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                                                                   EXHIBIT 10.14

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT is entered into by and between INLAND
RESOURCES INC. (hereinafter referred to as "Employer") and William War
(hereinafter referred to as "Employee").

         WHEREAS, Employer desires to continue the employment of Employee as its
Vice President - Refinery Operations and as President of Inland Refining, Inc.
and Employee desires to continue such employment; and

         WHEREAS, Employer and Employee have previously entered into an
Employment Agreement dated September 8, 1998 (the "Original Employment
Agreement") as amended January 12, 1999, and Employer and Employee desire to
mutually terminate the Original and amended Employment Agreement in connection
with the execution of this Agreement; and

         NOW, THEREFORE, in consideration of the mutual promises herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Employer and Employee agree as follows:

         1. TERMINATION OF ORIGINAL AND AMENDED EMPLOYMENT AGREEMENT. Employer
and Employee hereby agree that the Original Employment Agreement as amended is
terminated effective the date hereof.

         2. AGREEMENT TO GRANT OPTIONS. Employer hereby grants to Employee,
effective the date of execution of this Agreement, an option to purchase 250,000
shares of Common Stock exercisable at the closing sale price of the Common Stock
on the date of execution of this Agreement. The number of option shares granted
herein shall be increased or decreased to the same extent that the outstanding
shares of Common Stock of Employer are increased or decreased by any

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stock split occurring after the effective date of this Agreement. Such options
shall vest over a period of five years, as provided for herein. On each of the
first five anniversary dates of the effective date of this Agreement, twenty
percent (20%) of such options shall be vested. All options granted hereunder
will be exercisable for a period of five years after the last options are
vested, regardless whether Employer subsequently voluntarily leaves the
employment of Employer or is terminated with or without "Cause" (as hereinafter
defined). Options will vest on each such anniversary date if Employee continues
to be employed by Employer on such anniversary date. All non-vested options will
vest immediately upon a "Change of Control" (as hereinafter defined). Also, all
non- vested options will vest immediately if the Employee is terminated without
cause because it is determined his services are no longer required as a result
of a successful long term refinery solution for the Employer's Black Wax crude
(i.e. a processing agreement, a refinery joint venture, a long- term crude
purchase arrangement, etc.). Employer will concurrently with execution of this
Agreement prepare an Option Agreement incorporating these terms and such other
standard terms as have been contained in prior options or warrants granted to
Employer's Employees.

         3. EMPLOYMENT. Employer hereby employs Employee to serve as Vice
President - Refinery Operations and as President of Inland Refining, Inc. and
otherwise at the direction of the Board of Directors.

         4. DUTIES. During his employment, Employee shall devote all of his
working time, energies and skills to the management of Employer's business.
Employee agrees to serve Employer diligently and to the best of his ability.
Employee shall render services consistent with those of a person in his position
and shall perform all duties incident to such office and all such further
similar duties that may, from time to time, be assigned to him by Employer.
Employee's duties include finding further business opportunities for Employer
and Employee agrees to bring to Employer for

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acceptance or rejection all business opportunities located by or made available
to Employee.

         5. COMPENSATION. Employee's compensation for services performed under
this Agreement shall be as follows:

         Base Salary. Employer shall pay Employee a base salary ("Base Salary")
of One Hundred Seventy Five Thousand and No/100 Dollars ($175,000.00) per year,
commencing effective October 1, 1999. In addition, the Board of Directors of
Employer shall, in good faith, consider granting increases in such salary based
upon such factors as Employee's performance and the growth and/or profitability
of Employer, but it shall have no obligation to grant any such increases in
compensation. Such Base Salary shall be payable in equal semi-monthly
installments on the fifteenth day and the last working day of the month, or at
such other times and in such installments as may be agreed upon between Employer
and Employee. All payments shall be subject to the deduction of payroll taxes
and similar assessments as required by law.

         Bonus. In addition to the Base Salary, Employee shall be eligible to
receive bonus compensation in such amounts and at such times as the Board of
Directors shall, from time to time, determine.

         Termination Payment. If Employee's employment is terminated by the
Company during the term of the Agreement without "Cause", (or if there is a
"Change of Control" resulting in termination), Employee shall be paid a
termination payment of Seventy Five Thousand and No/100 Dollars ($75,000.00)
payable immediately upon the date of termination. However, if Employee
voluntarily leaves the employment of Employer, Employee shall forfeit payment of
the termination payment.

         Severance Payment. If Employee is still employed by the Company upon
the cancellation and expiration of this Agreement, the Employee will be granted
a severance payment

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of $75,000 to be paid upon Employees termination without Cause, but not with
Cause or upon voluntary termination.

         6. EXPENSES AND BENEFITS. Employee is authorized to incur reasonable
expenses in connection with the business of Employer, including expenses for
entertainment, travel and similar matters. Employer will reimburse Employee for
such expenses upon presentation by Employee of such accounts and records as
Employer shall, from time to time, require. Employer also agrees to provide
Employee with the following benefits:

         Employee Benefit Plans. Employee shall be entitled to participate in
employee benefit plans or programs of Employer, if any, to the extent that his
position, tenure, salary, age, health and other qualifications make him eligible
to participate, subject to the rules and regulations applicable thereto. Such
additional benefits shall include, subject to the approval of the Board of
Directors, full medical, dental and disability income insurance.

         Other. Such items and benefits as Employer shall, from time to time,
consider necessary or appropriate to assist Employee in the performance of his
duties.

         Vacations. Employee shall be entitled (in addition to the usual public
holidays) to a paid vacation for a period in each calendar year not exceeding
three (3) weeks, to be taken at such times as may be approved by Employer.

         7. TERM. The term of this Agreement shall be for a term of one (1)
year, beginning from the effective date hereof and for month to month thereafter
unless terminated by either party on thirty (30) days' notice.

         8. DISABILITY. In the event that Employee becomes Permanently Disabled
(as hereafter defined) during the term of this Agreement and while engaged in
the scope of his employment by Employer, Employee shall continue in the employ
of Employer but his compensation hereunder shall

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be reduced to one-half (1/2) of the Base Salary then in effect, as set forth in
Section 6(a) hereof, commencing upon the determination of Employee's Permanent
Disability and continuing thereafter until the first to occur of (a) twelve (12)
months or (b) the death of Employee or (c) the expiration of the term of this
Agreement; and during such period of time, Employee shall not be entitled to
payment of expenses or benefits specified in Section 7 hereof (except for
reimbursement of expenses incurred by Employee prior to becoming Permanently
Disabled), except that Employer shall continue to provide Employee with the
insurance benefits specified in Section 7(a) hereof. In addition, any
compensation payable to Employee by Employer shall be reduced by any amount
which Employee is eligible to receive from workers compensation, social security
or disability insurance provided by Employer. If Employee becomes Permanently
Disabled while not engaged in the scope of his employment by Employer, such
disability may be cause for termination for "Cause" under Section 10 hereof.

         Definition of Disability. For purposes of this Agreement, the terms
"Permanent Disability" or "Permanently Disabled" shall mean three (3) months of
substantially continuous disability. Disability shall be deemed "substantially
continuous" if, as a practical matter, Employee, by reason of his mental or
physical health, is unable to sustain reasonably long periods of substantial
performance of his duties. Frequent long illnesses, though different from the
preceding illness and though separated by relatively short periods of
performance, shall be deemed to be "substantially continuous". Disability shall
be determined in good faith by the Board of Directors whose decision shall be
final and binding upon Employee. Employee hereby consents to medical
examinations by such physicians and medical consultants as Employer shall, from
time to time, require.

         9. TERMINATION BY EMPLOYER. Employer shall have the right to terminate
Employee's employment as hereinafter provided.

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                  (a) Termination by Employer for Cause. The Board of Directors
         shall have the right to terminate Employee's employment under this
         Agreement for Cause, in which event no compensation under Sections 5(a)
         (b) (c) or (d) shall be paid or other benefits furnished to Employee
         after termination for Cause. Termination for Cause shall be effective
         immediately upon notice sent or given to Employee.

                           (i) Definition of Cause. For purposes of this
                  Agreement, the term "Cause" shall mean and be strictly limited
                  to: (1) conviction of a crime constituting a felony under
                  state or federal law; (2) determination by the Board of
                  Directors that Employee has committed any act of dishonesty
                  against Employer; (3) gross negligence by Employee in carrying
                  out his duties; (4) breach of this Agreement by Employee; (5)
                  gross misconduct by Employee, such as intoxication on the job,
                  use of drugs on the job for non-medical purposes or other
                  misconduct which has a substantial adverse effect on the
                  business of Employer; or (6) Employee becoming Permanently
                  Disabled while not engaged in the scope of his employment by
                  Employer.

                  (b) Termination by Employer without Cause. The Board of
         Directors shall have the right to terminate Employee's employment under
         this Agreement without Cause at any time, by giving written notice of
         termination to Employee. In such event, Employer will immediately pay
         the sum as set forth in Sec. 5(c).

         10. CHANGE OF CONTROL. For purposes of this Agreement, a "Change of
Control" shall mean: (i) the issuance of shares of capital stock of Employer or
the granting of options or other derivative

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securities representing on a combined basis more than 50% of the outstanding
capital stock following such issuance and grant, or the issuance of shares of
capital stock by Employer or the granting of options or other derivative
securities to a person who, when added to shares acquired by such person in the
market or from other stockholders of Employer, would result in such person
owning more than 50% of the outstanding capital stock (assuming for this
purpose, exercise of such options or other derivative securities) of Employer;
or (ii) the sale or other disposition by Employer of substantially all of the
assets of Employer.

         11.      GENERAL PROVISIONS.

                  (a) Notices. Any notices to be given hereunder by either party
         to the other may be effected by personal delivery, in writing or by
         mail, registered or certified, postage prepaid with return receipt
         requested. Mailed notices shall be addressed to the parties at the
         addresses set forth below, but each party may change his or its address
         by written notice in accordance with this Section 11(a). Notices
         delivered personally shall be deemed communicated as of the actual
         receipt; mailed notices shall be deemed communicated as of three (3)
         days after mailing.

                                    If to Employee:

                                    Inland Resources Inc.
                                    410 17th Street, Suite 700
                                    Denver, Colorado  80202

                                    If to  Employer:

                                    Inland Resources Inc.
                                    410 17th Street, Suite 700
                                    Denver, Colorado  80202

                  (b) Partial Invalidity. If any provision in this Agreement is
         held by a court of competent jurisdiction to be invalid, void, or
         unenforceable, the remaining

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         provisions shall, nevertheless, continue in full force without being
         impaired or invalidated in any way.

                  (c) Law Governing Agreement. This Agreement shall be governed
         by and construed in accordance with the laws of the State of Colorado.

                  (d) Attorneys' Fees and Costs. If any action at law or in
         equity is necessary to enforce or interpret the terms of this
         Agreement, the prevailing party shall be entitled to reasonable
         attorneys' fees, costs and necessary disbursements in addition to any
         other relief to which he or it may be entitled.

                  (e) Assignment. This Agreement shall inure to the benefit of
         and bind the parties hereto and their respective legal representatives,
         successors and assigns.

                  (f) Entire Agreement. This Agreement supersedes any and all
         other agreements, either oral or in writing, between the parties hereto
         with respect to the employment of Employee by Employer and contain all
         of the covenants and agreements between the parties with respect to
         such employment. Each party to this Agreement acknowledges that no
         representations, inducements, or agreements, oral or otherwise, have
         been made by any party, or anyone acting on behalf of any party, which
         are not embodied herein, and no other agreement, statement or promise
         not contained in this Agreement shall be valid or binding. Any
         modification of this Agreement will be effected only if it is in
         writing signed by the party to be charged.

         IN WITNESS WHEREOF, the parties have executed this Agreement on
November 15, 1999, but to be effective the 1st day of October 1999.

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                                                EMPLOYER:

                                                INLAND RESOURCES INC.

                                                By: /s/ Bill I. Pennington
                                                    ----------------------------
                                                    Bill I. Pennington
                                                    Chief Executive Officer

                                                EMPLOYEE:

                                                /s/ William T. War
                                                --------------------------------
                                                William T. War

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                                                                   EXHIBIT 10.15

                              INLAND RESOURCES INC.
                             STOCK OPTION AGREEMENT

         This Stock Option Agreement ("Agreement") is entered into effective as
of November 15, 1999 between Inland Resources Inc., a Washington corporation
(the "Company"), and William T. War, an employee of the Company (the
"Employee").

                                    Recitals:

     The Company desires to grant to the Employee a Nonqualified Stock Option to
purchase shares of its Common Stock, $0.001 par value, pursuant to the terms and
conditions of this Agreement.

            The parties agree as follows:

         1. Grant of option. The Company hereby grants to the Employee the right
and option (the "Option") to purchase all or any part of an aggregate of 250,000
shares (the "Shares") of its Common Stock, $0.001 par value, on the terms and
conditions and subject to all the limitations set forth herein.

         2. Purchase Price. The purchase price of the Shares covered by the
Option shall be $0.9375 per share.

         3. Vesting of Option. Subject to the other terms and conditions of this
Agreement, the Shares exercisable upon exercise of the Option granted hereby
shall vest 20% on each of the first five anniversary dates of the date of this
Agreement if Employee continues to be employed by the Company on each such
anniversary date.

         Any non-vested Shares under the Option granted hereby shall be deemed
to have immediately and automatically vested on a "Change of Control", as such
term is defined in the Employment Agreement between Employee and the Company
entered into effective as of the same effective date of this Agreement. Also,
all non-vested options shall immediately vest if the Employee is terminated
without cause because it is determined his services are no longer required as
the result of a successful long term refinery solution for the Employer's Black
Wax crude (i.e. a processing agreement, a refinery joint venture, a long-term
crude purchase arrangement, etc.)

         4. Exercise of Option. Subject to the other terms and conditions of
this Agreement, the vested Shares granted pursuant to this Option may be
exercised at any time during the term of this Agreement in accordance with the
terms of paragraph 7.

         5. Term of Option. The Option shall terminate on the fifth (5th)
anniversary of the date that the last Option granted hereunder vested, but shall
be subject to earlier termination as provided herein.

         6. Non-Assignability. The Option shall not be transferable by the
Employee otherwise than by will or by the laws of descent and distribution and
shall be exercisable, during the Employee's lifetime, only by the Employee or
his or her guardian or legal representative. The Option shall not be assigned,
pledged or hypothecated in any way (whether by operation of law or otherwise)
and shall not be subject to execution, attachment or similar process. Any
attempted transfer, assignment, pledge,

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hypothecation or other disposition of the Option or of any rights granted
hereunder contrary to the provisions of this paragraph 6, or the levy of any
attachment or similar process upon the Option or such rights, shall be null and
void.

         7. Manner of Exercising Option and Issue of Shares. The Option relating
to vested Shares may be exercised in whole or in part by giving written notice
to the Company, together with the tender of the Option purchase price. Such
written notice shall be signed by the person exercising the Option, shall state
the number of Shares with respect to which the Option is being exercised, shall
contain any representation required by paragraph 8 below and shall otherwise
comply with the terms and conditions of this Agreement. The Company shall pay
all transfer or original issue taxes with respect to the issue of the Shares
pursuant hereto and all other fees and expenses necessarily incurred by the
Company in connection herewith. Except as specifically set forth herein,
Employee acknowledges that any income or other taxes due from him with respect
to this Option or the Shares issuable pursuant to this Option shall be the
responsibility of Employee and that the Company may, in accordance with the
Internal Revenue Code, require Employee to pay additional withholding taxes in
respect of the amount that is considered compensation includable in Employee's
gross income. Employee shall have rights as a shareholder only with respect to
any Shares covered by the Option after due exercise of the Option and tender of
the full exercise price for the Shares being purchased pursuant to such
exercise.

         8. Purchase for Investment. Unless the offering and sale of the Shares
to be issued upon the particular exercise of the Option shall have been
effectively registered under the Securities Act of 1933, as amended, or any
successor legislation (the "Act"), the Company shall be under no obligation to
issue the Shares covered by such exercise unless and until the following
conditions have been fulfilled:

         The person(s) who exercise the Option shall represent to the Company,
at the time of such exercise, that such person(s) are, acquiring such Shares for
his or her own account, for investment and not with a view to, or for sale in
connection with, the distribution of any such Shares, in which event the
person(s) acquiring such Shares shall be bound by the provisions of the
following legend which shall be endorsed upon the certificate(s) evidencing
their option Shares issued pursuant to such exercise:

                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN
         ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
         STATE. WITHOUT SUCH REGISTRATION, SUCH SECURITIES MAY NOT BE SOLD,
         PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED, EXCEPT UPON DELIVER TO
         THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
         REGISTRATION IS NOT REQUIRED FOR SUCH TRANSFER OR THE SUBMISSION TO THE
         COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO THE COMPANY TO
         THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE
         SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS
         OR ANY RULE OR REGULATION PROMULGATED THEREUNDER."

         Without limiting the generality of the foregoing, the Company may delay
issuance of the Shares until completion of any action or obtaining of any
consent, which the Company deems necessary under any applicable law (including
without limitation state securities or "blue sky" laws).

         9. Notices. Any notice to be given under this Agreement shall be deemed
sufficient if

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addressed in writing, and delivered by registered or certified mail or delivered
personally, in the case of the Company to its principal business office and in
the case of the Employee, to his address appearing on the records of the
Company, or to such other address as he may have designated in writing to the
Company.

         10. Governing Law. This Agreement shall be construed and enforced in
accordance with the internal laws, and not the laws of conflict, of the State of
Colorado.

         11. Benefit of Agreement. This Agreement shall be for the benefit of
and shall be binding upon the heirs, executors, administers and successors of
the parties hereto.

         12. Adjustment of Shares. Wherever this Agreement specifies a number of
shares of Common Stock or a purchase price per share, the specified number of
Shares of Common Stock to be received on exercise and the applicable purchase
price per share shall be changed to reflect adjustments (which may require that
additional securities or other property be delivered on exercise) required by
this paragraph 12, as follows:

                  (a) If an increase has been effected in the number of
         outstanding shares of the same class of securities of the Company as is
         issuable upon exercise of this Option by reason of a subdivision of
         such shares, the number of Shares which may thereafter be purchased
         upon exercise of this Option shall be increased with respect to each
         Share issuable upon exercise of this Option by the number of Shares
         which could have been received by Employee at the time of such
         subdivision had he been the holder of record of such issuable Shares at
         the record and/or effective date of the subdivision. In such event, the
         purchase price per Share under this Option shall be proportionately
         reduced.

                  (b) If a decrease has been effected in the number of
         outstanding shares of the same class of securities of the Company as is
         issuable upon exercise of this Option by reason of a reverse stock
         split, the number of Shares which may thereafter be purchased upon
         exercise of this Option shall be changed with respect to each Share
         issuable upon exercise of this Option to the number of Shares which
         would have been held by Employee at the time of said reverse stock
         split had Employee been the holder of such issuable Share at the record
         and/or effective date of the reverse stock split. In such event, the
         purchase price per Share shall be proportionately increased.

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         EXECUTED effective as of the date and year first above written.

                                            INLAND RESOURCES INC.

                                            By: /s/ Bill I. Pennington
                                                --------------------------------
                                            Its:  Chief Executive Officer

                                            EMPLOYEE:

                                            /s/ William T. War
                                            ------------------------------------
                                            William T. War

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