Document:

DEVELOPMENT AGREEMENT

                                   (KENTUCKY)

                                  INTRODUCTION

THIS  DEVELOPMENT  AGREEMENT  (this  "Development  Agreement")  from  ENERGY
CORPORATION  OF AMERICA, a West Virginia corporation, with offices at 4643 South
Ulster  Street,  Suite  100,  Denver,  Colorado  80237-2867  ("ECA") and EASTERN
AMERICAN  ENERGY  CORPORATION,  a West Virginia corporation, with offices at 501
56th  Street,  Charleston,  West Virginia 25304 ("Eastern") (ECA and Eastern are
sometimes  hereinafter  collectively  referred to as "Operator"), to BLACK STONE
ACQUISITIONS  PARTNERS  II,  L.P.,  a  Delaware limited partnership, BLACK STONE
ACQUISITIONS  PARTNERS  II-B, L.P., a Delaware limited partnership, and HATFIELD
ROYALTY,  L.P.,  a  Delaware  limited  partnership, with offices at 1001 Fannin,
Suite 2020, Houston, Texas, 77002  (collectively "Black Stone"), is delivered to
be  effective  as  of  7:00  a.m.,  Eastern  Time, April 1, 2005 (the "Effective
Time").

     Operator  and Black Stone contemporaneously herewith have entered into each
of  the  following  conveyances  dated  effective as of January 1, 2005 (i) Term
Royalty  Conveyance  (West  Virginia)  ("West  Virginia  Conveyance"), (ii) Term
Royalty  Conveyance  (Pennsylvania)  ("Pennsylvania  Conveyance"),  (iii)  Term
Royalty  Conveyance  (Kentucky)  ("Kentucky  Conveyance") collectively the "Term
Royalty  Conveyance,"  and the Term Royalty Agreement dated May 17, 2005 between
Operator  and Black Stone (the "Term Royalty Agreement"). In connection with the
Term  Royalty  Conveyance,  Operator has agreed to undertake certain obligations
during  the  term  of  the  Term  Royalty Conveyance with respect to the Subject
Interests and the Development Wells to be drilled on AMI Areas designated in the
Term  Royalty  Conveyance.

                                    ARTICLE I

                                   DEFINITIONS

     All  capitalized  words,  terms,  and  the phrases used in this Development
Agreement and not defined herein shall have the meanings ascribed thereto in the
Term  Royalty  Agreement and Term Royalty Conveyance.  Certain other capitalized
words,  terms,  and  phrases  used  in  this  Development  Agreement are defined
elsewhere  in  this  Development  Agreement.

     "Adjusted  Completed  Well  Development  Well Value" means, with respect to
each  Completed  Development  Well,  the  value obtained by multiplying for each
Completed  Development  Well  drilled or caused to be drilled by Operator during
any  Annual  Period  one  (1)  times  the  Working Interest (stated as a decimal
fraction  or  1.00, where Operator holds a 100% Working Interest), that Operator
is  required  to  bear  in  such  Completed  Development  Well.  For example, if
Operator  holds  an  eighty-five  percent  (85%) Working Interest in a Completed
Development  Well,  the  computation  would  be:

<PAGE>
                                  1 x .85 = .85

therefore,  such  Completed Development Well would have a .85 Adjusted Completed
Development  Well  Value.

     "Annual  Drilling  Target" means that number of Completed Development Wells
where  (a)  the  cumulative total of all the Adjusted Completed Development Well
Values for all Completed Development Wells drilled by or caused to be drilled by
Operator during the first Annual Period equals not less than sixty (60), (b) the
cumulative  total  of all the Adjusted Completed Development Well Values for all
Completed  Development  Wells drilled during the first two Annual Periods equals
not  less than One Hundred Twenty (120), and (c) the cumulative total of all the
Adjusted  Completed  Development Well Values for all Completed Development Wells
drilled  during  the  first  three Annual Periods equals not less than the Total
Drilling  Commitment.

     "AMI  Areas"  mean  the areas depicted on the map set forth on Exhibit B as
the  Yawkey  Freeman  AMI  and  the  PK  AMI.

     "Annual Period" means the annual period commencing on April 1 each year and
ending  on  March  31  of  the  succeeding  year.

     "Assignor's Net Share of Gas" means the share of Subject Gas from each Well
that  is  attributable  to  Operator's  Net  Revenue  Interest  in  that  Well.

     "Completed  Development  Well"  means  the Wellbore of any Development Well
that  is  completed pursuant to Section 2.02 herein in the Big Lime formation or
deeper  formation(s).

     "Deed  of  Trust" means the Credit Line Deed of Trust from Eastern to Black
Stone  referenced  in  Section  2.18.

     "Development  Well"  means  any  Gas  well  drilled,  within the meaning of
Section  2.01(b)  of the Development Agreement, after the Effective Time of this
Agreement  on  the  Subject  Development  Lands.

     "Drilling Obligation Completion Date" means March 31, 2008.

     "Effective Time" means April 1, 2005.

     "Gas"  means  natural  gas  and  all  other  gaseous  hydrocarbons, and all
non-combustible  gas  that  are  contained  in  the  full  wellstream.

     "Producing  Well"  means  the  Wellbore  of each Gas well more particularly
described  in  Exhibit  A-1  to  the  Term  Royalty  Conveyance,  subject to the
exceptions,  exclusions  and  reservations  set forth on such Exhibit A-1 to the
Term  Royalty  Conveyance.

     "Reasonably  Prudent  Operator Standard" means the standard of conduct of a
reasonably  prudent oil and gas operator in the Appalachian Basin under the same
or  similar  circumstances,  acting  with  respect  to  its  own  property  and
disregarding  the  existence  of  the  Term Royalty Interest as a burden on such
property.

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     "Subject  Development  Lands"  means the lands subject to or covered by the
oil  and  gas  leases  described  in  Exhibit  A-2,  subject  to the exceptions,
exclusions  and  reservations set forth on such Exhibit A-2, as such Exhibit may
be  modified  pursuant  to  the  Term  Royalty  Conveyance.

     "Subject  Gas"  means with respect to each Well, Gas in and under, and that
may  be  produced, saved, and sold from all producing horizons from the Wellbore
of  such  Well,  subject  to  the  following:

          (a)  "Subject  Gas"  excludes  Gas  that  is:

                    (i)     lost  in  accordance  with  the  Reasonably  Prudent
               Operator  Standard  in the production, gathering, or marketing of
               Gas,  or that is liquefied and removed from the gas stream in the
               normal  course  of  Operator's  operation,  consistent with prior
               practice, via any method other than processing as contemplated in
               the  Term  Royalty  Conveyance;

                    (ii)     subject  to  the  Reasonably  Prudent  Operator
               Standard,  used  in  operations  on  the Subject Lands, including
               drilling  and  production  operations  on the Subject Development
               Lands);  or

                    (iii)     retained  by a Third Person, or Operator (pursuant
               to  Section  3.02(c))  of  the  Term  Royalty  Conveyance,  for
               gathering,  transportation,  processing,  or  marketing  services
               related  to  the  Subject  Gas  in lieu of or in addition to cash
               payment  for  such  services;  or

                    (iv)     in  excess  of  the  percentage  attributable  to
               Assignor's  Net  Share of Gas taken by Operator to recover costs,
               or some multiple of costs, paid or incurred by Operator under any
               operating  agreement,  unit  agreement,  or  other  agreement  in
               connection  with nonconsent operations conducted (or participated
               in)  by  Operator.

     (b)     "Subject  Gas"  includes Gas, not otherwise excluded above, that is
sold  or  otherwise  disposed  of  for  valuable  consideration.

     "Subject  Interests"  means  Operator's  undivided interests in the Subject
Lands as lessee under Gas leases covering and affecting the Subject Lands, as an
owner  of  the  Subject Gas (or the right to extract such Gas), or otherwise, by
virtue  of  which  undivided  interests  Operator  has  the  right  to  conduct
exploration, drilling, development, and Gas production operations on the Subject
Lands,  or  to  cause such operations to be conducted, or to participate in such
operations  by  paying  and  bearing  all  or  any part of the costs, risks, and
liabilities  of  such  operations, to drill, test, complete, equip, operate, and
produce  Wells  to  exploit  the  Gas.  Any  oil  and gas lease or other similar
instrument that covers Gas produced from the Subject Lands shall be considered a
"Gas  lease"  hereunder,  even  if  it  also  covers other substances.  "Subject
Interests"  includes  all  extensions  and  renewals  of Gas leases covering and
affecting  the Subject Lands acquired within six (6) months after the expiration
or  termination  of  any such lease, and all new Gas leases covering the Subject
Lands  (or  any  portion  thereof)  obtained  by  Operator,  or  any  Affiliate

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thereof  prior  to  the  termination  of  the  Development  Agreement.  "Subject
Interests"  do  not  include (a) Operator's rights to substances other than Gas;
(b)  Operator's  rights  under contracts for the purchase, sale, transportation,
storage,  processing,  or  other  handling or disposition of Gas; (c) Operator's
interests  in,  or rights with respect to, pipelines, gathering systems, storage
facilities,  processing facilities, or other equipment or facilities, other than
the Wells; or (d) subject to Section 1.04(c) of the Term Royalty Conveyance, any
after-acquired, additional, or enlarged interests in the Wells, Subject Lands or
Subject  Gas,  except  those  reflected  in  Exhibit  A-1  to  the  Term Royalty
Conveyance  or  Exhibit  A-2  or any Additional Lease as provided for in Section
12.01  of the Term Royalty Conveyance, or extensions and renewals covered by the
preceding  sentence.  "Subject  Interests" may be owned by Operator by virtue of
grants  or reservations in deeds, Gas leases, or other instruments, or by virtue
of  operating  agreements, pooling or unitization agreements or orders, or other
kinds  of instruments, agreements, or documents, legal or equitable, recorded or
unrecorded.  The  Subject  Interests  are subject to the Permitted Encumbrances.

     "Subject  Lands"  means  collectively,  the Subject Producing Lands and the
Subject  Development  Lands.

     "Subject  Producing Lands" means the lands subject to or covered by the oil
and gas leases described in Exhibit A-1 to the Term Royalty Conveyance for lands
related  to  the  Producing  Wells,  subject  to  the exceptions, exclusions and
reservations  set  forth  on  such  Exhibit  A-1 to the Term Royalty Conveyance.

     "Term  Royalty Agreement" is defined in the Introduction to this Agreement.

     "Term Royalty Conveyance" is defined in the Introduction to this Agreement.

     "Term  Royalty  Gas"  means, for any month, that percentage of Gas to which
Black  Stone  is  entitled,  calculated  in  accordance  with  the  Term Royalty
Conveyance.

     "Term Royalty Interest" means the variable undivided interest in and to the
Subject  Interests,  to the extent that the Subject Interests pertain to Gas in,
under  and  that  may be produced from the Wellbores of the Wells, sufficient to
cause  Black  Stone  to  receive  a  volume of Term Royalty Gas and the revenues
attributable  thereto  calculated  and  paid in money in accordance with Section
3.01  of  the  Term  Royalty  Conveyance.

     "Term Royalty Proceeds" means, for any month, proceeds received by Assignor
for  the  account  of Assignee, as Black Stone's marketing and payment agent and
representative,  from  the  sale  of Term Royalty Gas under this Conveyance less
Chargeable  Costs calculated in accordance with Section 3.03 of the Term Royalty
Conveyance.

     "Total  Drilling  Commitment"  means  that  number of Completed Development
Wells where the cumulative total of all such Adjusted Completed Development Well
Value  for all Completed Development Wells drilled by or caused to be drilled by
Operator  equals  180.

     "Termination  Date"  is  defined  in  Section  1.02.

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     "Transfer"  including its syntactical variants, means any assignment, sale,
transfer, conveyance, or disposition of any property; provided, Transfer as used
herein  does  not  include  the  granting  of  a security interest in Operator's
interest  in  any  property  including the Subject Interests or Subject Lands so
long  as  any  such  security  interest  shall  not affect and is made expressly
subject  to  the  Term  Royalty  Interest.

     "Wells"  means,  collectively, the Wellbores of the Producing Wells and the
Completed  Development  Wells.

                                   ARTICLE II
                  DEVELOPMENT OF THE SUBJECT DEVELOPMENT LANDS

     SECTION  2.01     DRILLING  PROGRAM.

     (a)     OBLIGATION  TO  DRILL.  In  each  of the first three Annual Periods
during  the  Development Agreement Term, Operator shall, subject to the terms of
this  Article  II,  drill,  or cause to be drilled, at Operator's sole cost, (i)
such  number  of  Completed  Development  Wells that is necessary to achieve the
Annual Drilling Target and (ii) such number of Completed Development Wells as to
achieve  the  Total  Drilling  Commitment  prior  to  the  Drilling  Obligation
Completion  Date; it being understood that so long as Operator is performing its
obligations  hereunder  in  good  faith  and with due diligence the drilling and
testing  operations may extend beyond the last day of an Annual Period for which
such Completed Development Well is being included to meet Operator's obligations
under  this  Section  2.01(a),  and provided further that Operator shall have an
additional ninety (90) day period at the end of each Annual Period  and that the
Drilling  Obligation Completion Date to perform its obligations pursuant to this
Section 2.01(a).  Operator further agrees to use commercially reasonable efforts
to  drill  seventy  (70)  Completed  Development  Wells  during the first Annual
Period,  sixty (60) Completed Development Wells during the second Annual Period,
and fifty (50) Completed Development Wells during the third Annual Period.

     (b)     MEANING  OF "DRILL."  For purposes of this Section 2.01, to "drill"
means  to  commence the actual drilling of a Development Well, and thereafter to
drill that Development Well diligently to the target depth (or target depths, in
the case of multiple target producing horizons) that Operator has determined, in
accordance  with  the  Reasonably  Prudent  Operator  Standard,  may  encounter
producing Gas horizons and then to test that Development Well for the production
of  Gas.

     (c)     ADDITIONAL  DEVELOPMENT WELLS.  Any number of Completed Development
Wells  drilled  which result in the Annual Drilling Target being exceeded in any
Annual  Period may be carried forward and applied against Operator's obligation,
if any, under Section 2.01(a) for the subsequent Annual Period.

     SECTION  2.02     OBLIGATION  TO  COMPLETE  AND  EQUIP.  Operator shall, at
Operator's  sole  cost,  attempt  to  complete  each  Development  Well  in  all
formations  which,  in  Operator's  opinion  exercised  in  accordance  with the
Reasonably  Prudent  Operator  Standard,  are capable of producing in commercial
quantities.  Operator  acknowledges  that  the  Term  Royalty  Interest would be
adversely  affected  if  Operator  fails  to  attempt to complete each Completed

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Development  Well  in  all  formations  reasonably  expected  to  be  capable of
producing  in  commercial  quantities  and,  therefore,  expressly  covenants to
protect  the  Term  Royalty Interest as it relates to each Completed Development
Well  from any and all drainage that might occur should Operator not complete in
all  such formations.  Operator shall equip for production each Development Well
that  is  successfully  completed  and,  when  it is equipped and connected to a
gathering  line or pipeline, shall commence production.  Operator shall plug and
abandon  all  Development  Wells  that  are  unsuccessful.

     SECTION 2.03     UNDRILLABLE LOCATIONS/FAILURE TO REACH DEEP FORMATIONS/DRY
HOLE.  If  Operator  fails,  in  the exercise of the Reasonably Prudent Operator
Standard, to reach the Big Lime formation or deeper due to geological subsurface
conditions,  impenetrable  substances  or  drills a dry hole, such drill site or
well  shall  not be counted as a Completed Development Well nor toward the Total
Drilling  Commitment  hereunder.  Nothing  herein shall be construed to grant to
Black  Stone,  an interest in any wells drilled on the Subject Development Lands
after  the  Total  Drilling  Commitment  has  been  achieved.

     SECTION  2.04     TERMINATION.  After  the  drilling obligations in Section
2.01(a)  have  been  satisfied  in addition to all other obligations of Operator
under  this  Agreement, Black Stone shall, on request, execute, acknowledge, and
deliver  to  Operator  a  recordable instrument that terminates this Development
Agreement.

     SECTION  2.05     COSTS  AND  EXPENSES  OF  DEVELOPMENT WELLS AND COMPLETED
DEVELOPMENT  WELLS.  All costs associated with or paid or incurred in connection
with  the  drilling,  testing,  completing,  equipping for production, operating
and/or  plugging  and  abandoning  of  the  Development  Wells  and  Completed
Development  Wells  shall  be  borne  solely  by  Operator, but Operator may use
reasonable amounts of Subject Gas in such operations without any duty to account
to  Black  Stone  under  any  of  the  Term  Royalty  Interests  or Term Royalty
Conveyance,  and Operator shall hold harmless and indemnify Black Stone from and
against any and all such cost, risk, liability or obligation (including, without
limitation,  court  costs  and reasonable attorneys' fees) that are attributable
thereto,  including,  but  not  limited  to,  any  liability  resulting from the
condition  thereof under any federal, state, or local statute, regulation, rule,
ordinance  or  order  relating  to  the  environment  or  health  and  safety.

     SECTION  2.06     SURVIVAL  OF  OBLIGATION.  Operator's  obligation  under
Section  2.01(a)  shall survive, even if (i) any of the Term Royalty Interest in
the  Subject Development Lands is Transferred or released in whole or in part by
Black  Stone or (ii) notwithstanding Sections 11.01 through 11.04 of each of the
Term  Royalty  Conveyance,  Operator Transfers, mortgages or pledges the Subject
Development  Lands  or  Subject  Interests.

     SECTION  2.07     ADDITIONAL  LEASES.  In  the event that Operator acquires
any  additional  leases ("Additional Lease") other than the Subject Interests in
the  AMI  Areas  prior  to  Operator's  satisfaction  of  Operator's  drilling
requirements  in  Section  2.01,  Operator  and  Black  Stone  shall  execute,
acknowledge, and deliver an instrument that amends this Development Agreement so
that  such  Additional  Lease  will be part of the Subject Interests and Subject
Development  Lands  hereunder.

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     SECTION  2.08     TITLE DUE DILIGENCE.  Prior to commencing the drilling of
any  Development  Well,  Operator will perform such title due diligence and such
title  curative work as would be performed by an oil and gas operator drilling a
well  and  acting  in  accordance with the Reasonably Prudent Operator Standard.

     SECTION  2.09     WELLS.  Prior  to the satisfaction of Operator's drilling
requirements in Section 2.01, Operator shall not, and shall cause its Affiliates
not  to,  nor  permit  any  other  Person  to,  drill  any  well  on the Subject
Development  Lands  in  the  AMI  Areas  that  will  not  be  a Development Well
hereunder; provided however that any Development Well that does not constitute a
Completed Development Well shall not be deemed a violation of this Section 2.09,
so  long  as  such  Development Well is drilled in compliance with Section 2.13.

     SECTION  2.10     BLACK  STONE  NOT  LIABLE.  Black  Stone  shall  not  be
personally  liable or responsible under this Development Agreement for any cost,
risk,  liability,  or  obligation  associated  in  any way with the ownership or
operation  of  the  Subject Lands, the Subject Interests, the Wells, the Subject
Gas,  or  the  plugging  and  abandoning  of  any Wells, and Operator shall hold
harmless and indemnify Black Stone from and against any and all such cost, risk,
liability  or  obligation  (including,  without  limitation,  court  costs  and
reasonable  attorneys'  fees)  that are attributable thereto, including, but not
limited  to,  any  liability  resulting  from  the  condition  thereof under any
federal,  state, or local statute, regulation, rule, ordinance or order relating
to  the  environment  or  health  and  safety.

     SECTION  2.11     STANDARDS  OF  CONDUCT.  Except as otherwise specifically
provided in the Term Royalty Conveyance and the Term Royalty Agreement, Operator
shall  (a)  operate  and  maintain  the Subject Interests and Wells and (b) make
elections  under  each  applicable  lease,  operating agreement, unit agreement,
contract  for  development, and other similar instrument or agreement (including
elections concerning abandonment of any Well or release of any Subject Interest)
in  good  faith  and in accordance with the Reasonably Prudent Operator Standard
and  consistent  with  Assignor's  prior  practice.

     SECTION  2.12     ABANDONMENT  OF  PROPERTIES.  Nothing in this Development
Agreement,  other  than the Reasonably Prudent Operator Standard, shall obligate
Operator  to  continue to operate any Well or to operate or maintain in force or
attempt  to  maintain  in  force  any Subject Interest when such Well or Subject
Interest  ceases  to  produce,  or  Operator  determines,  in  good faith and in
accordance  with  the  terms  hereof,  that such Well or Subject Interest is not
capable  of  producing  Gas  in  paying quantities.  The expiration of a Subject
Interest  in  accordance  with the terms and conditions applicable thereto shall
not  be considered to be a voluntary surrender or abandonment thereof.  Any Well
abandoned  by  Operator  hereunder shall be plugged and abandoned, at Operator's
sole  risk  and expense, in accordance with all applicable federal, state and/or
local  laws,  statutes,  rules  and  regulations.

     SECTION  2.13     NO DRAINAGE.  At no time during the Development Agreement
Term,  shall Operator or any of its Affiliates drill, or permit any other person
to  drill,  any  Gas well within one thousand two hundred fifty feet (1,250') of
any  Well  where such Gas well would produce oil or gas from the same formations
or  horizons  as  any  Well  situated  within  said  distance.

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     SECTION  2.14     NONPERFORMANCE.  Should  Operator  be  prevented  from
complying  with  any  of its obligations, express or implied, under the terms of
this Development Agreement, by reason of Force Majeure or any other reason, then
while so prevented, Operator's obligation to comply therewith shall be suspended
and Operator shall not be liable for damages for failure to so comply; provided,
however,  this  Development  Agreement  shall  be  extended while and so long as
Operator  is  prevented  by  any  such  cause  from  complying  with  the  such
obligations,  and  the time while Operator is so prevented shall be added to the
Development  Agreement Term.  No event of Force Majeure or any other cause shall
excuse  Operator's obligation to make payments of Term Royalty Proceeds to Black
Stone.

     SECTION  2.15     FORCE  MAJEURE.  "Force  Majeure"  means  any  of  the
following, to the extent they are not caused solely by the breach by Operator of
its  duty  to  perform  certain  obligations under this Development Agreement in
accordance  with the Reasonably Prudent Operator Standard: (a) act of God, fire,
lightning,  landslide,  earthquake,  storm, hurricane, hurricane warning, flood,
high  water,  washout,  tidal  wave,  or  explosion;

     (b)     strike,  lockout,  or  other similar industrial disturbance, act of
the  public  enemy,  war,  military  operation,  blockade,  insurrection,  riot,
epidemic,  arrest  or restraint of Governmental Authority or people, or national
emergency;

     (c)     inability  of  the Operator to acquire, or the delay on the part of
any  Third  Person  (other  than  an  Affiliate  of  the  Operator) in acquiring
materials,  supplies,  machinery,  equipment,  servitudes,  right-of-way grants,
easements,  permits,  or  licenses, or approvals or authorizations by regulatory
bodies  needed  to  enable  such  Party  to  perform  hereunder;

     (d)     breakage  of or accident to machinery, equipment, or lines of pipe,
the repair, maintenance, improvement, replacement, alteration to a plant or line
of  pipe  or  related  facility,  the testing of machinery, equipment or line of
pipe,  or  the  freezing  of  a  line  of  pipe;

     (e)     any Legal Requirement or the affected Party's compliance therewith;
or

     (f)     any  other  cause,  whether  similar  or  dissimilar  to the causes
enumerated  in  (a)  through  (e)  above,  not  reasonably within the control of
Operator.

     SECTION  2.16     FORCE  MAJEURE  NOTICE.  Operator will give Black Stone a
Notice  of  each  Force  Majeure  as  soon  as  reasonably practicable after the
occurrence  of  the  Force  Majeure.

     SECTION  2.17     REMEDY  OF  FORCE  MAJEURE  EVENT.  Eastern  will  use
commercially  reasonable  efforts  to  remedy each Force Majeure and resume full
performance  under this Development Agreement as soon as reasonably practicable,
except  that  the settlement of strikes, lockouts, or other labor disputes shall
be  entirely  within  the  discretion  of  Operator.

     SECTION  2.18     LIEN.  Simultaneously herewith, Eastern shall execute and
deliver  to  Black  Stone  the Credit Line Deed of Trust, which shall secure the
obligation  of Operator to satisfy the Total Drilling Commitment by the Drilling
Obligation  Completion  Date  (plus  the  90  day  grace period) provided for in
Section  2.01(a)  hereof.  Black  Stone  acknowledges  that  its  sole  remedy

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for  a  failure  by Operator to perform such obligation shall be the foreclosure
rights  set  forth  in  the  Credit  Line  Deed  of  Trust.

                                   ARTICLE III
                                OTHER PROVISIONS

     SECTION  3.01     SUCCESSORS  AND  ASSIGNS.  Subject to the limitations and
restrictions  on the assignment or delegation by the Parties of their rights and
interests under this Development Agreement, this Development Agreement binds and
inures  to the benefit of Operator, Black Stone and their respective successors,
assigns,  and  legal  representatives.

     SECTION  3.02     GOVERNING  LAW.  Insofar  as  permitted  by  otherwise
applicable  Legal  Requirements,  this  Development Agreement shall be construed
under  and  governed by the laws of the State of West Virginia (excluding choice
of  law and conflict of law rules); provided, however, that, with respect to any
portion  of the Subject Interests located outside of the State of West Virginia,
the laws of the place in which such Subject Interests is located in, shall apply
where  mandatorily  required  by  the  laws  of  such  State.

     SECTION 3.03     CONSTRUCTION OF DEVELOPMENT AGREEMENT.  In construing this
Development Agreement, the following principles shall be followed:

     (a)     no  consideration  shall  be given to the captions of the articles,
sections,  subsections,  or  clauses,  which  are  inserted  for  convenience in
locating  the  provisions of this Development Agreement and not as an aid in its
construction;

     (b)     no consideration shall be given to the fact or presumption that one
Party  had  a  greater  or  lesser  hand in drafting this Development Agreement;

     (c)     the  word  "includes"  and its syntactical variants mean "includes,
but is not limited to" and corresponding syntactical variant expressions;

     (d)     a  defined term has its defined meaning throughout this Development
Agreement,  regardless  of  whether it appears before or after the place in this
Development  Agreement  where  it  is  defined;

     (e)     the plural shall be deemed to include the singular, and vice versa;
and

     (f)     each  exhibit,  attachment,  and  schedule  to  this  Development
Agreement  is a part of this Development Agreement, but if there is any conflict
or  inconsistency  between  the  main body of this Development Agreement and any
exhibit,  attachment,  or  schedule,  the  provisions  of  the main body of this
Development  Agreement  shall  prevail.

     SECTION 3.04     NO WAIVER.  Failure of either Party to require performance
of  any  provision of this Development Agreement shall not affect either Party's
right to require full performance thereof at any time thereafter, and the waiver
by  either  Party  of  a  breach  of any provision hereof shall not constitute a
waiver  of  a similar breach in the future or of any other breach or nullify the
effectiveness  of  such  provision.

                                        9
<PAGE>
     SECTION  3.05     RELATIONSHIP OF PARTIES.  This Development Agreement does
not  create a partnership, mining partnership, joint venture, or relationship of
trust  or  agency  between  the  Parties.

     SECTION  3.06     FURTHER  ASSURANCES.  Each  Party  shall  execute,
acknowledge, and deliver to the other Party all additional instruments and other
documents reasonably required to evidence or effect any transaction contemplated
by  this  Development  Agreement.

     SECTION 3.07     THE 7:00 A.M. CONVENTION.  Except as otherwise provided in
this Development Agreement, each calendar day, month, quarter, and year shall be
deemed  to begin at 7:00 a.m. Eastern Time on the stated day or on the first day
of  the  stated month, quarter, or year, and to end at 7:00 a.m. Eastern Time on
the  next day or on first day of the next month, quarter, or year, respectively.

     SECTION  3.08     COUNTERPART  EXECUTION.

     (a)     MULTIPLE  COUNTERPARTS.  Multiple  counterparts  of the Development
Agreement have been recorded in the counties where the Subject Development Lands
are  located.  The  counterparts are identical except to facilitate recordation,
the  counterpart  recorded  in  each  county  may  contain property descriptions
relating  only  to  the  Subject  Development  Lands  located in that county.  A
counterpart of the Development Agreement containing all property descriptions of
Subject  Development  Lands  will  be  filed  for record in Kanawha County, West
Virginia.

     (b)     MULTIPLE COUNTIES.  If any Subject Development Lands are located in
more  than  one county, the description of such Subject Development Lands may be
included  in  any  one or more counterparts prepared for recordation in separate
counties,  but  the  inclusion of the same property description in more than one
counterpart  of  this  Development  Agreement  shall  not be construed as having
effected  any cumulative, multiple, or overlapping interest in the Subject Lands
in  question.

     SECTION  3.09     BINDING  EFFECT.  This  Development  Agreement  shall
constitute  a  covenant  running  with and constituting a burden on the land and
leases  included  within  the  AMI  Areas.  In  addition,  in  the  event  of  a
foreclosure  by  Black Stone under the Credit Line Deed of Trust between Eastern
and  Black  Stone  of  even  date  and  recorded  simultaneously  herewith, this
Development  Agreement  shall  continue  in  full  force and effect and shall be
binding  upon  any  subsequent  successor  in  interest  to  Operator.

     SECTION  3.10     OTHER  AGREEMENTS.  This  Development  Agreement is being
executed  pursuant to the Term Royalty Agreement and in connection with the Term
Royalty  Conveyance.  In  the event of a conflict in the terms and conditions of
this  Development  Agreement  and  the  Term  Royalty  Agreement,  the terms and
conditions  of  this  Development  Agreement  shall  control.  In the event of a
conflict  in the terms and conditions of this Development Agreement and the Term
Royalty  Conveyance,  the  terms  and  conditions of the Term Royalty Conveyance
shall  control.

                                       10
<PAGE>
IN  WITNESS  WHEREOF,  each  Party  has  caused this Development Agreement to be
executed in its name and behalf and delivered on the date or dates stated in the
acknowledgment  certificates  appended  to  this  Development  Agreement,  to be
effective  as  of  the  Effective  Time.

ATTEST:               ENERGY  CORPORATION  OF  AMERICA

                      By:  /s/  Donald C. Supcoe
                         ----------------------------------
                      Name:  Donald  C.  Supcoe
                      Title: Sr.  Vice  President

ATTEST:               EASTERN  AMERICAN  ENERGY  CORPORATION

                      By:  /s/  Donald C. Supcoe
                         ----------------------------------
                      Name:  Donald  C.  Supcoe
                      Title: President

ATTEST:               BLACK  STONE  ACQUISITIONS  PARTNERS  II,  L.P.
                      BY:  BSAP  II  GP,  L.L.C.,  GENERAL  PARTNER

                      By:  /s/  J. A. Mills
                         ----------------------------------
                      Name:   J.  A.  Mills
                      Title:  Vice  President

                      BLACK  STONE  ACQUISITIONS  PARTNERS  II-B,  L.P.
                      BY:  BSAP  II  GP,  L.L.C.,  GENERAL  PARTNER

                      By:  /s/  J. A. Mills
                         ----------------------------------
                      Name:   J.  A.  Mills
                      Title:  Vice  President

                      HATFIELD  ROYALTY,  L.P.
                      BY:  BSAP  II  GP,  L.L.C.,  GENERAL  PARTNER

                      By:  /s/  J. A. Mills
                         ----------------------------------
                      Name:   J.  A.  Mills
                      Title:  Vice  President

                                       11
<PAGE>
THE  STATE  OF  WEST  VIRGINIA     S
                                   S
COUNTY  OF  KANAWHA                S

     On  this,  the  10th  day  of June, 2005, before me ____________________, a
Notary  public,  personally  appeared Donald C. Supcoe, as Sr. Vice President of
Energy  Corporation  of  America,  a West Virginia corporation, and executed the
foregoing  instrument  on  behalf  of  said  corporation.

     In witness whereof, I hereunto set my hand and official seal.

[SEAL]                                         _________________________________

My  Commission  Expires:_________________

THE  STATE  OF  WEST  VIRGINIA     S
                                   S
COUNTY  OF     KANAWHA             S

     On  this,  the 10th day of June, 2005, before me _______________________, a
Notary  public,  personally  appeared  Donald C. Supcoe, as President of Eastern
American  Energy  Corporation,  a  West  Virginia  corporation, and executed the
foregoing  instrument  on  behalf  of  said  corporation.

     In witness whereof, I hereunto set my hand and official seal.

[SEAL]                                         _________________________________

My  Commission  Expires:_________________

                                       12
<PAGE>
THE  STATE  OF  WEST  VIRGINIA     S
                                   S
COUNTY  OF  KANAWHA                S

     On  this,  the  10th  day  of  June, 2005, before me ___________________, a
Notary  public, personally appeared J. A. Mills as the Vice President of BSAP II
GP,  L.L.C.,  general  partner  of Black Stone Acquisitions Partners II, L.P., a
Delaware limited partnership, and executed the foregoing instrument on behalf of
said  limited  partnership.

     In witness whereof, I hereunto set my hand and official seal.

[SEAL]                                         _________________________________

My  Commission  Expires:_________________

THE  STATE  OF  WEST  VIRGINIA     S
                                   S
COUNTY  OF  KANAWHA                S

     On  this,  the  10th  day  of  June, 2005, before me ___________________, a
Notary  public, personally appeared J. A. Mills as the Vice President of BSAP II
GP,  L.L.C.,  general partner of Black Stone Acquisitions Partners II-B, L.P., a
Delaware limited partnership, and executed the foregoing instrument on behalf of
said  limited  partnership.

     In  witness  whereof,  I  hereunto  set  my  hand  and  official  seal.

[SEAL]                                         _________________________________

My  Commission  Expires:_________________

                                       13
<PAGE>
THE  STATE  OF  WEST  VIRGINIA     S
                                   S
COUNTY  OF  KANAWHA                S

     On  this,  the  10th  day  of  June, 2005, before me ___________________, a
Notary  public, personally appeared J. A. Mills as the Vice President of BSAP II
GP,  L.L.C.,  general  partner  of  Hatfield  Royalty, L. P., a Delaware limited
partnership,  and  executed  the  foregoing instrument on behalf of said limited
partnership.

     In witness whereof, I hereunto set my hand and official seal.

[SEAL]                                         _________________________________

My  Commission  Expires:_________________

Prepared  by:

     ______________________________
     TAMMY J. OWEN, ESQ.
     GOODWIN & GOODWIN, LLP
     P. O. BOX 2107
     CHARLESTON, WV  25328-2107
     WV STATE BAR NO.     5552

                                       14CREDIT LINE DEED OF TRUST

                CREDIT LINE DEED OF TRUST, MORTGAGE, ASSIGNMENT,
           SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT

                                      FROM

                      EASTERN AMERICAN ENERGY CORPORATION,
                           a West Virginia corporation
                        (Federal Tax I.D. No. 55-0538443)

                                       TO

                                J. NICHOLAS BARTH

                                 (THE "TRUSTEE")

                                       AND

                   BLACK STONE ACQUISITIONS PARTNERS II, L.P.,
                         a Delaware limited partnership,
                  BLACK STONE ACQUISITIONS PARTNERS II-B, L.P.,
                       a Delaware limited partnership, and
                             HATFIELD ROYALTY, L.P.,
                         a Delaware limited partnership,

                         (COLLECTIVELY THE "MORTGAGEE")

                              Dated  June 10, 2005.

A  CARBON,  PHOTOGRAPHIC, FACSIMILE, OR OTHER REPRODUCTION OF THIS INSTRUMENT IS
SUFFICIENT  AS  A  FINANCING  STATEMENT.

THIS INSTRUMENT SECURES AN OBLIGATION THAT MAY INCREASE OR DECREASE FROM TIME TO
TIME.

THIS  INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS, SECURES PAYMENT OF
FUTURE  ADVANCES,  AND  COVERS  PROCEEDS  OF  COLLATERAL.

THIS  INSTRUMENT  COVERS  MINERALS  AND  OTHER  SUBSTANCES OF VALUE WHICH MAY BE
EXTRACTED  FROM  THE  EARTH  (INCLUDING WITHOUT LIMITATION OIL AND GAS), AND THE
ACCOUNTS  RELATED  THERETO.  THIS  INSTRUMENT  COVERS  GOODS WHICH ARE OR ARE TO
BECOME  FIXTURES  ON  THE REAL PROPERTY DESCRIBED HEREIN, AND IS TO BE FILED FOR
RECORD,  AMONG  OTHER  PLACES,  IN  THE  REAL  ESTATE  OR  COMPARABLE RECORDS OF

<PAGE>
THE  COUNTIES  REFERENCED IN EXHIBIT A HERETO AND SUCH FILING SHALL SERVE, AMONG
OTHER PURPOSES, AS A FIXTURE FILING.  THE MORTGAGOR HAS AN INTEREST OF RECORD IN
THE  REAL ESTATE, WHICH INTEREST IS DESCRIBED IN SECTION 1.1 OF THIS INSTRUMENT.

<TABLE>
<CAPTION>
<S>                                      <C>
ADDRESS  OF  TRUSTEE:                    ADDRESS  OF  MORTGAGEE:

                                         BLACK  STONE  ACQUISITIONS  PARTNERS II, L.P.

                                         BLACK  STONE ACQUISITIONS PARTNERS II-B, L.P.

J.  NICHOLAS  BARTH                      HATFIELD  ROYALTY,  L.  P.

P.  O.  BOX  129                         1001  FANNIN,  SUITE  2020

CHARLESTON,  WEST  VIRGINIA  25321-0129  HOUSTON,  TEXAS  77002

                                         ATTENTION:  J.  A.  MILLS
</TABLE>

                CREDIT LINE DEED OF TRUST, MORTGAGE, ASSIGNMENT,
           SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT
                                (this "Mortgage")

                                   ARTICLE I.

                     Granting Clauses: Secured Indebtedness
                     --------------------------------------

     Section  1.1.     Grant and Mortgage.  Eastern American Energy Corporation,
     ------------------------------------
a  West  Virginia  corporation  (herein  called  "Mortgagor"),  for  and  in
consideration  of the sum of Ten Dollars ($10.00) to Mortgagor in hand paid, and
in  order to secure the payment of the secured indebtedness hereinafter referred
to and the performance of the obligations, covenants, agreements, warranties and
undertakings  of Mortgagor and of Energy Corporation of America, a West Virginia
corporation  (herein  called  "ECA")  hereinafter  described, does hereby GRANT,
BARGAIN,  SELL,  CONVEY, TRANSFER, ASSIGN and SET OVER to J. Nicholas Barth (the
"Trustee"),  who is a resident of Kanawha County, West Virginia, for the benefit
of Black Stone Acquisitions Partners II, L.P., Black Stone Acquisitions Partners
II-B,  L.P. and Hatfield Royalty, L.P. (herein collectively called "Mortgagee"),
and  does  hereby assign to Mortgagee and grant to Mortgagee a security interest
in,  the  following  described  properties, rights and interests (the "Mortgaged
Properties"  or  "Collateral"):

                                        2
<PAGE>
          All  of  Mortgagor's right, title and interest in and to the
          oil,  gas  and/or  other mineral leases and properties which
          are described in Exhibit A attached hereto and identified as
          the  "Yawkey Freeman AMI" as more particularly designated on
          Exhibit  B  attached hereto and made a part hereof, together
          with,  in  each  case to the extent related to the Mortgaged
          Properties  (i)  all  of  Mortgagor's  interest (whether now
          owned  or  hereafter  acquired  by  operation  of  law  or
          otherwise)  in  and  to all presently existing and hereafter
          created  oil,  gas  and/or  mineral  unitization,  pooling
          agreements,  declarations  and/or  orders, and in and to the
          properties,  rights  and  interests  covered  and  the units
          created thereby (including, without limitation, units formed
          under  orders,  rules, regulations or other official acts of
          any  federal, state or other authority having jurisdiction),
          which  cover,  affect or otherwise relate to the properties,
          rights  and  interests  granted  above  (ii) a non-exclusive
          right  to  use  all  easements,  rights-of-way,  servitudes,
          surface  leases, surface use agreements, and other rights or
          agreements related to the use of the surface and subsurface,
          in  each case to the extent directly used in connection with
          the  development  and operation of the Mortgaged Properties,
          (iii) to the extent assignable or transferable, all permits,
          licenses,  franchises, consents, approvals and other similar
          rights  and  privileges, in each case to the extent directly
          related  to  the  development and operation of the Mortgaged
          Properties,  (iv)  to  the extent assignable or transferable
          all  contracts,  agreements,  operating  agreements, service
          agreements,  gas gathering and transportation agreements and
          other  arrangements;  and  (v)  to  the extent assignable or
          transferable,  copies  of  all  books, records, files, maps,
          non-interpretative  geological  data,  muniments  of  title,
          reports  and  similar  materials  relating  to the Mortgaged
          Properties,  subject  to the reservations and exceptions set
          forth  on  Exhibit  A  and  also  specifically reserving and
          excepting  from  this  Mortgage  the  following:

          All  of  the  right,  title,  and  interest  of Mortgagor of
          whatever kind or character in and to (i) the wells listed on
          Exhibit  A-1,  (ii)  all  rights (including rights under the
          leases  or other agreements described on Exhibit A-1) to the
          extent  necessary  or  convenient for the development of and
          production  from  the  wells listed on Exhibit A-1, and (ii)
          the  Well  Sites relating to the wells listed on Exhibit A-1
          (as hereinafter defined) (including, without limitation, all
          oil,  gas,  and  other  hydrocarbons, and minerals in place)
          (the  "Excepted  Wells").

          In  addition, in the event Mortgagor acquires any additional
          lease  or  leases  in  the  Yawkey  Freeman  AMI  prior  to
          satisfaction  of  the  secured indebtedness, Mortgagor shall
          execute  and  deliver  to  the

                                        3
<PAGE>
          Trustee a Supplemental Credit Line Deed of Trust adding such
          lease  or  leases  to  the  Mortgaged  Properties.

     TO  HAVE  AND  TO  HOLD  the Mortgaged Properties unto the Trustee, and his
successors  or  substitutes,  in  trust, however, upon the terms, provisions and
conditions  herein  set  forth.  The  reservation of the Excepted Wells above is
intended  to  exclude  from the lien of this Mortgage all the Mortgagor's right,
title  and  interest  in  and  to  the  Excepted  Wells,  together  with all the
Mortgagor's  right, title and interest in and to those portions of the leasehold
interests  described  on  Exhibit  A  which  are (1) located within the geologic
formation(s)  into  which  each  Excepted  Well  is completed or from which each
Excepted  Well  has  produced or is producing hydrocarbons at any time up to and
including  the  date of this instrument or which are hereafter produced from the
Excepted  Wells;  and  (2)  geographically  located  within  the "Well Site" (as
defined  below)  for  each  of  the  Excepted  Wells.

     As  used  herein,  the "Well Site" for an Excepted Well shall be defined as
follows:  (a)  the geographic area designated adjacent to the specified Excepted
Well  shall be the Well Site for that Excepted Well; (b) if (a) of this sentence
does  not  apply,  but  a  unit has been formed for said Excepted Well by either
voluntary  or  mandatory pooling, then the unit so formed shall be the Well Site
for that  Excepted Well; (c) if neither (a) nor (b) of this sentence applies but
the  state  in  which  the  Excepted  Well  is located has established a minimum
spacing  unit or pattern for the Excepted Well, then the minimum spacing unit or
pattern  so  designated  shall  be  the Well Site for that Excepted Well (if the
shape  of said unit or pattern is not specified, the shape shall be as nearly as
possible a circle with the Excepted Well at the center); and (d) if none of (a),
(b)  or  (c)  of this sentence applies, then the Well Site for the Excepted Well
shall  be  a  circle  with a radius of 1,250 feet and the center of which is the
Excepted  Well  bore  of  such Excepted Well.  In addition to the foregoing, the
Well  Site  for  each  Excepted  Well  shall include all necessary or convenient
rights  of  ingress  and  egress  to  and  from the Excepted Well, all rights to
transport  hydrocarbons  to  market  from  the  Excepted Well and all rights and
ground  upon which tanks, separators, pipelines and other facilities used for or
in  connection  with the operation of the Excepted Well.  Mortgagee acknowledges
the  execution  and  delivery  simultaneously  herewith  of  the  Term  Royalty
Conveyance  from  ECA  and  Mortgagor.  The  Term  Royalty  Interest conveyed to
Mortgagee  pursuant  to  the  Term  Royalty  Conveyance  is  not included in the
Mortgaged  Properties.

     Section  1.2.     Loan Documents, Other Obligations.  This Mortgage is made
     ---------------------------------------------------
to  secure and enforce the payment and performance of the following obligations,
indebtedness  and  liabilities:

          (a)     The obligation of ECA to satisfy the Total Drilling Commitment
     by  the  Drilling Obligation Completion Date (plus the 90 day grace period)
     pursuant  to  Section 2.1(a) of that certain Development Agreement dated as
     of  June  10,  2005 among ECA, Mortgagor and Mortgagee and all restatements
     thereof,  supplements thereto and amendments and modifications thereof, and
     all agreements given in substitution therefor or in restatement, renewal or
     extension  thereof,  in whole or in part (such Development Agreement as the
     same  may from time to time be restated, supplemented, amended or modified,
     and  all other agreements given in substitution therefor or in restatement,
     renewal  or extension thereof, in whole or in part, being herein called the
     "Development

                                        4
<PAGE>
     Agreement")  (the  Development  Agreement,  this  Mortgage,  and  any other
     instrument now or hereafter evidencing, governing, guaranteeing or securing
     the secured indebtedness (as hereinafter defined) or any part thereof being
     herein  sometimes  collectively  called  the  "Loan  Documents");

          (b)     Any and all sums advanced as expenses or costs incurred by, or
     on behalf of, the Mortgagee (or any receiver appointed hereunder) which are
     made  or  incurred pursuant to, or permitted by, the terms of this Mortgage
     or  the  other  Loan  Documents,  plus  interest thereon at the rate herein
     specified or otherwise agreed upon, from the date of advance or expenditure
     until  reimbursed;

          (c)     All  expenses  (including  but  not  limited  to  reasonable
     attorneys'  fees)  incurred by the Trustee or Mortgagee in enforcing any of
     the  Loan  Documents;  and

          (d)     Without  limiting  the  generality  of  the  foregoing,  all
     post-petition  interest,  expenses,  and  other duties and liabilities with
     respect  to  indebtedness  or  other  obligations  described  above in this
     Section  1.2,  which  would  be  owed  but  for  the  fact  that  they  are
     unenforceable  or  not  allowable  due  to  the  existence of a bankruptcy,
     reorganization,  or  similar  proceeding.

     Section  1.3.     Secured  Indebtedness.  The obligations, indebtedness and
     ---------------------------------------
liabilities  referred  to in Section 1.2 are herein sometimes referred to as the
"secured indebtedness" or the "indebtedness secured hereby."

     Section  1.4.     Limitation  on  Obligation.  The parties hereto agree and
     --------------------------------------------
acknowledge  that  as  of  the  date  of  this  Credit  Line  Deed  of Trust the
indebtedness  secured  hereby  does  not  exceed the aggregate maximum amount of
$24,000,000.  The parties further agree and acknowledge that as the indebtedness
secured  hereby  reduces  proportionately  under  the  terms  of the Development
Agreement,  this lien shall be released as to each Completed Development Well as
the  same  is  completed  in accordance with the Development Agreement, and that
upon Mortgagor's request and at Mortgagor's expense, Mortgagee shall execute and
deliver  a partial release, which will release in full the lien of this Mortgage
with  respect to the Well Site relating to each such Completed Development Well.
In  addition,  upon  Mortgagor's  request  and at Mortgagor's expense, Mortgagee
shall execute and deliver a partial release, which will release in full the lien
of  this Mortgage with respect to the Well Site relating to any Development Well
that  does  not  constitute  a  Completed  Development  Well.

     Section  1.5.     West  Virginia  Credit  Line  Deed  of  Trust and Maximum
     ---------------------------------------------------------------------------
Amount.  This  Mortgage  is  a  "credit  line  deed  of  trust"  and  secures an
------
obligation  which  permits  or  requires  future advances; all such advances are
intended  to  be obligatory advances under the terms of this credit line deed of
trust  or  other  agreements  evidencing  the  indebtedness secured hereby which
Mortgagee  is  legally  obligated to make in the absence of a default, breach or
other  such  event.  In West Virginia, the secured indebtedness shall not exceed
the  aggregate maximum amount of $24,000,000 plus any taxes, insurance premiums,
interest, expenses or other obligations which may be required or provided for in
the  Development  Agreement  or  this  Mortgage.

                                        5
<PAGE>
                                   ARTICLE II.

                    Representations, Warranties and Covenants
                    -----------------------------------------

     Section  2.1.     Mortgagor represents, warrants, and covenants as follows:

          (a)     Title  and  Permitted  Encumbrances.  Subject to the interests
                  -----------------------------------
     conveyed to Mortgagee under the Term Royalty Conveyance, Mortgagor warrants
     to  Mortgagee  that  the  Mortgaged Properties are free of all encumbrances
     created  by,  through  or  under  Mortgagor,  except for (i) the contracts,
     agreements,  burdens,  encumbrances  and  other  matters  set  forth in the
     descriptions  of  certain  of the Mortgaged Properties on Exhibit A hereto,
                                                               ---------
     (ii) the liens and security interests evidenced by this Mortgage, and (iii)
     all  Permitted  Encumbrances  (as  defined in the Term Royalty Conveyance).
     With respect to each Mortgaged Property, the ownership of Mortgagor in such
     Mortgaged  Property  does and will entitle Mortgagor to receive (subject to
     the terms and provisions of this Mortgage) a decimal or percentage share of
     the  oil,  gas  and other hydrocarbons produced from, or allocated to, such
     Mortgaged  Property not less than the decimal or percentage share set forth
     in  Exhibit  A in connection with such Mortgaged Property unit opposite the
         ----------
     words "Net Revenue Interest" (or words of similar import).

          (b)     Leases  and  Contracts;  Performance of Obligations.  The oil,
                  ---------------------------------------------------
     gas  and/or  mineral  leases,  contracts,  servitudes  and other agreements
     forming a part of the Mortgaged Properties, to the extent the same cover or
     otherwise  relate to the Mortgaged Properties, are in full force and effect
     in  all  material respects. All rents, royalties and other payments due and
     payable  under  such leases, contracts, servitudes and other agreements, or
     under  the  Permitted Encumbrances, or otherwise attendant to the ownership
     or  operation  of  the Mortgaged Properties, have been (and with respect to
     any  Mortgaged  Property  which  is  a working interest operated by a party
     other  than  Mortgagor,  and  such operator is responsible for such payment
     under  applicable  agreements, to the knowledge of Mortgagor have been) and
     will  continue to be, properly and timely paid. Mortgagor is not in default
     with  respect to Mortgagor's obligations (and Mortgagor is not aware of any
     default  by any third party with respect to such third party's obligations)
     under such leases, contracts, servitudes and other agreements, or under the
     Permitted  Encumbrances,  or  otherwise  attendant  to  the  ownership  or
     operation of any part of the Mortgaged Properties, where such default could
     materially  adversely  affect  the  ownership or operation of the Mortgaged
     Properties;  Mortgagor  will fulfill all such obligations coming due in the
     future.

          (c)     Operation  of  Mortgaged  Properties.  Each Mortgaged Property
                  ------------------------------------
     (and  properties  unitized therewith) is being (and, to the extent the same
     could  materially  adversely  affect  the  ownership  or  operation of such
     Mortgaged  Properties  after  the  date  hereof, has in the past been), and
     hereafter  will  be,  maintained,  operated  and  developed  in  a good and
     workmanlike  manner,  in  accordance with prudent industry standards and in
     conformity  with  all applicable laws and all rules, regulations and orders
     of  all  duly constituted authorities having jurisdiction and in conformity
     with  all  oil,  gas  and/or  other  mineral leases and other contracts and
     agreements  forming  a  part  of the Mortgaged Properties and in conformity
     with  the  Permitted  Encumbrances.  Mortgagor  has,  and  will

                                        6
<PAGE>
     have  in  the  future,  all  governmental licenses and permits necessary or
     appropriate  to own and operate the Mortgaged Properties; Mortgagor has not
     received  notice  of  any  violations  in  respect  of any such licenses or
     permits.

          (d)     Sale  or  Disposal.  Mortgagor's  ability  to  transfer  or
                  ------------------
     otherwise  dispose  of  the  Mortgaged  Properties  shall be subject to the
     restrictions  set  forth  in  the  Term  Royalty  Conveyance.

          (e)     Ad  Valorem  and  Severance  Taxes.  Mortgagor  has  paid  and
                  ----------------------------------
     discharged,  and  will  continue  to  pay and discharge, all ad valorem and
     other  taxes assessed against the Mortgaged Properties provided, that items
     of the foregoing description need not be paid while being contested in good
     faith  by  appropriate  proceedings  diligently  conducted,  and  provided,
     further,  that  reserves  adequate  under  GAAP  have been established with
     respect  thereto, and provided, further, that Mortgagor's title to, and its
     right  to use, the Mortgaged Properties are not adversely affected thereby.
     Promptly  following  the  conclusion  of  such  contest,  Mortgagor  shall
     discharge  or  satisfy  any  lien, claim, encumbrance, security interest or
     exception  which  affects the Mortgaged Properties as a result of, or which
     was  the  subject  of,  such  contest.

          (f)     Suits  and Claims.  There are no suits, actions, arbitrations,
                  -----------------
     claims,  investigations,  inquiries, proceedings or demands pending (or, to
     Mortgagor's  knowledge,  threatened)  which  materially  affect Mortgagor's
     interest  in  the  Mortgaged Properties (including, without limitation, any
     which  challenge or otherwise pertain to Mortgagor's title to the Mortgaged
     Properties)  and  no judicial, administrative or arbitral actions, suits or
     proceedings  pending  (or,  to  Mortgagor's  knowledge, threatened) against
     Mortgagor.

          (g)     Identification  of  Mortgagor.  The  cover  page  to  this
                  -----------------------------
     instrument  lists  the  full  legal  name of Mortgagor as registered in the
     jurisdiction  in  which  Mortgagor  is  organized,  formed or incorporated,
     Mortgagor's  taxpayer  identification  number,  Mortgagor's jurisdiction of
     incorporation,  its  organizational  identification number as designated by
     the  jurisdiction  of  its  incorporation. Mortgagor is not now and has not
     been  known  by  any  trade  name  or  assumed  name.

          (h)     Fees  and  Expenses:  Indemnity.  Mortgagor  will  reimburse
                  -------------------------------
     Trustee  and Mortgagee (for purposes of this paragraph, the terms "Trustee"
     and  "Mortgagee" shall include the directors, officers, partners, employees
     and  agents  of  Trustee  or  Mortgagee,  respectively,  and any persons or
     entities  owned  or  controlled  by or affiliated with Trustee or Mortgagee
     respectively)  for  all  expenditures, including reasonable attorneys' fees
     and  expenses,  incurred  or  expended in connection with (i) the breach by
     Mortgagor  of  any  covenant, agreement or condition contained herein or in
     any  other  Loan Document, (ii) the exercise by Mortgagee and/or Trustee of
     any  of  their  rights  and  remedies  hereunder  or  under  any other Loan
     Document,  and  (iii)  the  protection  of  the Mortgaged Properties and/or
     Mortgagee's  and/or  Trustee's liens and security interests therein, all of
     which  shall  constitute a portion of the secured indebtedness and shall be
     secured  by  this Mortgage and by any other instrument securing the secured
     indebtedness.

                                        7
<PAGE>
          (i)     Indemnification.  Mortgagor  will  indemnify,  defend and hold
                  ----------------
     harmless  Mortgagee,  its  officers,  directors,  employees,  agents  and
     shareholders (collectively, the "Indemnified Parties") from and against all
                                      -------------------
     claims,  demands,  liabilities,  causes  of  action,  losses,  penalties,
     obligations,  damages,  judgments,  deficiencies  and  expenses (including,
     without  limitation,  interest, penalties, attorneys' fees and amounts paid
     in  settlement)  on account of any act performed or omitted to be performed
     hereunder,  or  on  account of any transaction arising out of or in any way
     connected with the Mortgaged Property, this Mortgage, or any of the secured
     indebtedness,  expressly including any such claim, demand, liability, cause
     of  action, loss, penalty, damage, obligation, action, judgment, deficiency
     or expense attributable to the ordinary, sole or contributory negligence of
     such Indemnified Party; provided that Mortgagor shall not be liable for any
     portion  of  such  claims,  demands, liabilities, causes of action, losses,
     penalties,  obligations,  damages,  judgments,  deficiencies  or  expenses
     resulting  from the gross negligence or willful misconduct of the person to
     be  indemnified, or resulting from personal injury to any individual. It is
     the  intent  of  Mortgagor that each Indemnified Party shall be indemnified
     for  its  ordinary,  sole  or  contributory  negligence.

          (j)     Records,  Statements  and  Reports.  The  Mortgagor  will keep
                  ----------------------------------
     proper  books  of record and account in which complete correct entries will
     be made of the Mortgagor's transactions in accordance with sound accounting
     principles  consistently  applied and will furnish or cause to be furnished
     to the Mortgagee (a) all reports required under the Loan Documents, and (b)
     such  other  information  concerning the business and affairs and financial
     condition  of  the  Mortgagor  as  the  Mortgagee  may  from  time  to time
     reasonably  request.

          (k)     No  Governmental  Approvals.  The  Mortgagor  warrants that no
                  --------------------------
     approval  or  consent  of  any  regulatory  or administrative commission or
     authority, or of any other governmental body, is necessary to authorize the
     execution  and  delivery  of  this  instrument,  or  any  of the other Loan
     Documents  or  the  Notes, or to authorize the observance or performance by
     the  Mortgagor  of  the  covenants  herein  or  therein  contained.

          (l)     Third Party Mortgage.  The value of the consideration received
                  ---------------------
     and to be received by Mortgagor is reasonably worth at least as much as the
     liability  and  obligation  of  Mortgagor  incurred  or  arising under this
     Mortgage  and all related papers and arrangements. Mortgagor has determined
     that  such  liability  and  obligation  may  reasonably  be  expected  to
     substantially  benefit Mortgagor directly or indirectly (or if Mortgagor is
     a corporation, Mortgagor's board of directors has made that determination).
     Mortgagor  has  had  full  and  complete  access  to  the underlying papers
     relating  to  the secured indebtedness and all other papers executed by ECA
     or  any other person or entity in connection with the secured indebtedness,
     has  reviewed  them  and  is fully aware of the meaning and effect of their
     contents.  Mortgagor is fully informed of all circumstances which bear upon
     the  risks  of  executing  this Mortgage and which a diligent inquiry would
     reveal.  Mortgagor  has  adequate  means to obtain from ECA on a continuing
     basis information concerning ECA's financial condition and is not depending
     on  Mortgagee  to provide such information, now or in the future. Mortgagor
     agrees  that  Mortgagee  shall

                                        8
<PAGE>
     have  no  obligation  to advise or notify Mortgagor or to provide Mortgagor
     with  any  data  or  information.

     Section  2.2.     Further  Assurances.  Mortgagor  will,  on  request  of
                       -------------------
Mortgagee,  (i)  promptly  correct  any  defect,  error or omission which may be
discovered  in  the contents of this Mortgage, or in any other Loan Document, or
in  the execution or acknowledgment of this Mortgage or any other Loan Document,
(ii)  execute,  acknowledge,  deliver  and  record  and/or  file  such  further
instruments  (including,  without limitation, further deeds of trust, mortgages,
security  agreements,  financing  statements,  continuation  statements,  and
assignments  of  production,  accounts,  funds,  contract  rights,  general
intangibles,  and  proceeds)  and  do  such  further  acts  as may be reasonably
necessary,  desirable  or  proper  to carry out more effectively the purposes of
this  Mortgage  and  the  other  Loan  Documents  and to more fully identify and
subject  to  the  liens  and  security interests hereof any Mortgaged Properties
intended  to  be covered hereby, including specifically, but without limitation,
any  renewals,  additions,  substitutions, replacements, or appurtenances to the
Mortgaged  Properties,  and (iii) execute, acknowledge, deliver, and file and/or
record  any  document  or  instrument  (including  specifically  any  financing
statement)  reasonably  necessary  to  protect the lien or the security interest
hereunder  against the rights or interests of third persons. Mortgagor shall pay
all  reasonable  costs  connected  with any of the foregoing, all of which shall
constitute  a  portion  of the secured indebtedness and shall be secured by this
Mortgage  and  by  any  other  instrument  securing  the  secured  indebtedness.

     Section 2.3.     Performance by Mortgagee on Mortgagor's Behalf.  Mortgagor
                      ----------------------------------------------
agrees  that,  if Mortgagor fails to perform any act or to take any action which
hereunder  Mortgagor  is  required to perform or take, or to pay any money which
hereunder  Mortgagor  is  required to pay, Mortgagee, in Mortgagor's name or its
own  name,  may, but shall not be obligated to, perform or cause to be performed
such  act or take such action or pay such money, and any expenses so incurred by
Mortgagee  and any money so paid by Mortgagee shall be a demand obligation owing
by  Mortgagor to Mortgagee (which obligation Mortgagor hereby expressly promises
to  pay)  and Mortgagee, upon making such payment, shall be subrogated to all of
the  rights  of  the person, corporation or body politic receiving such payment,
all of which shall constitute a portion of the secured indebtedness and shall be
secured  by  this  Mortgage  and  by  any  other instrument securing the secured
indebtedness.  Mortgagor  shall  notify  Mortgagee  in writing with all relevant
information  concerning  any  default  by  Mortgagor under any credit obligation
within  ten  (10) days of the first event of such default, together with monthly
updates  as  to  the  status  thereof.

                                  ARTICLE III.

                              Remedies Upon Default
                              ---------------------

     Section  3.1.     Default.  The  term  "default"  as  used in this Mortgage
                       -------
shall  mean any failure to satisfy the Total Drilling Commitment by the Drilling
Obligation Completion Date (plus the 90 day grace period) as provided in Section
2.1  of  the  Development  Agreement.

          (a)     The  failure  or refusal of the Mortgagor or ECA to punctually
     and  properly  observe,  keep  and  perform  any  covenant,  agreement  or
     undertaking  contained in this Mortgage or contained in any other mortgage,
     deed  of  trust,  security  agreement,  collateral

                                        9
<PAGE>
     pledge agreement, assignment, or contract of any kind, securing or assuring
     the  payment  of  the  Indebtedness;  or

          (b)     Any representation or warranty made by the Mortgagor herein or
     by  Mortgagor  and/or ECA in any other agreement securing or evidencing all
     or  any  portion  of the secured indebtedness proves untrue in any material
     respect;  provided  however,  that  the  sole  remedy  for  a breach of the
     representations  set  forth  in  Section  2.1(a)  herein shall be the title
     adjustment  provision  set  forth  in  the  Conveyance;  or

          (c)     Mortgagor  or  ECA  shall  commence  a voluntary case or other
     proceeding seeking liquidation, reorganization or other relief with respect
     to  itself  or  its debts under any bankruptcy, insolvency or other similar
     law  now  or  hereafter  in effect or seeking the appointment of a trustee,
     receiver,  liquidator,  custodian  or  other  similar official of it or any
     substantial part of its property, or shall consent to any such relief or to
     the  appointment  of  or  taking  possession  by  any  such  official in an
     involuntary  case or other proceeding commenced against it, or shall make a
     general assignment for the benefit of creditors, or shall fail generally to
     pay  its  debts  as  they  become due, or shall take any corporate or other
     action  to  authorize  any  of  the  foregoing;  or

          (d)     an  involuntary  case  or  other proceeding shall be commenced
     against  Mortgagor  or  ECA  seeking  liquidation,  reorganization or other
     relief  with respect to it or its debts under any bankruptcy, insolvency or
     other  similar law now or hereafter in effect or seeking the appointment of
     a  trustee, receiver, liquidator, custodian or other similar official of it
     or any substantial part of its property, and such involuntary case or other
     proceeding shall remain undismissed or unstayed for a period of 30 days; or
     an  order  for  relief  shall be entered against Mortgagor or ECA under the
     federal  bankruptcy  laws  as  now  or  hereafter  in  effect which remains
     undismissed  or  unstayed  for  a  period  of  30  days;  or

           (e)     any  material  portion  of  the Mortgaged Properties shall be
     seized  or  taken by any governmental or similar authority, or any order of
     attachment, garnishment or any other writ shall be issued (and shall not be
     stayed  or  bonded or lifted within the applicable time for appeal), or any
     other  lawful  creditor's  remedy  shall  be  exercised  or attempted to be
     exercised,  with  respect  thereto.

     Section  3.2.     Pre-Foreclosure  Remedies.     Upon  the  occurrence of a
                       -------------------------
default,  or  any  event  or  circumstance  which, with the lapse of time or the
giving of notice, or both, would constitute a default hereunder,

          (a)     Mortgagee  is  authorized,  prior  or  subsequent  to  the
     institution  of  any  foreclosure  proceedings, to enter upon the Mortgaged
     Properties,  or  any  part thereof, and to take possession of the Mortgaged
     Properties  and  all  books  and  records relating thereto, and to exercise
     without  interference from Mortgagor any and all rights which Mortgagor has
     with  respect  to  the  management,  possession,  operation,  protection or
     preservation  of  the  Mortgaged  Properties.  If  necessary  to obtain the
     possession provided for above, Mortgagee may invoke any and all remedies to
     dispossess  Mortgagor.  All  costs,  expenses  and  liabilities  of  every
     character  incurred  by  Mortgagee  in  managing,  operating,

                                       10
<PAGE>
     maintaining,  protecting  or  preserving  the  Mortgaged  Properties  shall
     constitute a demand obligation (which obligation Mortgagor hereby expressly
     promises  to  pay)  owing by Mortgagor to Mortgagee and shall bear interest
     from  date  of  expenditure  until  paid at the rate of equal to the "prime
     rate" announced within the principle office of Wells Fargo Foothill, Inc.'s
     in San Francisco, California, plus two percent (2%) (the DEFAULT RATE), all
     of  which  shall constitute a portion of the secured indebtedness and shall
     be  secured  by  this  Mortgage  and  by  any other instrument securing the
     secured  indebtedness.  In  connection  with  any action taken by Mortgagee
     pursuant  to  this  Section 3.2, MORTGAGEE SHALL NOT BE LIABLE FOR ANY LOSS
     SUSTAINED  BY  MORTGAGOR RESULTING FROM ANY ACT OR OMISSION OF MORTGAGEE IN
     MANAGING THE MORTGAGED PROPERTIES UNLESS SUCH LOSS IS CAUSED BY THE WILLFUL
     MISCONDUCT  AND BAD FAITH OF MORTGAGEE, nor shall Mortgagee be obligated to
     perform or discharge any obligation, duty or liability of Mortgagor arising
     under  any  agreement forming a part of the Mortgaged Properties or arising
     under  any  Permitted  Encumbrance  or  otherwise  arising.

          (b)     Mortgagee may execute and deliver to such person or persons as
     maybe designated by the Mortgagee appropriate powers of attorney to act for
     and  on behalf of the Mortgagor in all transactions with any federal, state
     or  local  agency  relating  to  any  of  the  Mortgaged  Property.

     Section  3.3.     Foreclosure.
                       -----------

          (a)     Upon  the  occurrence  of a default, Trustee is authorized and
     empowered  and  it  shall  be  Trustee's  special  duty  at  the request of
     Mortgagee  to  sell  the  Mortgaged  Properties, or any part thereof, as an
     entirety  or in parcels as Mortgagee may elect, at such place or places and
     otherwise  in the manner and upon such notice as may be required by law or,
     in the absence of any such requirement, as Trustee may deem appropriate. If
     Trustee  shall  have  given  notice  of  sale  hereunder,  any successor or
     substitute  Trustee  thereafter  appointed  may  complete  the sale and the
     conveyance  of  the Mortgaged Properties pursuant thereto as if such notice
     had  been given by the successor or substitute Trustee conducting the sale.
     Cumulative  of  the foregoing and the other provisions of this Article III:

               (i)     Notice  of  sale shall be given by publishing such notice
          in  some  newspaper  of general circulation in each county wherein any
          part  of such Mortgaged Properties are located, or if there be no such
          newspapers  of  general  circulation in the county of proposed sale as
          provided  by  law,  on  the date of sale, notice of such sale shall be
          duly  published  in an appropriate newspaper in an adjoining county of
          Trustee's  choice.  Notice  shall  be  published  as  a Class II legal
          advertisement  in accordance with West Virginia Code, Sections 59-3-1,
          et  seq.  and  38-1-4.

          (b)     Upon  the  occurrence of a default, Mortgagee may exercise its
     rights  of  enforcement  with  respect  to the Collateral under the Uniform
     Commercial Code of the State of West Virginia or any other statute in force
     in  any  state  to the extent the same is applicable law. Cumulative of the
     foregoing  and  the  other  provisions  of  this  Article  III:

                                       11
<PAGE>
               (i)     Mortgagee  may  enter  upon  the  Mortgaged Properties or
          otherwise  upon  Mortgagor's  premises to take possession of, assemble
          and  collect  the  Collateral  or  to  render  it  unusable;  and

               (ii)     Mortgagee  may  require  Mortgagor  to  assemble  the
          Collateral and make it available at a place Mortgagee designates which
          is  mutually  convenient  to  allow  Mortgagee  to  take possession or
          dispose  of  the  Collateral;  and

               (iii)     written  notice  mailed to Mortgagor as provided herein
          at  least  ten  (10)  days  prior  to  the  date of public sale of the
          Collateral  or  prior  to  the  date  after  which private sale of the
          Collateral  will  be  made  shall  constitute  reasonable  notice; and

               (iv)     in  the  event  of  a  foreclosure  of  the liens and/or
          security  interests  evidenced  hereby,  the  Collateral,  or any part
          thereof, and the Mortgaged Properties, or any part thereof may, at the
          option  of  Mortgagee,  be  sold,  as a whole or in parts, together or
          separately  (including,  without  limitation,  where  a portion of the
          Mortgaged  Properties  is  sold, the Collateral related thereto may be
          sold  in  connection  therewith);  and

               (v)     the  expenses  of  sale  provided  for in clause FIRST of
          Section  3.3  shall  include  the  reasonable expenses of retaking the
          Collateral  or  any  part  thereof, holding the same and preparing the
          same  for  sale  or  other  disposition;  and

               (vi)     should,  under  this  subsection,  the  Collateral  be
          disposed of other than by sale, any proceeds of such disposition shall
          be  treated  as  if  the  same  were  sales  proceeds.

          (c)     To the extent permitted by applicable law, the sale by Trustee
     or  Mortgagee  hereunder of less than the whole of the Mortgaged Properties
     shall  not  exhaust  the  powers  of  sale  herein  granted or the right to
     judicial  foreclosure,  and  successive sale or sales may be made until the
     whole  of  the  Mortgaged Properties shall be sold, and, if the proceeds of
     such  sale of less than the whole of the Mortgaged Properties shall be less
     than  the  aggregate  of the indebtedness secured hereby and the expense of
     conducting  such  sale,  this Mortgage and the liens and security interests
     hereof  shall  remain  in full force and effect as to the unsold portion of
     the  Mortgaged  Properties  just as though no sale had been made; provided,
     however,  that  Mortgagor shall never have any right to require the sale of
     less  than  the  whole  of  the Mortgaged Properties. In the event any sale
     hereunder  is  not  completed  or is defective in the opinion of Mortgagee,
     such  sale  shall  not exhaust the powers of sale hereunder or the right to
     judicial  foreclosure,  and  Mortgagee  shall  have  the  right  to cause a
     subsequent  sale  or  sales  to  be  made.  Any  sale  may  be adjourned by
     announcement  at the time and place appointed for such sale without further
     notice  except  as  may be required by law. The Trustee or his successor or
     substitute  may  appoint  or  delegate  any one or more persons as agent to
     perform  any  act  or  acts  necessary  or  incident to any sale held by it
     (including,  without  limitation, the posting of notices and the conduct of
     sale), and any such appointment need not be in writing or recorded. Any and
     all  statements  of  fact  or  other recitals made in any deed or deeds, or

                                       12
<PAGE>
     other  instruments  of  transfer,  given  in  connection  with a sale as to
     nonpayment  of  the  secured  indebtedness  or  as to the occurrence of any
     default, or as to Mortgagee's having declared all of indebtedness to be due
     and  payable,  or as to the request to sell, or as to notice of time, place
     and terms of sale and the properties to be sold having been duly given, or,
     with  respect  to  any  sale by the Trustee, or any successor or substitute
     trustee,  as  to the refusal, failure or inability to act of Trustee or any
     substitute  or  successor  trustee  or the appointment of any substitute or
     successor  trustee,  or as to any other act or thing having been duly done,
     shall  be taken as prima facie evidence of the truth of the facts so stated
     and  recited.  With  respect  to  any sale held in foreclosure of the liens
     and/or security interests covered hereby, it shall not be necessary for the
     Trustee,  Mortgagee,  any public officer acting under execution or order of
     the  court  or any other party to have physically present or constructively
     in  his/her or its possession, either at the time of or prior to such sale,
     the  Mortgaged  Properties  or  any  part  thereof.

     Section 3.4.     Proceeds of Foreclosure.  The proceeds of any sale held in
                      -----------------------
foreclosure  of  the  liens  and/or security interests evidenced hereby shall be
applied:

               FIRST to the payment of all necessary costs and expenses incident
               -----
          to such foreclosure sale, including but not limited to all court costs
          and  charges  of  every  character in the event foreclosed by suit and
          including  but  not limited to a reasonable fee to the Trustee if such
          sale  was  made  by  the  Trustee  acting under the provisions of this
          Mortgage;

               SECOND  to  the  payment  of  the secured indebtedness (including
               ------
          specifically without limitation the principal, interest and attorneys'
          fees due and unpaid under the Credit Agreement and the amounts due and
          unpaid  and  owed to Mortgagee under this Mortgage) in such manner and
          order  as  Mortgagee  may  elect;  and

               THIRD,  the  remainder,  if  any there shall be, shall be paid to
               -----
          Mortgagor,  or  to  Mortgagor's  successors  or assigns, or such other
          persons  as  may  be  entitled  thereto  by  law.

     Section 3.5.     Mortgagee as Purchaser.  Mortgagee shall have the right to
                      ----------------------
become  the  purchaser  at  any  sale  held  in  foreclosure of the liens and/or
security  interests  evidenced  hereby,  and  Mortgagee  shall have the right to
credit  upon  the  amount  of  the bid made therefor, to the extent necessary to
satisfy  such  bid,  the  secured  indebtedness  owing  to  Mortgagee.

     Section  3.6.     Possession  of  the  Mortgaged  Property. It shall not be
                       ----------------------------------------
necessary  for the Mortgagee to have physically present or constructively in its
possession at any sale held by the Mortgagee or by any court, receiver or public
officer any or all of the Mortgaged Property, and the Mortgagor shall deliver to
the  purchaser at such sale on the date of sale the Mortgaged Property purchased
by such purchasers at such sale, and if it should be impossible or impracticable
for  any  of  such purchasers to take actual delivery of the Mortgaged Property,
then  the  title and right of possession to the Mortgaged Property shall pass to
the  purchaser  at  such  sale  as  completely  as if the same had been actually
present  and  delivered.

                                       13
<PAGE>
     Section  3.7.     Assignment  of  Non-UCC Personal Property.  To the extent
                       -----------------------------------------
that any of the Mortgaged Property is not subject to the Uniform Commercial Code
of  the  state  or  states  where  it  is  situated, Mortgagor hereby assigns to
Mortgagee all of Mortgagor's right, title and interest in the Mortgaged Property
to  secure  the  Indebtedness.  Release  of  the  lien  of  this  Mortgage shall
automatically  terminate  this  assignment.

     Section  3.8.     Receipt  to Purchaser.  Upon any sale, whether made under
                       ---------------------
the  power  of  sale  herein  granted  and  conferred  or  by virtue of judicial
proceedings,  the  receipt of the Mortgagee, or of the officer making sale under
judicial  proceedings,  shall  be  sufficient  discharge  to  the  purchaser  or
purchasers  at  any  sale for his or their purchase money, and such purchaser or
purchasers,  or  his  or  their  assigns or personal representatives, shall not,
after paying such purchase money and receiving such receipt of the trustee or of
such  officer  therefor,  be  obliged to see to the application of such purchase
money or be in anywise answerable for any loss, misapplication or nonapplication
thereof.

     Section  3.9.     Effect of Sale.  To the extent allowed by applicable law,
                       --------------
any  sale  or  sales  of the Mortgaged Property, whether under the power of sale
herein granted and conferred or by virtue of judicial proceedings, shall operate
to  divest all right, title, interest, claim and demand whatsoever either at law
or  in  equity,  of the Mortgagor, in and to the premises and the property sold,
and  shall be a perpetual bar, both at law and in equity, against the Mortgagor,
and  the  Mortgagor's  successors  or  assigns,  and against any and all persons
claiming  or  who  shall  thereafter claim all or any of the property sold from,
through  or  under  the  Mortgagor,  or  the  Mortgagor's successors or assigns.
Nevertheless,  the Mortgagor, if reasonably requested by the Mortgagee to do so,
shall  join in the execution and delivery of all proper conveyances, assignments
and  transfers  of  the  properties  so  sold.

     Section  3.10.     The  Mortgagor's  Waiver of Appraisement, Marshaling and
                        --------------------------------------------------------
Other  Rights.  The  Mortgagor agrees, to the full extent that the Mortgagor may
-------------
lawfully  so agree, that the Mortgagor will not at any time insist upon or plead
or  in  any  manner  whatsoever  claim  or take the benefit of any appraisement,
valuation, stay, extension or redemption law now or hereafter in force, in order
to  prevent  or  hinder the enforcement or foreclosure of this instrument or the
absolute  sale  of  the Mortgaged Property or any part thereof or the possession
thereof  by  any purchaser at any sale made pursuant to any provision hereof, or
pursuant  to  the  decree  of  any  court  of  competent  jurisdiction;  but the
Mortgagor,  for  the  Mortgagor  and  all  who  may  claim  through or under the
Mortgagor,  so  far  as  the  Mortgagor  or  those claiming through or under the
Mortgagor  now  or  hereafter lawfully may, hereby waives the benefit of all the
laws.  The  Mortgagor,  for the Mortgagor and all who may claim through or under
the  Mortgagor, waives, to the extent that the Mortgagor may lawfully do so, any
and  all  right to have the Mortgaged Property marshaled upon any foreclosure of
the  lien  hereof,  or  sold in inverse order of alienation, and agrees that the
Mortgagee  or  any court having jurisdiction to foreclose such lien may sell the
Mortgaged  Property  as  an entirety. If any law in this Section referred to and
now  in force, of which the Mortgagor or the Mortgagor's successor or successors
might  take advantage despite the provisions hereof, shall hereafter be repealed
or  cease  to be in force, such law shall not thereafter be deemed to constitute
any  part  of  the  contract  herein  contained  or to preclude the operation or
application  of  the  provisions  of  this  paragraph. Notwithstanding any other
provision

                                       14
<PAGE>
to  the  contrary provided in this Mortgage, if the Mortgagor establishes in any
judicial  proceeding  that  the fair market value of the Mortgaged Property sold
exceeded  the  sales  price  therefor,  then any deficiency otherwise obtainable
under  applicable  law  shall  be  reduced  by  such  amount.

                                   ARTICLE IV.

                                  Miscellaneous
                                  -------------

     Section 4.1.     Scope of Mortgage.  This Mortgage is a credit line deed of
                      -----------------
trust  and  mortgage of both real and personal property, a security agreement, a
financing  statement  and  an assignment, and also covers proceeds and fixtures.

     Section  4.2.     Effective as a Financing Statement.  This Mortgage covers
                       ----------------------------------
goods which are or are to become fixtures on the real property described herein,
and this Mortgage shall be effective as a financing statement filed as a fixture
filing  with  respect  to all fixtures included within the Mortgaged Properties.
This  Mortgage  shall  also  be  effective  as a financing statement, filed as a
fixture  filing,  covering  minerals  and other substances of value which may be
extracted  from  the  earth  (including  without  limitation  oil  and gas), and
accounts  related  thereto.  This Mortgage is to be filed for record in the real
property  records  of  each county where any part of the Mortgaged Properties is
situated.  This  Mortgage  shall  also  be  effective  as  a financing statement
covering  any  other  Mortgaged  Properties  and  may  be  filed  in  any  other
appropriate filing or recording office.  The mailing address of Mortgagor is the
address  of  Mortgagor  set forth at the end of this Mortgage and the address of
Mortgagee from which information concerning the security interests hereunder may
be  obtained  is the address of Mortgagee set forth at the end of this Mortgage.

     Section  4.3.     Reproduction  of  Mortgage  as  Financing  Statement.  A
                       ----------------------------------------------------
carbon, photographic, facsimile or other reproduction of this Mortgage or of any
financing statement relating to this Mortgage shall be sufficient as a financing
statement for any of the purposes referred to in this Mortgage.

     Section  4.4.     Waiver  by Mortgagee.  Mortgagee may at any time and from
                       --------------------
time  to  time in writing waive compliance by Mortgagor with any covenant herein
made  by Mortgagor to the extent and in the manner specified in such writing, or
consent  to  Mortgagor's  doing  any act which hereunder Mortgagor is prohibited
from doing, or to Mortgagor's failing to do any act which hereunder Mortgagor is
required  to  do,  to the extent and in the manner specified in such writing, or
release  any  part  of  the  Mortgaged Properties or any interest therein or any
Production  Proceeds  from  the  lien  and  security  interest of this Mortgage,
without  the joinder of Trustee, or release any party liable, either directly or
indirectly,  for  the  secured indebtedness or for any covenant herein or in any
other  Loan  Document, without impairing or releasing the liability of any other
party.  No  such  act  shall in any way impair the rights or powers of Mortgagee
(or  Trustee) hereunder except to the extent specifically agreed to by Mortgagee
in  such  writing.

     Section  4.5.     No  Impairment  of Security.  The lien, security interest
                       ---------------------------
and  other  security  rights of Mortgagee hereunder shall not be impaired by any
indulgence,  moratorium  or  release  granted  by  Mortgagee  including, but not
limited  to,  any  renewal,  extension or modification which Mortgagee may grant
with respect to any secured indebtedness, or any surrender,

                                       15
<PAGE>
compromise,  release,  renewal,  extension,  exchange  or  substitution  which
Mortgagee  may grant in respect of the Mortgaged Properties, or any part thereof
or  any  interest therein, or any release or indulgence granted to any endorser,
guarantor  or  surety  of  any  secured  indebtedness.

     Section  4.6.     Place  of Payment.  All secured indebtedness which may be
                       -----------------
owing  hereunder  at  any  time  by  Mortgagor  shall  be  payable  at the place
designated  in  the Development Agreement (or if no such designation is made, at
the  address  of  Mortgagee  indicated  at the end of this Mortgage), or at such
other  place  as  Mortgagee  may  designate  in  writing.

     Section  4.7.     Compliance  With  Usury  Laws.  It  is  the  intent  of
                       -----------------------------
Mortgagor, Mortgagee, and all other parties to the Loan Documents to contract in
strict  compliance  with  applicable  usury law from time to time in effect.  In
furtherance  thereof,  it  is  stipulated  and agreed that none of the terms and
provisions contained herein shall ever be construed to create a contract to pay,
for  the  use,  forbearance  or  detention  of  money, interest in excess of the
maximum  amount  of interest permitted to be charged by applicable law from time
to  time  in  effect.

     Section  4.8.     Substitute  Trustee.  The  Trustee  may  resign  by  an
                       -------------------
instrument  in  writing addressed to Mortgagee, or Trustee may be removed at any
time  with  or  without cause by an instrument in writing executed by Mortgagee.
In  case  of the death, resignation, removal, or disqualification of Trustee, or
if  for  any reason Mortgagee shall deem it desirable to appoint a substitute or
successor  trustee  to act instead of the herein named trustee or any substitute
or  successor  trustee,  then  Mortgagee  shall  have  the  right  and is hereby
authorized  and  empowered  to  appoint  a  successor  trustee,  or a substitute
trustee,  without  other  formality  than appointment and designation in writing
executed  by  Mortgagee  and  the authority hereby conferred shall extend to the
appointment  of  other  successor and substitute trustees successively until the
indebtedness  secured  hereby  has  been  paid  in  full, or until the Mortgaged
Properties is sold hereunder.  In the event the secured indebtedness is owned by
more  than  one  person  or  entity,  the  holder  or holders of not less than a
majority  in  the amount of such indebtedness shall have the right and authority
to  make the appointment of a successor or substitute trustee as provided for in
the preceding sentence or to remove Trustee as provided in the first sentence of
this  section.  Such  appointment and designation by Mortgagee, or by the holder
or holders of not less than a majority of the indebtedness secured hereby, shall
be  full  evidence  of the right and authority to make the same and of all facts
therein  recited.  If  Mortgagee  is  a  corporation  or  association  and  such
appointment  is  executed  in  its  behalf  by an officer of such corporation or
association, such appointment shall be conclusively presumed to be executed with
authority  and  shall be valid and sufficient without proof of any action by the
board  of  directors  or any superior officer of the corporation or association.
Upon  the  making of any such appointment and designation, all of the estate and
title  of  Trustee in the Mortgaged Properties shall vest in the named successor
or substitute Trustee and it shall thereupon succeed to, and shall hold, possess
and  execute,  all  the rights, powers, privileges, immunities and duties herein
conferred  upon Trustee; but nevertheless, upon the written request of Mortgagee
or  of  the  successor  or  substitute Trustee, the Trustee ceasing to act shall
execute  and  deliver an instrument transferring to such successor or substitute
Trustee  all  of the estate and title in the Mortgaged Properties of the Trustee
so  ceasing to act, together with all the rights, powers, privileges, immunities
and  duties  herein  conferred upon the Trustee, and shall duly assign, transfer
and  deliver  any of the properties and moneys held by said Trustee hereunder to
said  successor  or  substitute  Trustee.  All  references  herein  to

                                       16
<PAGE>
Trustee  shall  be  deemed  to  refer  to  Trustee  (including  any successor or
substitute appointed and designated as herein provided) from time to time acting
hereunder.

     Section 4.9.     No Liability for Trustee.  THE TRUSTEE SHALL NOT BE LIABLE
                      ------------------------
FOR  ANY ERROR OF JUDGMENT OR ACT DONE BY TRUSTEE IN GOOD FAITH, OR BE OTHERWISE
RESPONSIBLE  OR  ACCOUNTABLE  UNDER  ANY  CIRCUMSTANCES  WHATSOEVER  (INCLUDING,
WITHOUT  LIMITATION,  THE  TRUSTEE'S  NEGLIGENCE),  EXCEPT  FOR  TRUSTEE'S GROSS
NEGLIGENCE  OR  WILLFUL MISCONDUCT.  The Trustee shall have the right to rely on
any instrument, document or signature authorizing or supporting any action taken
or  proposed  to  be  taken  by it hereunder, believed by it in good faith to be
genuine.  All  moneys received by Trustee shall, until used or applied as herein
provided,  be  held  in trust for the purposes for which they were received, but
need not be segregated in any manner from any other moneys (except to the extent
required  by  law),  and Trustee shall be under no liability for interest on any
moneys  received  by  him hereunder.  Mortgagor hereby ratifies and confirms any
and  all  acts  which  the  herein named Trustee or its successor or successors,
substitute  or  substitutes,  shall  do  lawfully  by  virtue  hereof.

     Section  4.10.     Release of Mortgage.  If all of the secured indebtedness
                        -------------------
be  paid  and  performed  as  the  same  becomes  due and payable and all of the
covenants,  warranties, undertakings and agreements made in this Mortgage and in
the  Development  Agreement  are  kept  and performed, then, Mortgagee shall, at
Mortgagor's request, release this Mortgage, in due form and at Mortgagor's cost,
provided,  however, that, notwithstanding such release, all indemnifications and
other rights provided herein not expressly released in writing shall continue in
effect unaffected by such release, and provided, further, that if any payment to
Mortgagee  by  ECA  or Mortgagor is held to constitute a preference or avoidable
transfer  under  applicable  state  or  federal  laws or if for any other reason
Mortgagee  is required to refund such payment to the payor thereof or to pay the
amount  thereof  to  any  third  party, this Mortgage shall be reinstated to the
extent  of  such  payment or payments.  In addition, Mortgagee shall execute and
deliver  to Mortgagor partial releases of the lien created by this instrument as
required  by  Section  1.4.

     Section  4.11.     Notices.  All  notices,  requests, consents, demands and
                        -------
other  communications  required  or  permitted hereunder shall be in writing and
shall  be  deemed  sufficiently  given  or  furnished  if  delivered by personal
delivery,  by  telecopy,  by  delivery  service  with  proof  of delivery, or by
registered  or  certified United States mail, postage prepaid, at the address of
the  intended recipient specified at the end of this Mortgage (unless changed by
similar  notice  in writing given by the particular party whose address is to be
changed).  Any  such  notice or communication shall be deemed to have been given
(a)  in  the  case  of  personal delivery or delivery service, as of the date of
first  attempted  delivery at the address and in the manner provided herein, (b)
in  the case of telecopy, upon receipt, with confirmation of receipt, and (c) in
the case of registered or certified United States mail, three days after deposit
in  the  mail.  Notwithstanding  the  foregoing,  or  anything  else in the Loan
Documents  which may appear to the contrary, any notice given in connection with
a  foreclosure  of  the  liens  and/or  security interests created hereunder, or
otherwise  in  connection  with  the  exercise  by Mortgagee or Trustee of their
respective  rights hereunder or under any other Loan Document, which is given in
a  manner  permitted  by  applicable law shall constitute proper notice; without
limitation  of  the  foregoing,  notice given in a form required or permitted by
statute  shall  (as  to  the  portion  of the Mortgaged Properties to which such
statute  is  applicable)  constitute  proper  notice.

                                       17
<PAGE>
     Section  4.12.     Invalidity  of Certain Provisions.  A determination that
                        ---------------------------------
any  provision of this Mortgage is unenforceable or invalid shall not affect the
enforceability or validity of any other provision and the determination that the
application  of  any provision of this Mortgage to any person or circumstance is
illegal or unenforceable shall not affect the enforceability or validity of such
provision  as  it  may  apply  to  other  persons  or  circumstances.

     Section  4.13.     Gender;  Titles.  Within  this  Mortgage,  words  of any
                        ---------------
gender shall be held and construed to include any other gender, and words in the
singular  number  shall  be held and construed to include the plural, unless the
context  otherwise  requires.  Titles  appearing  at  the  beginning  of  any
subdivisions hereof are for convenience only, do not constitute any part of such
subdivisions,  and  shall be disregarded in construing the language contained in
such  subdivisions.

     Section  4.14.     Recording.  Mortgagor  will  cause this Mortgage and all
                        ---------
amendments  and supplements thereto and substitutions therefor and all financing
statements  and  continuation statements relating thereto to be recorded, filed,
re-recorded  and  refiled  in  such  manner  and  in  such  places as Trustee or
Mortgagee  shall  reasonably  request and Mortgagor will pay all such recording,
filing,  re-recording  and  refiling  taxes,  fees  and  other  charges.

     Section  4.15.     Counterparts.  This  Mortgage may be executed in several
                        ------------
counterparts,  all  of  which  are  identical,  except  that,  to  facilitate
recordation,  certain  counterparts  hereof  may  include  only  that portion of
Exhibit A which contains descriptions of the properties located in (or otherwise
---------
subject  to  the requirements and/or protections of the recording or filing acts
or  regulations  of)  the  recording  jurisdiction  in  which  the  particular
counterpart is to be recorded, and other portions of Exhibit A shall be included
                                                     ---------
in such counterparts by reference only.  All of such counterparts together shall
constitute  one  and  the  same  instrument.  Complete  copies  of this Mortgage
containing  the  entire Exhibit A have been retained by Mortgagor and Mortgagee.
                        ---------

     Section  4.16.     Successors  and  Assigns.  The  terms,  provisions,
                        ------------------------
covenants,  representations,  indemnifications  and  conditions  hereof shall be
binding  upon  Mortgagor, and the successors and assigns of Mortgagor, and shall
inure  to  the  benefit of Trustee and Mortgagee and their respective successors
and  assigns,  and  shall  constitute  covenants  running  with  the  Mortgaged
Properties.  All  references in this Mortgage to Mortgagor, Trustee or Mortgagee
shall  be  deemed  to  include  all  such  successors  and  assigns.

     Section 4.17.     CHOICE OF LAW.  WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
                       -------------   -----------------------------------------
OF  LAW,  THIS  MORTGAGE  SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
--------------------------------------------------------------------------------
GOVERNED  BY THE LAWS OF THE STATE OF WEST VIRGINIA APPLICABLE TO CONTRACTS MADE
--------------------------------------------------------------------------------
AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE AND THE LAWS OF THE UNITED STATES
--------------------------------------------------------------------------------
OF  AMERICA.
-----------

     Section 4.18.     Exhibits Incorporated.  All exhibits, annexes, appendices
                       ---------------------
and  schedules  referred  to  any  place in the text of this Mortgage are hereby
incorporated into it at that place in the text, to the same effect as if set out
there  verbatim.
       --------

     Section  4.19.     "Including"  is  not  Limiting.  Wherever  the  term
                        ------------------------------
"including"  or  a similar term is used in this Mortgage, it shall be read as if
it  were  written,  "including  by  way  of  example only and without in any way
limiting  the  generality  of  the  clause  or  concept  referred  to."

                                       18
<PAGE>
     Section  4.20.     Amendments  in  Writing.  This  Mortgage  shall  not  be
                        -----------------------
changed  orally  but  shall  be  changed  only by agreement in writing signed by
Mortgagor  and  Mortgagee.  Any  waiver or consent with respect to this Mortgage
shall  be  effective  only in the specific instance and for the specific purpose
for  which  given.  No  course of dealing between the parties, no usage of trade
and  no parol or extrinsic evidence of any nature shall be used to supplement or
modify  any  of  the  terms  or  provisions  of  this  Mortgage.

     IN  WITNESS WHEREOF, this instrument is executed by Mortgagor this 10th day
     of  June,  2005.

                      EASTERN  AMERICAN  ENERGY  CORPORATION:

                      By:  /s/  Donald C. Supcoe
                         ----------------------------------
                      Name:  Donald  C.  Supcoe
                      Title: President

                      The  address  of  the  Mortgagor  is:

                      501  56th  Street
                      Charleston,  West  Virginia  25304

                      BLACK  STONE  ACQUISITIONS  PARTNERS  II,  L.P.
                      BY:  BSAP  II  GP,  L.L.C.,  GENERAL  PARTNER

                      By:  /s/  J. A. Mills
                         ----------------------------------
                      Name:   J.  A.  Mills
                      Title:  Vice  President

                    BLACK  STONE  ACQUISITIONS  PARTNERS  II-B,  L.P.
                    BY:  BSAP  II  GP,  L.L.C.,  GENERAL  PARTNER

                    By:  /s/  J. A. Mills
                       ------------------------------------
                    Name:   J.  A.  Mills
                    Title:  Vice  President

                                       19
<PAGE>
                    HATFIELD  ROYALTY,  L.P.
                    BY:  BSAP  II  GP,  L.L.C.,  GENERAL  PARTNER

                    By:  /s/  J. A. Mills
                       ------------------------------------
                    Name:   J.  A.  Mills
                    Title:  Vice  President

                    The  address  of  the  Mortgagee  is:

                    1001  Fannin,  Suite  2020
                    Houston,  Texas  77002

STATE  OF  WEST  VIRGINIA          S
                                   S
COUNTY  OF  KANAWHA                S

     On  this,  the  10th  day  of  June, 2005, before me ____________, a Notary
public,  personally  appeared  Donald  C.  Supcoe,  as  the President of Eastern
American  Energy  Corporation,  a  West  Virginia  corporation, and executed the
foregoing  instrument  on  behalf  of  said  corporation.

                              _______________________________________
                              NOTARY  PUBLIC

My  Commission  expires:  _______________

                                       20
<PAGE>
THE  STATE  OF  WEST  VIRGINIA     S
                                   S
COUNTY  OF  KANAWHA                S

     On this, the 10th day of June, 2005, before me ___________________, a
Notary public, personally appeared J. A. Mills as the Vice President of BSAP II
GP, L.L.C., general partner of Black Stone Acquisitions Partners II, L.P., a
Delaware limited partnership, and executed the foregoing instrument on behalf of
said limited partnership.

     In witness whereof, I hereunto set my hand and official seal.

[SEAL]                                 _________________________________________

My  Commission  Expires:_________________

THE  STATE  OF  WEST  VIRGINIA     S
                                   S
COUNTY  OF  KANAWHA                S

     On this, the 10th day of June, 2005, before me ___________________, a
Notary public, personally appeared J. A. Mills as the Vice President of BSAP II
GP, L.L.C., general partner of Black Stone Acquisitions Partners II-B, L.P., a
Delaware limited partnership, and executed the foregoing instrument on behalf of
said limited partnership.

     In witness whereof, I hereunto set my hand and official seal.

[SEAL]                                 _________________________________________

My  Commission  Expires:_________________

                                       21
<PAGE>
THE  STATE  OF  WEST  VIRGINIA     S
                                   S
COUNTY  OF  KANAWHA                S

     On  this,  the  10th  day  of  June, 2005, before me ___________________, a
Notary  public, personally appeared J. A. Mills as the Vice President of BSAP II
GP,  L.L.C.,  general  partner  of  Hatfield  Royalty, L. P., a Delaware limited
partnership,  and  executed  the  foregoing instrument on behalf of said limited
partnership.

     In  witness  whereof,  I  hereunto  set  my  hand  and  official  seal.

[SEAL]                                 _________________________________________

My  Commission  Expires:_________________

                                                   This instrument prepared by:

                                                   Tammy J. Owen (WV Bar # 5552)
                                                   Goodwin & Goodwin, LLP
                                                   P. O. Box 2107
                                                   Charleston, WV  25328-2107

                                       22

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