registrations thereof; shall maintain such registrations in full force
and effect; and shall apply to register Plains as a registered user of the
Plains Marks in jurisdictions that require such registration. Plains shall
cooperate with Spinco to obtain and maintain said registrations. The cost of
obtaining and maintaining any unregistered Plains Marks exclusively used by
Plains shall be borne by Plains. The cost of obtaining and maintaining any
unregistered Plains Marks also used by Spinco shall be borne by Spinco. If
Plains notifies Spinco that it is no longer interested in a trademark filed by
Spinco under the provisions of this paragraph, Spinco shall be free to
discontinue prosecution and/or maintenance of any application or registration
for said Plains Marks, and Plains shall have no obligation for any expense with
respect thereto incurred after the notice from Plains to Spinco.

     5.2 If any opposition, cancellation, or similar proceeding is initiated by
any third party with respect to the Plains Marks or applications to register any
Plains Marks, Spinco shall notify Plains of such proceeding, and Plains shall
have 30 days to notify Spinco if Plains wants such proceedings to be contested.
If Plains informs Spinco that Plains wants to contest such proceeding, Spinco
will defend such Plains Marks in the proceeding or, at the option of Spinco,
permit Plains to take over the defense of such proceeding on behalf of Spinco.
Plains shall bear the expenses of such proceeding for the Plains Marks. If
Plains does not notify Spinco that Plains wants such proceeding to be contested,
Spinco shall have the right to proceed as it chooses

                                       4

<PAGE>

with regard to such proceeding and such Plains Marks, including abandoning or
canceling such Plains Marks or any application or registration therefor without
any liability to Plains.

     5.3 Plains shall promptly notify Spinco of any and all infringements,
imitations, simulations or other illegal use or misuse of the Plains Marks that
come to Plains' attention. As between Plains and Spinco, Spinco is the sole
owner of the Plains Marks, and Spinco shall determine whether to take any action
to prevent the infringement, imitation, simulation or other illegal use or
misuse of the Plains Marks. If Spinco elects not to take such action, Plains
shall have the right to take such action at Plains' expense. In such event,
Spinco shall, at Plains' expense, cooperate in such action with Plains including
joining as a party. Any money recovered by way of damages or otherwise with
respect to such action shall be kept by the Party that bore the costs of such
action; or, in any case where the Parties have shared the costs, such money
shall be shared in proportion to the costs borne by each Party. For purposes of
this Article 5.3, the costs borne by a Party shall include attorneys' fees and
court costs related to such action.

     5.4 Plains shall render to Spinco all reasonable assistance in connection
with any matter pertaining to the protection, enforcement or infringement of
Plains Marks used by Plains, whether in the courts, administrative or
quasi-judicial agencies, or otherwise.

                                   ARTICLE VI.
                                 NEW TRADEMARKS

     6.1 Should Plains desire to develop new trademarks using the name "Plains"
for the Plains Business, it must first consult with and obtain the written
approval of Spinco. Such newly developed trademarks will be owned by Spinco, and
will be deemed to be Plains Marks licensed to Plains hereunder and will be
subject to all of the terms and conditions of this Agreement, including Design
Standards and Quality Standards established by Spinco. Such approval will not be
contingent upon the payment of any fee or royalties to Spinco, provided, however
the cost of obtaining and maintaining such new trademarks shall be borne solely
by Plains.

                                  ARTICLE VII.
                                  MISCELLANEOUS

     7.1 Entire Agreement. This Agreement, the Separation Agreement, the other
Ancillary Agreements and the Exhibits and Schedules referenced or attached
hereto and thereto, constitute the entire agreement between the Parties with
respect to the subject matter hereof and shall supersede all prior written and
oral and all contemporaneous oral agreements and understandings with respect to
the subject matter hereof.

     7.2 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas, without regard to its
principles of conflicts of laws.

     7.3 Notices. Unless expressly provided herein, all notices, claims,
certificates, requests, demands and other communications hereunder shall be in
writing and shall be deemed

                                       5

<PAGE>

to be duly given (i) when personally delivered or (ii) if mailed registered or
certified mail, postage prepaid, return receipt requested, on the date the
return receipt is executed or the letter refused by the addressee or its agent
or (iii) if sent by overnight courier which delivers only upon the signed
receipt of the addressee, on the date the receipt acknowledgment is executed or
refused by the addressee or its agent or (iv) if sent by facsimile or other
generally accepted means of electronic transmission, on the date confirmation of
transmission is received, addressed to the attention of the addressee's Chief
Executive Officer at the address of its principal executive office or to such
other address or facsimile number for a party as it shall have specified by like
notice.

     7.4 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original but all of which shall constitute one
and the same instrument.

     7.5 Binding Effect; Assignment. This Agreement shall inure to the benefit
of and be binding upon the Parties and their respective legal representatives
and successors and nothing in this Agreement, express or implied, is intended to
confer upon any other Person any rights or remedies of any nature whatsoever
under or by reason of this Agreement. This Agreement may not be assigned or
transferred by any Party without the prior written consent of the other Party,
which may be withheld for any or no reason.

     7.6 Severability. The provisions of this Agreement will be deemed severable
and the invalidity or unenforceability of any provision will not affect the
validity or enforceability of the other provisions hereof; provided that if any
provision of this Agreement, as applied to any Party or to any circumstance, is
adjudged by a Governmental Authority, arbitrator, or mediator not to be
enforceable in accordance with its terms, the Parties agree that the
Governmental Authority, arbitrator or mediator making such determination will
have the power to modify the provision in a manner consistent with its
objectives such that it is enforceable, and/or to delete specific words or
phrases, and in its reduced form, such provision will then be enforceable and
will be enforced.

     7.7 Failure or Indulgence not Waiver; Remedies Cumulative. No failure or
delay on the part of either Party in the exercise of any right hereunder shall
impair such right or be construed to be a waiver of, or acquiescence in, any
breach of any representation, warranty or agreement herein, nor shall any single
or partial exercise of any such right preclude other or further exercise thereof
or of any other right. All rights and remedies existing under this Agreement are
cumulative to, and not exclusive of, any rights or remedies otherwise available.

     7.8 Waivers, Modifications. No provision of this Agreement may be amended,
modified or waived, except in the manner set forth in the Separation Agreement.

     7.9 Headings. The heading references herein are for convenience purposes
only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof.

     7.10 Relationship of Parties. Nothing in this Agreement shall be deemed or
construed by the Parties or any third party as creating the relationship of
principal and agent, partnership or

                                       6

<PAGE>

joint venture between the Parties, and no provision contained herein, and no act
of the Parties, shall be deemed to create any relationship between the Parties
nor be deemed to vest any rights, interests or claims in any third parties.

     7.11 Provisions Unaffected. Nothing contained in this Agreement shall
affect the rights and obligations of Plains and Spinco under the Separation
Agreement.

     7.12 No Third-Party Beneficiaries. This Agreement is solely for the benefit
of the Parties and should not be deemed to confer upon third parties any remedy,
claim, liability, reimbursement, claim of action or other right in excess of
those existing without reference to this Agreement.

     7.13 Rights of the Parties. Nothing expressed or implied in this Agrement
is intended or will be construed to confer upon or give any Person, other than
the Parties and to the extent provided herein their respective Subsidiaries, any
rights or remedies under or by reason of this Agreement or any transaction
contemplated thereby.

     7.14 Injunctive Relief. Plains acknowledges that monetary relief would not
be an adequate remedy for a breach or threatened breach by Plains of the
provisions of this Agreement and that Spinco shall be entitled to the
enforcement of this Agreement by injunction, specific performance or other
equitable relief, without prejudice to any other rights and remedies that Spinco
may have.

                            [SIGNATURE PAGE FOLLOWS]

                                       7

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers or agents as of the day and year
first above written.

                                         PLAINS RESOURCES INC.

                                         By: /s/ Jere C. Overdyke, Jr.
                                             -----------------------------------
                                         Name:   Jere C. Overdyke, Jr.
                                         Title:  Vice President and Treasurer

                                         PLAINS EXPLORATION &
                                         PRODUCTION COMPANY, L.P.

                                         By: Stocker Resources, Inc.
                                             its general partner

                                             By: /s/ Jere C. Overdyke, Jr.
                                                 -------------------------------
                                             Name:  Jere C. Overdyke, Jr.
                                             Title: Vice President and Treasurer

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