Document:

[Exhibit
      10.4]

     

    FORM
      OF ADMINISTRATIVE AGENCY AGREEMENT

    

    THIS
      ADMINISTRATIVE AGENCY AGREEMENT (the
      “Agreement”)
      is
      made as of _______________, by and among BROWN
      BROTHERS HARRIMAN & CO.,
      a
      limited partnership organized under the laws of the State of New York (the
      “Administrator”),
      VICTORIA
      BAY ASSET MANAGEMENT, LLC,
      a
      Delaware limited liability company (the “General
      Partner”)
      and
UNITED
      STATES NATURAL GAS FUND, LP,
      a
      limited partnership organized under the laws of the State of Delaware (the
      “Fund”).

    

    WITNESSETH:

    

    WHEREAS,
      the
      Fund is a limited partnership that is registered as a commodity
      pool;

     

    WHEREAS,
      the
      General Partner has exclusive responsibility for the management and control
      of
      the business and affairs of the Fund; and

     

    WHEREAS,
      the
      Fund and the General Partner desire to retain the Administrator to render
      certain services to the Fund and/or the General Partner, as the case may be,
      and
      the Administrator is willing to render such services. 

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and mutual covenants herein contained, the parties
      hereto agree as follows:

    

    1. Appointment
      of Administrator.
      The
      Fund and the General Partner hereby employ and appoint the Administrator to
      act
      as administrative agent on the terms set forth in this Agreement, and the
      Administrator accepts such appointment.

    

    2. Delivery
      of Documents.
      The
      Fund and the General Partner will on a continuing basis provide the
      Administrator with:

     

    2.1 properly
      certified or authenticated copies of resolutions of the General Partner’s Board
      of Directors (including Mr. Nicholas D. Gerber) authorizing the appointment
      of
      the Administrator as administrative agent of the Fund and approving this
      Agreement;

     

    2.2 a
      copy of
      the Fund’s most recent registration statement under the Securities Act of 1933,
      as amended;

     

    2.3 copies
      of
      all agreements between the Fund and its service providers, including without
      limitation, advisory, distribution and administration agreements and
      distribution and/or unitholder;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    2.4 a
      copy of
      the Fund’s valuation procedures;

     

    2.5 a
      copy of
      the Fund’s Limited Partnership Agreement, as may be amended from time to
      time;

     

    2.6 a
      copy of
      the General Partner’s First Amended and Restated Limited Liability Company
      Agreement, as may be amended from time to time;

     

    2.7 any
      other
      documents or resolutions (including, but not limited to directions or
      resolutions of the General Partner’s Board of Directors, Management Directors,
      and/or Audit Committee) which relate to or affect the Administrator’s
      performance of its duties hereunder or which the Administrator may at any time
      reasonably request; and

     

    2.8 copies
      of
      any and all amendments or supplements to the foregoing. 

     

    3. Duties
      as Administrator. Subject
      to the supervision and direction of the General Partner’s Board of Directors,
      Management Directors and Audit Committee, the Administrator will perform the
      administrative services described in Appendix A hereto. Additional services
      may
      be provided by the Administrator upon the request of the Fund as mutually agreed
      from time to time. In performing its duties and obligations hereunder, the
      Administrator will act in accordance with the General Partner’s instructions as
      defined in Section 5 (“Instructions”). It is agreed and understood that the
      Administrator shall not be responsible for the Fund’s or the General Partner’s
      compliance with any applicable documents, laws or regulations, or for losses,
      costs or expenses arising out of the Fund’s or the General Partner’s failure to
      comply with said documents, laws or regulations or the Fund’s or the General
      Partner’s failure or inability to correct any non-compliance therewith. The
      Administrator shall in no event be required to take any action, which is in
      contravention of any applicable law, rule or regulation or any order or judgment
      of any court of competent jurisdiction.

    

    3.1
       Records.
      The
      Administrator will maintain
      and retain such records as required by the Securities Exchange Act of 1934,
      as
      amended, the Rules of the American Stock Exchange, 17 C.F.R 4.23, and other
      applicable federal securities laws and created pursuant to the performance
      of
      the Administrator’s obligations under this Agreement. The Administrator will
      maintain such other records as requested by the Fund or the General Partner
      and
      received by the Administrator. The Administrator shall not be responsible for
      the accuracy and completeness of any records not created by the Administrator.
      The Administrator acknowledges that the records maintained and preserved by
      the
      Administrator pursuant to this Agreement are the property of the Fund and will
      be, at the Fund’s expense, surrendered promptly upon reasonable request. In
      performing its obligations under this Section, the Administrator may utilize
      micrographic and electronic storage media as well as independent third party
      storage facilities. 

    

    
      
        
        

      

      
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    4. Duties
      of the Fund and the General Partner.
      The
      Fund and the General Partner shall notify the Administrator promptly of any
      matter affecting the performance by the Administrator of its services under
      this
      Agreement. Where the Administrator is providing fund accounting services
      pursuant to this Agreement, the Fund and the General Partner shall promptly
      notify the Administrator as to the accrual of liabilities of the Fund and of
      liabilities of the Fund not appearing on the books of account kept by the
      Administrator, as well as to the existence, status and proper treatment of
      reserves, if any, authorized by the Fund or the General Partner. The Fund and
      the General Partner agree to provide such information to the Administrator
      as
      may be requested under the banking and securities laws of the United States
      or
      other jurisdictions relating to “Know Your Customer” and money laundering
      prevention rules and regulations (collectively, the “KYC Requirements”). For
      purposes of this subsection, and in connection with all applicable KYC
      Requirements, the Fund is the “client” or “customer” of the
      Administrator. The
      Fund
      and the General Partner further represent that each will perform all obligations
      required under applicable KYC Requirements with respect to the Fund’s
“customers” (as defined in the KYC Requirements) and that, because these
      customers do not constitute “customers” or “clients” of the Administrator under
      such applicable rules and regulations, the Administrator is under no such
      similar obligations. 

    

    
      
        5.
          Instructions.
          

      

    

    

    5.1 The
      Administrator shall not be liable for, and shall be indemnified by the Fund
      against any and all losses, costs, damages or expenses arising from or as a
      result of, any action taken or omitted in reliance upon Instructions or upon
      any
      other written notice, request, direction, instruction, certificate or other
      instrument believed by it to be genuine and signed or authorized by the proper
      party or parties. A list of persons so authorized by the General Partner
      (“Authorized Persons”) is attached hereto as Appendix B and upon which the
      Administrator may rely until its receipt of notification to the contrary by
      the
      General Partner.

     

    5.2 Instructions
      shall include a written request, direction, instruction or certification signed
      or initialed on behalf of the Fund by one or more Authorized Persons.

     

    5.3 Telephonic
      or other oral instructions or instructions given by telefax transmission may
      be
      given by any one of the above Authorized Persons and will also be considered
      Instructions if the Administrator believes them to have been given by a person
      authorized to give such Instructions with respect to the transaction involved.
      

     

    5.4 With
      respect to telefax transmissions, the Fund and the General Partner hereby
      acknowledge that (i) receipt of legible instructions cannot be assured, (ii)
      the
      Administrator cannot verify that authorized signatures on telefax instructions
      are original, and (iii) the Administrator shall not be responsible for losses
      or
      expenses incurred through actions taken in reliance on such telefax
      instructions. The Fund and the General Partner agree that such telefax
      instructions shall be conclusive evidence of the Fund’s/General Partner’s
      Instruction to the Administrator to act or to omit to act.

     

    
      
        
        

      

      
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    5.5 Instructions
      given orally will not be confirmed in writing and the lack of such confirmation
      shall in no way affect any action taken by the Administrator in reliance upon
      such oral Instructions. The Fund and the General Partner authorize the
      Administrator to tape record any and all telephonic or other oral Instructions
      given to the Administrator by or on behalf of the Fund (including any of the
      Fund’s or the General Partner’s officers, directors, trustees, employees or
      agents or any investment manager or adviser or person or entity with similar
      responsibilities which is authorized to give Instructions on behalf of the
      Fund
      to the Administrator.)

    

    6. Expenses
      and Compensation.
      For the
      services to be rendered and the facilities to be furnished by the Administrator
      as provided for in this Agreement, the Fund shall pay the Administrator rendered
      pursuant to this Agreement a fee based on such fee schedule as may from time
      to
      time be agreed upon in writing among the General Partner, Fund and the
      Administrator. Additional services performed by the Administrator as requested
      by the Fund shall be subject to additional fees as mutually agreed from time to
      time. In addition to any such fees, the Administrator shall bill the Fund
      separately for any out-of-pocket disbursements of the Administrator based on
      an
      out-of-pocket disbursement schedule as may from time to time be agreed upon
      in
      writing among the General Partner, the Fund and the Administrator. The initial
      fee schedule and out of pocket disbursement schedule are attached as Appendix
      D
      to this Agreement. The foregoing fees and disbursements shall be billed to
      the
      Fund by the Administrator and shall be paid promptly by wire transfer or other
      appropriate means to the Administrator. 

    

    7. Standard
      of Care.
      The
      Administrator shall be held to the exercise of reasonable care and diligence
      in
      carrying out the provisions of this Agreement, provided that the Administrator
      shall not thereby be required to take any action which is in contravention
      of
      any applicable law, rule or regulation or any order or judgment of any court
      of
      competent jurisdiction. 

    

    8. General
      Limitations on Liability.
      The
      Administrator shall incur no liability with respect to any telecommunications,
      equipment or power failures, or any failures to perform or delays in performance
      by postal or courier services or third-party information providers (including,
      without limitation those listed on Appendix C). 

    

    
      
        
        

      

      
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    8.1 The
      Administrator shall also incur no liability under this Agreement if the
      Administrator or any agent or entity utilized by the Administrator shall be
      prevented, forbidden or delayed from performing, or omits to perform, any act
      or
      thing which this Agreement provides shall be performed or omitted to be
      performed, by reason of causes or events beyond its control, including but
      not
      limited to: 

     

    8.1.1 any
      Sovereign Event. A “Sovereign Event” shall mean any nationalization;
      expropriation; devaluation; revaluation; confiscation; seizure; cancellation;
      destruction; strike; act of war, terrorism, insurrection or revolution; or
      any
      other act or event beyond the Administrator’s control; 

     

    8.1.2 any
      provision of any present or future law, regulation or order of the United States
      or any state thereof, or of any foreign country or political subdivision
      thereof, or of any securities depository or clearing agency; and 

     

    8.1.3 any
      provision of any order or judgment of any court of competent jurisdiction.
      

    

    
      	 	
              8.2 The
                Administrator shall not be held accountable or liable for any losses,
                damages or expenses the General Partner, the Fund or any unitholder
                or
                former unitholder of the Fund or any other person may suffer or incur
                arising from acts, omissions, errors or delays of the Administrator
                in the
                performance of its obligations and duties as provided in Section
                3 hereof,
                including without limitation any error of judgment or mistake of
                law,
                except a loss, damage or expense directly resulting from the
                Administrator’s willful malfeasance, bad faith or negligence in the
                performance of such Administrator’s obligations and duties.
                

            

    

    

    
      
        9.
          Specific
          Limitations on Liability. In
          addition to, and without limiting the application of the general limitations
          on
          liability contained in Section 8, above, the following specific limitations
          on
          the Administrator’s liability shall apply to the particular administrative
          services set forth on Appendix A hereto. 

      

    

    

    9.1 Liability
      for Fund Accounting Services. Without
      limiting the provisions in Section 8 hereof, the Administrator’s liability for
      acts, omissions, errors or delays relating to its fund accounting obligations
      and duties shall be limited to the amount of any expenses associated with a
      required recalculation of net asset value per unit (“NAV”) or any direct damages
      suffered by unitholders in connection with such recalculation. The
      Administrator’s liability or accountability for such acts, omissions, errors or
      delays shall be further subject to clauses 9.1.1 through 9.1.4 below.

     

    
      
        
        

      

      
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    9.1.1 The
      parties hereto acknowledge that the Administrator’s causing an error or delay in
      the determination of NAV may, but does not in and of itself, constitute
      negligence or reckless or willful misconduct. The parties further acknowledge
      that in accordance with industry practice the liability of the Administrator
      for
      fund accounting services shall accrue and the recalculation of NAV shall be
      performed in accordance with this Section 9.1 only with regard to errors in
      the
      calculation of the NAV that are (i) greater than or equal to $.01 per unit
      of
      the Fund and (ii) greater than or equal to 1⁄2% of the total net assets of the
      Fund. 

     

    9.1.2 In
      no
      event shall the Administrator be liable or responsible to the General Partner,
      the Fund, any present or former unitholder of the Fund, or any other person
      for
      any error or delay that continued or was undetected after the date of an audit
      performed by the certified public accountants employed by or on behalf of the
      Fund if, in the exercise of reasonable care in accordance with generally
      accepted accounting standards, such accountants should have become aware of
      such
      error or delay in the course of performing such audit. 

     

    9.1.3 The
      Administrator shall not be held accountable or liable to the General Partner,
      the Fund, any unitholder or former unitholder thereof or any other person for
      any delays or losses, damages or expenses any of them may suffer or incur
      resulting from (i) the Administrator’s usage of a third party service provider
      for the purpose of storing records delivered to the Administrator by or on
      behalf of the Fund and which the Administrator did not create in the performance
      of its obligations hereunder; (ii) the Administrator’s failure to receive timely
      and suitable notification concerning quotations or corporate actions relating
      to
      or affecting portfolio securities of the Fund; or (iii) any errors in the
      computation of NAV based upon or arising out of quotations or information as
      to
      corporate actions if received by the Administrator either (a) from a source
      which the Administrator was authorized to rely upon (including those sources
      listed on Appendix C), or (b) from a source which in the Administrator’s
      reasonable judgment was as reliable a source for such quotations or information
      as such authorized sources; or (iv) any errors in the computation of NAV as
      a
      result of relevant information known to the General Partner, the Fund, a futures
      commission merchant, securities brokers or dealers, or any of the Fund’s other
      service providers including futures commission merchants in contract with the
      Fund, which would impact the calculation of NAV, but was not communicated to
      the
      Administrator. To the extent that Fund assets are not in the custody of the
      Administrator, the Administrator may conclusively rely on any reporting in
      connection with such assets provided to the Administrator by a third party
      on
      behalf of the Fund, including, without limitation any futures commission
      merchant.

     

    
      
        
        

      

      
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    9.1.4 In
      the
      event of any error or delay in the determination of such NAV for which the
      Administrator may be liable, the General Partner, the Fund and the Administrator
      will consult and make good faith efforts to reach agreement on what actions
      should be taken in order to mitigate any loss suffered by the Fund or its
      present or former unitholders, in order that the Administrator’s exposure to
      liability shall be reduced to the extent possible after taking into account
      all
      relevant factors and alternatives. It is understood that in attempting to reach
      agreement on the actions to be taken or the amount of the loss which should
      appropriately be borne by the Administrator, the General Partner, the Fund
      and
      the Administrator will consider such relevant factors as the amount of the
      loss
      involved, the Fund’s/General Partner’s desire to avoid loss of unitholder
      goodwill, the
      fact
      that other persons or entities could have been reasonably expected to have
      detected the error sooner than the time it was actually discovered, the
      appropriateness of limiting or eliminating the benefit which unitholders or
      former unitholders might have obtained by reason of the error, and the
      possibility that other parties providing services to the Fund might be induced
      to absorb a portion of the loss incurred. 

    

    
      
        10.
          Indemnification. 

      

    

     

    10.1 The
      General Partner and the Fund hereby agree to indemnify and hold harmless the
      Administrator, its partners, stockholders, members, directors, officers and
      employees and any subsidiary or affiliate of the foregoing (“Affiliate”), and
      the successors and assigns of all of the foregoing persons, against any and
      all
      losses, claims, damages, liabilities or expenses (including reasonable counsel
      fees and expenses) resulting from any act, omission, error or delay or any
      claim, demand, action or suit, in connection with or arising out of performance
      of its obligations and duties under this Agreement, not resulting from the
      willful malfeasance, bad faith or negligence of the Administrator in the
      performance of such obligations and duties. The provisions of this Section
      10
      shall survive the termination of this Agreement.

    

    10.1.1 If
      any
      action, suit or proceeding (each, a “Proceeding”) is brought against the
      Administrator or any such person in respect of which indemnity may be sought
      against the General Partner pursuant to the foregoing subsection, the
      Administrator or such person shall promptly notify the General Partner in
      writing of the institution of such Proceeding and the General Partner shall
      assume the defense of such Proceeding, including the employment of counsel
      reasonably satisfactory to such indemnified party and payment of all fees and
      expenses; provided, however, that the omission to so notify the General Partner
      shall not release the General Partner from any liability which it may have
      to
      the Administrator or any such person except to the extent that it has been
      materially prejudiced by such failure and has not otherwise learned of such
      Proceeding. The Administrator or such person shall have the right to employ
      its
      own counsel in any such case, but the fees and expenses of such counsel shall
      be
      at the expense of the Administrator or of such person unless the employment
      of
      such counsel shall have been authorized in writing by the General Partner in
      connection with the defense of such Proceeding or the General Partner shall
      not
      have, within a reasonable period of time in light of the circumstances, employed
      counsel to have charge of the defense of such Proceeding or such indemnified
      party or parties shall have reasonably concluded that there may be defenses
      available to it or them which are different from, additional to or in conflict
      with those available to the General Partner (in which case the General Partner
      shall not have the right to direct the defense of such Proceeding on behalf
      of
      the indemnified party or parties), in any of which events such fees and expenses
      shall be borne by the General Partner and paid as incurred (it being understood,
      however, that the General Partner shall not be liable for the expenses of more
      than one separate counsel (in addition to any local counsel) in any one
      Proceeding or series of related Proceedings in the same jurisdiction
      representing the indemnified parties who are parties to such Proceeding).

     

    
      
        
        

      

      
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    10.1.2 The
      General Partner shall not be liable for any settlement of any Proceeding
      effected without the General Partner’s written consent but if settled with the
      General Partner’s written consent, the General Partner agrees to indemnify and
      hold harmless the Administrator and any such person from and against any loss
      or
      liability by reason of such settlement. Notwithstanding the foregoing sentence,
      if at any time an indemnified party shall have requested an indemnifying party
      to reimburse the indemnified party for fees and expenses of counsel as
      contemplated by the second sentence of this subsection, then the indemnifying
      party agrees that it shall be liable for any settlement of any Proceeding
      effected without its written consent if (i) such settlement is entered into
      more
      than 60 Business Days (defined as any day other than a day on which the American
      Stock Exchange (“AMEX”), the New York Mercantile Exchange (“NYMEX”) or the New
      York Stock Exchange (“NYSE”) is closed for regular trading
      (each a
“Business Day”)),
      after
      receipt by such indemnifying party of the aforesaid request, (ii) such
      indemnifying party shall not have fully reimbursed the indemnified party in
      accordance with such request prior to the date of such settlement and (iii)
      such
      indemnified party shall have given the indemnifying party at least 30 Business
      Days’ prior notice of its intention to settle. No indemnifying party shall,
      without the prior written consent of the indemnified party, effect any
      settlement of any pending or threatened Proceeding in respect of which any
      indemnified party is or could have been a party and indemnity could have been
      sought hereunder by such indemnified party, unless such settlement includes
      an
      unconditional release of such indemnified party from all liability on claims
      that are the subject matter of such Proceeding and does not include an admission
      of fault, culpability or a failure to act, by or on behalf of such indemnified
      party.

     

    10.2 Subject
      to Sections 7, 8 and 9 of this Agreement, the Administrator agrees to indemnify
      and hold harmless the General Partner and the Fund, its partners, stockholders,
      members, directors, officers and employees and any Affiliate of the foregoing,
      and the successors and assigns of all of the foregoing persons, against any
      and
      all losses, claims, damages, liabilities or expenses (including reasonable
      counsel fees and expenses) resulting from any act, omission, error or delay
      or
      any claim, demand, action or suit, in connection with or arising out of
      performance of its obligations and duties under this Agreement, resulting from
      the willful malfeasance, bad faith or negligence of the Administrator in the
      performance of such obligations and duties. The provisions of this Section
      10
      shall survive the termination of this Agreement.

     

    
      
        
        

      

      
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    10.2.1 If
      any
      Proceeding is brought against the General Partner or any such person in respect
      of which indemnity may be sought against the Administrator pursuant to the
      foregoing subsection, the General Partner or such person shall promptly notify
      the Administrator in writing of the institution of such Proceeding and the
      Administrator shall assume the defense of such Proceeding, including the
      employment of counsel reasonably satisfactory to such indemnified party and
      payment of all fees and expenses; provided, however, that the omission to so
      notify the Administrator shall not relieve the Administrator from any liability
      which it may have to the General Partner or any such person except to the extent
      that it has been materially prejudiced by such failure and has not otherwise
      learned of such Proceeding. The General Partner or such person shall have the
      right to employ its own counsel in any such case, but the fees and expenses
      of
      such counsel shall be at the expense of the General Partner or of such person
      unless the employment of such counsel shall have been authorized in writing
      by
      the Administrator in connection with the defense of such Proceeding or the
      Administrator shall not have, within a reasonable period of time in light of
      the
      circumstances, employed counsel to have charge of the defense of such Proceeding
      or such indemnified party or parties shall have reasonably concluded that there
      may be defenses available to it or them which are different from, additional
      to
      or in conflict with those available to the Administrator (in which case the
      General Partner shall not have the right to direct the defense of such
      Proceeding on behalf of the indemnified party or parties), in any of which
      events such fees and expenses shall be borne by the Administrator and paid
      as
      incurred (it being understood, however, that the Administrator shall not be
      liable for the expenses of more than one separate counsel (in addition to any
      local counsel) in any one Proceeding or series of related Proceedings in the
      same jurisdiction representing the indemnified parties who are parties to such
      Proceeding). 

     

    10.2.2 The
      Administrator shall not be liable for any settlement of any Proceeding effected
      without the Administrator’s written consent but if settled with the
      Administrator’s written consent, the Administrator agrees to indemnify and hold
      harmless the General Partner and any such person from and against any loss
      or
      liability by reason of such settlement. Notwithstanding the foregoing sentence,
      if at any time an indemnified party shall have requested an indemnifying party
      to reimburse the indemnified party for fees and expenses of counsel as
      contemplated by the second sentence of this subsection, then the indemnifying
      party agrees that it shall be liable for any settlement of any Proceeding
      effected without its written consent if (i) such settlement is entered into
      more
      than 60 Business Days after receipt by such indemnifying party of the aforesaid
      request, (ii) such indemnifying party shall not have fully reimbursed the
      indemnified party in accordance with such request prior to the date of such
      settlement and (iii) such indemnified party shall have given the indemnifying
      party at least 30 Business Days’ prior notice of its intention to settle. No
      indemnifying party shall, without the prior written consent of the indemnified
      party, effect any settlement of any pending or threatened Proceeding in respect
      of which any indemnified party is or could have been a party and indemnity
      could
      have been sought hereunder by such indemnified party, unless such settlement
      includes an unconditional release of such indemnified party from all liability
      on claims that are the subject matter of such Proceeding and does not include
      an
      admission of fault, culpability or a failure to act, by or on behalf of such
      indemnified party.

     

    
      
        
        

      

      
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    11. Reliance
      by the Administrator on Opinions of Counsel and Opinions of Certified Public
      Accountants. 

     

    The
      Administrator may consult with its counsel or the Fund/General Partner’s counsel
      in any case where so doing appears to the Administrator to be necessary or
      desirable. The Administrator shall not be considered to have engaged in any
      misconduct or to have acted negligently and shall be without liability in acting
      upon the advice of its counsel or of the Fund’s/General Partner’s
      counsel.

     

    The
      Administrator may consult with a certified public accountant or the Fund’s
      Treasurer (or persons performing such function) in any case where so doing
      appears to the Administrator to be necessary or desirable. The Administrator
      shall not be considered to have engaged in any misconduct or to have acted
      negligently and shall be without liability in acting upon the advice of such
      certified public accountant or of the Fund’s Treasurer or persons performing
      such function.

    

    12. Termination
      of Agreement. This
      Agreement may be terminated by any of the parties in accordance with the
      provisions of this Section 12.

    

    12.1 This
      Agreement shall have an initial term of two (2) years from the date hereof.
      Thereafter, this Agreement shall automatically renew for successive one (1)
      year
      periods unless any party terminates this Agreement by written notice effective
      no sooner than seventy-five (75) days following the date that notice to such
      effect shall be delivered to the other parties at their address set forth
      herein. Notwithstanding the foregoing provisions, any party may terminate this
      Agreement at any time (a) for cause, which is a material breach of the Agreement
      not cured within sixty (60) days, in which case termination shall be effective
      upon written receipt of notice by the non-terminating parties, or (b) upon
      thirty (30) days’ written notice to the other parties in the event that a party
      is adjudged bankrupt or insolvent, or there shall be commenced against such
      party a case under any applicable bankruptcy, insolvency, or other similar
      law
      now or hereafter in effect. In the event a termination notice is given by a
      party hereto, all expenses associated with the movement of records and materials
      and the conversion thereof shall be paid by the Fund for which services shall
      cease to be performed hereunder. The Administrator shall be responsible for
      completing all actions in progress when such termination notice is given unless
      otherwise agreed. 

     

    
      
        
        

      

      
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    12.2. Upon
      termination of this Agreement in accordance with this Section 12, the Fund
      may
      request the Administrator to promptly deliver to the Fund or to any designated
      third party all records created and maintained by the Administrator pursuant
      to
      Section 3.1 of this Agreement, as well as any Fund records maintained but not
      created by the Administrator. If such request is provided in writing by the
      Fund
      to the Administrator within seventy-five (75) days of the date of termination
      of
      the Agreement, the Administrator shall provide to the Fund a certification
      that
      all records created by the Administrator pursuant to its obligations under
      Section 3.1 of this Agreement are accurate and complete. After seventy-five
      (75)
      days of the date of termination of this Agreement, no such certification will
      be
      provided to the Fund by the Administrator and the Administrator is under no
      further obligation to ensure that records created by the Administrator pursuant
      to Section 3.1 of this Agreement are maintained in a form that is accurate
      or
      complete. 

    

    13. Confidentiality
      and Privacy.

     

    13.1 The
      parties hereto agree that each shall treat confidentially the terms and
      conditions of this Agreement and all information provided by each party to
      the
      other regarding its business and operations. All confidential information
      provided by a party hereto shall be used by any other party hereto solely for
      the purpose of rendering or obtaining services pursuant to this Agreement and,
      except as may be required in carrying out this Agreement, shall not be disclosed
      to any third party without the prior consent of such providing party. The
      foregoing shall not be applicable to any information that is publicly available
      when provided or thereafter becomes publicly available other than through a
      breach of this Agreement, or that is required to be disclosed by or to any
      regulatory authority, any auditor of the parties hereto, or by judicial or
      administrative process or otherwise by applicable law. 

     

    13.2 In
      the
      course of carrying out its obligations under this Agreement, Administrator
      shall
      maintain physical, procedural and electronic safeguards to protect information
      regarding the Fund and its investors that Administrator has obtained or to
      which
      the Administrator
      has
      gained access.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    14. Tape-recording.
      The
      parties consent to recording of any and all telephonic or other oral
      instructions. This authorization will remain in effect until and unless revoked
      by the Fund, the General Partner or the Administrator in writing. Each party
      further agrees to solicit valid written or other consent from any of its
      employees, officers, directors or agents with respect to telephone
      communications to the extent such consent is required by applicable
      law.

     

    15. Procedures. Procedures
      applicable to the Administrator’s services to be performed hereunder may be
      established from time to time by agreement among the Fund, the General Partner
      and the Administrator. The Administrator shall have the right to utilize any
      unitholder accounting and recordkeeping systems that, in its opinion, enables
      it
      to perform any services to be performed hereunder.

    

    16. Entire
      Agreement; Amendment.
      This
      Agreement constitutes the entire understanding and agreement of the parties
      hereto and supersedes any other oral or written agreements heretofore in effect
      between the parties with respect to the subject matter hereof. No provision
      of
      this Agreement may be amended or terminated except by a statement in writing
      signed by the party against which enforcement of the amendment or termination
      is
      sought. 

    

    17. Severability.
      In the
      event any provision of this Agreement is determined to be void or unenforceable,
      such determination shall not affect the remainder of this Agreement, which
      shall
      continue to be in force. 

    

    18. Headings.
      The
      section headings in this Agreement are for the convenience of reference only
      and
      shall not modify, define, expand or limit any of the terms or provisions
      thereof.

    

    19. Governing
      Law.
      This
      Agreement shall be governed by and construed according to the laws of the State
      of New York without giving effect to conflicts of law provisions thereof and
      each of the parties hereto irrevocably consents to the exclusive jurisdiction
      of
      the United States District Court for the Southern District of New York or if
      that court lacks or declines to exercise subject matter jurisdiction, the
      Supreme Court of the State of New York, New York County. The General Partner
      and
      the Fund irrevocably waive any objection each may now or hereafter have to
      the
      laying of venue of any action or proceeding in any of the aforesaid courts
      and
      any claim that any such action or proceeding has been brought in an inconvenient
      forum. Furthermore, each party hereto irrevocably waives any right that it
      may
      have to trial by jury in any action, proceeding or counterclaim arising out
      of
      or related to this Agreement or the services contemplated hereby. 

    

    20. Notices.
      Notices
      and other writings delivered or mailed postage prepaid to the General Partner
      and Fund shall be addressed to the Fund/General Partner at Victoria Bay Asset
      Management, LLC, c/o Nicholas D. Gerber, P.O. Box 6919, Moraga, CA 94570, or
      such other address as the General Partner or the Fund may have designated to
      the
      Administrator in writing, or to the Administrator at 40 Water Street, Boston,
      MA
      02109, Attention: Manager, Fund Administration Department, or to such other
      address as the Administrator may have designated to the General Partner and
      the
      Fund in writing, shall be deemed to have been properly delivered or given
      hereunder to the respective addressee.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    21. Binding
      Effect; Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the General Partner,
      the Fund and the Administrator and their respective successors and assigns,
      provided that no party hereto may assign this Agreement or any of its rights
      or
      obligations hereunder without the written consent of the other parties. Each
      party agrees that only the parties to this Agreement and/or their successors
      in
      interest shall have a right to enforce the terms of this Agreement. Accordingly,
      no client of the General Partner, unitholder of the Fund or other third party
      shall have any rights under this Agreement and such rights are explicitly
      disclaimed by the parties.

    

    22. Counterparts.
      This
      Agreement may be executed in any number of counterparts each of which shall
      be
      deemed to be an original. This Agreement shall become effective when one or
      more
      counterparts have been signed and delivered by each of the parties. A photocopy
      or telefax of this Agreement shall be acceptable evidence of the existence
      of
      this Agreement and the Administrator shall be protected in relying on the
      photocopy or telefax until the Administrator has received the original of this
      Agreement.

    

    23. Exclusivity.
      The
      services furnished by the Administrator hereunder are not to be deemed
      exclusive, and the Administrator shall be free to furnish similar services
      to
      others. 

    

    24. Authorization.
      The
      General Partner hereby represents and warrants that the Management Directors
      of
      its Board of Directors including Mr. Nicholas D. Gerber have authorized the
      execution and delivery of this Agreement and that Authorized Persons of the
      General Partner and the Fund have signed this Agreement, Appendices A, B and
      C
      and the fee schedule hereto.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

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

     

    The
      undersigned acknowledges that (I/we) have received a copy of this
      document.

    

    BROWN
      BROTHERS HARRIMAN & CO.

    

    

    By:

    
      
        

      

    

    Name:

    Title:

    Date:

    

    

    UNITED
      STATES NATURAL GAS FUND, LP

    By:
      Victoria Bay Asset Management, LLC, as General Partner

    

    

    By:
      

    
      
        

      

    

    Name:
      

    Title:
      

    Date:

    

    

    VICTORIA
      BAY ASSET MANAGEMENT, LLC

    

    

    By:

    
      
        

      

    

    Name:
      Nicholas D. Gerber

    Title:
      Manager and Management Director

    Date:

    

    
      
        
        

      

      
        14

        
          

        

      

       

    

    

    APPENDIX
      A

    TO
      ADMINISTRATIVE AGENCY AGREEMENT

    

    ADMINISTRATIVE
      SERVICES OF THE ADMINISTRATIVE AGENT

    Dated
      as
      of ________________________

    

    Fund
      Accounting Services

     

    The
      Administrator will provide the following fund accounting services to the Fund
      on
      any Business Day: transaction processing and review, custodial reconciliation,
      securities pricing and investment accounting.

    

    Transaction
      Processing and Review.
      The
      Administrator shall input and reconcile the Fund’s investment activity including
      with respect to:

     

    
      	 	
              ·

            	
              Investment
                taxlots

            

    

    
      	 	
              ·

            	
              Income

            

    

    
      	 	
              ·

            	
              Dividends

            

    

    
      	 	
              ·

            	
              Principal
                paydowns

            

    

    
      	 	
              ·

            	
              Capital
                activity

            

    

    
      	 	
              ·

            	
              Expense
                accruals

            

    

    
      	 	
              ·

            	
              Cash
                activity

            

    

    
      	 	
              ·

            	
              Corporate
                Reorganizations

            

    

    

    Custodial
      Reconciliation.
      The
      Administrator shall reconcile the following positions of the Fund against the
      records of the Custodian:

     

    
      	 	
              ·

            	
              Securities,
                Futures and Over-the-Counter Contract (“OTC”)
                holdings

            

    

    
      	 	
              ·

            	
              Cash
                including cash transfers, fees assessed and other investment related
                cash
                transactions

            

    

    
      	 	
              ·

            	
              Trade
                settlements

            

    

    

    Securities,
      Futures and OTC Valuation.
      Using
      the Valuation Procedures set forth in Appendix D, the Administrator shall update
      each security, Futures and OTC position of the Fund as to the
      following:

     

    
      	 	
              ·

            	
              Market
                prices obtained from approved sources including those listed on Appendix
                C
                or Fair Valuations obtained from an Authorized Person of the
                Fund

            

    

    
      	 	
              ·

            	
              Mark
                to market of non-base receivables/payables utilizing approved foreign
                exchange quotations as quoted in Appendix
                C

            

    

    
      	 	
              ·

            	
              Mark
                to market of non-base currency positions utilizing the approved sources
                quoted in Appendix C or Fair Valuations obtained from an Authorized
                Person
                of the Fund

            

    

    

    Investment
      Accounting.
      The
      Administrator shall provide the following investment accounting services to
      each
      Portfolio:

     

    
      	 	
              ·

            	
              Amortization/accretion
                at the individual tax lot level

            

    

    
      	 	
              ·

            	
              General
                ledger entries

            

    

    
      	 	
              ·

            	
              Book
                value calculations

            

    

    
      	 	
              ·

            	
              Trade
                Date + 1 accounting

            

    

    
      	 	
              ·

            	
              Calculation
                of Net Asset Value Per Unit (“NAV”) as the earlier of 4:00 p.m. New York
                time or the close of trading on the New York Stock Exchange, and
                published
                shortly after the close of trading on the
                AMEX

            

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Financial
      Reporting Services

     

    
      	 	
              ·

            	
              The
                Administrator shall accumulate information for and prepare
                

            

    

    
      	 	 	 

      	 	
              
                ·

              

            	
              Within
                a 30 day period following the end of the Fund’s required monthly reporting
                period, an Account Statement in compliance with the requirements
                CFTC Rule
                §4.22(a) including a Statement of Income (Loss) and Statement of Changes
                in Net Asset Value; such preparation includes the coordination and
                review
                of all printer and author edits. The Fund and/or General Partner
                shall
                make arrangements for the printing and mailing of the Account Statements.
                

            

    

    

    
      	 	
              
                ·

              

            	
              Within
                a 45 day production cycle, one first fiscal quarter report of the
                Fund,
                one second fiscal quarter report of the Fund and one third fiscal
                quarter
                report of the Fund, each on Form
                10-Q.

            

    

    

    
      	 	
              
                ·

              

            	
              Within
                a 90-day production cycle, or shorter time period as required by
                the U.S.
                Securities and Exchange Commission (“SEC”), Commodities Futures Trading
                Commission, AMEX or NFA rules and communicated to the Administrator
                by the
                Fund and/or General Partner, one annual report of the Fund on Form
                10-K
                per fiscal year, such preparation includes the coordination of all
                printer
                and author edits, the review of printer drafts and the coordination
                of the
                audit of the Fund by its independent public accountant (e.g. manage
                open
                items lists, host weekly audit meeting, etc.). The Fund and/or General
                Partner shall make arrangements for the printing and mailing of the
                annual
                report on Form 10-K.

            

    

    

    
      	 	
              
                ·

              

            	
              Within
                90 days after the end of the fiscal year, an Annual Report of the
                Fund in
                compliance with the requirements of CFTC Rule §4.22(c); such preparation
                includes the coordination of all printer and author edits, the review
                of
                printer drafts and the coordination of the audit of the Fund by its
                independent public accountant (e.g. manage open items lists, host
                weekly
                audit meeting, etc.). The Fund and/or General Partner shall make
                arrangements for the printing and mailing of the Annual
                Report.

            

    

    

    
      	 	
              ·

            	
              Upon
                acceptance of each above-mentioned report by the Fund’s Treasurer and/or
                Chief Financial Officer (or such person performing such functions),
                the
                Administrator shall Edgarize and file such reports with the SEC,
                CFTC
                and/or NFA as required, including any applicable executed officer
                certifications or other exhibits 

            

    

    

    The
      Administrator shall assist the Fund in preparing Fund press releases with
      respect to interim statements and quarterly results and transmitting such press
      releases to the American Stock Exchange and such other entities as requested
      by
      the Fund or the General Partner.

    

    Assistant
      Treasurer Services

     

    The
      Administrator shall perform the following services as requested by the Fund’s
      Treasurer (or person performing such function):

     

    
      	 	
              ·

            	
              Prepare
                and obtain authorization of Fund expense invoices on a bi-monthly
                basis

            

    

    
      	 	
              ·

            	
              Prepare
                the Fund’s quarterly budget and make recommendations for adjustments as
                appropriate

            

    

    
      	 	
              ·

            	
              Prepare
                a monthly expense pro forma for the
                Fund

            

    

    
      	 	
              ·

            	
              Provide
                consultative services with respect to financial matters of the Fund
                as may
                be requested and agreed to by the Fund and Administrator from time
                to
                time

            

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    Corporate
      Secretarial Services 

     

    The
      Administrator shall perform the following secretarial services:

     

    
      	 	
              ·

            	
              Provide
                an “Assistant Secretary” who may be approved as an officer of the Fund by
                the Board of Directors

            

    

    
      	 	
              ·

            	
              Maintain
                calendar for Board and Audit Committee matters/approvals in the form
                of
                Exhibit
                A

            

    

    
      	 	
              ·

            	
              Prepare
                quarterly Board and Audit Committee meeting materials, including
                notices,
                scripts, agendas, resolutions, memoranda, minutes, and mail to Board
                of
                Directors and such other persons as instructed by the General
                Partner

            

    

    
      	 	
              ·

            	
              Attend
                quarterly Board and Audit Committee meetings, take minutes of the
                meetings, make presentations as required and follow up on matters
                raised
                at the meetings

            

    

    

    Regulatory
      Support Services

     

    The
      Administrator shall perform the following regulatory services for the
      Fund:

     

    
      	 	
              ·

            	
              Maintain
                calendar for all SEC, CFTC, NFA and AMEX regulatory matters in the
                form of
                Exhibit
                B;
                provided that the Fund and/or General Partner shall notify the
                Administrator of additional regulatory matters to be added to such
                calendar as soon as practicable

            

    

    
      	 	
              ·

            	
              Prepare
                one annual update to the Fund’s registration statement per calendar year
                and file the same with the SEC (includes coordination of the update
                with
                Fund personnel, Fund counsel and independent
                auditors)

            

    

    

    The
      Administrator shall perform the following additional regulatory services for
      the
      Fund:

     

    
      	 	
              ·

            	
              Prepare
                the materials for and attend one unitholder meeting per calendar
                year
                (including preparation of the proxy statement, notice and other
                solicitation materials and filing such materials with the SEC and
                taking
                minutes of the meeting)

            

    

    
      	 	
              ·

            	
              Coordinate
                with the Fund’s transfer agent or solicitor in monitoring the unitholder
                vote solicitation and tabulation for one unitholder meeting per calendar
                year 

            

    

    
      	 	
              ·

            	
              Prepare
                and file the following regulatory
                notices/forms:

            

    

    
      	 	 	 

      	 	
              
                ·

              

            	
              With
                the SEC, Forms 3, 4 and 5 and Schedules 13D and 13G for Fund/General
                Partner officers and directors and such other persons as requested
                by the
                Fund

            

    

    
      	 	
              
                ·

              

            	
              With
                the AMEX, such notices/forms as agreed to by the Fund and
                Administrator

            

    

    

    Transfer
      Agency Services

     

    The
      Administrator shall perform the following transfer agency services:

    

    I. Issuance
      and Redemption of Fund Units. It is agreed and understood that the Fund, and
      the
      Administrator on the Fund’s behalf, shall issue and redeem Units of the Fund in
      blocks of 100,000 Units (“Creation Baskets” and “Redemption Baskets,”
respectively) to and from such persons as are identified by the Fund as
“Authorized Purchasers” or “Authorized Participants.”

    

    
      	
            	A.	
              Pursuant
                to such purchase orders that the Administrator as the Index Receipt
                Agent
                shall receive from the ALPS Distributors, Inc. (“Marketing Agent”) and
                pursuant to the procedures set forth in the Authorized Purchaser
                Agreement
                entered into by the Fund, Administrator shall transfer appropriate
                trade
                instructions to the Fund’s custodian, Brown Brothers Harriman & Co.
                (“Custodian”) and pursuant to such orders register the appropriate number
                of book entry only Fund Units in the name of The Depository Trust
                Company
                (“DTC”) or its nominee as a unitholder (each a “Unitholder”) of the Fund
                and deliver the Units of the Fund on the business.
                

            

    

    

    
      	
            	B.	
              Pursuant
                to such redemption orders that Index Receipt Agent shall receive
                from the
                Marketing Agent, pursuant to the procedures set forth in the Authorized
                Purchaser Agreement entered into by the Fund, Administrator shall
                transfer
                appropriate trade instructions to the Custodian and, pursuant to
                such
                orders, redeem the appropriate number of Fund Units that are delivered
                to
                the designated DTC Participant Account of the Custodian for redemption
                and
                debit such Units from the account of the Unitholder on the register
                of the
                Fund.

            

    

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
      	
            	
              C.

            	
              On
                behalf of the Fund, Administrator shall issue Fund Units in Creation
                Baskets for settlement with purchasers through DTC as the purchaser
                is
                authorized to receive. Beneficial ownership of Fund Units shall be
                shown
                on the records of DTC and DTC Participants and not on any records
                maintained by the Administrator. In issuing Fund Units through DTC
                to a
                purchaser, Administrator shall be entitled to rely upon the latest
                Instructions that are received from the Marketing Agent by the
                Administrator as Index Receipt Agent concerning the issuance and
                delivery
                of such Units for settlement.

            

    

    

    
      	
            	D.	
              Administrator
                shall not issue on behalf of the Fund any Fund Units where it has
                received
                an Instruction from the Fund, the General Partner or the Marketing
                Agent
                or written notification from any federal or state authority that
                the sale
                of the Fund Units has been suspended or discontinued, and Administrator
                shall be entitled to rely upon such Instructions or written
                notification.

            

    

    

    
      	
            	E.	
              Upon
                the issuance of Fund Units as provided herein, Administrator shall
                not be
                responsible for the payment of any original issue or other taxes,
                if any,
                required to be paid by the Fund, the General Partner or the Marketing
                Agent in connection with such
                issuance.

            

    

    

    
      	
            	F.	
              Fund
                Units may be redeemed in accordance with the procedures set forth
                in the
                relevant Authorized Purchaser Agreement and Administrator shall duly
                process all redemption requests.

            

    

    

    
      	
            	G.	
              Administrator
                will act only upon Instruction from the Fund and/or the General Partner
                in
                addressing any failure in the delivery of cash, treasuries and/or
                Shares
                in connection with the issuance and redemption of Fund
                Units.

            

    

    

    II. Payment
      of Dividends and Distributions on Fund Units.

    

    
      	
            	A.	
              As
                instructed by the Fund and/or the General Partner, the Administrator
                shall
                prepare and make payments for dividends and distributions declared
                by the
                Fund or the General Partner.

            

    

    

    
      	
            	B.	
              The
                Fund and/or the General Partner shall promptly notify the Administrator
                of
                the declaration of any dividend or distribution. The Fund and/or
                the
                General Partner shall furnish to the Administrator a statement signed
                by
                an Authorized Person: (i) indicating that dividends have been declared
                on
                a specific periodic basis and Instructions specifying the date of
                the
                declaration of such dividend or distribution, the date of payment
                thereof,
                the record date as of which unitholders shall be entitled to payment,
                the
                total amount payable to the unitholders and the total amount payable
                to
                Administrator as transfer agent on the payment date; or (ii) setting
                forth
                the date of the declaration of any dividend or distribution, the
                date of
                payment thereof, the record date as of which the unitholders are
                entitled
                to payment, and the amount payable per unit to each unitholder as
                of that
                date and the total amount payable to Administrator as transfer agent
                on
                the payment date.

            

    

    

    
      	
            	C.	
              Based
                upon the amount of Fund Units outstanding on its books and records,
                the
                Fund and/or the General Partner shall calculate the total dollar
                amount of
                the dividend or distribution and notify the Administrator of this
                amount.
                The Fund and/or the General Partner shall then instruct the Administrator
                to direct the Custodian to place in a separate cash account maintained
                by
                the Administrator funds equal to the total cash amount of the dividend
                or
                distribution to be paid out. Should the Custodian determine that
                it does
                not have sufficient cash in the Custody Account to pay the total
                amount of
                the dividend or distribution to the Administrator, the Administrator
                shall
                advise the Fund and/or the General Partner and the Fund and/or the
                General
                Partner shall either adjust the rate of the dividend or distribution
                or
                provide additional cash directly to the Custodian for credit to the
                separate cash account maintained by the Custodian. When instructed
                by the
                Fund and/or the General Partner, the Administrator shall direct the
                Custodian to make payment of such dividend or distribution to the
                account
                of each unitholder.

            

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

       

    

    
      	
            	D.	
              Should
                the Administrator or the Custodian not receive from the Fund sufficient
                cash to make payment as provided in the immediately preceding Subsection,
                the Administrator shall notify the Fund and/or the General Partner,
                and
                the Administrator shall withhold payment to the unitholders until
                sufficient cash is provided to the Custodian and the Administrator
                shall
                not be liable for any claim arising out of such
                withholding.

            

    

    

    III. Maintenance
      of Registry of Limited Partners and Persons Applying to Become Limited
      Partners.

    

    Pursuant
      to the Limited Partnership Agreement for the Fund, all purchasers of Units
      who
      wish to become limited partners or record holders and receive cash distributions
      (if any) must deliver an executed transfer application in which the purchaser
      or
      transferee must certify that, among other things, he/she agrees to be bound
      by
      the Funds Limited Partnership Agreement and is eligible to purchase the Fund’s
      securities. Any transfer of Units will not be recorded by the transfer agent
      unless a completed transfer application is delivered to the General Partner
      or
      the Administrator. 

    

    The
      Administrator shall keep a record of all transfer applications received, with
      each applicant deemed as a holder of record until the application is approved
      by
      the Fund. All applications will be forwarded by the Administrator to the General
      Partner to obtain its consent. Once such consent is obtained, the holder shall
      become Limited Partners. The Administrator shall maintain a registry of all
      Limited Partners and holders of record of the Fund.

    

    IV. Recordkeeping.

    

    
      	
            	A.	
              The
                Administrator shall record the issuance of Fund Creation Baskets
                and
                maintain, pursuant to Rule 17Ad-14(e) under the Securities Exchange
                Act of
                1934, as amended, a record of the total number of Fund Creation Baskets
                that are authorized, based upon data provided to Administrator by
                the Fund
                and/or the General Partner, issued and outstanding. The Administrator
                shall also provide the Fund and/or the General Partner on a regular
                basis
                with the total number of Fund Units authorized, issued and outstanding;
                provided however that the Administrator shall not be responsible
                for
                monitoring the issuance of such Units or compliance with any laws
                relating
                to the validity of the issuance or the legality of the sale of such
                Units.

            

    

     

    

    UNITED
      STATES NATURAL GAS FUND, LP

    By:
      Victoria Bay Asset Management, LLC, as General Partner

     

     

    By:

    
      
        

      

    

    Name:
      

    Title:
      

    Date:

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    VICTORIA
      BAY ASSET MANAGEMENT, LLC

    

    By: 

    
      
        

      

    

    Name:
      Nicholas D. Gerber

    Title:
      Manager and Management Director

    Date:
      

    
      
        
        

      

      
        20

        
          

        

      

       

    

    BOARD
      OF DIRECTORS’ AND AUDIT COMMITTEE’S CALENDAR 

    FOR

    UNITED
      STATES NATURAL GAS FUND, LP (“LP”)1

    

    BOARD
      MEETINGS

    

    Quarterly
      Items

    

    
      	
              
                ·

              

            	
              Approve
                Minutes of Previous Board Meeting 

            

    

    
      	
              
                ·

              

            	
              Report
                of Chief Compliance Officer

            

    

    
      	
              
                ·

              

            	
              Report
                of Audit Committee (if applicable)

            

    

    
      	
              
                ·

              

            	
              Report
                of Administrator 

            

    

    
      	
              
                ·

              

            	
              Review
                Investor Relations Matters

            

    

    
      	
              
                ·

              

            	
              Regulatory
                Update 

            

    

    
      	
              
                ·

              

            	
              Ratify
                Filings with the U.S. Securities and Exchange Commission (“SEC”), the
                Commodities Futures Trading Commission (“CFTC”), American Stock Exchange
                (“AMEX”), National Futures Association (“NFA”) and any other regulatory
                body

            

    

    
      	
              
                ·

              

            	
              General
                Implementation Resolution 

            

    

    
      	
              
                ·

              

            	
              Approve/Review
                Next Meeting Date

            

    

    

    Initial
      Items

    

    
      	
              Approve
                Code of Conduct and Ethics (pursuant to Item 406 of SEC Regulation
                S-K)

            	 	 

    

    

    Annual
      Items

    

    
      	 	
              Last
                Approved

            	
              Next
                Approved

            
	
              Approve
                annual meeting and record date for annual meeting, proxies, notice
                and
                form of proxy 2

            	 	 
	 	 	 
	
              Approve
                Annual Report to unitholders /Form 10-K to be filed with the SEC
                and NFA,
                and sent to limited partners/unitholders no later than 90 days after
                fiscal year end so long as LP is a non-accelerated filer, and 60
                days
                after fiscal year end, when and if LP is an accelerated
                filer.

            	 	 
	 	 	 
	
              Approve
                items to be considered at annual meeting, if annual meeting is
                required

            	 	 

    

     

    
      1 
        Pursuant to the rules of the American Stock Exchange (“AMEX Company Guide”), the
        Board of Directors and the Audit Committee of any listed company is required
        to
        meet at least quarterly. In addition, the independent directors of the Board
        of
        Directors are required to meet as least annually in executive
        session.

      2 
        Section 704 of the AMEX Company Guide states that “A listed company is required
        to hold meetings of its stockholders annually
        to
        elect directors and to take action on other corporate matters in accordance
        with
        its charter, by-laws and applicable state or other laws.” The LP Agreement
        specifically provides that limited partners and/or the ultimate unitholders
        have
        no right to participate in management and does not expressly provide for
        the
        election of directors. This issue can be resolved by communicating with the
        LP’s
        liaison at AMEX.

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

       

    

    
      	
              Ratify
                appointment of independent auditors by the Audit Committee and associated
                fees

            	 	 
	 	 	 
	
              Ratify
                annual designation of Audit Committee Financial Expert, as defined
                under
                Item 401(h) of Regulation S-K

            	 	 
	 	 	 
	
              Approve
                any changes to the Audit Committee Charter recommended by the Audit
                Committee

            	 	 
	 	 	 
	
              Approve
                D&O/E&O Insurance for members of the Board and Audit Committee, if
                such insurance in obtained

            	 	 
	 	 	 
	
              Other
                Items

            	 	 
	 	 	 
	
              Review
                and approve related party transactions

            	 	 
	 	 	 
	
              Approve
                service provider agreements between LP and BBH&Co 

            	 	 

    

     

    AUDIT
      COMMITTEE

    

    Initial
      Items

    

    
      	
              Approve
                formal written charter of Audit Committee

            	 	 
	 	 	 
	
              Determine
                that at least one member of the Audit Committee is “Financially
                Sophisticated” pursuant to the rules of AMEX and is an Audit Committee
                Financial Expert, as defined under Item 401(h) of Regulation S-K
                

            	 	 
	 	 	 
	
              Determine
                that at least three members of the Audit Committee are Independent
                (under
                both Section 121A of the AMEX Company Guide and Rule 10A-3 of the
                Securities Exchange Act of 1934)

            	 	 
	 	 	 
	
              Approve
                independent auditors

            	 	 
	 	 	 
	
              Approve
                procedures for handling “Whistleblower” complaints

            	 	 

    

    

    Monthly
      Items

    

    
      	 	
              Last
                Approved

            	
              Next
                Approved

            
	
              Review
                Account Statements (prepared in accordance with CFTC rules) provided
                to
                unitholders/ limited partners 

            	 	 

    

     

    Quarterly
      Items

    

    
      	 	
              Last
                Approved

            	
              Next
                Approved

            
	
              Approve
                minutes of previous meeting

            	 	 
	 	 	 
	
              Pre-Approval
                of non-audit services provided by the independent auditors pursuant
                to
                pre-approval procedures & fees

            	 	 
	 	 	 
	
              Review
                Annual Report on Form 10-K to be filed with the SEC and NFA and Quarterly
                Reports on Form 10-Q to be filed with the SEC

            	 	 

    

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Annual
      Items

    

    
      	 	
              Last
                Approved

            	
              Next
                Approved

            
	
              Review/Approve
                audited financial statements included in Annual Report on Form 10-K
                and in
                form to be filed with the NFA

            	 	 
	 	 	 
	
              Approve
                independent auditors for the following calendar year

            	 	 
	 	 	 
	
              Review
                and evaluate the qualifications, independence and performance of
                the
                independent auditors

            	 	 
	 	 	 
	
              Approve
                fees associated with the engagement of independent auditors for the
                following calendar year

            	 	 
	 	 	 
	
              Review
                and assess adequacy of the Audit Committee Charter

            	 	 
	 	 	 
	
              Evaluate
                Audit Committee’s performance

            	 	 
	 	 	 
	
              Review
                services and fees of LP’s counsel and other service providers
                

            	 	 
	 	 	 
	
              Report
                of Independent Auditors: review of arrangements for and scope of
                audit
                plan/provide next year’s fees and engagement letter

            	 	 

    

    

    
      
        
        

      

      
        23

        
          

        

      

       

    

     

    APPENDIX
      B TO THE

    ADMINISTRATIVE
      AGENCY AGREEMENT

    

    List
      of Authorized Persons

    

    

    

    UNITED
      STATES NATURAL GAS FUND, LP

    By:
      Victoria Bay Asset Management, LLC, as General Partner

     

     

    By:
      

    
      
        

      

    

    Name:
      

    Title:
      

    Date:

    

    

    VICTORIA
      BAY ASSET MANAGEMENT, LLC

    

    

    By:

    
      
        

      

    

    Name:
      Nicholas D. Gerber

    Title:
      Manager and Management Director

    Date:

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    APPENDIX
      C TO THE
ADMINISTRATIVE AGENCY AGREEMENT

    

    AUTHORIZED
      SOURCES

    

    The
      General Partner and the Fund hereby acknowledge that the Administrator is
      authorized to use the following authorized sources for financial reporting,
      pricing (including corporate actions, dividends and rights offering), and
      foreign exchange quotations, to assist it in fulfilling its obligations under
      the aforementioned Agreement.

    

    BLOOMBERG

    EXTEL
      (LONDON)

    FUTURES
      COMMISSION MERCHANTS

    FUND
      MANAGERS

    INTERACTIVE
      DATA CORPORATION

    BROKERS

    REUTERS

    SUBCUSTODIAN
      BANKS

    TELEKURS

    VALORINFORM
      (GENEVA)

    REPUTABLE
      FINANCIAL PUBLICATIONS

    STOCK
      EXCHANGES

    FINANCIAL
      INFORMATION INC. CARD

    JJ
      KENNY

    FRI
      CORPORATION

    

    UNITED
      STATES NATURAL GAS FUND, LP

    By:
      Victoria Bay Asset Management, LLC, as General Partner

     

     

    By:
      

    
      
        

      

    

    Name:
      

    Title:
      

    Date:

    

    

    

    VICTORIA
      BAY ASSET MANAGEMENT, LLC

    

    

    By:

    
      
        

      

    Name:
      Nicholas D. Gerber

    Title:
      Manager and Management Director

    Date:

     

    
      
        
        

      

      
        25

        
          

        

      

       

    

    

     

    APPENDIX
      D

    

    BBH
      Pricing Policies

    Futures,
      Forwards, Swaps, Options and Treasuries

    

    The
      pricing policies stated below are used for all BBH clients ,
      including Mutual Fund Registered Investment Companies. These policies have
      been
      audited by numerous accounting firms during annual fund audits.

    

    Futures

     

    Futures
      traded on exchanges are valued using the closing settlement prices quoted on
      the
      relevant exchange and obtained from pricing sources, typically Bloomberg or
      Reuters. 

    

    Forward
      Currency Contracts

     

    BBH
      obtains
      the WM Reuters London Close closing spot rates and the WM Reuters London Close
      forward point rates on a daily basis. The currency forward contract pricing
      model derives the differential in point rates to the expiration date of the
      forward and calculates its present value. The forward is valued at the net
      of
      the present value and the spot rate.

    

    Swaps

     

    Swaps
      and
      other similar derivative or contractual type instruments are valued at a price
      provided by a single broker or dealer, typically the counterparty. If no such
      price is available, the contract is valued at a price at which the counterparty
      to such contract would repurchase the instrument or terminate the
      contract.

    

    Options

     

    Option
      contracts on securities, currencies, indices, futures contracts, commodities
      and
      other instruments shall be valued at the last sale price on the exchange or
      market that is the Primary Market. If a contract did not trade on the Primary
      Market, it shall be valued at the last sale price on another exchange or market
      where it did trade. If there is no such sale price, the value shall be the
      most
      recent bid quotation.

    

    Sale
      prices and bid quotations indicated above shall be supplied by a Pricing Service
      (Reuters, Bloomberg, IDC, etc.). If a Pricing Service is not able to provide
      such sale prices or bid quotations, the value shall be determined by taking
      the
      mean between the bid and the asked quotations provided by a single broker or
      dealer, unless the broker or dealer can only provide a bid quotation, in which
      case the value shall be such bid quotation.

    

    Except
      as
      provided below, OTC currency options are valued by uploading the applicable
      implied volatility rates from Reuters or Bloomberg. Other inputs are either
      uploaded (interest rates, spots) or are specified when the ticker symbols are
      set up (expiration date, strike). OTC currency options are then priced by using
      the Garman-Kohlhagen modified Black-Scholes formula, which adjusts for a
      constant yield versus a fixed dividend.

    

    Except
      as
      provided below, OTC equity/index options are priced according to the contract
      specifications (days to expiration, current spot index level, interest rates,
      dividends, strike price) using the Black-Scholes pricing model, modified for
      dividends. The volatility input assumption is interpolated from the previous
      day’s price.

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    US
      Treasuries

    BBH
      uses
      an evaluated bid supplied by IDC for treasury prices.

     

    

    

    
       

      
        
          
          

        

        
          27PRODUCT
      SALE & PURCHASE CONTRACT

    

    BY
      & BETWEEN

    

    RANCHER
      ENERGY CORP.

    

    (BUYER)

    

    and
      

    

    ANADARKO
      PETROLEUM CORPORATION

    

    (SELLER)

    

    

    DATED 

    

    December
      15, 2006

    
       

       

      
         

      

      
         

        
          

        

      

      
         

      

    

    INDEX

    

    
      	
              ARTICLE

            	
              PAGE

            
	 	 	 
	
              I

            	
              DEFINITIONS

            	
              1

            
	 	 	 
	
              II.

            	
              CONTRACT
                TERM

            	
              4

            
	 	 	 
	
              III.

            	
              SCOPE
                OF CONTRACT

            	
              4

            
	 	 	 
	
              IV.

            	
              QUANTITIES

            	
              5

            
	 	 	 
	
              V.

            	
              PRODUCT
                PRICE

            	
              7

            
	 	 	 
	
              VI.

            	
              DELIVERY
                POINT AND PRESSURE

            	
              9

            
	 	 	 
	
              VII.

            	
              TAXES

            	
              9

            
	 	 	 
	
              VIII.

            	
              ACCOUNTING

            	
              10

            
	 	 	 
	
              IX.

            	
              QUALITY
                SPECIFICATIONS

            	
              11

            
	 	 	 
	
              X.

            	
              MEASUREMENT

            	
              13

            
	 	 	 
	
              XI.

            	
              MEASURING
                EQUIPMENT AND TESTING

            	
              14

            
	 	 	 
	
              XII.

            	
              WARRANTIES

            	
              15

            
	 	 	 
	
              XIII.

            	
              INDEMNIFICATION

            	
              15

            
	 	 	 
	
              XIV

            	
              FORCE
                MAJEURE

            	
              16

            
	 	 	 
	
              XV.

            	
              SUCCESSORS
                AND ASSIGNS

            	
              16

            
	 	 	 
	
              XVI.

            	
              NOTICES

            	
              17

            
	 	 	 
	
              XVII.

            	
              MISCELLANEOUS

            	
              18

            
	 	 	 
	
              XVIII.

            	
              DISPUTE
                RESOLUTION

            	
              20

            
	 	 	 
	 	
              EXHIBIT
                “A”

            	
              22

            
	 	 	 
	 	
              EXHIBIT
                “B”

            	
              23

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PRODUCT
      SALE & PURCHASE CONTRACT

    

    THIS
      PRODUCT SALE & PURCHASE CONTRACT (the “Contract”),
      is made
      and entered into as of December 15, 2006 by and between Anadarko Petroleum
      Corporation with a business address of 1201 Lake Robbins Drive, The Woodlands,
      Texas 77380 (“Seller”) and Rancher Energy Corp. with a business address of
      1050-17th
      Street,
      Suite 1700 Denver, Colorado 80202 (“Buyer”).

    

    WITNESSETH:

    

    WHEREAS,
      Seller
      owns certain rights to market carbon dioxide (“Product”) and Seller desires to
      sell and tender for delivery to Buyer, and Buyer desires to purchase and accept
      from Seller, certain quantities of Product under the terms and conditions of
      this Contract; and

    

    WHEREAS,
      Seller
      has certain rights to transport Product on ExxonMobil’s 60-mile, 20-inch
      CO2
      pipeline
      from La Barge to Bairoil, Wyoming (the “ExxonMobil Pipeline”). Seller also has
      certain rights to transport Product on Seller’s 125-mile, 16-inch CO2
      pipeline
      from Bairoil to Seller’s Salt Creek oil field (the “Anadarko Pipeline”); and

    

    WHEREAS,
      Buyer
      wishes to purchase and accept Product from Seller
      from the Anadarko Pipeline at the Delivery Point and Buyer will be responsible
      for the construction and operation of a CO2
      pipeline
      from the Delivery Point to the southeastern portion of Buyer’s fields in the
      South Glenrock Area of Wyoming (“Buyer’s Pipeline”); 

    

    NOW,
      THEREFORE,
      for and
      in consideration of the premises and the mutual benefits and covenants herein
      contained, Seller and Buyer hereby agree as follows:

    

    ARTICLE
      I - DEFINITIONS

    

    1.1 Defined
      Words and Terms.
      Except
      where the context otherwise requires another or different meaning or intent,
      the
      following words and terms as used herein shall have the meanings
      indicated:

    

    (a)  “Actual
      Monthly Amount”
      means an
      amount determined by multiplying the actual quantity of Product, in Mcf,
      delivered to Buyer at the Delivery Point during the Month, by the Unit Price
      for
      such Month; provided, however, that if Buyer fails to take 25MMcf on any Day
      during such Month, the Actual Monthly Amount shall be the sum of the Unit Price
      multiplied by (i) plus the Unit Price multiplied by (ii), where (i) is the
      actual quantity of Product delivered to Buyer for each Day during the Month
      on
      which Buyer was delivered 25 MMcf or more, and (ii) is 25 MMcf for each Day
      during the Month on which Buyer was delivered less than 25 MMcf.

    

    (b)  “Annual
      Quantity”
      means
      for each Contract Year, the DCQ multiplied by the number of Days in that
      Contract Year.

    

    (c)  “Bcf”
      means 1
      Billion Cubic Feet.

    

    
      
         

      

      
        Page
          1

        
          

        

      

      
         

      

       

    

    (d) “Calendar
      Quarter”
means
      a
      three-month period beginning on January 1, April 1, July 1, or October 1 of
      any
      Contract Year.

    

    (e) “CO2”
      or
“Carbon
      Dioxide”
      means a
      substance composed of molecules, each containing one atom of carbon and two
      atoms of oxygen.

    

    (f)  “Contract
      Year”
      means a
      one-year period beginning on the first Day of the first Month following the
      date
      on which Product has first been delivered hereunder and on each subsequent
      anniversary of such first Day, provided that any period from the date of first
      deliveries to the first Day of the Month next following shall be deemed a part
      of the first Contract Year.

    

    (g) “Cubic
      Foot”
      means
      the amount of Product which would occupy one cubic foot of space at a base
      pressure of 14.65 Psia and at a base temperature of 60o
      degrees
      Fahrenheit.

    

    (h)
       “DCQ”
      or
“Daily
      Contract Quantity”
      for any
      period means the Daily quantity of Product set out in Exhibit “A” or as
      otherwise determined under this Contract for such period.

    

    (i) “Day”
      means a
      period beginning at 7:00 a.m. (Mountain Time) on a calendar day and ending
      at
      7:00 a.m. (Mountain Time) on the next succeeding calendar day. The date of
      a Day
      shall be that of its beginning.

    

    (j)
       “Delivery
      Point”
      means
      the outlet flange of the meter station at the end of the Anadarko Pipeline
      in
      the Salt Creek oil field, as made available to Seller and as requested by
      Buyer.

    

    (k)
       “Mcf”
      means
      1,000 Cubic Feet.

    

    (l) “MCQ”
      or
“Minimum
      Contract Quantity”
      means
      the quantity of Product determined by multiplying 25 MMcf by the number of
      Days
      in the Primary Term.

    

    (m) “MMA”
      or
“Minimum
      Monthly Amount”
      means
      the amount determined by multiplying the Minimum Monthly Quantity by the Unit
      Price.

    

    (n) “MMQ”
      or
“Minimum
      Monthly Quantity”
      means
      the arithmetical sum for each Day during any given Month of the quantity of
      Product nominated for delivery hereunder by Buyer and confirmed by
      Seller.

    Notwithstanding
      the foregoing, and except as excused by events of force majeure as defined
      in
      Article XIV or as provided in Paragraph 3.2, the Minimum Monthly Quantity shall
      not be less than 25 MMcf multiplied by the number of Days in the
      Month.

    

    (o) “MPR”
      or
“Minimum
      Purchase Requirement”
      means
      the product
      of 25 MMcf multiplied by 365 multiplied by 10.

    

    (p)  “MMcf”
      means
      1,000,000 Cubic Feet.

    

    (q)  “MMcf/d”
      means
      1,000,000 Cubic Feet per Day.

    

    
      
         

      

      
        Page
          2

        
          

        

      

      
         

      

       

    

    (r)  “Month”
      means a
      period beginning at 7:00 a.m. (Mountain Time) on the first Day of a calendar
      month and ending at 7:00 a.m. (Mountain Time) on the first Day of the next
      succeeding calendar month.

    

    (s)
       “Psia”
      means
      pounds per square inch absolute.

    

    (t)
        “Psig”
      means
      pounds per square inch gauge.

     

    (u) "Product"
      means a
      substance composed primarily of Carbon Dioxide and meeting the specifications
      set forth in Article IX hereof.

    

    (v)  “Tender
      for Delivery”
      means
      Seller making a certain quantity of Product available to Buyer at the Delivery
      Point(s) pursuant to the terms and conditions herein.

    

    (w) “Termination
      Payment”
      means an
      amount of money Buyer will pay Seller if Buyer elects to terminate this contract
      pursuant to Paragraph 5.6.

    

    (x)  “Total
      Contract Quantity”
      means
      the sum of the Annual Quantity for each Contract Year during the Primary Term
      of
      the Contract, which shall be reduced at the end of each Contract Year in
      accordance with Paragraph 4.1 hereof.

    

    (y)  “Unit
      Price”
      means,
      as to any period, the applicable Product price per Mcf determined pursuant
      to
      Article V. 

    

    ARTICLE
      II - CONTRACT TERM

    

    2.1 Primary
      Term.
      The
      Primary Term of this Contract will commence upon the later to occur of January
      1, 2008, or the date of the first delivery of Product hereunder. The Primary
      Term of this Contract shall terminate on the earlier of (i) the Day that the
      Total Contract Quantity has been taken and paid for by Buyer, or (ii) ten (10)
      years from the commencement of the Primary Term.

     

    ARTICLE
      III - SCOPE OF CONTRACT

    

    3.1 Sale
      and Commitment of Product.
      Subject
      to the terms, conditions and limitations of this Contract, Seller shall sell
      and
      Tender for Delivery to Buyer, and Buyer shall purchase and receive from Seller,
      at the Delivery Point, the quantities of Product requested by Buyer up to the
      Daily Contract Quantity as specified in Exhibit “A,” and, if applicable, up to
      the amount of any Excess Deliveries, pursuant to the provisions of Section
      4.4
      hereof. It is intended that the Daily Contract Quantity will be 40 MMcf/d,
      but
      Seller will endeavor to Tender for Delivery quantities up to 120% of the DCQ
      and
      Buyer will nominate at least 25 MMcf/d.

    

    3.2 Other
      Sales/Purchases.
      Seller
      reserves the right to utilize Product for its own needs and to sell or contract
      to deliver Product to parties other than Buyer. At all times, Seller shall
      be
      entitled to fully satisfy its own needs for Product before having any obligation
      to Buyer hereunder. If at any time, or from time to time after satisfying its
      own needs for Product, Seller is unable to deliver the entire amount of Buyer’s
      nominated Product requirements hereunder as well as the daily contract quantity
      of other parties, Buyer shall be entitled to receive its share of Seller’s
      available deliverability based on the ratio that Buyer’s Product requirements
      bear to the daily contract quantities of all parties other than Seller.
      Subsequent to the execution of this Contract, Seller shall make a good faith
      effort to anticipate Product availability to meet Buyer’s requirements, and
      shall not knowingly utilize, sell, or contract to deliver volumes of Product
      to
      third parties so as to cause Seller to be unable to deliver Buyer’s
      requirements. Buyer
      recognizes and agrees that Seller will use commercially reasonable efforts
      to
      deliver Buyer’s requirements but if Seller is unable to meet such requirements
      for any reason, including its own needs exclusive of third parties, there shall
      be no penalty to Seller and adjustments shall be made to Buyer’s minimum
      obligations hereunder.
      

    

    
      
         

      

      
        Page
          3

        
          

        

      

      
         

      

       

    

    3.3 Carbon
      Dioxide Reserves/Transportation.
      Seller
      and Buyer understand and agree that Seller makes no warranty, either expressed
      or implied, of carbon dioxide volumes or reserves at any source, carbon dioxide
      deliverability, or the transportation of carbon dioxide.

    

    3.4
       Operations.
      Seller
      reserves the sole and exclusive right to control, manage, and operate the
      sources of the Product as Seller in its sole discretion shall determine. Buyer
      agrees to take appropriate action to obtain and reserve the greenhouse gas
      reduction rights addressed in Paragraph 5.8, and otherwise Buyer reserves the
      sole and exclusive right to control, manage, and operate Buyer’s fields on which
      the Carbon Dioxide is used. 

    

    3.5
       Seller’s
      Processing Rights.
      Seller
      reserves the right, prior to delivery, to process and/or treat the Carbon
      Dioxide sold hereunder for any purpose, provided only that any Product delivered
      shall meet the quality specifications hereof unless waived by Buyer pursuant
      to
      Paragraph 9.3.

    

    3.6. Right
      of First Refusal.
      (a) If
      for any reason Buyer elects to sell Buyer’s Pipeline or any of its interests
      within the Area of Mutual Interest (“Interest”), Buyer shall not transfer or
      convey such Interest except in accordance with this Paragraph 3.6. Any proposed
      transfer or conveyance of any such Interest shall be made subject to Article
      XV
      and to the preferential right of Seller to purchase the Interest under the
      same
      terms and conditions as the proposed transferee. In such case, Buyer shall
      notify
      Seller in writing of the same and provide at least sixty (60) Days’ notice for
      Seller to determine if it desires to purchase the Interest. Such
      notice, to be effective, shall be accompanied by an agreement executed by Buyer
      and the proposed transferee (the "Purchase Agreement") containing all
      relevant information regarding the proposed sale, transfer, assignment or
      conveyance, including the name and address of the prospective transferee (who
      must be ready, willing and able to purchase), the purchase price, a legal
      description sufficient to identify the property, and all other terms of the
      proposed transfer or sale.
      The
      Purchase Agreement shall demonstrate that completion of the sale is contingent
      only upon (i) the non-exercise of rights of first refusal under this Paragraph
      3.6, (ii) obtaining any required governmental approvals and (iii) the
      satisfaction of a standard due diligence review, including such items as title,
      environmental, and certain other specifically itemized defects. Seller shall
      have the option to purchase such Interest on the same terms as set forth in
      the
      Purchase Agreement by giving written notice (the “Election Notice”) to Buyer
      prior to the expiration of the sixty (60) day period set forth above. If Seller
      has elected to purchase such Interest within the sixty (60) day period, Seller
      shall be irrevocably obligated to purchase such Interest. Such sale, transfer,
      assignment and/or conveyance to Seller shall occur as soon as reasonably
      possible following the receipt by Buyer of the Election Notice from Seller.
      Upon
      completion of the transaction, the Interest shall be 100% vested in Seller.
      

    

    (b)
      If
      Seller does not exercise its preferential right to purchase by providing written
      notice within such sixty (60) day period, then Buyer may effect the transfer
      described in the notice at any time not later than ninety (90) days after the
      end of the sixty (60) day option period, at a price not less than and on terms
      no more favorable to the transferee than the price and term stated in the notice
      provided for hereinabove. If such a transfer is made, the preferential right
      to
      purchase shall continue as to the Interest acquired by said transferee. If
      the
      Interest is not transferred within such ninety (90) day period, then any
      subsequent proposal to transfer the same shall be subject to the provisions
      of
      this Paragraph 3.6 as though such Interest had never been offered for transfer.
      If
      the
      sale or transfer is not completed within the one hundred fifty (150) day period,
      all of the Interest originally offered shall again become subject to the
      provisions of this Paragraph 3.6.

    

    
      
         

      

      
        Page
          4

        
          

        

      

      
         

      

       

    

    (c)
      All
      such
      transfers or conveyances of any such Interest of Buyer shall be made expressly
      subject to this Contract, and shall not be binding on Seller until a certified
      or other verifiable copy of the instrument evidencing such transfer or
      conveyance has been delivered to Seller, together with an agreement in writing,
      satisfactory to all parties, whereby the transferee agrees to be bound by the
      terms and provisions of this Contract and expressly assumes all of the
      obligations of Buyer as set forth herein.

    

    ARTICLE
      IV - QUANTITIES

    

    4.1 Commencement
      of Deliveries and Daily Contract Quantity.
      Commencing with the first Day of the Primary Term, Seller shall Tender for
      Delivery and Buyer shall take at the Delivery Point, all quantities of Product
      requested by Buyer, up to Buyer’s then currently effective DCQ, as specified in
      Exhibit “A.” The Total Contract Quantity shall be reduced at the end of each
      Contract Year on a cumulative basis through the Primary Term of this Contract
      ("Contract Quantity Balance"), by the greater of: (i) the actual quantity of
      Product delivered to Buyer in that Contract Year, or (ii) by the Annual Quantity
      applicable for that Contract Year, until the Contract Quantity Balance equals
      zero (0).

    

    4.2 Delivery
      Rates.
      Buyer
      and Seller recognize that due to actual operating conditions, the delivery
      or
      take of Product may not necessarily be of a constant rate. However, Buyer and
      Seller agree to cooperate fully with one another to maintain as constant a
      rate
      of take as is operationally possible and in adjusting Daily and Monthly
      deliveries hereunder. 

    

    4.3 Monthly
      Delivery Nominations.
      Buyer
      shall notify Seller Monthly by giving at least seven (7) Days’ advance written
      notice, of its daily Product volume requirements for the next succeeding Month.
      In the event Buyer fails to give to Seller the requisite seven (7) Days’ prior
      notice, then the daily Product volume requirements shall be the same as those
      for the then current Month. Upon agreement by Seller, Buyer may request a change
      in its daily requirements for any particular Month by giving Seller twenty-four
      (24) hours’ prior notice of such changes in its daily requirements from time to
      time. Upon receipt of such notice given to Seller at the location and number
      set
      out below, and subject to Seller’s agreement, Seller shall undertake to conform
      its deliveries to Buyer’s revised requirements and shall notify Buyer as soon as
      practical if it is unable to do so. Buyer shall utilize its commercially
      reasonable efforts to minimize the number of changes in the Monthly nominations.
      Each oral request for changes in Buyer’s requirements shall be confirmed by
      written notice by Buyer to Seller within seven (7) business Days after such
      request.

    

    4.4 Excess
      Deliveries.
      On any
      given Day during the Primary Term of this Contract, Buyer may request and Seller
      may Tender for Delivery, a quantity of Product up to 120% of the Daily Contract
      Quantity, provided however, it is at Seller’s sole discretion to make available
      to Buyer deliveries in excess of 100 % of the Daily Contract Quantity, if
      any.

    

    4.5 Reduced
      Deliveries Due to Common Carrier Obligations.
      If any
      of the ExxonMobil Pipeline, the Anadarko Pipeline or Buyer’s Pipeline is or
      becomes a common carrier facility by operation of law or otherwise, and if
      the
      capacity of said pipeline is insufficient to accommodate (1) the shipments
      tendered by Seller under all contracts (including this Contract) to which Seller
      is a party which require transportation by Buyer’s Pipeline, and (2) all
      shipments tendered by other shippers, then Seller shall be obligated to deliver
      to Buyer only that volume which may be transported under common carrier rules
      and regulations.

    

    
      
         

      

      
        Page
          5

        
          

        

      

      
         

      

       

    

    4.6 Emergency
      Shutdown.
      In the
      event of an emergency that poses danger to life or property, no prior notice
      shall be necessary before partial or total shutdown by either Seller or Buyer,
      but notice of such shutdown and the reason therefor shall be given as soon
      as
      practical thereafter, by telephone, facsimile, e-mail or other electronic means
      at the locations and numbers set out below. The party causing the shutdown
      shall
      immediately take all steps reasonable under the circumstances to end such
      shutdown. In the event any Government regulatory requirement mandates a shutdown
      by either Seller or Buyer, notice shall be given to the other party to this
      Contract as soon as practical after receipt of the governmental notice requiring
      such shutdown.

    

    
      	
              Seller:

            	
              Buyer:

            
	 	 
	
              Anadarko
                Petroleum Corporation

            	
              Rancher
                Energy Corp.

            
	
              Attn.
                Danny Morse:

            	
              Attn.
                John Works

            
	
              Production
                Superintendent

            	
              999-18th
                Street,Suite 1740

            
	
              Salt
                Creek Operations Center

            	
              Denver,
                Colorado 80202 

            
	
              Phone:
                +1.307.437.9500

            	
              Phone:
                +1.303.629.1122

            
	 	
              Fax:
                +1.720.904.5698

            

    

     

    4.7 Planned
      Shutdown.
      In the
      event a planned shutdown becomes necessary for either Seller or Buyer on a
      non-emergency basis, such party shall provide thirty (30) Days’ notice to the
      other as provided in the Article XVI hereof.

    

    ARTICLE
      V - PRODUCT PRICE

    

    5.1 Unit
      Price.
      

     

    (a)
       Buyer
      shall pay to Seller a Unit Price for each Mcf of Product. The Unit Price for
      each Calendar Quarter shall be determined by indexing to the average price
      per
      barrel posted by Chevron Crude Oil Marketing and Tesoro Refining and Marketing
      Company (or their successors) for Southwestern Wyoming Sweet Crude Oil price
      as
      follows:

     

    (i)
      the
preceding
      Calendar Quarter's simple average of each Day's closing prices per barrel for
      Southwestern Wyoming Sweet Crude Oil shall be calculated (“Wyoming
      Sweet Average Price”)

     

    (ii)
      the
      Wyoming Sweet Average Price shall be compared to an index price of $40.00 per
      barrel (“Index Price”)

     

    (iii)
      if
      the Wyoming Sweet Average Price is greater than the Index Price, the Unit Price
      for such Calendar Quarter shall be increased by the arithmetic ratio of such
      difference.

     

    (iv)
      if
      the Wyoming Sweet Average Price is equal to at least $30.01, but is less than
      $40.00, the Unit Price for such Calendar Quarter shall be $1.50

     

    (v)
      if
      the Wyoming Sweet Average Price is $30.00 or less, the Unit Price for such
      Calendar Quarter shall be $1.35.

     

    
      
         

      

      
        Page
          6

        
          

        

      

      
         

      

       

    

    (b)
       
      For the
      initial Calendar Quarter (or portion thereof) under the Contract, the Unit
      Price
      shall be $1.50 per Mcf. For all subsequent Calendar Quarters under the Contract,
      the Unit Price shall be calculated by as provided in this Article
      V.

    

    (c)
       Notwithstanding
      the provisions of Paragraph 5.1(b), the Unit Price shall never be less than
      $1.35 per Mcf. If Seller’s cost of Product to be delivered under this Contract
      ever exceeds the Unit Price, then at Seller’s option, Buyer will meet with
      Seller and attempt in good faith to negotiate a revised Unit Price affording
      Seller a reasonable return under this Contract. If Buyer and Seller are unable
      to agree upon a revised Unit Price, then Seller may terminate this Contract
      by
      giving written notice of termination to Buyer and Buyer shall pay Seller the
      Termination Payment due pursuant to Paragraph 5.6.

    

    5.2 Take-or-Pay
      Obligation.

    

    (a) Each
      Month during the Primary Term of this Contract, Buyer shall pay Seller an amount
      equal to the greater of: (i) the Minimum Monthly Amount, or (ii) the Actual
      Monthly Amount.

    

    (b) The
      Minimum Monthly Amount shall be reduced each Month for any deficiencies in
      the
      amount of Product made available by Seller to Buyer due to (i) force majeure
      as
      defined in Article XIV, or (ii) failure by Seller to deliver quantities of
      Product up to Buyer’s take or pay obligation.

    

    (c) Buyer
      shall provide Seller with a surety bond to ensure Buyer’s payment of any take or
      pay obligation incurred pursuant to this Paragraph 5.2. Such bond shall name
      Seller as beneficiary, shall be approved by Seller as to form and issuer, shall
      be maintained for the life of the Contract and shall be of sufficient size
      to
      cover Buyer’s yearly take or pay requirements and the DCQ requirements.

    

    5.3 Overriding
      Royalty.
      As
      further compensation hereunder Buyer shall convey to Seller an overriding
      royalty interest in any production from its fields within the Area of Mutual
      Interest described in Exhibit “B” attached hereto and incorporated herein by
      this reference. Such overriding royalty interest shall be of 8/8ths interest
      proportionally reduced to the working interest of Buyer and shall be equal
      to
      one percent (1%) in Contract Year Number One; two percent (2%) in Contract
      Year
      Number Two; three percent (3%) in Contract Year Number Three; four percent
      (4%)
      in Contract Year Number Four; and five percent (5%) in Contract Year Number
      Five
      and in all subsequent years. The Overriding Royalty shall be in the form of
      a
      recordable assignment acceptable to Seller and shall cover all depths in which
      Product is utilized, whether by direct injection, recycling, zone recharge
      or
      other utilization in the lands subject to the Area of Mutual Interest.

    

    5.4 Deficiency
      Credit.
      If in
      any Month the MMQ is less than 25 MMcf multiplied by the number of Days in
      such
      Month and Buyer makes a payment to Seller under Paragraph 5.2 applicable to
      such
      Month, the amount of such Paragraph 5.2 payment will be credited to Buyer as
      a
“Deficiency Credit.” If a Deficiency Credit balance has been established, the
      Deficiency Credit balance will be increased each Month by any amount that Buyer
      pays pursuant to Paragraph 5.2 or decreased each Month by the amount that
      Buyer’s payment for such Month exceeds the product of 40 MMcf per Day of such
      Month multiplied by the applicable Unit Price. Seller’s monthly invoice to Buyer
      will be adjusted to reflect any decreases in the Deficiency Credit by the lesser
      of the Deficiency Credit or the amount of the latest payment Buyer has made
      to
      Seller pursuant to Paragraph 5.2. In no event will the Deficiency Credit balance
      be increased or decreased until Buyer makes payment to Seller pursuant to
      Section 5.2, and in no event will the Deficiency Credit balance be less than
      zero.

    

    
      
         

      

      
        Page
          7

        
          

        

      

      
         

      

       

    

    5.5 Deficiency
      Credit Expiration.
      Buyer
      may carry forward Deficiency Credit balances for a period not to exceed 48
      months after the Month that the Deficiency Credit is earned, and with a time
      limit of 24 months after the end of the Primary Term. Any Deficiency Credit
      not
      applied by the earlier of (a) within 48 months after it is earned or (b) within
      24 months after the end of the Primary Term, shall automatically terminate
      without further action or obligation of Buyer or Seller. 

    

    5.6 Termination
      Payment.
      Buyer
      shall have the right to terminate this Contract at any time during the Primary
      Term by delivering a written notice to Seller and a payment in the amount of
      the
      Termination Payment. The Termination Payment shall equal an amount determined
      by
      multiplying the Unit Price for the Calendar Quarter immediately preceding
      Seller’s receipt of such termination notice by a volume of Product equal to
      one-fourth (1/4) of the arithmetical difference between the Total Contract
      Quantity and cumulative quantity of Product paid for by Buyer at the time of
      the
      notice. 

    For
      purposes of illustration only, the Termination Payment shall be calculated
      as
      follows:

    

    P
      Term
      =
P
      Unit
      x
      (146 BCF - V cum)

    4

    

    
      	
            	Where	
              P
                Term
                =
                Termination Payment

            

    

    P
      Unit
      =
      Unit
      Price at time Termination Payment is determined

    V
      Cum
      =
      Cumulative quantity of Product paid for by the Buyer at the time of the
notice

    

    If
      this
      Contract is terminated due to Buyer's default, then Buyer shall on or before
      sixty (60) Days following the receipt of notice from Seller of such default,
      pay
      to Seller an amount equal to the Termination Payment. Without limiting either
      party’s rights to indemnification hereunder, Seller’s right to receive the
      Termination Payment shall be Seller’s sole remedy under this Contract for any
      such default by Buyer. If the Contract is terminated due to Seller’s default,
      Buyer will not be obligated to make any Termination Payment.

    

    5.7Commencement
      of Payment.
      Buyer’s
      obligation to pay Seller pursuant to this Article V shall begin on the first
      Day
      of the Primary Term.

    

    5.8Greenhouse
      Gas Reduction Rights.
      Greenhouse
      Gas Reduction Rights (“GHGRR”) means the recognition, award, or allocation of
      credits, allowances, permits, or other tangible rights, whether created through
      government program or private contract now or in the future, associated with
      the
      production, avoidance, capture, sequestration, or other control of greenhouse
      gases.

    

    
      	 	
              a.)

            	
              Buyer
                and Seller agree that Buyer shall retain 25% of the GHGRR and provide
                or
                convey to Seller 75% of the GHGRR in kind or in value at Sellers
                sole
                discretion.

            

    

    

    
      	 	
              b.)

            	
              Buyer
                and Seller agree that Buyer and Seller each shall have the exclusive
                right
                to apply for, claim, use, or sell all GHGRR associated with its share
                of
                the carbon dioxide sold under this Contract as specified in paragraph
                5.8(a) consistent with applicable laws of the United States and
                international law, including the right to sell or
                trade domestically or internationally.  This right includes the right
                to count or claim any applicable reductions pursuant to the Department
                of
                Energy’s Climate Challenge Program as modified from time to time, to
                register all such reductions pursuant to § 1605 of the Energy Policy Act
                of 1992 and other related public and private registries, and any
                other
                governmental, public, or private program designed to encourage or
                reward
                the reduction of greenhouse gas emissions or emission
                reductions.

            

    

    

    
      
         

      

      
        Page
          8

        
          

        

      

      
         

      

    

     

    
      	 	
              c.)

            	
              Seller
                and Buyer each agrees to provide the necessary information and to
                take
                reasonably appropriate action to obtain and reserve GHGRR's and
                to monitor, document and preserve GHGRR in such form needed to qualify
                as
                an emission reduction. 

            

    

    

    ARTICLE
      VI - DELIVERY POINT AND PRESSURE

    

    6.1 Delivery
      Point and Pressure.
      Seller
      shall Tender Product for Delivery to Buyer at the Delivery Point. Title to
      and
      ownership of all Product delivered under this Contract shall pass to and vest
      in
      Buyer at the Delivery Point. Seller shall Tender Product
      for Delivery at a sufficient pressure to enter the
      Delivery Point; provided, however, Seller shall not be obligated to deliver
      Product at a pressure greater than 2,500 Psig. Seller shall install a tap and
      control station as required to supply Buyer with Product at Delivery Point,
      and
      Buyer shall reimburse Seller for Seller’s actual cost incurred to install such
      tap and control station.

    

    ARTICLE
      VII - TAXES 

    

    7.1
       Tax
      Liability.
      Seller
      shall pay or cause to be paid all taxes and assessments imposed on Seller with
      respect to the Product delivered hereunder prior to its delivery to Buyer,
      and
      Buyer shall pay or cause to be paid all taxes and assessments imposed on Buyer
      with respect to the Product delivered hereunder upon and after its receipt
      by
      Buyer. Neither party shall be responsible or liable for any taxes or other
      statutory charges levied or assessed on or against any of the facilities of
      the
      other party. 

    

    7.2
        Tax
      Reimbursement.
      Subject
      to the conditions hereinafter set forth, Buyer shall pay to Seller fifty percent
      (50%) of any new or additional tax imposed on the Product delivered hereunder
      by
      any governmental authority. The term "new or additional tax" shall mean any
      occupation, service, production, severance, gathering, transmission, value-added
      or excise fee, tax or assessment levied, assessed or fixed by governmental
      authority and shall include taxes similar in nature or equivalent in effect
      (but
      not including income, excess profits, capital stock, franchise, or general
      property taxes) in respect of or applicable to the Product delivered hereunder,
      in addition to or greater than any being assessed as of the effective date
      of
      this Contract, and for which Seller shall be liable, either directly or
      indirectly, or through an obligation to reimburse others. Reimbursement of
      any
      additional tax shall be effected as a part of Buyer's regular monthly payment
      for Product hereunder. The tax reimbursement provided for herein shall not
      apply
      to any delinquent interest or penalty payments associated with any such new
      or
      additional tax.

     

    7.3
       Transaction
      Taxes.
      Buyer
      agrees that the Unit Price under this Contract does not include sales, use,
      or
      like taxes (“Transaction Tax”) currently or prospectively imposed by a Federal,
      State, or local taxing authority. As applicable, Seller shall collect any such
      Transaction Tax from Buyer at the time the invoice for the Carbon Dioxide is
      due. Seller shall separately state the amount of Transaction Tax, the
      Transaction Tax rate, and name of the taxing authority on the invoice. In lieu
      of remitting any billed Transaction Tax, Buyer may submit a properly completed
      and signed exemption certificate or other written evidence of exemption, so
      long
      as the evidence meets requirements cited by the applicable taxing
      authority.

    

    
      
         

      

      
        Page
          9

        
          

        

      

      
         

      

       

    

    7.4 Termination
      by Seller.
      Buyer
      will begin accepting delivery of Product by January 1, 2008. If Buyer has not
      initiated delivery of Product hereunder by January 1, 2008, Seller may
terminate
      this Contract by giving written notice of termination to Buyer and Buyer shall
      pay Seller the Termination Payment due pursuant to Paragraph 5.6. If Buyer
      fails
      to take delivery of Product hereunder in any six months within any twelve
      consecutive month period, then Seller may terminate this Contract by giving
      written notice of termination to Buyer and Buyer shall pay Seller the
      Termination Payment due pursuant to Paragraph 5.6.

    

    ARTICLE
      VIII - ACCOUNTING

    

    8.1 Payment.
      Seller
      shall notify Buyer of the total volume of Product delivered by Seller at the
      Delivery Point during any Month by the tenth (10th) business Day following
      the
      end of such Month. Seller shall furnish to Buyer a Monthly invoice showing
      the
      total quantity of Product delivered hereunder during the preceding Month and
      such invoice shall include any Deficiency Credit balance calculated under
      Paragraph 5.4. Buyer shall make payment to Seller of the amounts of such
      invoices on or before twenty (20) Days after the date of receipt of such
      invoice. All payments shall be mailed or electronically transferred
      to:

    

    
      	
              Electronic
                Transfer Payments:

            	
              Mail
                Check Payments to:

            

    

     

     

    8.2 Failure
      to Pay.
      If Buyer
      fails to pay an amount payable to Seller hereunder when due, Seller shall have
      the right, upon five (5) Days’ prior written notice to Buyer, to stop delivery
      of the Product until Buyer pays said amount, plus interest, and brings Buyer’s
      account current. If Buyer disputes the amount or a portion of the amount
      invoiced by Seller, Buyer shall pay the invoiced amount and shall notify Seller
      of the amount in dispute. Buyer and Seller shall reconcile such disputes within
      a reasonable time period, but not to exceed sixty (60) Days, whereupon either
      party discovered to be owed monies, shall submit an invoice to the other party
      for the amount owed plus interest. The other party shall make payment in
      immediately available U.S. funds by check or electronic transfer to the owed
      party and tender such to the owed party on or before the twentieth (20th) Day
      after the date of such invoice. Interest shall accrue and be payable at the
      lesser of: (i) the highest legally permissible rate allowed by the State of
      Wyoming, or (ii) the Prime or Base lending rate established by the J.P. Morgan
      Chase Bank, N.A., New York. Interest will accrue from the date when the disputed
      amount was due until the date payment of the disputed amount is made. The
      exercise of such rights shall not constitute a waiver of, nor in any way
      prejudice, other remedies available to such party. If any disputes can not
      be
      settled within sixty (60) Days, then the matter shall be settled in accordance
      with Article 18 hereof.

    

    8.3 Refunds.
      If at
      any time it is determined that Buyer or Seller has made an inaccurate payment
      to
      the other party under this Contract, and such deficiency or excess payment
      is
      the result of a good faith error in the Monthly statement furnished by Seller,
      or is or becomes the subject of a good faith dispute between Seller and Buyer,
      then Seller or Buyer shall, within thirty (30) Days of such determination,
      pay
      or refund to the other party the full amount of the deficiency or excess payment
      together with interest calculated and paid as set forth in Paragraph
      8.2.
      The
      exercise of such rights shall not constitute a waiver of nor in any way
      prejudice other remedies available to such party.

    

    
      
         

      

      
        Page
          10

        
          

        

      

      
         

      

    

    

    ARTICLE
      IX - QUALITY SPECIFICATIONS

    

    9.1 Specifications.
      The
      Product delivered by Seller to Buyer at the Delivery Point shall meet the
      following specifications, which herein are collectively called “Quality
      Specifications”:

    

    
      	 	
              (a)

            	
              Product.
                Substance containing at least ninety-five mole percent (95%) of Carbon
                Dioxide.

            

    

    

    
      	 	
              (b)

            	
              Water.
                Product shall contain no free water, and shall not contain more than
                thirty (30) pounds of water per MMcf in the vapor
                phase.

            

    

    

    
      	 	
              (c)

            	
              Hydrogen
                Sulfide.
                Product shall not contain more than twenty (20) parts per million,
                by
                weight, of hydrogen sulfide.

            

    

    

    
      	 	
              (d)

            	
              Total
                Sulfur.
                Product shall not contain more than thirty-five (35) parts per million,
                by
                weight, of total sulfur.

            

    

    

    
      	 	
              (e)

            	
              Temperature.
                Product shall not exceed a temperature of one hundred twenty degrees
                Fahrenheit (120oF).

            

    

    

    
      	 	
              (f)

            	
              Nitrogen.
                Product shall not contain more than four mole percent (4%) of
                nitrogen.

            

    

    

    
      	 	
              (g)

            	
              Hydrocarbons.
                Product shall not contain more than five mole percent (5%) of hydrocarbons
                and the dew point of Product (with respect to such hydrocarbons)
                shall not
                exceed minus twenty degrees Fahrenheit (-20oF).

            

    

    

    
      	 	
              (h)

            	
              Oxygen.
                Product shall not contain more than ten (10) parts per million by
                weight,
                of oxygen.

            

    

    

    
      	 	
              (i)

            	
              Glycol.
                Product shall not contain more than 0.3 (three tenths) gallons of
                glycol
                per MMCF and at no time shall such glycol be present in a liquid
                state at
                the pressure and temperature conditions of the
                pipeline.

            

    

    

    9.2 Testing.
      Seller
      shall ensure that tests to determine the quality of Product are made as often
      as
      reasonably required, but at least quarterly, by approved standard methods in
      general use by the industry. Buyer may from time to time request, and Seller
      shall ensure performance of, such additional tests as Buyer reasonably deems
      necessary; provided, however, Buyer shall not request such additional tests
      more
      than once during any ninety (90) Day period. Buyer shall reimburse Seller for
      all expenses associated with such additional tests unless such additional tests
      show that the substance does not meet the Quality Specifications. Seller shall
      promptly furnish Buyer with copies of all test results upon
      request.

    

    
      
         

      

      
        Page
          11

        
          

        

      

      
         

      

       

    

    9.3 Failure
      to Meet Quality Specifications.
      In the
      event any Volumes delivered hereunder to Buyer fail to meet the Quality
      Specifications, Buyer shall have the right to waive such failure by written
      notice to Seller and to continue to accept and receive such Volumes. However,
      Buyer shall also have the right to refuse to accept such Volume in whole or
      part, at any time including after a waiver of such failure in accordance with
      the prior sentence, and may require Seller to immediately cease or reduce
      deliveries of such Volume to Buyer hereunder. Subject to the provisions hereof,
      Buyer shall have no obligation to receive or purchase any volumes which fail
      to
      meet Quality Specifications at the Delivery Point under this Contract. If Seller
      has so reduced or ceased deliveries hereunder, then Seller may elect, after
      written notice from Buyer as provided above, to remedy the cause of such failure
      and, if Seller so elects, Seller shall proceed with all due diligence, to timely
      effect such remedy. Notwithstanding anything herein to the contrary, if Seller
      does not satisfactorily remedy such defect within ninety (90) Days after written
      notice of failure to meet Quality Specifications, Buyer may cancel this Contract
      by written notice to Seller. As to such cancellation, the respective duties
      and
      obligations of Seller and Buyer hereunder shall terminate without further
      duties, obligations, and liabilities to either party, subject to settlement
      of
      previously incurred duties, obligations and liabilities. The cancellation of
      this Contract as herein provided shall not serve to alter Buyer’s obligations to
      pay for Product received. Any
      such
      termination shall be without waiver of any remedy to which the party not in
      default may be entitled for violation of this Contract.

    

    ARTICLE
      X - MEASUREMENT

    

    10.1 Measurement
      Point.
      The
      measurement point shall be located at a mutually agreeable point at or upstream
      of the Delivery Point, in accordance with the standards set out in this Article
      X. Seller shall ensure that the Product delivered hereunder shall be measured
      for custody transfer at the Delivery Point in accordance with the standards
      set
      forth herein.

    

    10.2 Procedure.
      Custody
      transfer measurement of Product shall be determined on the basis of pound-mass
      quantities, which will be converted to cubic foot quantities on the basis of
      the
      molecular weight of the metered stream of Product calculated from the
      compositional analyses. The calculations for the conversion of pound mass units
      to cubic foot units will be made on the basis of equation-of-state calculations
      embodied in the CO2PROP
      program or another mutually acceptable method correcting for the non-ideal
      behavior of high content Product mixtures. Upon request, Seller shall give
      Buyer
      legible copies of recent measurement documents.

    

    10.3 Atmospheric
      Pressure.
      The
      atmospheric pressure at the Delivery Point shall be based upon 14.73 Psia at
      sea
      level, corrected to actual elevation in accordance with the October 1981
      standards in the American Petroleum Institute, Manual of Petroleum Standards,
      and may be assumed to be constant for calculation purposes.

     

    10.4 Meter
      Standards.
      The
      Product delivered hereunder shall be measured with orifice meters constructed
      and installed in accordance with the October 1981 standards in the American
      Petroleum Institute, Manual of Petroleum Measurement Standards,
      Chapter
      14, with any subsequent amendments, revisions, and additions which may be
      mutually acceptable to Seller and Buyer.

    

    10.5 Temperature.
      The
      temperature of the Product shall be determined by an on-line thermometer so
      installed that it will sense the temperature of the Product flowing through
      the
      meters. The thermometer will be accurate to plus or minus 0.1o
      Fahrenheit.

    

    10.6 Density.
      The
      density of the Product shall be determined by equation-of-state calculation
      based on the composition of the Product or by another mutually acceptable
      method.

    

    
      
         

      

      
        Page
          12

        
          

        

      

      
         

      

       

    

    10.7 Samples.
      A
      composite sample of the metered Product stream shall be accumulated during
      each
      month and analyzed for its composition. Composition of the Product stream may
      also be determined by using a mean monthly average of an on-line
      chromatograph.

    

    ARTICLE
      XI - MEASURING EQUIPMENT AND TESTING

    

    11.1 Meter
      Stations.
      Seller
      shall ensure that the measuring station for measurement of Product delivered
      hereunder is installed, operated, and maintained in accurate working order
      at or
      near the Delivery Point at no cost or expense to Buyer. Such meter station
      shall
      be equipped in accordance with the standards referenced in Article X and will
      initially consist of orifice meters of standard type, sensors, and transmitters
      for pressure and temperature measurement and a flow computer for real-time
      calculation of metered Product flow. Measurement equipment will be subject
      to
      change to allow use of improved technology under such standards if the parties
      mutually agree to such a change.

    

    11.2 Meter
      Tests.
      Seller
      shall ensure that its measuring equipment is accurate and is operated and
      maintained in good repair, and that tests are made at least once each Month
      to
      ensure the accuracy of such metering equipment. Seller shall ensure that Buyer
      is given at least forty-eight (48) hours’ notice of each such test of the
      measuring equipment in order that, if Buyer desires, Buyer may have its
      representative present to witness such tests. If, upon any test, the measuring
      equipment is found to be inaccurate to the extent that it affects the aggregate
      measurement accuracy by an amount exceeding two percent (2%), registrations
      thereof shall be corrected for a period extending back to the time such
      inaccuracy occurred. If such time is not ascertainable, then the registrations
      will be corrected for the period extending back one-half (1/2) of the time
      elapsed since the last date of calibration; provided, no retroactive correction
      shall be made for recorded inaccuracies of two percent (2%) or less in the
      aggregate. Meters will be adjusted or repaired on a timely basis. Special tests
      of the measuring equipment can be requested of Seller by Buyer at any time,
      with
      the cost thereof being paid by Buyer unless the meter is found to be inaccurate
      by an amount exceeding two percent (2%).

    

    11.3 Meter
      Out of Service.
      If, for
      any reason, any meter is out of service or under repair so that the amount
      of
      Product delivered cannot be ascertained or computed from the readings thereof
      or
      corrected under Section 11.2, the Product delivered during the period such
      meter
      is out of service or under repair shall be estimated and agreed upon by Buyer
      and Seller upon the basis of the best data available.

    

    11.4 Record
      Retention.
      Buyer
      and Seller agree to retain detailed delivery records and measurement documents
      for metered quantities of Product for a period of two (2) calendar years
      following the end of the calendar year in which the documents are generated.
      Seller and Buyer shall have the right to examine and audit at reasonable times
      such delivery records and documents of the other party to the extent necessary
      to verify the accuracy of any statements, charges, computations, or demands
      made
      under or pursuant to any of the provisions of this Contract. Any inaccuracies
      shall be promptly corrected when discovered. Copies of such delivery records
      and
      documents will be provided to the other party upon the inquiring party’s written
      request and at the inquiring party’s expense. This Section shall survive any
      termination of this Contract for a period of six (6) Months.

    

    
      
         

      

      
        Page
          13

        
          

        

      

      
         

      

    

    

    ARTICLE
      XII - WARRANTIES

    

    12.1 Seller’s
      Warranty of Title.
      Seller
      warrants title to the Product sold and delivered to Buyer
      hereunder.

    

    12.2 Title
      Passage.
      As to
      the Product delivered and sold hereunder, title and risk of loss shall pass
      from
      Seller to Buyer at the Delivery Point.

    

    12.3 Other
      Warranties.
      Neither
      party hereto makes any warranties, including any warranties of merchantability
      or fitness for a particular purpose, except as expressly set forth in this
      Contract.

    

    ARTICLE
      XIII - INDEMNIFICATION

    

    13.1 BUYER
      ASSUMES ALL LIABILITY FOR AND AGREES TO DEFEND, RELEASE, INDEMNIFY AND HOLD
      SELLER, ITS AFFILIATES, ITS AND THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS,
      INSURERS, AND SUBCONTRACTORS (COLLECTIVELY “SELLER INDEMNITEES”), HARMLESS FROM
      ALL CLAIMS FOR: (i) BODILY INJURY, DEATH OR DAMAGE TO THE PROPERTY OF BUYER’S
      EMPLOYEES, SUBCONTRACTORS AND THEIR EMPLOYEES, AND BUYER’S INVITEES; AND (ii)
      DAMAGE TO BUYER’S PROPERTY, ARISING OUT OF OR RESULTING FROM THE PERFORMANCE OF
      THIS CONTRACT, EVEN
      IF A PART OR ALL THE CLAIM IS CAUSED BY THE NEGLIGENCE, WILLFUL MISCONDUCT,
      STRICT LIABILITY, OR OTHER FAULT, OF ANY MEMBER OF SELLER INDEMNITEES, AND/OR
      INVITEES OR THIRD PARTIES.

    

    13.2 SELLER
      ASSUMES ALL LIABILITY FOR AND AGREES TO DEFEND, RELEASE, INDEMNIFY AND HOLD
      BUYER, ITS AFFILIATES, ITS AND THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS,
      INSURERS, AND SUBCONTRACTORS (COLLECTIVELY “BUYER INDEMNITEES”), HARMLESS FROM
      ALL CLAIMS FOR: (i) BODILY INJURY, DEATH OR DAMAGE TO THE PROPERTY OF SELLER’S
      EMPLOYEES, SUBCONTRACTORS AND THEIR EMPLOYEES, AND SELLER’S INVITEES; AND (ii)
      DAMAGE TO SELLER’S PROPERTY, ARISING OUT OF OR RESULTING FROM THE PERFORMANCE OF
      THIS AGREEMENT, EVEN
      IF A PART OR ALL OF THE CLAIM IS CAUSED BY THE NEGLIGENCE, WILLFUL MISCONDUCT,
      STRICT LIABILITY, OR OTHER FAULT, OF ANY MEMBER OF BUYER INDEMNITEES, AND/OR
      INVITEES OR THIRD PARTIES.

    

    13.3 The
      above
      indemnities do not include claims for special, consequential or indirect damages
      suffered by a party to this Contract, and each party waives any claim it may
      have against the other party for such damages. The above indemnity obligations
      also do not include indemnification for punitive or exemplary
      damages.

    

    ARTICLE
      XIV - FORCE MAJEURE

    

    14.1 Force
      Majeure.
      If
      Buyer or Seller is rendered unable, in whole or in part, by an event of force
      majeure to carry out its obligations hereunder (except obligations to pay money
      either (a) which have already been incurred at the time of the occurrence of
      the
      event of force majeure, or (b) which accrue under Buyer’s Take or Pay
      obligations as set out in Paragraph 5.2), then upon such party’s giving notice
      and reasonably full particulars of such event of force majeure in writing,
      or by
      facsimile, by e-mail, or other equivalent means, to the other party within
      a
      reasonable time after the occurrence of the event of force majeure, the
      obligations of the party giving such notice, so far as they are affected by
      such
      event of force majeure, shall be suspended during the continuance of any
      inability so caused, but for no longer period, and such cause shall so far
      as
      possible be remedied with all reasonable dispatch.

    

    
      
         

      

      
        Page
          14

        
          

        

      

      
         

      

       

    

    The
      term
      "event of force majeure" as used herein shall mean any cause not reasonably
      within the control of the party claiming suspension and which, by the exercise
      of due diligence such party is unable to prevent or overcome. Such term shall
      include but not be limited to: acts of God; strikes, lockouts, or other
      industrial disturbances; acts of a public enemy; wars; blockades; insurrections;
      riots; epidemics; landslides; lightning; earthquakes; storms; floods; washouts;
      civil disturbances; fires; freezing of wells or of pipelines, including any
      interruption of Seller’s transportation rights on any third party pipeline, and
      any other causes, whether of the kind herein enumerated or otherwise, affecting
      the equipment or property of either party and not reasonably within the control
      of the party claiming suspension.

    

    The
      settlement of strikes or lockouts or other labor disputes shall be entirely
      within the discretion of the party having the difficulty, and the requirement
      that any event of force majeure shall be remedied with all reasonable dispatch
      shall not require the settlement of such dispute by acceding to the demands
      of
      an opposing party, when such course is inadvisable in the discretion of the
      party having the difficulty.

    

    ARTICLE
      XV - SUCCESSORS AND ASSIGNS

    

    15.1
      Successors
      and Assigns.
      The
      rights and obligations of Buyer under this Contract shall not be assigned or
      delegated without the prior written consent of Seller, which consent may be
      withheld at Seller’s discretion. 

    

    This
      Contract shall extend to and be binding upon the respective successors and
      assigns of the parties hereto. Any actual or attempted assignment, transfer,
      or
      conveyance of this Contract shall be only to a creditworthy entity and shall
      expressly require that the assignee, transferee, or grantee shall assume and
      agree to discharge the duties and obligations of its assignor under this
      Contract, and any such actual or attempted assignment, transfer, or conveyance
      hereof shall be ineffective as between the parties hereto unless such express
      requirement shall therein be contained, and unless each assignee, transferee,
      or
      grantee shall agree to impose an identical requirement upon any subsequent
      assignee, transferee, or grantee. No such actual or attempted assignment,
      transfer, or conveyance shall in any way operate to enlarge, alter, or modify
      any obligations of the other party hereto.

    

    Any
      entity which shall succeed by purchase, merger or consolidation to substantially
      all of the assets of either party hereunder shall be subject to the duties
      and
      obligations of its predecessor in interest under this Contract.

    

    Nothing
      contained in this provision shall in any way prevent either party from pledging
      or mortgaging its rights hereunder for security of its
      indebtedness.

    

    ARTICLE
      XVI - NOTICES

    

    16.1
      Notices.
      Except
      as otherwise specifically set forth in this Contract, all notices, invoices,
      and
      other communications under this Contract must be in writing and shall be deemed
      given on the date of the addressee’s receipt thereof and shall be given only by
      U.S. Mail, hand delivery, overnight delivery, facsimile, e-mail, or other
      electronic means as follows:

    

    
      	
            	If
              to Seller:	
              Anadarko
                Petroleum Corporation

            

    

    Attn.
      Craig Walters: 

    1201
      Lake
      Robbins Drive

    The
      Woodlands, Texas 77380

    Telephone:
      1.832.636.3085

    

    
      	
            	If
              to Buyer:	
              Rancher
                Energy Corp.

            

    

    Attn.:
      CO2
      Contracts Dept.

    999
      18th
      Street

    Denver,
      Colorado 80202

    Telephone:
      303-629-1122 

    FAX:
      720-904-5698

    
      
         

      

      
        Page
          15

        
          

        

      

      
         

      

    

    

    ARTICLE
      XVII - MISCELLANEOUS

    

    17.1 Entirety
      of Contract, Modification, and Non-Waiver. 
      This
      Contract constitutes the entire agreement for the sale and purchase of Product
      between Buyer and Seller. No statement or agreement, oral or written, made
      prior
      to or at the signing of this Contract, shall vary or modify the written terms
      hereof, and neither party shall claim any amendment to, modification of, or
      release from any provision by mutual agreement unless such agreement is in
      writing, signed by the authorized representatives of the parties to this
      Contract or by an exchange of facsimiles concerning the mutual agreement between
      the parties of the particular modification or amendment thereof specifically
      and
      conspicuously stating that it is a modification or amendment of this Contract.
      No provisions, terms, or conditions contained in any document including, by
      way
      of illustration but not by way of limitation, invoices or purchase orders,
      shall
      affect this Contract or be binding upon the parties unless the provisions,
      terms, or conditions have been previously agreed to in writing by the authorized
      representatives of the parties hereto. Buyer’s only authorized representatives
      who may make a mutual written modification or amendment of this Contract include
      Buyer’s Officers or Attorneys-in-Fact. Seller’s only representatives who may
      make a mutual written modification or amendment to this Contract include
      Seller’s Officers or Attorneys-in-Fact.

    

    Waiver
      of
      performance of any obligations by either party or agreement by the other
      hereunder shall not operate as a waiver of performance of any other obligation
      or a future waiver of the same obligation or a waiver of any future
      default.

    

    17.2 Headings.
      The
      topical headings used herein are inserted for convenience only and shall not
      be
      construed as having any substantive significance or meaning whatsoever or as
      indicating that all of the provisions of this Contract relating to any
      particular topic are to be found in any particular Section.

    

    17.3 Exhibits.
      Each
      exhibit referred to in this Contract hereby is incorporated in this Contract
      by
      reference. All obligations of any party under such exhibit shall be considered
      as obligations under this Contract.

    

    17.4 Counterpart
      Execution.
      This
      Contract may be executed in any number of counterparts, each of which shall
      be
      considered an original for all purposes.

    

    
      
         

      

      
        Page
          16

        
          

        

      

      
         

      

       

    

    17.5 Third
      Party Rights.
      This
      Contract is intended for the exclusive benefit of the parties to this Contract
      and their respective heirs, successors, and assigns, and nothing contained
      in
      this Contract shall be constructed as creating any rights or benefits in or
      to
      any third party.

    

    17.6 Safety.
      The
      agents and employees of each party to this Contract shall comply with all safety
      regulations of the other when such agents and employees are upon the premises
      of
      the other in connection with the performance of this Contract.

    

    17.7 Termination
      Upon Default.
      If
      either Seller or Buyer defaults in the performance of any material obligation
      imposed hereunder, the other party may terminate this entire Contract by giving
      written notice to the defaulting party of such election. The defaulting party
      shall have thirty (30) Days after receipt of such notice in which to remedy
      such
      default or to indemnify the other party to the other party's reasonable
      satisfaction, in which event this Contract shall continue in force and effect.
      If such remedy or indemnity is not timely made, this Contract shall, at the
      end
      of said thirty (30) Day period, become null and void except for Buyer’s
      obligations under Article V to make the Termination Payment if the default
      is
      Buyer’s default, and except for any other provisions of which this Contract
      provides for survival after termination hereof. Notwithstanding anything
      contained herein to the contrary, if Buyer terminates this Contract due to
      a
      default by Seller that is not remedied within the thirty (30) Day period, Buyer
      shall have no obligation for the Termination Payment. Any
      such
      termination shall be without waiver of any remedy to which the party not in
      default may be entitled for violation of this Contract.

    

    17.8 Applicable
      Law.
      ALL
      QUESTIONS CONCERNING THE VALIDITY OR MEANING OF THIS CONTRACT OR RELATING TO
      THE
      RIGHTS AND OBLIGATIONS OF THE PARTIES WITH RESPECT TO PERFORMANCE UNDER THIS
      CONTRACT SHALL BE CONSTRUED AND RESOLVED UNDER THE LAWS OF THE STATE OF WYOMING
      EXCEPT TO THE EXTENT SPECIFICALLY REGULATED BY FEDERAL LAWS, EXCLUDING ONLY
      ANY
      RULE OR PRINCIPLE CONCERNING CONFLICT OF LAWS WHICH MIGHT REFER TO THE LAWS
      OF
      ANOTHER JURISDICTION. 

    

    17.9 Relationship
      to the Parties.
      Notwithstanding any provision contained in this Contract to the contrary, this
      Contract is not intended to create, nor shall it be construed to create, a
      relationship of partnership, an association for profit, or any other
      relationship except that of seller and purchaser.

    

    17.10 Invalidity.
      In the
      event any part of this Contract is declared to be invalid for any reason, this
      ruling shall not affect the validity of the rest of the Contract or any other
      part thereof.

    

    17.11 Origin
      of Contract.
      This
      Contract has been jointly prepared by Buyer and Seller and there shall be no
      presumptions regarding such preparation which will be used against either party
      in connection with any subsequent judicial construction of this
      Contract.

    

    17.12 Confidentiality.
      Notwithstanding anything to the contrary contained in this Contract, the
      provisions of this Contract shall be considered “Confidential
      Information.”

    

    The
      phrase “Confidential Information” as used in this Contract shall also mean all
      other proprietary and non-public information, data, reports, and records which
      were disclosed to either Buyer or Seller, in the course of negotiation or
      performance of this Contract, whether in writing or orally; provided however,
      the information described above shall not be considered “Confidential
      Information” to the extent it falls into the following categories:

    

    
      
         

      

      
        Page
          17

        
          

        

      

      
         

      

       

    

    a.
      Information specifically allowed in writing to be disclosed to third
      parties;

    b.
      Information which at the time of disclosure was already in the public
      domain;

    c.
      Information which enters the public domain through no act or failure on the
      part
of
      the
      other party; 

    d.
      Information which prior to disclosure was already in the possession of the
      recipient; and,

    e.
      Information disclosed to a party’s successors and assigns or to third parties
      that have entered into a confidentiality agreement with such party in a form
      satisfactory to such party in its sole discretion.

    

    Buyer
      and
      Seller shall keep the Confidential Information secret and confidential
      throughout the term of this Contract. 

    

    If
      either
      party is requested or required by legal process to disclose any of the
      Confidential Information, it will provide to the other party notice of such
      request or requirement so that the other party may seek an appropriate
      protective order or other remedy.

    

    The
      confidentiality obligations and restrictions of this Section 17.12 shall not
      apply to a disclosure to a governmental agency, to the public, including press
      releases, or in judicial, administrative, or governmental proceedings pursuant
      to a valid subpoena or other applicable valid rule or order, but only to the
      extent the party intending to make a disclosure in good faith believes it is
      required by law or by the rules of any stock exchange or securities regulatory
      authority; provided however, that: (i) Prior to making any such disclosure,
      it
      shall notify the other party, and such notice shall specify and include: (A)
      the
      written statement (of the party intending to disclose) as to why such disclosure
      is required, (B) the date on which it intends to make such disclosure, and
      (C)
      the text of the proposed stock exchange announcement or other disclosure; (ii)
      The party intending to disclose shall give due consideration to any comments
      received from the other party within three (3) days following the date notice
      was received by such other party; provided however, that if the party intending
      to disclose believes such disclosure must be made prior to the end of such
      three
      (3) days, its notice to the other party shall convey such belief and it shall
      give due consideration to comments received from the other party prior to the
      date that it intends to make such disclosure; (iii) The party intending to
      disclose shall disclose only that portion of the Confidential Information
      required to be disclosed and shall take all reasonable efforts to preserve
      the
      confidentiality thereof, including obtaining protective orders; and (iv) The
      party intending to disclose shall have the burden of proving that disclosure
      under this Paragraph 17.12 was required.

    

    ARTICLE
      XVIII - DISPUTE RESOLUTION

    

    
      
        18.1
          Dispute
          Resolution.
          

      

    

    

    (a) The
      senior managements of Buyer and Seller will attempt to resolve any and all
      disputes arising from this Contract. Failing a settlement between the parties,
      any matters shall be handled as set forth in this Section 18.1.

    

    
      
         

      

      
        Page
          18

        
          

        

      

      
         

      

       

    

    (b) Arbitration. Any
      controversy, cause of action, dispute or claim arising out of, relating to,
      or
      in connection with, this Contract, or the breach, termination or validity
      thereof, shall be settled by arbitration in accordance with the Commercial
      Arbitration Rules (the “Rules”) of the American Arbitration Association, as
      amended and in effect from time to time. The tribunal for the arbitration shall
      consist of three arbitrators, one to be designated by each party and the third
      to be selected by the mutual agreement of the two arbitrators. Each party shall
      designate its arbitrator within twenty (20) Days of receiving a notice of
      arbitration. Prior to acceptance of appointment as an arbitrator, each
      arbitrator shall have read and affirmatively agreed to observe all provisions
      of
      the American Arbitration Association’s Code of Ethics for Arbitrators in
      Commercial Disputes. THE EXPEDITED PROCEDURES SET FORTH IN THE RULES SHALL
      APPLY
      AND THE SUBSTANTIVE AND PROCEDURAL LAWS OF THE STATE OF WYOMING (EXCLUDING
      ANY
      CONFLICTS OF LAWS RULES OR PRINCIPLES AS APPLIED IN WYOMING) SHALL APPLY. This
      Contract involves interstate commerce in several ways, including, without
      limitation, the fact that Seller’s facilities buy and sell materials in
      interstate commerce and work performed in Seller’s facilities affects interstate
      commerce. The choice of Wyoming law shall not be interpreted as a choice to
      exclude applicability of the Federal Arbitration Act to the enforceability
      and
      scope of this arbitration provision. It is therefore specifically understood
      that both Wyoming and federal law, neither to the exclusion of the other, apply
      to the enforceability and scope of this provision, and, in the event of a
      conflict between Wyoming and federal law, the law maximizing the enforceability
      and scope of this provision, including laws relating to appellate remedies,
      may
      be invoked, without excluding applicability of other law, by the Party seeking
      to compel arbitration. If, for purposes of determining Wyoming or federal law,
      a
      conflict or difference of opinion exists between lower state courts and lower
      federal courts, as the case may be, this arbitration provision, by contract,
      selects the precedent of that lower state court or that lower federal court
      that
      maximizes the enforceability and scope of this arbitration provision. The
      arbitration shall take place in Denver, Colorado. The parties specifically
      agree
      that the judgment or award of the tribunal shall be final and binding on each
      party and for all purposes. Judgment upon an arbitration award may be entered
      in
      any court having jurisdiction. This arbitration provision shall survive the
      termination of this Contract. Should the parties ever be prevented by applicable
      law from utilizing arbitration to resolve disputes hereunder, then the choice
      of
      law and forum provisions of this Section shall nevertheless remain in full
      force
      and effect.

    

    IN
      WITNESS WHEREOF,
      this
      Contract shall be effective as set forth in this Contract.

     

     

    
      	 	
              BUYER:

              Rancher
                Energy Corp.

            
	 	 
	Date:
              ________________________	
              By:
                _____________________________________

              Printed
                Name: John
                Works

              Title:
                President and CEO

            
	 	 
	 	
              SELLER:

              Anadarko
                Petroleum Corporation

            
	 	 
	Date:
              ________________________	
              By:
                _____________________________________

              Printed
                Name: 

              Title:
                

            

    

     

    
      
         

      

      
        Page
          19

        
          

        

      

      
         

      

    

    

    EXHIBIT
      “A”

    TO
      PRODUCT SALE AND PURCHASE CONTRACT

    December
      15, 2006

    

    Attached
      to and made a part of that certain Product Sale and Purchase Contract dated
      December 15, 2006 by and between Anadarko Petroleum Corporation as Seller and
      Rancher Energy Corp. as Buyer.

    

    
      	
              Contract
                Quantity Schedule

            
	 	 	 
	 	
              DCQ*

            	
              Annual
                Quantity

            
	
              Contract
                Year

            	
              Mcf/d

            	
              MMcf
                

            
	
              1

            	
              40,000

            	
              14,600

            
	
              2

            	
              40,000

            	
              14,600

            
	
              3

            	
              40,000

            	
              14,600

            
	
              4

            	
              40,000

            	
              14,600

            
	
              5

            	
              40,000

            	
              14,600

            
	
              6

            	
              40,000

            	
              14,600

            
	
              7

            	
              40,000

            	
              14,600

            
	
              8

            	
              40,000

            	
              14,600

            
	
              9

            	
              40,000

            	
              14,600

            
	
              10

            	
              40,000

            	
              14,600

            
	 	 	 
	Total Contract
              Quantity	
              146
                BCF

            

    

    

    *In
      no
      event shall the DCQ be less than 25,000 Mcf on any Day Subject to provisions
      of
      this Agreement. 

    

    
      
         

      

      
        Page
          20

        
          

        

      

      
         

      

    

    

    EXHIBIT
      “B”

    TO
      PRODUCT SALE AND PURCHASE CONTRACT

    December
      15, 2006

    

    Attached
      to and made a part of that certain Product Sale and Purchase Contract dated
      December 15, 2006 by and between Anadarko Petroleum Corporation as Seller and
      Rancher Energy Corp. as Buyer.

    

    

    Area
      of Mutual Interest

    

    See
      Attached Map

    

    
      
         

      

      
        Page
          21

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