Document:

Exhibit 10.9

PARTICIPATION AGREEMENT

THIS PARTICIPATION AGREEMENT (this “Agreement”)
is made effective as of January 5, 2007 (the “Effective Date”), between and
among VINLAND ENERGY EASTERN, LLC, a Delaware
limited liability company (“VEE” or “Vinland”), VANGUARD
NATURAL GAS, LLC a Kentucky limited liability company (“VNG”), and
its subsidiaries, ARIANA ENERGY, LLC,
a Tennessee limited liability company (“AE”) and TRUST ENERGY
COMPANY, LLC, a Kentucky limited liability company (“TEC”)
(sometimes collectively referred to herein as “Vanguard”).

RECITALS:

WHEREAS, Vinland
and VNG through its subsidiaries, AE and TEC, jointly own  those certain interests in the oil and gas
leases as set forth on Exhibit A (the “Jointly
Owned Leases”);

WHEREAS, VNG has
entered into a Management Services Agreement, Well Services Agreement, and
Gathering and  Compression Agreement with
VEE’s affiliates;

WHEREAS, a portion of the oil
and gas mineral leases jointly owned by Vanguard and Vinland have been
identified as “Proved Undeveloped Oil and Gas Properties” or “Initial PUD
Properties” (as defined herein);

WHEREAS, it is contemplated that
as development drilling activity takes place over the term of this Agreement on
the Jointly Owned Leases, additional locations will be identified and certified
as “Proved Undeveloped Oil and Gas Properties.”

WHEREAS, the Initial PUD
Properties and any Proved Undeveloped Oil and Gas Properties are sometimes
collectively referred to as the “PUD Properties.”

WHEREAS; VEE holds an undivided
sixty percent (60%) working interest in the PUD Properties (the “Vinland PUD
Interests”);

WHEREAS, Vanguard holds an
undivided forty percent (40%) working interest in the PUD Properties (the “Vanguard
PUD Interests”);

WHEREAS, Vanguard desires that
the Vanguard PUD Interests be developed in accordance with the terms of this
Agreement;

WHEREAS, Vinland desires that
the Vinland PUD Interests be developed in accordance with the terms of this
Agreement;

WHEREAS, during the term of this
Agreement, it is anticipated that either Vinland or Vanguard will acquire
additional producing and/or non-producing oil and gas leases or leasehold
interests for properties lying within the Area of Mutual Interest as defined
herein (the “New Leases”);

WHEREAS, as provided for herein,
Vinland and Vanguard have agreed on a procedure whereby each Party will offer
the other Party the right to acquire said Party’s proportionate

interest in any New Leases acquired by either Party in
accordance with the terms of this Agreement, and if such offer is accepted any
such New Leases will become part of the AMI Interests, (as defined herein); and

WHEREAS, Vinland and Vanguard
contemplate that any New Leases that are made a part of the AMI Interests (the “New
AMI Leases”) will be developed in accordance with the terms of this Agreement;

NOW, THEREFORE, for and in
consideration of the mutual covenants and agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties hereto agree as follows:

SECTION I.

DEFINITIONS AND REFERENCES

1.1          Recitals.  The foregoing recitals are a substantive part
of this Agreement.

1.2          Defined
Terms. 
Certain of the capitalized terms utilized herein shall have the
following meanings:

“Affiliate”
shall mean, with respect to a Person, any other Person controlling, controlled
by or under common ownership with such Person.

“Area of
Mutual Interest” or “AMI” shall
mean those certain areas outlined on the plats attached hereto as Exhibits B-1, B-2, B-3, B-4 and B-5.

“AMI
Interests” shall mean the Vanguard PUD Interests, the Vinland
PUD Interests and the New AMI Leases.

“Business
Day” shall mean a day on which the banks in the Commonwealth of
Kentucky are customarily open for business.

“Force
Majeure” shall mean anything that is beyond the reasonable
control, and occurs without the fault, negligence or willful misconduct of the
party asserting the force majeure, including, without limitation, any act of
God, strike, lockout, or other industrial disturbance, act of the public enemy,
war (declared or undeclared), terrorism, blockade, public riot, lightning,
fire, storm, flood or other act of nature, explosion, governmental action,
governmental delay, restraint or inaction, unavailability of equipment or
materials, and any other cause, whether of the kind specifically enumerated or
otherwise.  An event of force majeure
that only partially prevents performance shall not relieve the party affected
thereby from performing its other obligations under this Agreement.

“Law”
shall mean any applicable statute, law, ordinance, regulation, rule, ruling,
order, restriction, requirement, writ, injunction, decree or other official act
of or by any governmental authority.

“Mcf” shall
mean one thousand cubic feet of natural gas.

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“New AMI Leases”
shall have the meaning given to that term in the Recitals.

“New Leases”
shall have the meaning given to that term in the Recitals.

“Party”
or “Parties” shall mean one, more or
all of Vanguard Natural Gas, LLC (including its subsidiaries, AE and TEC), and
Vinland Energy Eastern, LLC, as the context requires.

“Person”
shall mean an individual, an estate, a corporation, a partnership, a joint
venture, a limited liability company, an association, a joint stock company, a
government or any department or agency of a government, a trust and/or any
other entity.

“Producing
Strata” shall mean, for each field, those geologic formations
identified in Exhibit A as the Producing Strata
for the field.

“Production
Unit” shall mean: (i) for each Well in Kentucky, an area
configured in a circle with a diameter of 1,000 feet (or approximately 18.03
acres) around such Well, or such greater or lesser area as may be, or may have
been, established for such Well by the relevant governmental authority; (ii)
for each Well in Tennessee, the Production Unit shall be an area configured in
a square or rectangle containing twenty (20) acres centered on the well bore or
such greater or lesser area as may be, or may have been, established for such
Well by the relevant governmental agency.

“Proved
Undeveloped Oil and Gas Properties” and “PUD
Properties” shall both mean all oil and gas interests associated
with the Producing Strata on the leases described on Exhibit A
relating to locations with a high degree of certainty for an economic reserve
outcome.

“PUD Wells”
means those Wells drilled on any of the PUD Properties.

“Vanguard
PUD Interests” shall mean Vanguard’s undivided 40% working
interest in the PUD Properties.

“Vinland
PUD Interests” shall mean Vinland’s undivided 60% working
interest in the PUD Properties.

“Well” shall
mean any oil and/or gas well that is drilled pursuant to this Agreement.

SECTION II.

LEASES AND TERM

2.1          Ownership
of Interests; Treatment of New Leases.

(a)                                  General.
AE and TEC are the respective owners of the Vanguard PUD Interests, being an
undivided 40% working interest in the properties described on the attached Exhibit A. 
VEE is the owner of the Vinland PUD Interests, being an undivided 60%
working interest in the properties described in Exhibit A.  To the
extent Vinland or Vanguard (acting individually or through one of its
subsidiaries)

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obtains New Leases covering or affecting property within the AMI during
the term of this Agreement, those New Leases shall be treated in accordance
with  Section 2.1(b) and Section 2.1(d).

(b)                                  Treatment
of New Leases. Should Vanguard or Vinland acquire any New Leases within
the AMI, the Parties shall proceed as follows:

(i)                                    within
thirty (30) Business Days after acquiring any New Lease, the Party which
obtained the New Lease (the “Leasing Party”), shall provide the other Party
(the “Receiving Party”) with a copy of the New Lease and such information as is
within the Leasing Party’s possession, custody or control regarding the New
Lease, the title thereto, and the price or other financial terms on which the
Leasing Party acquired the New Lease (the “Lease Information”);

(ii)                                the
Receiving Party shall have thirty (30) Business Days after its receipt of the
Lease Information to notify the Leasing Party whether it will purchase its
undivided working interest share (60% of the interest acquired in the New Lease
by Vanguard if Vinland is the Receiving Party, and 40% of the interest acquired
in the New Lease by Vinland if Vanguard is the Receiving Party) by paying the
Leasing Party its share of the acquisition cost of the New Lease as disclosed
in the Lease Information, which purchase shall be closed within 20 Business
Days of the expiration of the 30 day period referred to in this Section 2.1 (b)
(ii).

(iii)                            any
lands covered by a New Lease in which the Receiving Party does not acquire a
working interest as provided for in this Agreement shall be excluded from the
AMI and remain the sole property of the Leasing Party.

(c)                                  Sales
by Vinland Within the AMI.  Should Vinland desire to sell all or any part
of its oil and gas interests (being producing and/or non-producing assets,
including but not limited to working interests, mineral interests, royalty
interests, overriding royalty or net profits interests) in the AMI, Vinland
shall inform Vanguard in writing of its intention to sell said assets prior to
engaging in negotiations for such sale with a third party. In the notice of
intent to sell, Vinland shall include a list of assets to be sold, along with
the working and net revenue interests associated any Wells which Vinland
intends to sell. Vanguard shall have thirty (30) Business Days after receipt of
such notice in which to make an offer to purchase such interests.  Vinland agrees any such offer will receive
good faith consideration, but Vinland shall have no obligation to accept such
offer. Notwithstanding the foregoing, if Vinland elects to consider bids from
third parties for any such interests in the AMI, Vinland shall permit Vanguard
to participate in such bidding along with any third parties.

(d)                                  Certain
Acquisitions By Vinland. Vanguard acknowledges that a part of VEE’s
strategic plan is to acquire lower value prospective oil and gas properties for
the purpose of enhancing the production from existing wells thereon and
developing

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the associated leasehold. 
Vanguard acknowledges that VEE can acquire for itself and its sole
benefit producing oil and gas properties within the AMI, without having to
offer participation in said acquisition to Vanguard, provided the purchase
price of said properties is less than Five Million Dollars ($5,000,000.00) (a “Permitted
Acquisition). Provided however, that VEE may not complete more than two (2)
such Permitted Acquisitions in a calendar year without Vanguard’s written
consent. Any acquisitions by Vanguard or VEE within the AMI shall be offered
according to this Agreement. Once any of said properties are acquired and
developed, any sale of the properties by VEE shall be done in accordance with
Section 2.1(c), affording Vanguard the first right of offer.

2.2          Term
of Agreement. 
This Agreement shall be effective as of the date hereof and shall remain
in force and effect for five (5) years after the Effective Date of this
Agreement and shall continue year to year thereafter until cancellation by either
Party upon not less than ninety (90) days notice prior to the anniversary date
of this Agreement in all cases, unless sooner terminated as provided in Section
8.3. The termination of this Agreement shall not relieve any Party hereto from
any liability which has accrued or attached prior to the date of such
termination.  After the termination of
this Agreement, the rights and obligations of the Parties with regard to the
Wells and wells subsequently drilled on areas subject to the AMI Interests will
be governed by the Operating Agreement applicable to such property which is
executed pursuant to Section 3.1(f).

SECTION III.

PROCEDURES FOR DRILLING WELLS IN THE AMI

3.1          The
Proposed Quarterly Drilling Program. 
The following procedures shall apply to all PUD
Wells to be drilled on the oil and gas leases which comprise the AMI Interests.

(a)                                  During
the first two weeks of December, March, June and September (each, a “Well
Proposal Period”) of each year during the term of this Agreement, Vinland shall
deliver to Vanguard Authorizations for Expenditures (“AFEs”), subject to the
requirements set forth in Section 3.2 herein, for the drilling and completion
of each PUD Well proposed to be drilled on the AMI Interests during each of the
following calendar quarters (the “Proposed Quarterly Drilling Program” or “PQDP”).  Each AFE shall describe the location of each
such Well (each, a “PQDP Well” and collectively, the “PQDP Wells”), the
proposed timing for the drilling and completion of such well, and the AFE shall
provide the cost for the drilling and completion of such PQDP Well (including
the cost of the flow lines from the wellhead to the first meter).  Each AFE shall include a $15,000 drilling
rate charge for each PQDP Well (which will be reflected in the accounting procedure
attached to and made part of the Operating Agreement) to be borne by the
Parties in proportion to their working interests in such PQDP Well.  Beginning on January 1, 2011, the drilling
rate stipulated in this Section 3.1 shall be increased by eleven percent (11%)
and shall be adjusted annually thereafter based upon the wage index adjustment
published by COPAS.

(b)                                  Within
five (5) Business Days after delivery of the AFEs, representatives of Vinland
and Vanguard shall meet to discuss the PQDP.

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(c)                                  Within
five (5) Business Days after the meeting referenced in Section 3.1(b), but in
no event more than ten (10) Business Days after Vanguard’s receipt of the AFEs
for the PQDP, Vanguard will advise Vinland in writing whether it will
participate in the PQDP with respect to the immediately succeeding calendar
quarter for its proportionate working interest. If Vanguard so elects to
participate, Vinland shall promptly instruct the Operator under the Operating
Agreements to commence drilling of the PQDP Wells.

(d)                                  If
Vanguard does not agree to participate in a PQDP with respect to the calendar
quarter immediately succeeding that applicable Well Proposal Period, or it does
not timely respond to the PQDP proposal within ten (10) Business Days following
its receipt of the PQDP AFEs from Vinland, then Vinland may elect to drill the
PQDP Wells proposed for that quarter for its own account, and at its own
expense, and thereafter those PQDP Wells shall not be subject to this
Agreement.  In such event, and if the
proposed PQDP Wells are timely drilled within the calendar quarter as proposed,
Vanguard shall assign to Vinland upon completion of the drilling and completion
of such  PQDP Wells, all of its right,
title and interest in such PQDP Wells using the form attached hereto as Exhibit C. 
Any subsequent costs and expenses of plugging and abandoning such PQDP
Well shall be borne by Vinland, and Vinland shall indemnify and hold Vanguard
harmless from and against same.

(e)                                  If
Vinland does not timely submit to Vanguard PQDP AFEs for the drilling and
completion of at least the minimum number of PUD Wells as required by Section
3.2, during any applicable Well Proposal Period, Vanguard shall give written
notice to Vinland of such deficiency.  If
Vinland does not submit the requisite number of PQDP AFEs in the manner
required by Section 3.1 (a) within five (5) Business Days of such notice,
Vanguard may direct the Operator under the Operating Agreements to drill up to
fourteen (14) PUD Wells (assuming the combined working interest of Vinland and
Vanguard is 100% in such PUD Wells, if the combined working interest is less
than 100%, the number of PUD Wells shall be proportionately adjusted)  in the AMI Interests during the relevant
calendar quarter, the cost for which Wells will be borne solely by
Vanguard.  Provided such PUD Wells are so
drilled during the applicable calendar quarter (i) those PUD Wells shall be for
Vanguard’s own account and thereafter not be subject to this Agreement and (ii)
Vinland shall assign to AE or TEC, as directed, all of Vinland’s right, title
and interest in such PUD Wells using the form attached hereto as Exhibit C, which assignment shall be
consummated no later than twenty (20) Business Days after the date on which
such Wells are completed.  Any subsequent
costs and expenses of plugging and abandoning such PQDP Well shall be borne by
Vanguard, and Vanguard shall indemnify and hold Vinland harmless from and
against same.

(f)                                    All
PQDP Wells proposed pursuant to the Participation Agreement shall be drilled and
operated pursuant to the Operating Agreements, as applicable to each of AE and
TEC as attached hereto as Exhibit D-1
and D-2 (the “Operating Agreements”).

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3.2          Well
Limits. 
Vinland shall not propose less than twenty five (25) PUD Wells, nor more
than forty (40) PUD Wells in any PQDP. It is expressly understood that Vinland
may not, without the express written consent of Vanguard, propose the drilling
of more than forty (40) PUD Wells during any PQDP.  Notwithstanding anything herein to the
contrary, Vinland’s obligations to propose the drilling of a minimum number of
wells during each PQDP during the term of this Agreement will terminate four
(4) years after the Effective Date of this Agreement. It is expressly
understood that after the termination of said obligation, but during the term
of this Agreement (the “Interim Period”) the Parties will still meet during the
PQDP period as described above, but there shall be no obligation by either
Party to propose the drilling of a minimum or maximum number of wells.  If a proposal is made by either Party for the
drilling of wells during the Interim Period, the terms of this Agreement will
apply to such wells. After the expiration of the Interim Period and this
Agreement, the terms of the relevant Operating Agreement shall control the
development of the AMI Interests.

3.3          Payments.  If Vanguard elects to participate in a PQDP,
within fifteen (15) days of Vinland’s receipt of Vanguard’s written response,
Vinland shall provide Vanguard with an AFE for the drilling costs for each of
the PUD Wells to be drilled during the first month of the applicable calendar
quarter (a “Monthly Well AFE”).  Vanguard
shall advance its proportionate share of all Monthly Well AFE’s for PUD Wells
to be drilled during the following month within five (5) Business Days of its
receipt thereof.  Thereafter, Vinland
will submit a Monthly Well AFE by the fifteenth day of each month for each of
the PUD Wells to be drilled in the following month.  Within sixty (60) days after the end of each
PQDP quarter, Vinland shall prepare and deliver to Vanguard a true accounting
of all PUD Wells drilled during the previous calendar quarter. Should the
actual costs incurred in the drilling of the PQDP Wells be less than the
amounts set forth in the Monthly Well AFE, then Vinland will remit back to
Vanguard its proportionate share of any overpayment. However, should the costs
incurred in the drilling of the PQDP Wells be greater than the amounts set
forth in the Monthly Well AFE, then Vanguard will remit to Vinland its
proportionate share of the underfunded costs.

Vinland agrees to use all funds from Vanguard’s
payment of the Monthly Well AFEs to pay for the drilling, completion and
equipping of the relevant PUD Wells.

3.4          Undrilled
Wells.

(a)                                  If
a Well is proposed in the PQDP, but is not drilled during the relevant calendar
quarter (an “Undrilled Well”), such Undrilled Well shall not be drilled
pursuant to the PQDP as originally proposed. 
Such Undrilled Well may be added to a subsequent PQDP, and it will be
subject to the approval and other procedures provided in Section 3.1, above. It
is expressly agreed and understood that (i) no more than twenty percent (20%)
of the total number of Wells proposed in a PQDP can be carried over and added
to the Wells to be drilled in the subsequent Well Proposal Period and (ii) in
any event no fewer than one hundred (100) gross wells will be drilled in any
four calendar quarter period.

(b)                                  If
Vanguard has advanced funds to Vinland for an Undrilled Well, Vinland will
return such funds to Vanguard within five (5) Business Days after the end of
the relevant calendar quarter with interest at the Prime Rate designated as
such from

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time to time by Citibank, N.A. from the date such funds were advanced
by Vanguard to the date of repayment by Vinland.

(c)                                  For
purposes of this Section 3.4, a Well shall be deemed to be drilled within a
calendar quarter if it has been spudded prior to 11:59 p.m. on the last day of
the calendar quarter.

SECTION IV.

OPERATING 
AGREEMENTS

4.1          Operating
Agreements.

(a)                                  All
Wells in the AMI which are jointly owned by Vinland and Vanguard, or its
subsidiaries, shall be drilled and operated, and except as explicitly provided
for in this Agreement, the associated costs and expenses shall be borne by the
Parties pursuant to the applicable Operating Agreements.

(b)                                  The
Operating Agreements have been entered into and executed by the appropriate
Parties concurrent with the execution of this Agreement.

(c)                                  In
the event of a conflict between this Agreement and the Operating Agreements,
the terms of this Agreement shall control during the term of this Agreement.

SECTION V.

TRANSFERS

5.1          Transfers.
Subject to the provisions of Section 2.1(c), neither this Agreement, nor the
benefits, rights, and obligations accruing thereunder to any Party, nor the AMI
Leases may be assigned or transferred in whole or in part, during the term
hereof, without the prior written consent of the other Parties, which consent
shall not be unreasonably withheld, provided, however, the foregoing prohibitions
shall not apply to assignments or transfers by a Party to its Affiliates, or
assignments or transfers by reason of the merger or sale of substantially all
of a Party’s assets. Upon assignment, the provisions hereof shall extend to the
heirs, successors and permitted assigns of the Parties hereto.

5.2          Further
Conditions. It is a further condition hereof that
before making any assignment or transfer of any interest herein, the Party
proposing so to do shall be required first to settle for and discharge its
portion of all obligations accrued under the terms of this Agreement as of the
effective  date of such assignment.  In the event of an assignment of all or any
interest covered hereby, such transfer shall include therein specific and
definite recognition of the rights of the other Parties under this Agreement,
reciting that the interest so transferred is subject hereto.

SECTION VI.

NOTICES

6.1          Notices.  Any notice which may be given hereunder shall
be ineffective unless in writing and either delivered by registered or
certified mail with return receipt requested to the addresses

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set out below or delivered by hand with
written acknowledgment of receipt.  The
addresses for notice are as follows:

For Vinland:     Vinland
Energy Eastern, LLC

104 Nami Plaza, Suite 1

London, Kentucky 40741

Attention: 
Thomas H. Blake, President

 

For Vanguard:  c/o Vanguard Natural Gas, LLC

7700 San Felipe, Suite 485

Houston, Texas 77063

Attention: 
Scott W. Smith, President

Any such address may be
changed at any time by written notice in accordance herewith.  Each notice hereunder shall be deemed to have
been given when delivered in person or by courier service and signed for
against receipt thereof, or three (3) Business Days after depositing it in the
United States mail with postage prepaid and properly addressed.

SECTION VII.

REPRESENTATIONS
AND WARRANTIES

7.1          Representations
and Warranties of Vinland.  Vinland represents and warrants to Vanguard
that:

(a)                                  Organization
and Good Standing.  Vinland is
duly organized, validly existing and in good standing under the Laws of its
jurisdiction of organization, having all powers required to carry on its
business and enter into and carry out the transactions contemplated
hereby.  Vinland is duly qualified, in
good standing, and authorized to do business in all other jurisdictions within
the United States wherein the character of the properties owned or held by it
or the nature of the business transacted by it makes such qualification
necessary.

(b)                                  Authorization.  Vinland has duly taken all action necessary
to authorize the execution and delivery by it of this Agreement and to
authorize the consummation of the transactions contemplated hereby and the
performance of its obligations hereunder.

(c)                                  No
Conflicts or Consents.  The
execution and delivery by Vinland of this Agreement, the performance by Vinland
of its obligations hereunder, and the consummation of the transactions
contemplated hereby, do not and will not (i) conflict with any provision of (1)
any law, (2) the organizational documents of Vinland, or (3) any judgment,
license, order, permit or material agreement applicable to or binding upon
Vinland, (ii) result in the acceleration of any indebtedness owed by Vinland,
or (iii) result in or require the creation of any lien upon any assets or
properties of Vinland.  No permit,
consent, approval,

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authorization or order of, and no notice to or filing with, any
governmental authority or third party is required in connection with the
execution, delivery or performance by Vinland of this Agreement or to
consummate any transactions contemplated hereby.

(d)                                  Enforceable
Obligations.  This Agreement is
the legal, valid and binding obligation of Vinland, enforceable in accordance
with the terms hereof except as such enforcement may be limited by bankruptcy,
insolvency or similar laws of general application relating to the enforcement
of creditors’ rights.

7.2          Representations
and Warranties of Vanguard.  Each of VNG, AE and TEC represents and
warrants to Vinland that:

(a)                                  Organization
and Good Standing.  Each of VNG,
AE and TEC is duly organized, validly existing and in good standing under the
Laws of its jurisdiction of organization, having all powers required to carry
on its business and enter into and carry out the transactions contemplated
hereby.  Each of VNG, AE and TEC is duly
qualified, in good standing, and authorized to do business in all other
jurisdictions within the United States wherein the character of the properties
owned or held by it or the nature of the business transacted by it makes such
qualification necessary.

(b)                                  Authorization.  Each of VNG, AE and TEC has duly taken all
action necessary to authorize the execution and delivery by it of this
Agreement and to authorize the consummation of the transactions contemplated
hereby and the performance of its obligations hereunder.

(c)                                  No
Conflicts or Consents.  The
execution and delivery by each of VNG, AE and TEC of this Agreement, the
performance by them of their obligations hereunder, and the consummation of the
transactions contemplated hereby, do not and will not (i) conflict with any
provision of (1) any law, (2) the organizational documents of any of VNG, AE or
TEC, or (3) any judgment, license, order, permit or material agreement
applicable to or binding upon any of VNG, AE or TEC, (ii) result in the
acceleration of any indebtedness owed by any of VNG, AE or TEC, or (iii) result
in or require the creation of any lien upon any assets or properties of any of
VNG, AE or TEC.  No permit, consent, approval,
authorization or order of, and no notice to or filing with, any governmental
authority or third party is required in connection with the execution, delivery
or performance by each of VNG, AE or TEC of this Agreement or to consummate any
transactions contemplated hereby.

(d)                                  Enforceable
Obligations.  This Agreement is
the legal, valid and binding obligation of each of VNG, AE or TEC, enforceable
in accordance with the terms hereof except as such enforcement may be limited
by bankruptcy, insolvency or similar laws of general application relating to
the enforcement of creditors’ rights.

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SECTION VIII.

MISCELLANEOUS

8.1          Competition. As to any activity conducted
outside of the AMIs established pursuant to this Agreement, both the Company
and its affiliates, and Vinland and its affiliates are and shall be free to
engage in any business or investment activity whatsoever, including those that
may be in direct competition with the other party.

8.2          Entire
Agreement, Amendment and Binding Effect.  This Agreement constitutes the entire
agreement between the Parties and supersedes all prior agreements, whether
verbal or in writing, relating to the subject matter hereof which are not
contained herein.  This Agreement may be
amended only by a written document duly executed by the Parties, and any
alleged amendment which is not so documented shall not be effective as to
either party.  This Agreement shall be
binding upon, and shall inure to the benefit of, the Parties hereto and their
respective successors and permitted assigns.

8.3          Default.  Should a Party, its successors or assigns,
fail to comply with any of the terms and obligations contained herein, the
other Party shall give written notice to such Party specifying the
non-compliance.  If the non-performing
Party does not correct the breach within thirty (30) days, then the Party
giving notice of non-compliance shall have the right to terminate this
Agreement upon written notice to the other Party effective on the date
specified in such written notification, which shall be on or after the date
such notice is given, in addition to all other rights and remedies allowed by
law or in equity.  No delay or omission
by a Party in the exercise of any right, power or remedy under this Agreement
will impair any such right, power or remedy or operate as a waiver thereof or
of any other right, power or remedy then or thereafter existing.
Notwithstanding anything to the contrary herein, in the event of a termination
due to a default by either Party, the Operating Agreements governing the
properties shall remain in full force and effect.

8.4          Construction.  As used in this Agreement: the word “or” is
not exclusive; the word “including” (in its various forms) means “including
without limitation”; pronouns in masculine, feminine and neuter genders shall
be construed to include any other gender; and words in the singular form shall
be construed to include the plural and vice versa, unless the context otherwise
requires.  References herein to any
Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a
Schedule or an Exhibit hereof unless otherwise specifically provided.  This Agreement is the result of negotiations
between, and has been reviewed by Vanguard and Vinland, and their respective
counsel.  Accordingly, this Agreement
shall be deemed to be the joint product of the parties hereto, and no ambiguity
shall be construed in favor of or against any party hereto or beneficiary
hereof.

8.5          Amendment.  No amendment of any provision of this
Agreement shall be effective unless it is in writing and signed by all parties
hereto and Agent, and no waiver of any provision of this Agreement, and no
consent to any departure by any party hereto therefrom, shall be effective
unless it is in writing and signed by the other parties hereto and Agent, and
then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given.

 11
 

8.6          Unenforceability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or invalidity without
invalidating the remaining portions hereof or thereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

8.7          Governing Law; Submission to Process.  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF KENTUCKY, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
SUBMITS ITSELF TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL
COURTS SITTING IN THE STATE OF KENTUCKY AND THE COUNTY OF LAUREL AND AGREES AND
CONSENTS THAT SERVICE OF PROCESS MAY BE MADE UPON IT IN ANY LEGAL PROCEEDING
RELATING HERETO BY ANY MEANS ALLOWED UNDER KENTUCKY OR FEDERAL LAW.  EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH
A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

8.8          Waiver of Jury
Trial, Punitive Damages, Etc.  EACH OF THE PARTIES HERETO HEREBY KNOWINGLY,
VOLUNTARILY, INTENTIONALLY, AND IRREVOCABLY (A) WAIVES, TO THE MAXIMUM EXTENT
NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION BASED HEREON, OR DIRECTLY OR INDIRECTLY AT ANY TIME ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY OR ASSOCIATED HEREWITH, BEFORE OR AFTER MATURITY; (B) WAIVES, TO THE
MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER
IN ANY SUCH LITIGATION ANY PUNITIVE DAMAGES, (C) CERTIFIES THAT NO PARTY HERETO
NOR ANY REPRESENTATIVE OR AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (D) ACKNOWLEDGES THAT IT
HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED
HEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED
IN THIS SECTION 8.8.

8.9          Arbitration.  If any controversy, claim or dispute arising out of or relating to this
Agreement or the breach or performance thereof occurs, the parties shall meet
and exert reasonable efforts to reach an amicable settlement for a period not
to exceed twenty (20) days from the date written notice of the controversy,
claim or dispute is served by the complaining party to the other party under
this Agreement.  If for any reason such
settlement fails to occur within such twenty-day period (or such other period
as the parties may agree in writing), the parties will then enlist the services
of a mutually agreed upon industry representative to facilitate settlement negotiations
for an additional twenty (20) day period in an attempt to resolve the
controversy. If a favorable resolution is not attained within the additional
twenty (20) day period, the controversy, claim or dispute shall be submitted to
binding arbitration administered by the

 12
 

American Arbitration
Association in accordance with its Commercial Arbitration Rules (“AAA Rules”)
and subject to the Federal Arbitration Act, 9 U.S.C. Sections 1 et  seq.,
and judgment on any award thereby rendered may be entered in any court having
jurisdiction thereof.

(a)                                  Any such arbitration shall proceed as promptly
and as expeditiously as possible (and the parties shall cooperate to this end)
before three arbitrators, consisting of one arbitrator appointed by the
claimant, one arbitrator appointed by the respondent, and the third arbitrator
appointed by the two party-appointed arbitrators.  Arbitration shall be initiated by written
notice of intention to arbitrate made pursuant the AAA Rules.  The claimant shall identify its appointed
arbitrator in the notice of intention to arbitrate, and the respondent shall
identify its appointed arbitrator within ten (10) days of its receipt of the
notice of intention to arbitrate.  The
two party-appointed arbitrators shall agree upon and appoint the third
arbitrator within the ten (10) day period following the appointment of the
second party-appointed arbitrator.  If
either the claimant or the respondent fail to appoint an arbitrator pursuant to
the foregoing, or if the two party-appointed arbitrators fail to agree upon and
appoint the third arbitrator within the above-referenced ten (10) day period,
then such arbitrator or arbitrators shall be appointed by the AAA pursuant to
the AAA Rules.  The arbitrators chosen or
appointed shall have expertise and/or experience in the oil and gas industry.

(b)                                  Nothing in this Section shall be deemed to
preclude any party from applying to any court of competent jurisdiction at any
time prior to the formation of the arbitration panel (including before or during
the 20-day negotiation period referenced in the first sentence of this Section)
for injunctive, provisional or other emergency relief pertaining to the subject
matter of a controversy, claim or dispute that is arbitrable hereunder, or
applying for such relief in aid of arbitration after formation of the
arbitration panel, where (i) the arbitration award to which the party may be
entitled may be rendered ineffectual without such relief, (ii) the party
seeking such relief is not in breach of this Section, and (iii) the relief
sought will not materially delay or frustrate the arbitration.  The grant or denial of any court-ordered
relief pursuant to this paragraph shall not constitute or be deemed to be a
ruling on the merits of the matter to be arbitrated, nor shall any application
for such relief be deemed to be a waiver of any right to arbitration hereunder.

(c)                                  The parties hereby agree that the costs and
expenses, including attorneys’ fees, incurred in connection with any
arbitration or court proceeding hereunder shall be awarded in favor of the
prevailing party and against the losing party as determined by the arbitration
panel or court, as the case may be.

8.10        Counterparts.
This instrument may be executed in one or more counterparts, which when
executed shall constitute but one and the same instrument.

8.11        Authority
to Execute. 
The person executing this Agreement on behalf of each of the Parties
warrants and represents that such person is duly authorized and empowered to
execute this Agreement on behalf of such Party.

 13
 

8.12        Severability.  This Agreement is intended to be performed in
accordance with and only to the extent permitted by all legal
requirements.  If any provision of this
Agreement or the application thereof to any person or circumstance shall, for
any reason and to any extent, be invalid or unenforceable, but the extent of
the invalidity or unenforceability does not destroy the basis of the bargain
between the Parties as contained herein, the remainder of this Agreement and
the application of such provision to other persons and circumstances shall not
be affected thereby, but rather shall be enforced to the greatest extent
permitted by law.

 14
 

IN WITNESS WHEREOF, the
undersigned have executed this Participation Agreement effective as of the date
first above written.

	
   

  	
   

  	
  (“VINLAND”)

  
	
   

  	
   

  	
  VINLAND
  ENERGY EASTERN, LLC

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (“VANGUARD”)

  
	
   

  	
   

  	
  VANGUARD
  NATURAL GAS, LLC

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARIANA
  ENERGY, LLC

  
	
   

  	
   

  	
  By: Vanguard
  Natural Gas, LLC

  
	
   

  	
   

  	
  Its: Sole Member

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TRUST
  ENERGY COMPANY, LLC

  
	
   

  	
   

  	
  By: Vanguard
  Natural Gas, LLC

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S. Nami

  	
   

  
	
   

  	
   

  	
  Its: Manager

  

 

 15Exhibit 10.10

 

GATHERING AND COMPRESSION AGREEMENT

(TENNESSEE
OPERATIONS)

THIS GATHERING AND
COMPRESSION AGREEMENT (the “Agreement”) effective as of January 5, 2007, by and
between VINLAND ENERGY GATHERING, LLC, a Delaware limited liability company (“VEG”);
VANGUARD NATURAL GAS, LLC, a Kentucky limited liability company, and its
subsidiary ARIANA ENERGY, LLC, a Tennessee limited liability company
(collectively referred to as “VANGUARD”); and (solely with respect to Section
4.1 hereof) VINLAND ENERGY EASTERN, LLC, a Delaware limited liability company (“VEE”).

WITNESSETH:

WHEREAS,
VANGUARD anticipates producing and/or developing substantial quantities of
natural gas in Campbell and Morgan Counties, Tennessee (as described in the
list of fields, leases and wells contained on EXHIBIT “A”
attached hereto and incorporated by referenced herein, hereinafter the “Properties”),
and, in order to produce VANGUARD’s natural gas production from the Properties,
VANGUARD and VEG are hereby entering in this agreement pertaining to the
gathering and trunk lines and other facilities (as described on EXHIBIT “B” — identifying the lines and  facilities) currently owned and operated by
VEG;

WHEREAS,
VANGUARD desires to contract with VEG to gather and compress natural gas
produced from the Properties and re-deliver said natural gas to certain
designated interconnects with third party transporters.

 1
 

WHEREAS,
VEG is willing to receive VANGUARD’s natural gas from the Properties into its
gathering and trunk lines for compression, dehydration (utilizing VEG’s
compression and dehydration facilities) and delivery to various delivery points
at existing interconnections between the systems of VEG and certain third party
transporters;

WHEREAS,
VEG has confirmed to VANGUARD that third party transporter, East Tennessee
Natural Gas (now Spectra Energy Inc.), has as of the date of this Agreement
agreed to receive the gathered volumes at the existing interconnection outlined
below.

NOW
THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein contained, VANGUARD and VEG agree as follows:

ARTICLE I.

DEFINITIONS

1.1           The
term “day” shall mean a period of twenty-four (24) consecutive hours, beginning
and ending at 10:00 a.m., Eastern U.S. Time.

1.2           The
term “point of receipt” shall mean a point mutually agreeable to VANGUARD and
VEG where VANGUARD’s wellhead gathering lines are or may be connected to VEG’s
field gathering lines on VEG’s gathering system

1.3           The
term “point of delivery” shall mean a point mutually agreeable to VANGUARD and
VEG where VEG’s field gathering lines are, or may be connected, to a third
party transporter’s transportation lines or such other mutually agreeable
points as VANGUARD and VEG may agree upon from time to time.

 2
 

1.4           The
term “third party transporter” shall mean East Tennesse Natural Gas (now
Spectra Energy Inc.) or such other entity accepting VANGUARD’s natural gas off
of VEG’s facilities for further transportation.

1.5           The
term “Mcf” shall mean one thousand (1,000) cubic feet of gas.

1.6           The
term “Btu” shall mean one (1) British thermal unit.

1.7           The
term “Dekatherm” or Dth” shall mean the quantity of gas containing 1,000,000
Btu.

1.8           The
term “psia” shall mean “pounds per square inch absolute.”

1.9           The
term “psig” shall mean “pounds per square inch gauge.”

1.10         The
term “facilities” shall with respect to VANGUARD mean VANGUARD’s wellhead
equipment and  well pipelines hooked to
the wells and appurtenant property.  With
respect to VEG, the term “facilities” shall mean all compressors, meters,
dehydrators or other contractual agreements, rights, equipment or property used
in connection therewith and all of VEG’s field gathering lines connected to the
VANGUARD well pipelines, all rights of way, easements and licenses pertaining
to said pipelines.

1.11         The
term “Wells” shall mean a well or wells capable of producing natural gas that
have been drilled and completed by VANGUARD and/or VEE after the effective date
of this Agreement.

 3
 

ARTICLE II.

GATHERING and DELIVERY

2.1           Subject
to the terms of this Agreement, VEG agrees that it will connect to its
gathering system any Wells on the Properties and further, VEG agrees to receive
for the account of VANGUARD all natural gas tendered by VANGUARD to VEG at
mutually agreeable points of receipt on VEG’s facilities for delivery to the
following specified locations in Campbell and Morgan Counties, Tennessee (the “Delivery
Points”):

	
  FIELD

  	
   

  	
  METER/STATION

  	
   

  	
  CURRENT CAPACITY

  	
   

  	
  CURRENT VOL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wartburg

  	
   

  	
  59333 (ETNG)

  	
   

  	
  [200 Dth/day]

  	
   

  	
  [100 Dth/day]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Windrock

  	
   

  	
  59337 (ETNG)

  	
   

  	
  [2,700 Dth/day]

  	
   

  	
  [2,400 Dth/day]

  

 

2.2           To
the extent of its current capacity as stated above, VEG shall accept  VANGUARD’s gas at any time from each of the
fields listed above (the “Fields”) and dehydrate, compress and deliver same to
the Delivery Points.  All receipts of gas
by VEG onto VEG’s facilities shall be delivered to the Delivery Points on a
reasonable basis to the extent the receiving pipeline has capacity. VANGUARD
expressly understands that VEG will make every reasonable effort to deliver
VANGAURD’s volumes of natural gas to the Delivery Points, but that VEG may from
time to time interrupt service at various compression and dehydration stations
due to force majeure (as described in Article XII hereof), and scheduled and
unscheduled repairs, maintenance, upgrade of facilities, pigging of lines, or
for reasons beyond its control by third party transporters.

2.3           VEG’s
gathering and compression obligation hereunder shall be discharged in a good
and workmanlike manner and in accordance with good oilfield practice, subject
to allowance

 4
 

for the amount of gas attributable to system
fuel consumption and unaccounted for gas arising in the course of system
operations proportional to the Company’s gathered volume.  Such obligation shall be subject to (a)
VANGUARD’s existing leasehold and other contractual obligations; (b) to
VANGUARD’s obligations to any retail and transportation customers served
pursuant to statute, regulations; (c) to orders, rules, statutes and
regulations of any lawful authority having jurisdiction; and (d) to any matter
constituting a ‘force majeure” as outlined below.  VEG shall account to VANGUARD in the same
manner as provided in Article IX of this Agreement for all volumes of gas
produced from the Properties and delivered to VEG hereunder.

2.4           VANGUARD
expressly acknowledges that it has been apprised of the limitations and
understands that the gathering and compression of gas contemplated herein may
be interrupted or limited from time to time by the constraints of available
system capacity and the limitations set forth in Sections 2.3 (a), (b), (c) and
(d) above; otherwise VEG shall gather, compress and deliver such gas through
its facilities for the account of VANGUARD, and use VEG’s facilities, including
compressors, compressor site agreements, dehydrators, rights of way and
easements, to accomplish same.

ARTICLE III.

FACILITIES

3.1           VEG
shall utilize its field gathering lines (and otherwise provide or cause to be
provided, such facilities) and VEG’s dehydration and compression facilities
(owned or leased by VEG) as well as interconnections with the pipeline
facilities of East Tennessee Natural Gas (now Spectra Energy Inc.) that are
necessary to effectuate the gathering and compression

 5
 

service for VANGUARD as described in Article
II hereof.  VANGUARD will provide or
cause to be provided all facilities necessary (utilizing VANGUARD’s wellhead
equipment and well gathering lines) to deliver gas to VEG against the varying
pressure in VEG’s facilities.  Subject to
the terms of this Agreement, VEG will maintain or caused to be maintained and
installed telemetering equipment at those Delivery Points capable of delivering
in excess of 1,000 Mcf of gas per day on a sustained basis if requested by
VANGUARD or any third party transporter of gas.

ARTICLE IV.

TERM

4.1           This
Agreement and all rights hereunder shall commence on the date first above
written and shall continue in full force and effect for so long as the
Properties, in the sole opinion of VANGUARD, are capable of producing gas in
economic quantities.  Provided, however,
in the event the volume of gas gathered from the Properties located in any
Field or portion thereof is, in the sole opinion of VEG, insufficient to
generate revenues sufficient for VEG to fulfill its obligations hereunder, then
VEG shall provide VANGUARD written notice of its intention to increase the
gathering and compression rate to a rate under which VEG would continue to
provide the services provided for herein. Within thirty (30) days after receipt
of said notice, VANGUARD shall either accept the new rate proposed by VEG or
VANGUARD shall  terminate this Agreement
to the extent it pertains to the subject portion of facilities by providing VEG
ninety (90) days written notice of its intent to do so. Included in any such
termination notice, VANGUARD shall 
request an assignment and VEG shall deliver an assignment of the subject
portion of the VEG facilities in such Field used in

 6
 

performance of the gathering and compression
services set forth herein in order to maintain its production of gas and shall
thereafter bear all the costs and expenses of maintaining and operating said
pipeline assets.  In such event, VANGUARD
shall provide gathering and compression services to VEE (to the extent of its
interests in the oil and gas production in such Field) on the same basis as the
then current gathering rates provided for in Article VIII..

ARTICLE V.

QUALITY

5.1           VANGUARD
acknowledges and agrees that in order for gas to be delivered into VEG’s
facilities, such gas must comply with the following terms and conditions.

5.2           All
gas delivered and redelivered hereunder shall be commercially free from air,
dust, gum, gum-forming constituents, harmful or noxious vapors, or other solid
or liquid matter which might interfere with its merchantability or cause injury
to or interference with proper operation of the lines, regulators, meters and
other equipment of the receiving party.

5.3           The
gas delivered and redelivered shall not contain in excess of:

(a)                                  seven (7) pounds of
water vapor per million cubic feet of gas at the base pressure and temperature
of fourteen and seven-tenths (14.7) pounds per square inch absolute and sixty
degrees Fahrenheit.  The water vapor will
be determined by the use of a Bureau of Mines type dew point apparatus or in
accordance with the latest approved methods in use in the industry generally;

 7
 

(b)                                 four percent (4%) by
volume of a combined total of carbon dioxide and nitrogen components, provided,
however, that the total carbon dioxide content shall not exceed three percent
(3%) by volume;

(c)                                  twenty-five
hundredths (0.25) grains of hydrogen sulfide per one hundred (100) cubic feet
of gas;

(d)                                 twenty (20) grains of
total sulphur per one hundred (100) cubic feet.

5.4           The
gas delivered and redelivered shall have a total heating value of not less than
one-thousand (1,000) Btu (British Thermal Units) per standard cubic foot.  The total heating value of the gas shall be
determined by taking samples of the gas at the delivery point at such
reasonable times as may be designated by either party and having the Btu
content per cubic foot determined by an accepted type calorimeter (or other
suitable instrument) for a cubic foot of gas at a temperature of sixty (60)
degrees Fahrenheit when saturated with water vapor and at an absolute pressure
of 14.73 psi.  The gas delivered shall
have a utilization factor of one thousand three hundred (1,300) plus or minus
six percent (6%).  The unitization factor
is defined as that number obtained by dividing the heating value of the gas by
the square root of its specific gravity.

5.5           If
the gas delivered by VANGUARD to VEG’s facilities fails to meet the quality
specifications set forth in this Article V, then, upon instruction by VANGUARD,
VEG agrees to take such steps and measures as instructed to bring the gas into
conformity with such specifications and all additional costs in connection with
such measures shall be borne by the VANGUARD in proportion to their respective
interests in the wells.  VEG agrees that,
to the

 8
 

extent any gas delivered hereunder fails to
meet such specifications such gas may be blended with other gas in the VEG
system, at VEG’s sole and absolute discretion, so that the commingled gas will
conform to such specifications.  To
assure that the gas delivered by VANGUARD to VEG conforms to the above
specifications, the gas may be analyzed by VEG at least twice a year and more
frequently if any third party transporter requests.

ARTICLE VI.

DELIVERY PRESSURE

6.1           All
gas delivered by VANGUARD to VEG shall be delivered by VANGUARD at pressures
sufficient to enter the into VEG’s system or against the prevailing pressure at
such point.  VEG shall maintain a
pressure at each delivery point that is reasonable.

ARTICLE VII.

MEASUREMENT AND MEASURING
EQUIPMENT

7.1           For
the purpose of this Agreement, the unit of volumetric measurement shall be a
standard cubic foot of gas at a pressure base of fourteen and seventy-three
hundredths (14.73) pounds per square inch absolute, a temperature base of sixty
(60) degrees Fahrenheit (five hundred twenty (520) degrees absolute) and
without adjustments for water vapor.

7.2           All
said gas delivered at the Delivery Points shall be measured by an orifice,
turbine or displacement type meter or other approved measuring device of equal
accuracy to be owned and installed by VEG or a third party transporter of
gas.  All said gas redelivered to any
additional transporter or purchaser shall likewise be measured by such type
meter or other device to be owned, installed and operated by such additional
transporter or purchaser.

 9
 

7.3           For
orifice meter measurements, the methods of computation shall conform with the
recommendations contained in Report No. 3 of the Gas Measurement Committee of
the American Gas Association, including any revision made thereto, applied in a
practical manner.  The specific gravity
of the gas being measured shall be determined at the beginning of this delivery
and as often thereafter as conditions may warrant.

7.4           For
displacement or turbine meters or other approved measuring device, the meter
readings at varying pressures shall be converted to gas quantities at base
conditions set forth in Section 7.1 hereof.

7.5           In
connection with the use of any type of measuring device, an atmospheric
pressure of fourteen and four tenths (14.4) pounds per square inch shall be
assumed, with no allowance for variation in atmospheric pressure.  The flowing gas temperature may be recorded
at VEG’s discretion.  In the absence of a
flowing gas temperature recorder, sixty (60) degrees Fahrenheit will be
assumed.

7.6           VEG
(or a thirty party transporter) shall read the meter, furnish the charts, place
and remove any and all recording gauge charts, calculate the deliveries, and
perform any other service necessary in connection with the measurement of said
gas.

7.7           If,
upon any test, any measuring equipment at any receipt point is found to be in
error, such errors shall be taken into account in a practical manner in
computing the deliveries.  If the
resultant aggregate error in the computed deliveries is not more than two
percent (2%), then previous deliveries shall be considered accurate.  All equipment shall, in any case, be adjusted
at the time of test to record correctly. 
If, however, the resultant aggregate error in

 10
 

computed deliveries exceeds two percent (2%)
at a recording corresponding to the average hourly rate of gas flow for the
period since the last preceding test, previous recordings of such equipment
shall be corrected to zero error for any period which is known definitely or
agreed upon, but in case the period is not known definitely or agreed upon,
such correction shall be for a period extending over one-half of the time
elapsed since the date of the last test, not exceeding a correction period of
sixteen (16) days.

7.8           At
delivery points with third party transporters or purchasers, if upon any test,
any measuring equipment is found to be in error such errors shall be taken into
account as stipulated by the agreement covering said transportation or purchase
with the third party.  In the absence of
such an agreement, if the meter on test shall prove to be accurate within plus
or minus two percent (2%), previous deliveries corrected in such a manner shall
be considered accurate. If however the resultant aggregate error in computed
deliveries exceeds two percent (2%) previous recordings of such equipment shall
be corrected to zero error for any period which is known definitely or agreed
upon, but in case the period is not known definitely or agreed upon such
correction shall be for a period extending over one — half of the elapsed time
since the date of the last test, not exceeding a correction period of sixteen
(16) days.

7.9           In
the event any measuring equipment is out of service for test or repair, or is
inoperable for any reason, deliveries through such equipment shall be estimated
utilizing all available information to determine the volume of gas for the
delivery period affected.

7.10         Upon
written request from the party not maintaining meter charts respecting a
particular measurement station, meter charts shall be forwarded to such party
for inspection,

 11
 

subject to return to the other within ten
(10) days after receipt thereof.  VEG or
any third party transporter shall keep charts on file for two (2) years after
date of delivery, during which time they will be open for inspection by
authorized parties during normal working hours.

7.11         Considering
the possibility of inadvertent errors in measurement or calculating of amounts
due and payable or paid, nothing herein contained shall constitute accord and
satisfaction, waiver, release, full payment, satisfaction, laches, estoppel, or
other defense to a claim by or against VANGUARD or VEG for the true and actual
amount accurately due and payable, for the full period of two (2) years in
arrears.  Errors in VEG’s favor shall be
rectified in full, without interest, by VANGUARD within ninety (90) days of
notice and substantiation of such inaccuracy. 
Errors in VANGUARD’s favor shall be rectified in full, without interest,
by VEG within ninety (90) days of notice and substantiation of such inaccuracy.

ARTICLE VIII.

RATE

8.1           For
all quantities of gas gathered, compressed and re-delivered by VEG to the
Delivery Point(s) from the wells listed on Exhibit “A”, VANGUARD shall pay VEG
$0.25 per Mcf of gas gathered, compressed and re-delivered..

8.2           For
all quantities of gas gathered, compressed and re-delivered from any well
drilled and completed by or for VANGUARD after the date of this Agreement, the
$0.25 per Mcf price referenced in the preceding sentence shall be increased to
$0.55 per Mcf for natural gas produced from such wells.

 12
 

8.3           Beginning
January 1, 2011, the gathering and compression rates stipulated in Sections 8.1
and 8.2 shall increased by eleven percent (11%) and shall be adjusted annually
thereafter based on the wage index adjustment published annually by COPAS.

8.4           VEG
may, from time to time, propose to VANGUARD facility upgrades and improvements
that could be to the economic benefit of VANGUARD. In the event such upgrades
and improvements cannot be undertaken economically by VEG based on the rates
outlined in 8.1 and 8.2, VEG will send VANGUARD a letter requesting  financial support for said project. Any such
letter will describe the project, its contemplated benefits to VANGUARD, and
the specific request for additional financial support from VANGUARD, which may
include either (i) an increased gathering and compression rate for a specific
period of time, or (ii) an up-front or deferred payments as agreed to between
the parties . Within thirty (30) days after receipt of the financial support
letter, VANGUARD shall provide written response to VEG with its election. No
response shall be assumed to be a non-consent by VANGUARD. VANGUARD shall have
the absolute right to reject financial participation in any project proposed under
this section.

ARTICLE IX.

STATEMENTS AND PAYMENT

9.1           Billing.    On or before the thirtieth day of each
calendar month hereof, VEG shall render to VANGUARD statements on which is
reported the metered quantities of gas produced, the metered quantities
gathered and delivered (including provision for line loss and system fuel) to a
third party transporter at the Delivery Points for the account of VANGUARD
during the previous month and the metered quantity of gas re-delivered by the

 13
 

third party transporter to the purchaser or
the purchaser’s transporter for the account of VANGUARD hereunder during the
previous month together with a computation of the amount due VEG pursuant to
this Agreement.

9.2           Payments.     Payments
shall be made by check, payable to the order of VEG at the address contained in
Section 15.1 of this Agreement, and shall be sent to VEG within fifteen (15)
days after receipt by VANGUARD of the statement described in Section 9.1.  Late payments and refunds of disputed amounts
shall bear interest at a rate equal to the Prime Rate designated as such from
time to time by Citibank, N.A. plus five percent (5%), on the unpaid balance.

ARTICLE X.

TITLE TO GAS;
APPLICATIONS, REPORTS

10.1         VANGUARD
warrants that it will have good title to, or to its knowledge, be in lawful
possession of all gas delivered or caused to be delivered to VEG under this
Agreement and that to VANGUARD’s knowledge, such gas will be free and clear of
all liens, encumbrances and claims whatsoever; that it will at the time of delivery
have the right to deliver or cause to be delivered the gas hereunder; and that
it will indemnify VEG and save it harmless from suits, actions, debts,
accounts, damages, costs, losses and expenses arising from or out of adverse
claims of any and all persons to said gas or to royalties, taxes, license fees
or charges thereon, to the extent such claims arise out of VANGUARD not having
good title or not being in lawful possession of such gas or such gas being
subject to liens.

 14

10.2         VANGUARD
and VEG mutually covenant and agree that each shall timely execute all
necessary applications and reports to such federal, state and local regulatory
authorities as each is required by statute, regulation or rule to make, and
continue to pursue same until all such necessary applications and reports are
filed and accepted.  Each party shall
keep the other timely advised of all such reporting and application activities.

ARTICLE XI.

RESPONSIBILITY

11.1         Except
as otherwise provided in this Agreement, it is agreed that from the time gas is
received onto VEG’s facilities until the delivery of such gas to any third
party transporter at the Delivery Points, VEG will assume all responsibility
for the gathering and compression of such gas, will indemnify and hold VANGUARD
harmless against any injuries or damages caused thereby and VEG will have the
unqualified right to commingle such gas with other gas in its pipeline system
and to handle and treat such as its own. 
Otherwise, VANGUARD shall have all responsibility for such gas and will
indemnify and hold VEG harmless for any injuries or damages caused thereby.

ARTICLE XII.

FORCE MAJEURE

12.1         In
case either party to this Agreement fails to perform any obligations hereunder
assumed by it and such failure is due to acts of God or a public enemy,
strikes, riots, vandalism, sabotage, eco-terrorism, injunctions or other
interference through legal proceedings, breakage or accident to machinery or
lines or wells, blowouts, the failure of wells in whole or part, or the
compliance with any statute, either State or Federal, or with any

 15
 

other of the Federal Government or any branch
thereof, or of the Governments of the State wherein subject premises are
situated, or to any causes not reasonably within the control of the party
claiming force majeure, or is caused by the necessity for making repairs or
alterations in machinery or lines of pipe, such failure shall not be deemed to
be a violation by such party of its obligations hereunder, but such party shall
use due diligence to again put itself in position to carry out all of the
obligations which by the terms hereof it has assumed.  It is expressly understood and agreed,
however, that this Article XII shall not apply to the obligation of VANGUARD to
pay VEG for the gathering, and compression of gas hereunder.

ARTICLE XIII.

GOVERNMENTAL REGULATION

13.1         This
Agreement shall be subject to all applicable and valid statutes, rules orders
and regulations of any federal, state or local governmental authority or agency
having jurisdiction over the parties, their facilities or gas supply, this
Agreement or any provision hereof.  The
parties agree that should any state, federal or local governmental authority or
agency with jurisdiction over this Agreement or transactions herein require
approval for the gathering or sale of gas hereunder, then each party shall make
all necessary applications or filings and shall submit any records or data
required by such governmental authority or agency.

13.2         VEG
shall not be liable for failure to perform hereunder if such failure is due to
compliance with rules, regulations, laws, orders or directives of any state,
federal or local governmental regulatory authority or agency having
jurisdiction.

 16
 

13.3         Nothing
in this Agreement shall prevent either party from contesting the validity of
any law, order, rule regulation or directive of any state, federal or other
governmental regulatory authority or agency, nor shall anything in this
Agreement be construed to require either party to waive its right to assert the
lack of jurisdiction of such regulatory body, governmental entity, or agency
over this Agreement or any party hereto.

13.4         This
Agreement is subject to the terms and conditions of any third party rules and
regulations for gathering of gas for others, off-system utilization, as set
forth in such third party’s tariffs on file with any lawful authority, as same
may be changed from time to time.

13.5         The
parties understand and agree that the gathering and compression services
contemplated by this Agreement shall occur wholly intrastate.  It is not the understanding or intent of the
parties that VEG be considered a “transporter” or “seller” of natural gas in
interstate commerce within the meaning of the Natural Gas Act (15 U.S.C. 717 et. seq.), the Natural Gas Policy Act of
1978 (15 U.S.C. 3301 et. seq.),
or any successor or other statute regulating oil and gas transportation and
sale.

ARTICLE XIV.

TRANSFER AND ASSIGNMENT

14.1         Any
company which shall succeed by purchase, merger or consolidation to the properties,
substantially as an entirety, of VANGUARD or of VEG, as the case may be, shall
be entitled to the rights and shall be subject to the obligations of its
predecessor in title under this Agreement. 
Either VANGUARD or VEG may, without relieving itself of its obligations
under this Agreement, assign any of its rights and obligations hereunder to
either the parent

 17
 

corporation or a wholly-owned subsidiary at
the time of such assignment.  Otherwise
no assignment of this Agreement or any of its rights or obligations hereunder
shall be made by VANGUARD or VEG without the written consent of the other first
obtained which consent shall not be unreasonably withheld.  However, the provisions of this Article shall
not in any way prevent either party to this Agreement from pledging or
mortgaging its rights hereunder as security for its indebtedness.  This Agreement shall be binding upon and
shall inure to the benefit of the respective successors and assigns of the
parties hereto.

ARTICLE XV.

NOTICES

15.1         All
notices, requests, statements and other communications hereunder shall be in
writing and shall be delivered as follows:

	
   

  	
  To VANGUARD:

  	
   

  	
  Vanguard Natural Gas,
  LLC

  
	
   

  	
   

  	
   

  	
  700 San Felipe,
  Suite 485

  
	
   

  	
   

  	
   

  	
  Houston, Texas
  77063

  
	
   

  	
   

  	
   

  	
  Attention: Scott
  W. Smith, President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  With copies to
  VANGUARD’s lender:

  
	
   

  	
   

  	
   

  	
  Citibank, N.A.

  
	
   

  	
   

  	
   

  	
  8401 N. Central
  Expressway, Suite 500

  
	
   

  	
   

  	
   

  	
  Dallas, TX 75225

  
	
   

  	
   

  	
   

  	
  attention: Ms.
  Angela McCracken

  
	
   

  	
   

  	
   

  	
  telecopy:
  972-419-3334

  
	
   

  	
   

  	
   

  	
  Telephone:
  972-419-3343

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Citibank, N.A.

  
	
   

  	
   

  	
   

  	
  8401 N. Central
  Expressway, Suite 500

  
	
   

  	
   

  	
   

  	
  Dallas, TX 75225

  
	
   

  	
   

  	
   

  	
  Attention: Ms.
  Donna Schwark

  
	
   

  	
   

  	
   

  	
  Telecopy:
  972-419-3334

  
	
   

  	
   

  	
   

  	
  Telephone:
  972-419-3369

  

 

 18
 

 

	
  

  	
  To VEG:

  	
   

  	
  Vinland Energy
  Gathering, LLC

  
	
   

  	
   

  	
  104 Nami Plaza,
  Suite 1

  
	
   

  	
   

  	
  London, Kentucky
  40741

  
	
   

  	
   

  	
  Attn: Thomas H.
  Blake

  

 

The parties may, from
time to time, designate other addresses for notices and other communications by
first giving notice of such change of address, in writing, as provided above.

ARTICLE XVI.

WAIVER

16.1         A
waiver by either party of any one or more defaults by the other in the
performance of any provisions hereof shall not operate as a waiver of any
future default.

ARTICLE XVII.

SEVERABILITY

17.1         Except
as otherwise provided herein, any provision of this Agreement declared or
rendered unlawful by a statute, court of law or regulatory agency with
jurisdiction over the parties or either of them, shall not affect the other
obligations of the parties hereunder.

ARTICLE XVIII.

DEFAULT AND REMEDIES

18.1         The
following shall be Events of Default under the terms of this Agreement and the
terms “Events of Default” or “Default” shall mean, whenever they are used in
this Agreement, any one or more of the following events:

(a)                                  If VANGUARD shall
fail to pay any sums due to VEG for a period of five (5) or more days after VEG
has given VANGUARD written notice thereof;

 19
 

(b)                                 If either party shall
file a voluntary petition for bankruptcy or shall be adjudicated bankrupt or
insolvent, or shall file any petition or any answer seeking or acquiescing in
any reorganization, arrangement, composition, adjustment, liquidation,
dissolution, or similar relief for itself under any then current federal, state
or other statute, law, or regulation, or shall seek, consent to, or acquiesce
in the appointment of any trustee, receiver, or liquidator of such party, or
shall make any general assignment for the benefit of creditors, or shall admit
in writing its inability to pay its debts generally as they become due;

(c)                                  If either party shall
materially fail to perform or observe any covenant, provision, term,
restriction, or condition required to be performed or observed by such party
under the terms of this Agreement (other than the obligation to pay money
referenced in subsection (a) above) which continues for more than ninety (90)
days after such party has received written notice thereof; provided that if
such failure cannot be cured within such ninety (90) day period, no default
shall occur if the relevant party has begun good faith efforts to cure the
failure within such ninety days.  In the
event of a dispute between the parties whether a material failure to perform
has occurred, no termination of this Agreement shall occur until the defaulting
party has the opportunity to cure provided by this section, after the existence
of such failure has been determined in accordance with this Agreement.

 20
 

18.2         If
any of the Events of Default enumerated in Section 18.1 occurs, then in such
event and as often as the same occurs, the non-defaulting party may terminate
this Agreement.

18.3         Exercise
of the foregoing remedies shall not preclude the parties from exercising every
other remedy provided herein or at law, it being the intention of the parties
that parties’ remedies shall be cumulative and shall survive termination of
this Agreement.

ARTICLE XIX.

GOVERNING LAW; SUBMISSION
TO PROCESS

19.1         THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF TENNESSEE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAW.  EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY SUBMITS ITSELF TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS SITTING IN THE STATE OF KENTUCKY AND THE COUNTY OF LAUREL AND
AGREES AND CONSENTS THAT SERVICE OF PROCESS MAY BE MADE UPON IT IN ANY LEGAL
PROCEEDING RELATING HERETO BY ANY MEANS ALLOWED UNDER KENTUCKY OR FEDERAL
LAW.  EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY
SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 21
 

ARTICLE XX.

WAIVER OF JURY TRIAL,
PUNITIVE DAMAGES, ETC.

20.1         EACH
OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, AND
IRREVOCABLY (A) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
DIRECTLY OR INDIRECTLY AT ANY TIME ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR ASSOCIATED HEREWITH,
BEFORE OR AFTER MATURITY; (B) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY
LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY
PUNITIVE DAMAGES, (C) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR
AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVERS, AND (D) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION.

 22
 

ARTICLE XXI.

ARBITRATION

21.1         If
any controversy, claim or dispute arising out of or relating to this Agreement
or the breach or performance thereof occurs, the parties shall meet and exert
reasonable efforts to reach an amicable settlement for a period not to exceed
twenty (20) days from the date written notice of the controversy, claim or
dispute is served by the complaining party to the other party under this
Agreement.  If for any reason such
settlement fails to occur within such twenty (20) day period (or such other period
as the parties may agree in writing), the parties will then enlist the services
of a mutually agreed upon industry representative to facilitate negotiations
for an additional twenty (20) day period in an attempt to resolve the
controversy. If a favorable resolution is not attained within the additional
twenty (20) day period, then the controversy, claim or dispute shall be finally
and conclusively resolved by a binding arbitration administered by the American
Arbitration Association in accordance with its Commercial Arbitration Rules (“AAA
Rules”) and subject to the Federal Arbitration Act, 9 U.S.C. Sections 1 et
seq., and judgment on any award thereby rendered may be entered in any
court having jurisdiction thereof.

21.2         Any
such arbitration shall proceed as promptly and as expeditiously as possible
(and the parties shall cooperate to this end) before three arbitrators,
consisting of one arbitrator appointed by the claimant, one arbitrator
appointed by the respondent, and the third arbitrator appointed by the two
party-appointed arbitrators.  Arbitration
shall be initiated by written notice of intention to arbitrate made pursuant
the AAA Rules.  The claimant shall
identify its appointed arbitrator in the notice of intention to arbitrate, and
the respondent shall identify its

 23
 

appointed arbitrator within ten (10) days of
its receipt of the notice of intention to arbitrate.  The two party-appointed arbitrators shall
agree upon and appoint the third arbitrator within the ten (10) day period
following the appointment of the second party-appointed arbitrator.  If either the claimant or the respondent fail
to appoint an arbitrator pursuant to the foregoing, or if the two
party-appointed arbitrators fail to agree upon and appoint the third arbitrator
within the above-referenced ten (10) day period, then such arbitrator or
arbitrators shall be appointed by the AAA pursuant to the AAA Rules.  The arbitrators chosen or appointed shall
have expertise and/or experience in the oil and gas industry.

21.3         Nothing
in this Section shall be deemed to preclude any party from applying to any
court of competent jurisdiction at any time prior to the formation of the
arbitration panel (including before or during the twenty (20) day negotiation
period referenced in the first sentence of this Section) for injunctive, provisional
or other emergency relief pertaining to the subject matter of a controversy,
claim or dispute that is arbitrable hereunder, or applying for such relief in
aid of arbitration after formation of the arbitration panel, where (i) the
arbitration award to which the party may be entitled may be rendered
ineffectual without such relief, (ii) the party seeking such relief is not in
breach of this Section, and (iii) the relief sought will not materially delay
or frustrate the arbitration.  The grant
or denial of any court-ordered relief pursuant to this paragraph shall not
constitute or be deemed to be a ruling on the merits of the matter to be
arbitrated, nor shall any application for such relief be deemed to be a waiver
of any right to arbitration hereunder.

21.4         The
parties hereby agree that the costs and expenses, including attorneys’ fees,
incurred in connection with any arbitration or court proceeding hereunder shall
be awarded in

 24
 

favor of the prevailing party and against the
losing party as determined by the arbitration panel or court, as the case may
be.

ARTICLE XXII.

HEADINGS

22.1         The
headings of the provisions of this Agreement are used for convenience only and
shall not be deemed to affect the meaning or construction of such provision.

ARTICLE XXIII.

FAVORED NATIONS AGREEMENT

23.1         After
the effective date of this Agreement, it is expressly agreed and understood
between the parties hereto that should VEG enter in to any gathering and
compression  agreement with an affiliate
or a third party which provides for rates below the rates set forth in Sections
8.1 and 8.2 herein, then effective as of the date of such agreement, VANGUARD’s
gas production will also be subject to the lower rate structure.

ARTICLE XXIV.

ENTIRE AGREEMENT

24.1         This
Agreement contains the entire agreement between the parties and there are no
promises, agreements, warranties, obligations, assurances or conditions other
than those contained herein.

[THE REMAINDER OF
THIS PAGE LEFT INTENTIONALLY BLANK;

SIGNATURE PAGE IMMEDIATELY FOLLOWS]

 25
 

WITNESS the
authorized signatures of the parties hereto, hereunto subscribed and affixed
effective as of the day and year first hereinabove written.

	
   

  	
   

  	
  (“VANGUARD”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VANGUARD
  NATURAL GAS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Scott W.
  Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARIANA
  ENERGY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Vanguard
  Natural Gas, LLC

  
	
   

  	
   

  	
  Is:

  	
  Sole Member

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Scott W. Smith

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (“VEG”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VINLAND
  ENERGY GATHERING, LLC

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (“VEE”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VINLAND
  ENERGY EASTERN, LLC

  
	
   

  	
   

  	
  (As to
  Section 4.1 Only)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Majeed S.
  Nami

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: Manager

  

 

 26

EXHIBIT A

to Gathering and Compression
Agreement (Tennessee)

PROPERTIES

Intentionally Omitted

EXHIBIT B

to the Gathering and Compression
Agreement (Tennessee)

LINES AND
FACILITIES

Intentionally Omitted

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