Document:

Exhibit 10.4

                         MORTGAGE, SECURITY AGREEMENT,
                FINANCING STATEMENT AND ASSIGNMENT OF PRODUCTION

         (THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS)

             A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE.  A
          POWER OF SALE MAY ALLOW THE MORTGAGEE TO TAKE THE MORTGAGED
          PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE
            ACTION UPON DEFAULT BY THE MORTGAGOR UNDER THIS MORTGAGE

                                      FROM

                              CEP-M PURCHASE, LLC
                         Organizational Identification
                                Number:  4848558
                             (Mortgagor and Debtor)

                                       TO

                        AMEGY BANK NATIONAL ASSOCIATION,
                              AS COLLATERAL AGENT
                         (Mortgagee and Secured Party)

                                   EFFECTIVE
                               NOVEMBER 19, 2010

For purposes of filing this Mortgage as a financing statement, the mailing
address of Mortgagor is 11038 Highland Blvd., Suite 400, Highland, Utah 84003,
Attn: Brent M. Cook, and the mailing address of Mortgagee is 4400 Post Oak
Parkway, 4th Floor, Houston, Texas 77027, Attn:  Energy Lending Dept.

This  instrument,  prepared  by  David  G.  Dunlap,  JACKSON WALKER L.L.P., 1401
McKinney  Street,  Suite  1900,  Houston,  Texas  77010,  713-752-4200, contains
after-acquired  property  provisions  and covers future advances and proceeds to
the  fullest  extent  allowed  by  applicable  law.

ATTENTION  OF RECORDING OFFICER:  This instrument is a mortgage of both real and
personal property and is, among other things, a Security Agreement and Financing
Statement  under the Uniform Commercial Code.  This instrument creates a lien on
rights  in or relating to lands of Mortgagor which are described in such Exhibit
A  hereto  or  in  documents  described  in  Exhibit  A.

                    RECORDED DOCUMENT SHOULD BE RETURNED TO:
                             JACKSON WALKER L.L.P.
                        1401 McKinney Street, Suite 1900
                             Houston, Texas  77010
                              Attn.: Donna Gatliff

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                         MORTGAGE, SECURITY AGREEMENT,
                FINANCING STATEMENT AND ASSIGNMENT OF PRODUCTION

         (THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS)

                    A POWER OF SALE HAS BEEN GRANTED IN THIS
               MORTGAGE.  A POWER OF SALE MAY ALLOW THE MORTGAGEE
               TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT
              GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT
                      BY THE MORTGAGOR UNDER THIS MORTGAGE

This  Mortgage,  Security  Agreement,  Financing  Statement,  and  Assignment of
Production  (this "Mortgage") is executed pursuant to the Credit Agreement dated
effective  November  19,  2010,  by  and  among  CEP-M PURCHASE, LLC, a Delaware
limited  liability  company  (herein,  "Mortgagor"),  Amegy  Bank  National
Association,  a  national  banking association, in its capacity as Agent for the
lenders party thereto and certain other parties under certain circumstances, and
the  lenders  party  thereto (as amended, restated, or supplemented from time to
time,  the  "Credit  Agreement").  Capitalized terms used but not defined herein
shall  have  the  meanings  assigned  to  such  terms  in  the Credit Agreement.

Mortgagor,  acting  herein  by and through its proper officer who has heretofore
been  duly  authorized, and with its principal office in Highland, Utah, and the
mailing  address  for which, for purposes hereof, is 11038 Highland Blvd., Suite
400,  Highland,  Utah  84003,  Attn:  Brent  M.  Cook, hereby agrees as follows:

                                   ARTICLE 1

                                     GRANT

1.1     Lien.  Mortgagor,  for  valuable  consideration, the receipt of which is
hereby acknowledged, and in consideration of the debt hereinafter mentioned, has
granted,  bargained,  sold,  conveyed,  transferred  and  assigned, and by these
presents  does  grant, bargain, sell, convey, transfer and assign, to AMEGY BANK
NATIONAL  ASSOCIATION,  the  banking  quarters  for which are in Houston, Harris
County,  Texas,  and the mailing address for which, for purposes hereof, is 4400
Post Oak Parkway, 4th Floor, Houston, Texas 77027, in its capacity as collateral
agent  for  the lenders party to the Credit Agreement and any additional Secured
Creditors  (in  such  capacity,  "Mortgagee"),  the following described Property
located  in  the  State  of  Wyoming  (the  "State")  with  Power  of  Sale:

(a)     all  right,  title,  and  interest,  whether  now  owned and existing or
hereafter acquired or arising, of Mortgagor in and to the leases, rights of way,
easements,  or  other  documents  described  in  Exhibit  A  attached hereto and
incorporated  herein  for  all  purposes,  without regard to any surface acreage
and/or depth limitations set forth in Exhibit A, and all renewals and extensions
thereof  and  all new leases, rights of way, easements or other documents (i) in
which  an  interest is acquired by Mortgagor after the termination or expiration
of  any  lease,  right of way, easement or other document described in Exhibit A
and  (ii)  that

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covers  all  or  any  part  of  the  Property  described  in and covered by such
terminated  or  expired  lease, right of way, easement or other document, to the
extent,  and  only  to  the extent, such new leases, rights of way, easements or
other  documents may cover such Property (all of the foregoing in this paragraph
(a)  being  the  "Leases");

(b)     all  right,  title,  and  interest,  whether  now  owned and existing or
hereafter  acquired  or arising, of Mortgagor in and to the lands subject to the
Leases  or  otherwise  described  in Exhibit A (the "Lands"), including, without
limitation,  the  oil,  gas,  mineral and leasehold estates in and to the Lands,
without  regard  to  any  surface  acreage and/or depth limitations set forth in
Exhibit  A;

(c)     all  right,  title,  and  interest,  whether  now  owned and existing or
hereafter  acquired or arising, of Mortgagor  in and to any of the oil, gas, and
minerals  in,  on,  or  under  the  Lands,  including,  without  limitation, all
contractual  rights,  fee  interests,  leasehold  interests,  overriding royalty
interests,  non-participating  royalty  interests, mineral interests, production
payments,  net  profits  interests, or any other interest measured by or payable
out  of  production of oil, gas, or other minerals from the Leases and/or Lands;

(d)     all  of  the  foregoing  interests of Mortgagor as such interests may be
enlarged by the discharge of any payments out of production or by the removal of
any  charges  or  encumbrances;

(e)     all  right,  title,  and  interest,  whether  now  owned and existing or
hereafter  acquired  or  arising, of Mortgagor in, to, and under or derived from
any  present  or  future  operating, farmout, bidding, pooling, unitization, and
communitization agreements, assignments, and subleases, whether or not described
in  Exhibit  A,  to  the  extent,  and only to the extent, that such agreements,
assignments,  and  subleases  cover  or  include any right, title, and interest,
whether now owned and existing or hereafter acquired or arising, of Mortgagor in
and  to all or any portion of the Leases and/or the Lands, and all units created
by  any  such pooling, unitization, and communitization agreements and all units
formed  under  orders,  regulations,  rules,  or  other  official  acts  of  any
Governmental Authority having jurisdiction, to the extent and only to the extent
that  such  units  cover  or include all or any portion of the Leases and/or the
Lands;

(f)     all  right,  title,  and  interest,  whether  now  owned and existing or
hereafter  acquired  or  arising, of Mortgagor in, to, and under or derived from
all  presently  existing  and future advance payment agreements, oil, casinghead
gas,  and  gas  sales,  exchange,  and  processing  contracts  and  agreements,
including, without limitation, those contracts and agreements that are described
on Exhibit A, if any, to the extent, and only to the extent, those contracts and
agreements  cover  or include all or any portion of the Leases and/or the Lands;
and

(g)     all  right,  title,  and  interest,  whether  now  owned and existing or
hereafter  acquired  or  arising, of Mortgagor in, to, and under or derived from
all

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existing  and  future  permits,  licenses,  easements,  and  similar  rights and
privileges  that  relate  to  or are appurtenant to any of the Leases and/or the
Lands.

1.2     Security Interest.  Mortgagor, for the same consideration, hereby grants
to Mortgagee a continuing security interest in all improvements and all personal
Property  of  any  kind or character defined in and subject to the provisions of
the  Uniform  Commercial  Code in effect in the State as of the date hereof (the
"UCC"),  including,  without  limitation, the proceeds and products from any and
all  of  such  improvements  and  personal  Property,  as  well  as  any and all
"as-extracted  collateral" as such term is defined in the UCC, whether now owned
and existing or hereafter acquired or arising, and situated on any of the Lands,
including,  but  not  limited  to,  pipe,  casing,  tubing, rods, storage tanks,
boilers,  loading  racks, pumps, foundations, warehouses, and all other personal
Property  and equipment of every kind and character upon, incident, appurtenant,
or  belonging  to and used in connection with the interest of Mortgagor, whether
now owned and existing or hereafter acquired or arising, in the Lands and/or the
Leases, including all oil, gas, and other minerals produced or to be produced to
the  account  of  Mortgagor  from the Lands and all accounts receivable, general
intangibles,  and  contract  rights  of  Mortgagor  in connection with the Lands
and/or  the  Leases  and  all  proceeds,  products, substitutions, and exchanges
thereof  (the  Lands,  the  Leases, and the real and personal Property interests
described  above  in  this  Article  1  being  the  "Mortgaged  Property").

1.3     Assignment  of  Security.  Mortgagor, for the same consideration, hereby
grants to Mortgagee any and all rights of Mortgagor to Liens securing payment of
proceeds  from  the  sale  of  production  from  the  Mortgaged  Property.

1.4     After-Acquired  Property.  Mortgagor, for the same consideration, hereby
grants,  bargains,  sells,  conveys,  transfers,  and  assigns  to  Mortgagee  a
continuing  security  interest  in,  as  the  case may be, all additional right,
title,  or  interest which Mortgagor may hereafter acquire or become entitled to
in  the interests, Properties, Lands, Leases, and premises aforesaid, and in the
oil, gas, or other minerals in and under or produced from or attributable to any
of  the  Lands  or  Leases,  which  additional  right, title, and interest, when
acquired,  shall  constitute  "Mortgaged  Property,"  the  same  as if expressly
described  and  conveyed  herein.

1.5     Habendum.  TO  HAVE  AND TO HOLD all and singular the Mortgaged Property
and  all  other Property which, by the terms hereof, has or may hereafter become
subject  to the Liens of this Mortgage, together with all rights, hereditaments,
and  appurtenances in anywise belonging to Mortgagee, its successors and assigns
forever.

                                   ARTICLE 2

                              INDEBTEDNESS SECURED

This  conveyance  is  made  to  secure  and enforce the payment of the following
indebtedness,  obligations,  and  liabilities:

2.1     Specific  Obligations.  The  Obligations, including, without limitation,
the  indebtedness  evidenced  by  the Credit Agreement and the Notes executed by
Mortgagor  in  the  face  amount  of  up  to  SEVENTY-FIVE  MILLION  DOLLARS
($75,000,000),  bearing  interest  at

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a  variable  rate  and payable as therein provided and as provided in the Credit
Agreement,  with  the last of the Obligations under the Credit Agreement and the
other  Loan  Documents  to  mature  on the Commitment Termination Date (which is
currently  November  19, 2013), and all obligations of Mortgagor under Commodity
Hedge  Agreements  or  Interest  Rate  Hedge Agreements with Secured Third Party
Hedge  Counterparties.

2.2     Revolving Line of Credit.  This Mortgage is intended to secure, in part,
a  revolving  credit line as set forth in the Credit Agreement.  If intermediate
paydowns  by  Mortgagor  on such revolving line of credit reduce the outstanding
Indebtedness  to zero, it is intended that the Liens created under this Mortgage
shall  remain  in  full  force  and  effect  as  long  as any Commitment exists.

2.3     Indebtedness.  The  word  "Indebtedness"  whenever used in this Mortgage
shall  refer  to  all  present  and  future debts, obligations, and disabilities
described  or  referred  to  in  this  Article  2.

                                   ARTICLE 3

                                   WARRANTIES

3.1     Warranty  of  Title.  Mortgagor  hereby  binds  itself,  its  legal
representatives,  successors, and assigns, to warrant and forever defend all and
singular  the Mortgaged Property to the Mortgagee and the successors and assigns
of the Mortgagee forever against every Person whomsoever lawfully claiming or to
claim  the  same or any part thereof.  Notwithstanding that this Mortgage covers
all  of  the  right,  title,  and  interest,  whether  now owned and existing or
hereafter  acquired  or  arising, of Mortgagor in and to the Mortgaged Property,
Mortgagor,  for  itself,  its  legal  representatives,  successors, and assigns,
further  covenants,  represents,  and  warrants  that  Mortgagor  has  good  and
marketable  title  to the Mortgaged Property and that the interests of Mortgagor
in  and  to  the Leases and/or Lands described in Exhibit A are not greater than
the  working interest nor less than the net revenue interest, overriding royalty
interest, net profit interest, production payment interest, royalty interest, or
other  interest payable out of or measured by production set forth in connection
with  each oil and gas well described in Exhibit A.  In the event Mortgagor owns
any  other or greater interest, such additional interest is nonetheless included
in,  covered by, and subject to the liens and security interests created by this
Mortgage.

3.2     Additional  Warranties.  For  the  same  consideration,  Mortgagor,  for
itself,  its  legal  representatives,  successors,  and  assigns,  covenants,
represents,  and  warrants  that:

(a)     Leases in Effect.  All of the Leases specifically described in Exhibit A
are  in full force and effect.  To Mortgagor's knowledge, all covenants, express
or  implied, in respect of the Leases specifically described in Exhibit A, or of
any  assignment  of  any of such Leases, which may affect the validity of any of
such  Leases,  have  been  performed.

(b)     Interests  Free  of  Liens.  The interests of Mortgagor in the Mortgaged
Property  are  free  and  clear  of  all  Liens  except  Permitted  Liens.  All

<PAGE>
gross  production  taxes  and all taxes as to which nonpayment could result in a
Lien  against  any  of  the  Mortgaged  Property  have  been  paid.

                                   ARTICLE 4

                             COVENANTS OF MORTGAGOR

In  consideration  of  the  Indebtedness,  Mortgagor,  for  itself,  its  legal
representatives,  successors,  and  assigns,  covenants  and  agrees as follows:

4.1     Maintenance  of  Leases.  Mortgagor will, in accordance with Mortgagor's
normal  course  of business and to the extent that a reasonably prudent operator
would  do  so,  keep  and  continue  all  Leases,  estates, and interests herein
described  and  all  contracts and agreements relating thereto in full force and
effect  in  accordance  with  the  terms thereof and will not permit the same to
lapse  or  otherwise  become impaired for failure to comply with the obligations
thereof,  whether  express  or implied.  In this connection, Mortgagor shall not
release  any of the Leases without the prior written consent of Mortgagee, which
consent  shall  not  be unreasonably withheld, conditioned or delayed, except as
provided  otherwise in the Credit Agreement or in accordance with the reasonably
prudent  operator  standard.

4.2     Maintenance  of  Property.  Mortgagor  will  keep  and  maintain  all
improvements,  personal Property, and equipment now or hereafter situated on the
Lands  and constituting a portion of the Mortgaged Property and used or obtained
in  connection  therewith  in  good repair and condition, ordinary wear and tear
excepted,  and  will  not  tear down or remove the same or permit the same to be
torn down or removed without the prior consent of Mortgagee, which consent shall
not be unreasonably withheld, conditioned or delayed, except in the usual course
of  operations  as  may be required for replacement when otherwise in compliance
with  the  provisions  of  this  Mortgage  and  the  Credit  Agreement.

4.3     Pooling  or Unitization.  Except as required by law, rule or regulation,
Mortgagor  will  not,  without  the  prior  written  consent of Mortgagee, which
consent  shall  not  be unreasonably withheld or delayed, pool or unitize all or
any part of the Mortgaged Property where the pooling or unitization would result
in  the  diminution  of the net revenue interest of Mortgagor in production from
the pooled or unitized lands attributable to the Mortgaged Property constituting
a  portion  of  such  pooled or unitized lands.  As soon as reasonably practical
after  the  formation of any pool or unit in accordance herewith, Mortgagor will
furnish  to  Mortgagee a conformed copy of the pooling agreement, declaration of
pooling,  or  other  instrument  creating  the  pool  or  unit.  The interest of
Mortgagor included in any pool or unit attributable to the Mortgaged Property or
any  part  thereof  shall  become  a part of the Mortgaged Property and shall be
subject  to  the  Liens  hereof  in  the same manner and with the same effect as
though  the pool or unit and the interest of Mortgagor therein were specifically
described  in  Exhibits  A.  In  the  event  any proceedings of any Governmental
Authority  which  could  result  in  pooling or unitizing all or any part of the
Mortgaged  Property  are  commenced,  Mortgagor shall give prompt written notice
thereof  to  Mortgagee.  Any  pooling  or  unitization of all or any part of the
Mortgaged  Property  in violation of this Section shall be of no force or effect
against  the  Mortgagee.

<PAGE>
4.4     Operation  of  Mortgaged  Property.  Mortgagor  will  operate or, to the
extent  that  the right of operation is vested in others, will exercise its best
efforts  to  cause  the operator to operate the Mortgaged Property and all wells
now  or  hereafter located thereon continuously and in a prudent and workmanlike
manner  in  accordance with the customary industry standards of the field and in
accordance  with all applicable Requirements of Law.  Mortgagor will comply with
all  material terms and conditions of the Leases and each assignment or contract
obligating  Mortgagor  in  any  way  with respect to the Mortgaged Property; but
nothing  herein shall be construed to empower Mortgagor to bind the Mortgagee to
any  contract  or  obligation  or render the Mortgagee in any way responsible or
liable  for  bills  or  obligations  incurred  by  Mortgagor.

4.5     Compliance  with Operating Agreements.  Mortgagor agrees to promptly pay
all  bills  for  labor  and materials incurred in the operation of the Mortgaged
Property  and  will  promptly  pay  its share of all costs and expenses incurred
under  any  joint  operating  agreement  affecting the Mortgaged Property or any
portion thereof; except to the extent contested in good faith and as to which an
adequate  reserve in accordance with GAAP has been established or unless failure
to  pay would not reasonably be expected to result in a Material Adverse Effect;
will  furnish  Mortgagee,  as  and  when reasonably requested by Mortgagee, full
information  as  to the status of any joint account maintained with others under
any such operating agreement; will not take any action to incur any liability or
Lien  thereunder (other than Permitted Liens), except to the extent contested in
good  faith and as to which an adequate reserve in accordance with GAAP has been
established.

4.6     Access  to  Mortgaged Property.  Mortgagor will permit Mortgagee and its
accredited  agents,  representatives, attorneys and employees, at the expense of
Mortgagor,  during  reasonable  business hours upon five (5) Business Days prior
written notice to Mortgagor, to go upon, examine, inspect, conduct environmental
audits  and  other  testing of, and remain on, the Mortgaged Property, and to go
upon the derrick floor of any well at any time drilled or being drilled thereon,
and  will  furnish Mortgagee, upon Mortgagee's reasonable request, all pertinent
information  regarding  the development and operation of the Mortgaged Property.
Notwithstanding  the  foregoing, such inspection by Mortgagee and its accredited
agents, representatives, attorneys and employees shall be at their sole risk and
expense.

4.7     Waivers.  Mortgagor  hereby  expressly  waives,  to  the  full  extent
permitted  by  applicable law, any and all rights or privileges of marshaling of
assets, sale in inverse order of alienation, notices, appraisements, redemption,
and  any  prerequisite  in the event of foreclosure of the Liens created herein.
Mortgagee at all times shall have the right to release any part of the Mortgaged
Property now or hereafter subject to the Liens of this Mortgage, any part of the
proceeds  of production or other income herein or hereafter assigned or pledged,
or  any  other  security  it  now  has  or  may  hereafter  have  securing  the
Indebtedness,  without  releasing  any  other  part  of  the Mortgaged Property,
proceeds,  or  income,  and without affecting the Liens hereof as to the part or
parts  of  the  Mortgaged  Property,  proceeds, or income not so released or the
right  to  receive  future  proceeds  and  income.

4.8     Compliance  with Laws.  Mortgagor will comply, in all material respects,
with  all  Requirements  of  Law  applicable  to  the Mortgaged Property and the
operations  conducted  thereon,  including,  without limitation, the Natural Gas
Policy Act of 1978, as amended, and Environmental Laws; and cause all employees,
crew  members,  agents,  contractors,

<PAGE>
sub-contractors,  and  future lessees (pursuant to appropriate lease provisions)
of  Mortgagor,  while  such  Persons  are  acting  within  the  scope  of  their
relationship  with Mortgagor, to comply, in all material respects, with all such
Requirements of Law as may be necessary or appropriate to enable Mortgagor to so
comply.

4.9     Hazardous  Substances Indemnification.  MORTGAGOR HEREBY INDEMNIFIES AND
HOLDS  MORTGAGEE,  ITS  SHAREHOLDERS,  OFFICERS,  DIRECTORS,  EMPLOYEES, AGENTS,
ATTORNEYS-IN-FACT,  AND AFFILIATES HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS,
LOSSES,  DAMAGES,  LIABILITIES,  FINES,  PENALTIES,  CHARGES, ADMINISTRATIVE AND
JUDICIAL  PROCEEDINGS  AND ORDERS, JUDGMENTS, REMEDIAL ACTIONS, REQUIREMENTS AND
ENFORCEMENT  ACTIONS  OF  ANY  KIND,  AND  ALL  COSTS  AND  EXPENSES INCURRED IN
CONNECTION  THEREWITH (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS' FEES
AND EXPENSES), ARISING DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, FROM (A) THE
PRESENCE  OF ANY HAZARDOUS SUBSTANCES ON, UNDER, OR FROM ANY MORTGAGED PROPERTY,
WHETHER  PRIOR  TO  OR  DURING  THE  TERM HEREOF, (B) ANY ACTIVITY CARRIED ON OR
UNDERTAKEN ON OR OFF ANY MORTGAGED PROPERTY, WHETHER PRIOR TO OR DURING THE TERM
HEREOF,  AND  WHETHER BY MORTGAGOR OR ANY PREDECESSOR IN TITLE, EMPLOYEE, AGENT,
CONTRACTOR,  OR  SUBCONTRACTOR  OF  MORTGAGOR  OR  ANY  OTHER PERSON AT ANY TIME
OCCUPYING OR PRESENT ON ANY MORTGAGED PROPERTY, IN CONNECTION WITH THE HANDLING,
TREATMENT,  REMOVAL,  STORAGE,  DECONTAMINATION,  CLEANUP,  TRANSPORTATION,  OR
DISPOSAL  OF ANY HAZARDOUS SUBSTANCES AT ANY TIME LOCATED OR PRESENT ON OR UNDER
SUCH  PROPERTY,  (C)  ANY  RESIDUAL  CONTAMINATION  ON  OR  UNDER  ANY MORTGAGED
PROPERTY,  (D)  ANY CONTAMINATION OF ANY MORTGAGED PROPERTY OR NATURAL RESOURCES
ARISING  IN  CONNECTION  WITH  THE  GENERATION,  USE,  HANDLING,  STORAGE,
TRANSPORTATION,  OR  DISPOSAL  OF  ANY  HAZARDOUS  SUBSTANCE BY MORTGAGOR OR ANY
EMPLOYEE,  AGENT,  CONTRACTOR,  OR SUBCONTRACTOR OF MORTGAGOR WHILE SUCH PERSONS
ARE  ACTING  WITHIN THE SCOPE OF THEIR RELATIONSHIP WITH MORTGAGOR, IRRESPECTIVE
OF  WHETHER ANY OF SUCH ACTIVITIES WERE OR WILL BE UNDERTAKEN IN ACCORDANCE WITH
APPLICABLE  REQUIREMENTS  OF LAW, OR (E) THE PERFORMANCE AND ENFORCEMENT OF THIS
MORTGAGE  OR  ANY  OTHER  ACT  OR OMISSION IN CONNECTION WITH OR RELATED TO THIS
MORTGAGE OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING, WITHOUT LIMITATION,
ANY  OF  THE  FOREGOING  IN  THIS SECTION ARISING FROM NEGLIGENCE (BUT EXCLUDING
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT), WHETHER SOLE OR CONCURRENT, ON THE PART
OF MORTGAGEE OR ANY OF ITS SHAREHOLDERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS,
ATTORNEYS-IN-FACT,  OR  AFFILIATES;  WITH  THE  FOREGOING  INDEMNITY  SURVIVING
SATISFACTION  OF  THE INDEBTEDNESS, THE TERMINATION OF THE CREDIT AGREEMENT, AND
THE  RELEASE  OF  THE  LIENS  CREATED  HEREBY.

4.10     Site Assessments.  Mortgagee (by its officers, employees and agents) at
any  time  and  from time to time, either prior to or after the occurrence of an
Event of Default, may contract, at the expense of Mortgagor, for the services of
Persons  (the  "Site  Reviewers")  to perform environmental site assessments and
other tests ("Site Assessments") on all or any portion of the Mortgaged Property
for the purpose of determining whether any environmental condition exists on any
Mortgaged  Property  which  could  reasonably  be  expected  to  result  in  any
liability,  cost, or expense to Mortgagee or any owner, occupier, or operator of
such  Mortgaged  Property.  The Site Assessments may be performed at any time or
times,  upon  reasonable  notice,

<PAGE>
and under reasonable conditions established by Mortgagor which do not impede the
performance  of  the Site Assessments.  The Site Reviewers are hereby authorized
to  enter  upon  all or any portion of the Mortgaged Property for such purposes.
The  Site  Reviewers  are further authorized to perform both above and below the
ground  testing for environmental damage or the presence of Hazardous Substances
on  the Mortgaged Property and such other tests on the Mortgaged Property as may
be  reasonably  necessary  to  conduct  the  Site  Assessments in the reasonable
opinion of the Site Reviewers.  Mortgagor will supply to the Site Reviewers such
historical  and  operational information regarding the Mortgaged Property as may
be reasonably requested by the Site Reviewers to facilitate the Site Assessments
and  will  make  available  for  meetings  with  the  Site Reviewers appropriate
personnel  having  knowledge  of such matters.  On request, Mortgagee shall make
the  results of such Site Assessments available to Mortgagor, which, prior to an
Event of Default, may at its election participate under reasonable procedures in
the  direction of such Site Assessments and the description of tasks of the Site
Reviewers.  The  cost  of  performing  all  Site  Assessments  shall  be paid by
Mortgagor  upon  demand  of  Mortgagee  and  any  such  obligations  shall  be
Indebtedness  secured  by  this  Mortgage.

4.11     Performance  of  Gas  Contracts.  Mortgagor will perform and observe in
all material respects all of its obligations under each contract relating to the
sale  of  gas  produced  from or attributable to the Mortgaged Property and will
not,  except  in  good  faith and as the result of arm's length negotiations and
with  prior  written  notice to Mortgagee, change, modify, amend or waive any of
the  material  terms or provisions of any such contract or take any other action
which  would  release  any other party from its obligations or liabilities under
any  such  contract.

4.12     Covenants  Running  with the Land.  All covenants and agreements herein
contained  shall  constitute  covenants  running  with  the  Land.

                                   ARTICLE 5

                            DEFEASANCE, FORECLOSURE
                               AND OTHER REMEDIES

5.1     Defeasance.  Should  the  Commitment  terminate  and the Indebtedness be
paid, as the same becomes due and payable, and should Mortgagor duly observe and
perform all of the covenants, conditions, and agreements herein and in all other
Loan  Documents  provided  to  be  observed and performed by Mortgagor, then the
conveyance  of  the  Mortgaged  Property  shall  become  of no further force and
effect,  and,  at  the expense of Mortgagor, the Lien granted hereunder shall be
released,  without  recourse  or  warranty.  The  Mortgagee will, at Mortgagor's
expense,  execute  and  deliver  to Mortgagor all releases and other instruments
reasonably  requested by Mortgagor for the purpose of evidencing the release and
discharge  of  the  Lien and security interest granted hereunder.  Otherwise, it
shall  remain  in  full  force  and  effect.

5.2     Events  of  Default.  The  occurrence  and  continuance  of any Event of
Default  under the Credit Agreement, any default by Mortgagor under any relevant
Commodity  Hedge  Agreement or Interest Rate Hedge Agreement, or the sale of any
Mortgaged  Property (other than the sale of hydrocarbons permitted by the Credit
Agreement  and  other sales permitted by the Credit Agreement) without the prior
written consent of the Mortgagee shall constitute an Event of Default under this
Mortgage.

<PAGE>
5.3     Acceleration  and  Exercise  of  Power  of  Sale.

(a)     Upon  the occurrence and continuance of an Event of Default specified in
Sections  7.1(f)  or  7.1(g)  of  the  Credit Agreement, the aggregate principal
amount  of  all  Indebtedness  then outstanding and all interest accrued thereon
shall  automatically  become  immediately  due and payable, without presentment,
demand,  protest,  notice  of  protest, default or dishonor, notice of intent to
accelerate  maturity, notice of acceleration of maturity, or other notice of any
kind,  all  of which are hereby expressly waived by Mortgagor to the full extent
permitted  by  applicable law.  Upon the occurrence and continuance of any other
Event  of  Default,  Mortgagee may declare the aggregate principal amount of all
Indebtedness  then  outstanding and all interest accrued thereon immediately due
and payable, whereupon the same shall become immediately due and payable without
presentment,  demand, protest, notice of protest, default or dishonor, notice of
intent  to  accelerate  maturity,  notice  of acceleration of maturity, or other
notice of any kind, all of which are hereby expressly waived by Mortgagor to the
full  extent  permitted  by  applicable  law.

(b)     Upon  the  occurrence  and continuance of any Event of Default or at any
time  thereafter  while  the  Indebtedness  or  any part thereof remains unpaid,
Mortgagee  may  proceed  to  enforce this Mortgage in accordance with applicable
laws  of  the  State.

5.4     Rights  as  Secured  Party.  Upon  the occurrence and continuance of any
Event  of Default, Mortgagee shall be entitled to all of the rights, powers, and
remedies  afforded  a  secured  party  by  the  UCC with respect to the personal
Property,  fixtures,  and  as-extracted  collateral  in which Mortgagee has been
granted  a security interest hereby, or Mortgagee may proceed in accordance with
the  provisions hereof as to both the real and personal Property covered hereby.

5.5     Application  of  Proceeds  of Sale.  Except as otherwise provided in the
Credit  Agreement,  the  Mortgagee is authorized to receive the proceeds of each
sale  of  Mortgaged  Property  and  apply  the  same  as  follows:

FIRST:  to  the  payment  of  all  necessary  costs and expenses incident to the
enforcement  of  this  Mortgage;

SECOND:  to any and all Indebtedness then hereby secured, application to be made
in  such  order  and  in such manner as Mortgagee may, in its discretion, elect;

THIRD:  the  balance,  if  any,  to  Mortgagor  or  its  successors  or assigns.

5.6     Statements  by  Mortgagee.  It is agreed that in any deed or deeds given
by  the  Mortgagee any and all statements of fact or other recitals therein made
as  to  the  identity  of  the  holder  or holders of the Indebtedness, or as to
default  in the payments thereof or any part thereof, or as to the breach of any
covenants  herein  contained,  or  as  to  the  request  to  sell,  notice

<PAGE>
of  sale,  time,  place, terms and manner of sale, and receipt, application, and
distribution  of  the  money  realized  therefrom,  or  as to the due and proper
appointment  of  a  substitute  Mortgagee,  and,  without  being  limited by the
foregoing,  as  to  any  other  or  additional  act or thing having been done by
Mortgagee,  shall  be  taken  by  all  courts  of  law and equity as prima facie
evidence  that  the  statements  or recitals state facts and are without further
question  to  be  so accepted.  Mortgagor does hereby ratify and confirm any and
all  acts  that  the  Mortgagee may lawfully do in the premises by virtue of the
terms  and  conditions  of  this  Mortgage.

5.7     Suit  to Collect and Foreclose.  Mortgagee, at its election, may proceed
by  suit  or  suits,  at  law  or  in  equity,  to  enforce  the  payment of the
Indebtedness  in  accordance with the terms hereof and of the notes, guaranties,
or  other documents evidencing it, and to foreclose the Lien of this Mortgage as
against  all  or any portion of the Mortgaged Property and to have such Property
sold  under  the  judgment  or  decree  of  a  court  of competent jurisdiction.

5.8     Mortgagee  as  Purchaser.  Mortgagee  may  be  a purchaser of all or any
portion  of  the  Mortgaged  Property  at any sale thereof, whether such sale be
under  the  power  of  sale  hereinabove vested in the Mortgagee, upon any other
foreclosure  of  the  Lien hereof, or otherwise.  Mortgagee so purchasing shall,
upon  any  such  purchase, acquire title to the Mortgaged Property so purchased,
free  of  the  Lien  of  this  Mortgage  and free of all rights of redemption in
Mortgagor.

5.9     Entry  and  Operation.  Upon the occurrence and continuance of any Event
of Default, then in each and every such case and in addition to the other rights
and  remedies  hereunder,  the  Mortgagee, whether or not the Indebtedness shall
have  become due and payable, may, but shall not be obligated to, enter into and
upon and take possession of all or any portion of the Mortgaged Property and may
exclude Mortgagor, its agents and servants wholly therefrom and have, hold, use,
operate,  manage,  and  control all or any portion of the Mortgaged Property and
produce  the  oil, gas, and other minerals therefrom and market the same, all at
the  sole  risk  and  expense  of  Mortgagor and at the expense of the Mortgaged
Property,  applying  the  net  proceeds  so  derived,  first,  to  the  cost  of
maintenance  and operation of such Mortgaged Property; second, to the payment of
the  Indebtedness,  application  to  be  made  first  to  interest  and  then to
principal;  and  the  balance thereof, if any, shall be paid to Mortgagor.  Upon
such payment of all such costs and Indebtedness, the Mortgaged Property shall be
returned  to  Mortgagor  in  its  then condition, and the Mortgagee shall not be
liable  to  Mortgagor  for any damage or injury to the Mortgaged Property except
such  as may be caused through the fraud, willful misconduct or gross negligence
of  the  Mortgagee.

5.10     Power  of  Attorney  to  Mortgagee.  Mortgagor  does  hereby  designate
Mortgagee  as  the  agent  of  Mortgagor to act in the name, place, and stead of
Mortgagor  in  the  exercise  of  each  and every remedy set forth herein and in
conducting  any  and  all  operations  and  taking any and all action reasonably
necessary  to do so, recognizing such agency in favor of Mortgagee to be coupled
with  the  interests  of Mortgagee under this Mortgage and, thus, irrevocable so
long  as  this  Mortgage  is  in  force  and  effect.

5.11     Remedies  Cumulative  and Non-Exclusive.  The rights of entry, sale, or
suit,  as  hereinabove  or  hereinafter  conferred,  are cumulative of all other
rights  and  remedies  herein  or by law or in equity provided, and shall not be
deemed  to  deprive  Mortgagee  of  any

<PAGE>
such  other  legal  or  equitable rights or remedies, by judicial proceedings or
otherwise,  appropriate  to enforce the conditions, covenants, and terms of this
Mortgage  and  the other Loan Documents.  The employment of any remedy hereunder
or  otherwise  shall  not prevent the concurrent or subsequent employment of any
other  appropriate  remedy  or  remedies.

5.12     Special  Provisions Applicable to Mortgaged Property in Wyoming.  As to
that  portion  of  the  Mortgaged  Property  located  in  the  State of Wyoming,
Mortgagee  shall have the right to proceed pursuant to law to foreclose and sell
the  Mortgaged Property either by advertisement and sale as provided in the laws
of  the  State  of  Wyoming  or by court action, and out of the proceeds of such
sale,  Mortgagee  shall  pay  all sums due hereunder, together with all costs of
sale and foreclosure, including, without limitation, reasonable attorneys' fees.
Notwithstanding  any  other  provisions  of  this  Mortgage,  the manner of such
foreclosure  by  advertisement and sale shall be as provided for by Wyoming law.

                                   ARTICLE 6

                            ASSIGNMENT OF PRODUCTION

6.1     Assignment.  In addition to the conveyance to the Mortgagee herein made,
Mortgagor  does  hereby transfer, assign, deliver and convey unto Mortgagee, its
successors and assigns, all of the oil, gas, and other minerals produced, saved,
or  sold  from  the  Mortgaged  Property  and  attributable  to the interests of
Mortgagor therein subsequent to 7:00 a.m. on the first day of the month in which
this  Mortgage  is  executed,  together  with  the proceeds of any sale thereof.
Mortgagor  hereby  directs  any purchaser now or hereafter taking any production
from  the  Mortgaged Property to pay to Mortgagee such proceeds derived from the
sale  thereof  and  to  continue  to  make  payments directly to Mortgagee until
notified  in writing by Mortgagee to discontinue the same.  The purchaser of any
such  production shall not be required to see to the application of the proceeds
thereof  by  Mortgagee,  and  payment  made  to  Mortgagee  shall be binding and
conclusive as between such purchaser and Mortgagor.  Mortgagor further agrees to
perform  all such acts and to execute all such further assignments, transfer and
division  orders,  and  other  instruments  as  may  be  required  or desired by
Mortgagee  or  any  other  party  to  have such proceeds and revenues so paid to
Mortgagee.

6.2     Postponement of Payment.  For its convenience, Mortgagee has elected not
to  exercise  immediately  its  right  to  receive payment to it directly of the
proceeds  of  any  sale of the oil, gas and other minerals produced or sold from
the  Mortgaged  Property and the purchasers may continue to make such payment or
delivery  of  the  proceeds  to  Mortgagor  until such time as Mortgagor and the
purchasers  have  received  notice  that an Event of Default has occurred and is
continuing,  and that the purchasers are directed to make payment or delivery of
the  proceeds  directly to Mortgagee.  Such failure by Mortgagee to exercise its
rights  immediately shall not in any way waive the right of Mortgagee to receive
any  of  the  proceeds,  or  to  make  any  such  demand,  or to affect any such
assignment  as  to  any proceeds not theretofore paid or delivered to Mortgagor.
In  this  regard,  if  any  of  the  proceeds  are paid or delivered directly to
Mortgagee  and then, at the request of Mortgagee, the proceeds are, for a period
or periods of time, paid or delivered to Mortgagor, Mortgagee shall nevertheless
have  the  right, effective upon written notice, to require that future proceeds
be again paid or delivered directly to it.  Mortgagee shall never be required to
send  any  such  notice  to  all  purchasers,  and  may  direct such notice only

<PAGE>
to  those  purchasers  as  it may, in its discretion, desire.  It shall never be
necessary for Mortgagee to institute legal proceedings to enforce the assignment
of  hydrocarbons, proceeds, or other rents, profits, or income contained in this
instrument.  It shall not be necessary for Mortgagee to obtain possession of the
Mortgaged  Property as a prerequisite to Mortgagee's right to collect or receive
any  hydrocarbons,  other minerals, proceeds, or other rents, profits, or income
assigned  to Mortgagee under this instrument.  Mortgagor and Mortgagee expressly
agree  and  it  is  the  express intention of Mortgagor and Mortgagee that in no
event will any reduction in the obligations be measured by the fair market value
of  the  hydrocarbons,  other  minerals,  proceeds,  or other rents, profits, or
income  assigned  to  Mortgagee  under  this  instrument.

6.3     Change  of  Purchaser.  Should  any purchaser taking the production from
the  Mortgaged  Property  fail to make prompt payment to Mortgagee in accordance
with  the  provisions  of  Section  6.1,  Mortgagee shall have the right, at the
expense  of Mortgagor, to demand a change of connection and to designate another
purchaser  with  whom a new connection may be made, without any liability on the
part  of Mortgagee in making such selection, so long as ordinary care is used in
the  making  thereof.  Promptly  upon  such  demand,  Mortgagor  shall  take all
necessary  and  appropriate  action  to  effect  such  change  of  connection.

6.4     Application of Proceeds.  Mortgagor authorizes and empowers Mortgagee to
receive,  hold,  and  collect  all sums of money paid to Mortgagee in accordance
with  the  provisions  of  Section  6.1,  and  to  apply the same as hereinafter
provided,  all without any liability or responsibility on the part of Mortgagee,
save  and  except  as  to  good  faith  in  so receiving and applying such sums.
Mortgagee  may  apply  all sums received by Mortgagee pursuant to Section 6.1 to
the  payment  of  the  Indebtedness,  application  to  be made in such manner as
Mortgagee  may elect, regardless of whether the application so made shall exceed
the  payments  of  principal  and  interest  then  due  as  provided in the Loan
Documents.  After such application has been so made by Mortgagee, the balance of
any  such  sums  shall  be  paid  to  Mortgagor.

6.5     No  Postponement  of Installments on Indebtedness.  It is understood and
agreed  that  should  such payments provided for by Section 6.1 be less than the
sum  or  sums  then  due  on  the  Indebtedness, such sum or sums then due shall
nevertheless  be paid by Mortgagor in accordance with the provisions of the Loan
Documents, and neither the assignment made pursuant to Section 6.1 nor any other
provisions  hereof  shall  in  any  manner  be construed to affect the terms and
provisions  of  the  Loan  Documents.  Likewise,  neither  the  assignment  made
pursuant  to  Section 6.1 nor any other provisions hereof shall in any manner be
construed  to  affect  the  Liens,  rights,  title,  and remedies herein granted
securing  the  Indebtedness  or the liability of Mortgagor therefor.  The rights
under  this  Article  6 are cumulative of all other rights, remedies, and powers
granted  under  this  Mortgage  and  are  cumulative of any other security which
Mortgagee  now  holds  or  may  hereafter  hold  to  secure  the  payment of the
Indebtedness.

6.6     Turnover  to Mortgagee.  Should Mortgagor receive any of the proceeds of
any  sale  of  oil,  gas,  or  other  minerals produced, saved, or sold from the
Mortgaged  Property,  which  under the terms hereof should have been remitted to
Mortgagee,  Mortgagor  will  immediately  remit  same  in  full  to  Mortgagee.

6.7     Release  of Proceeds Upon Payment of Indebtedness.  Upon payment in full
of all Indebtedness and the termination of the Commitment, the remainder of such
proceeds

<PAGE>
held  by  Mortgagee,  if any, shall be paid over to Mortgagor upon demand, and a
release  of  the  interest  hereby  assigned  will  be made, without recourse or
warranty,  by  Mortgagee  to  Mortgagor  at  its  request  and  its  expense.

6.8     Duty  of  Mortgagee.  Mortgagee  shall  not be liable for any failure to
collect,  or  for  any  failure  to  exercise diligence in collecting, any funds
assigned  hereunder.  Mortgagee  shall  be  accountable  only for funds actually
received.

6.9     Power  of  Attorney  to  Mortgagee.  Mortgagor  does  hereby  designate
Mortgagee  as  the  agent  of  Mortgagor to act in the name, place, and stead of
Mortgagor  for  the  purpose  of  taking any and all actions deemed by Mortgagee
necessary  for the realization by Mortgagee of the benefits of the assignment of
production  provided herein, recognizing such agency in favor of Mortgagee to be
coupled  with  the  interests  of  Mortgagee  under  this  Mortgage  and,  thus,
irrevocable  so  long  as  this  Mortgage  is  in  force  and  effect.

                                   ARTICLE 7

                                 MISCELLANEOUS

7.1     Further  Assurances.  Upon request of Mortgagee, Mortgagor will promptly
correct  any defects, errors, or omissions in the execution or acknowledgment of
this  Mortgage or any other Loan Document, and execute, acknowledge, and deliver
such  other assurances and instruments as shall, in the opinion of Mortgagee, be
reasonably  necessary  to  fulfill  the  terms  of  this  Mortgage.

7.2     Interest.  Any  provision  in  any  document  that  may  be  executed in
connection herewith to the contrary notwithstanding, Mortgagee shall in no event
be  entitled  to receive or collect, nor shall any amounts received hereunder be
credited  so  that  Mortgagee shall be paid, as interest a sum greater than that
authorized  by  law.  If  any possible construction of this Mortgage or any Loan
Document  seems  to  indicate  any  possibility  of  a  different power given to
Mortgagee  or  any  authority  to ask for, demand, or receive any larger rate of
interest,  this  clause shall override and control, and proper adjustments shall
be  made  accordingly.

7.3     Agreement  as  Entirety.  This  Mortgage, for convenience only, has been
divided  into  Articles,  Sections,  and  subsections.  The  rights,  powers,
privileges,  duties,  and other legal relations of Mortgagor and Mortgagee shall
be  determined  from  this  Mortgage  as  an  entirety and without regard to the
aforesaid  division  into Articles, Sections, and subsections and without regard
to  headings  affixed  to  such  Articles,  Sections,  or  subsections.

7.4     Number and Gender.  Whenever the context requires, reference herein made
to  the  single number shall be understood to include the plural, and the plural
shall  likewise be understood to include the singular.  Words denoting sex shall
be  construed  to  include  the  masculine,  feminine,  and  neuter  when  such
construction  is  appropriate;  and  specific  enumeration shall not exclude the
general,  but  shall  be  construed  as  cumulative.

7.5     Rights  and  Remedies  Cumulative.  All  rights,  powers,  immunities,
remedies,  and  Liens  of Mortgagee existing and to exist hereunder or under any
other  instruments  or  at law or in equity and all other or additional security
shall  be  cumulative  and  not  exclusive,

<PAGE>
each  of  the  other.  Mortgagee  shall,  in addition to the rights and remedies
herein  expressly  provided,  be  entitled  to such other remedies as may now or
hereafter  exist  at  law  or  in  equity  for  securing  and  collecting  the
Indebtedness,  for enforcing the covenants herein, and for foreclosing the Liens
hereof.  Resort by Mortgagee to any right or remedy provided for hereunder or at
law  or  in equity shall not prevent concurrent or subsequent resort to the same
or any other right or remedy.  No security heretofore, herewith, or subsequently
taken  by  Mortgagee  shall in any manner impair or affect the security given by
this  Mortgage  or  any  security  by  endorsement  or  otherwise  presently  or
previously  given;  and  all  security  shall  be taken, considered, and held as
cumulative.

7.6     Parties  in  Interest.  This  Mortgage shall be binding upon the parties
and  their  respective heirs, administrators, legal representatives, successors,
and  assigns  and  shall  inure  to  the  benefit of the Mortgagee and its legal
representatives,  successors,  and  assigns.  The terms used to designate any of
the  parties  herein shall be deemed to include the heirs, administrators, legal
representatives,  successors,  and  assigns  of  such  parties.

7.7     Supplements.  Without  in  any manner limiting the effect of Section 1.4
or  any  other  provisions  of  this  Mortgage  as to the binding effect of this
Mortgage  on  after-acquired  rights  of  Mortgagor,  it  is contemplated by the
parties hereto that from time to time additional interests and properties may or
will  be  added  to  the  interests and properties subject to the Liens, rights,
titles,  and  interests  created  by  this  Mortgage  by  means  of supplemental
indentures  identifying  this  Mortgage  and  describing  such  interests  and
properties  to  be  so  added  and  included.  Upon  the  execution  of any such
supplemental  indenture, the Liens, rights, titles, and interests created herein
shall  immediately attach to and be effective with respect to any such interests
and  properties  so  described, the same as if such interests and properties had
been  specifically  described  herein,  and  such interests and properties being
included  in  the  term  "Mortgaged  Property,"  as  used  herein.

7.8     Invalidity.  In  the  event  that  any  one  or  more  of the provisions
contained  in  this  Mortgage  shall for any reason be held invalid, illegal, or
unenforceable  in any respect,  such invalidity, illegality, or unenforceability
shall  not  affect  any  other  provision  of  this  Mortgage  or any other Loan
Document.

7.9     Construction.  All  titles  or  headings  to  Articles,  Sections,
subsections, or other divisions of this Mortgage or the exhibits hereto are only
for the convenience of the parties and shall not be construed to have any effect
or  meaning  with  respect  to  the  other  content  of such Articles, Sections,
subsections,  or other divisions, such other content being controlling as to the
agreement  among  the parties hereto.  Article, Section, subsection, and Exhibit
references  herein  are to such Articles, Sections, subsections, and Exhibits of
this  Mortgage  unless  otherwise  specified.  The  words  "hereby,"  "herein,"
"hereinabove,"  "hereinafter,"  "herein-  below," "hereof," and "hereunder" when
used  in  this  Mortgage  shall refer to this Mortgage as a whole and not to any
particular  Article,  Section,  subsection,  or  provision  of  this  Mortgage.

7.10     Fixtures,  Minerals  and  Accounts.  Without in any manner limiting the
generality  of  any  of  the  foregoing  hereof,  some  portions of the personal
Property  described  hereinabove are or are to become fixtures on the Lands.  In
addition,  the  security  interest  created

<PAGE>
hereby  under  applicable  provisions of the UCC attaches to minerals, including
oil  and  gas,  and accounts resulting from the sale thereof, at the wellhead or
minehead  located  on  the  Lands.

7.11     Financing Statement Filings.  This Mortgage may be filed as provided in
Article  9  of  the  UCC  to  assure that the security interests granted by this
Mortgage  are perfected.  In this connection, this Mortgage will be presented to
a  filing  officer  under the UCC to be filed in the real estate records of each
jurisdiction where any part of the Mortgaged Property is situated as a Financing
Statement  covering  as-extracted  collateral  (including,  without  limitation,
minerals and the like extracted and to be extracted, as well as all accounts and
general intangibles resulting from the sale thereof at the wellhead or minehead)
and  goods  that  are  or  are  to become fixtures.  Mortgagor, as lessee or fee
owner,  has  an  interest of record in the real property described in Exhibit A.
Further, Mortgagor authorizes Mortgagee to execute and file at any time and from
time  to time any initial Financing Statements and amendments thereto in any UCC
jurisdiction,  pursuant to Article 9 of the UCC, as Mortgagee deems necessary in
its  sole discretion, in conjunction with this Mortgage, and Mortgagor expressly
authorizes  execution  and  filing  of  such  Financing  Statements by Mortgagee
without  need  of  signature  or  execution  by  Mortgagor.

7.12     Addresses.  For  purposes  of  filing  this  Mortgage  as  a  financing
statement,  the  addresses  for  Mortgagor, as the debtor, and Mortgagee, as the
secured  party,  are  as  set  forth  hereinabove.

7.13     Counterparts.  For the convenience of the parties, this Mortgage may be
executed  in  multiple  counterparts,  each  of  which for all purposes shall be
deemed,  and  may  be  enforced  from  time to time as, a chattel mortgage, real
estate  mortgage,  security agreement, assignment or contract, or as one or more
thereof.  For  recording  purposes, various counterparts have been executed, and
there  may be attached to each such counterpart an Exhibit A containing only the
description of the Mortgaged Property, or portions thereof, which relates to the
county  or  state  in  which  the  particular  counterpart is to be recorded.  A
complete, original counterpart of this Mortgage with a complete Exhibit A may be
obtained  from Mortgagee.  Each of the counterparts hereof so executed shall for
all  purposes  be  deemed  to  be  an  original, and all such counterparts shall
together  constitute  but  one  and  the  same  instrument.

7.14     No Waiver by Mortgagee.  No course of dealing on the part of Mortgagee,
its officers or employees, nor any failure or delay by Mortgagee with respect to
exercising  any  of  its  rights or remedies hereunder shall operate as a waiver
thereof  nor  shall the exercise or partial exercise of any such right or remedy
shall  preclude  the  exercise  of  any  other  right  or  remedy.

7.15     Governing Agreement.  This Mortgage is made pursuant and subject to the
terms  and  provisions  of  the  Credit  Agreement.  In  the event of a conflict
between  the  terms  and  provisions  of  this  Mortgage and those of the Credit
Agreement,  the  terms  and  provisions of the Credit Agreement shall govern and
control.  The  inclusion  in  this  Mortgage  of provisions not addressed in the
Credit  Agreement  shall  not  be  deemed  a  conflict,  and all such additional
provisions  contained  herein  shall  be  given  full  force  and  effect.

<PAGE>
IN  WITNESS  WHEREOF,  this Mortgage is executed on November 18, 2010, but to be
effective  as  of  November  19,  2010  immediately following the acquisition by
Mortgagor  of  the  Mortgaged  Property.

MORTGAGOR/DEBTOR:

CEP-M PURCHASE, LLC

By:  Current Energy Partners Corporation,
     its Manager

     By:  \s\ Brent M. Cook
          Brent M. Cook
          Chief Executive Officer

THE STATE OF TEXAS     S
                       S
COUNTY  OF  HARRIS     S

     The  foregoing  instrument  was  acknowledged before me on this 18th day of
November,  2010,  by Brent M. Cook, as Chief Executive Officer of Current Energy
Partners  Corporation,  the  Manager  of CEP-M PURCHASE, LLC, a Delaware limited
liability company, on behalf of such corporation, as the Manager of such limited
liability  company.

Witness  my  hand  and  official  seal.

__________________________________________
Notary Public in and for the State of Texas
My commission expires:_____________________fp0002665_loanagt1.htm

 

LOAN AGREEMENT

 

1. Parties:  The undersigned is Shaanxi Yellow-river Wetlands Park Co., Ltd., the Borrower, and the Lender is Shaanxi Xi Deng Hui Science & Technology Industrial Stock Co., Ltd..

 

2. Date of Agreement: September 30, 2010.

 

3. Promise to Pay:  Borrower promises to pay to Lender on demand.

 

4. Responsibility:  Although this agreement may be signed below by more than one person, each of the undersigned understands that they are each as individuals responsible and jointly and severally liable for paying back the full amount.

 

5. Breakdown of Loan:  Borrower will pay:

 

    Amount of Loan:    RMB ¥2,000,000

 

    other (Describe):    None

 

    Amount financed:   None

 

    Finance charge:      None

 

    Total of payments:  RMB ¥2,000,000

 

   Annual Interest Rate: None%

 

6. Repayment:  Borrower will repay lender partial of the entire outstanding amount at any time when the lender requests such repayment(s).

 

7. Prepayment:  Borrower has the right to prepay the whole outstanding amount at any time.

 

8. Late Charge:  Any repayment not paid within ten (10) days of its due date shall be subject to a late charge of 5% of the payment.

 

9. Security:  To protect Lender, Borrower gives what is known as a security interest or mortgage in:   None   .

 

10. Default:  If for any reason Borrower fails to make any payment on time, Borrower shall be in default. The Lender can then demand immediate payment of the entire remaining unpaid balance of this loan, without giving anyone further notices. If Borrower has not paid the full amount of the loan when the final payment is due, the Lender will charge Borrower interest on the unpaid balance at   5   percent (%) per year.

 

11. Right of Offset:  If the Lender gives Borrower an extension of time to pay this loan, he/she still must repay the entire loan.

 

Executed at Xi’an City

 

Agreed To:

 

Borrower Shaanxi Yellow-river Wetlands Park Co., Ltd.

 

Lender Shaanxi Xi Deng Hui Science & Technology Industrial Stock Co., Ltd.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]