Document:

GAS PURCHASE, GATHERING, TREATING AND PROCESSING AGREEMENT

                                     BETWEEN

                              BEAR PAW ENERGY, LLC

                                       AND

                       PETROSEARCH OPERATING COMPANY, LLC

<PAGE>
<TABLE>
<CAPTION>
                                      INDEX
                                      -----

<S>   <C>                                                                        <C>
I     REPRESENTATIONS OF PRODUCER/SELLER . . . . . . . . . . . . . . . . . . . .  3
II    COMMITMENT OF PRODUCER/SELLER'S GAS. . . . . . . . . . . . . . . . . . . .  3
III   CONSTRUCTION OF PIPELINE GATHERING SYSTEM. . . . . . . . . . . . . . . . .  3
IV    QUANTITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
V     GENERAL TERMS AND CONDITIONS . . . . . . . . . . . . . . . . . . . . . . .  4
VI    PRICE, REVENUE DISTRIBUTION, MARKET OPTION
      RESIDUE GAS AND PLANT PRODUCTS . . . . . . . . . . . . . . . . . . . . . .  3
VII   FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6
VIII  NOTICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7
IX    TERM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
X     SPECIAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
XI    MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9

      EXHIBIT "A" - THE LEASES/POINTS OF DELIVERY. . . . . . . . . . . . . . . . 12
      EXHIBIT "A-l"- ACREAGE DEDICATION. . . . . . . . . . . . . . . . . . . . . 13
      EXHIBIT "B" - APPENDIX - GENERAL TERMS AND CONDITIONS

      1. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
      2. POINT(S) OF DELIVERY,
         PRESSURE AND OWNERSHIP. . . . . . . . . . . . . . . . . . . . . . . . . 17
      3. RESERVATIONS AND COVENANTS OF PRODUCER/SELLER . . . . . . . . . . . . . 18
      4. QUANTITY RESTRICTIONS . . . . . . . . . . . . . . . . . . . . . . . . . 19
      5. PRODUCER/SELLER'S WARRANTIES. . . . . . . . . . . . . . . . . . . . . . 19
      6. EASEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
      7. SHRINKAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
      8. GAS MEASUREMENT AND QUALITY . . . . . . . . . . . . . . . . . . . . . . 20
      9. ALLOCATION OF RESIDUE GAS, PLANT PRODUCTS
         AND SULFUR REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . 24
      10. PRICING INFORMATION AND REFUNDS. . . . . . . . . . . . . . . . . . . . 25
      11. TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
      12. PAYMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
      13. PRODUCER/SELLER'S REPRESENTATIVE . . . . . . . . . . . . . . . . . . . 27
      14. REGULATORY BODIES. . . . . . . . . . . . . . . . . . . . . . . . . . . 27
      15. FORCE MAJEURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
      16. DEFAULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
      17. UNECONOMIC WELL CONNECTIONS. . . . . . . . . . . . . . . . . . . . . . 30

      18. UNECONOMIC OPERATION OF GAS PLANT OR
          BUYER/PROCESSOR'S GATHERING SYSTEM . . . . . . . . . . . . . . . . . . 30
      19. LITIGATION - ATTORNEYS' FEES . . . . . . . . . . . . . . . . . . . . . 31
      20. DAMAGES, ARBITRATION . . . . . . . . . . . . . . . . . . . . . . . . . 31
      21. GENERAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

      EXHIBIT "C" - CONFIDENTIALITY AGREEMENT. . . . . . . . . . . . . . . . . . 34
</TABLE>

<PAGE>
           GAS PURCHASE, GATHERING, TREATING AND PROCESSING AGREEMENT
           ----------------------------------------------------------

THIS  GAS PURCHASE, GATHERING, TREATING AND PROCESSING AGREEMENT is entered into
this  1st  day of December, 2003 (the "Effective Date") (herein, as the same may
be  amended  from time to time, called this "Agreement") by and between BEAR PAW
ENERGY,  LLC,  a  Delaware  Limited Liability Company, with offices at 1400 16th
Street,  Suite  310,  Denver,  Colorado  80202,  hereinafter  referred  to  as
"Buyer/Processor",  and  PETROSEARCH  OPERATING  COMPANY,  LLC,  a Texas limited
liability  corporation, whose corporate address is 4925 Greenville Avenue, Suite
125, Dallas, TX 75206, hereinafter referred to as "Producer/Seller ".

                                R E C I T A L S
                                ---------------

1.   Buyer/Processor  owns,  operates  and  maintains  a  natural  gas gathering
     system,  compression  facilities  and  natural  gas treating and processing
     facilities, all such facilities in the aggregate hereinafter referred to as
     the  "Facilities", which Facilities are located in Billings, Golden Valley,
     Stark,  Dunn,  Williams,  Mountrail,  Divide,  and McKenzie Counties, North
     Dakota  and/or  Sheridan,  Roosevelt, Richland Counties, Montana, to enable
     Buyer/Processor  to  gather,  purchase  and  accept  delivery  of
     Producer/Seller's  natural  gas  (including  natural  gasoline  and  other
     liquefiable  hydrocarbons), produced and saved from the oil and gas leases,
     lands  and  formations  committed  hereunder,  at  the Point(s) of Delivery
     defined  herein.

2.   Producer/Seller  owns and holds, or has an interest or interests in certain
     oil  and gas leases, wells and/or lands described in Exhibits "A" and "A-l"
     attached  hereto  and  by  reference  made  a part hereof, said oil and gas
     leases,  wells and/or lands and formations thereunder hereinafter sometimes
     being  referred  to  as  the  "Leases".

3.   Producer/Seller  desires to sell to Buyer/Processor all of the Gas owned or
     controlled  by  Producer/Seller which is produced and saved from the Leases
     covered  hereunder,  as well as to contract with Buyer/Processor to gather,
     treat  and  process  all  such Gas upon the terms and for the consideration
     herein  expressed.

4.   Buyer/Processor  desires  to  purchase,  gather,  treat  and  process
     Producer/Seller's  Gas,  as  defined  herein,  utilizing  the  Facilities
     constructed,  owned  and operated by Buyer/Processor upon the terms and for
     the  consideration  herein  expressed.

5.   Buyer/Processor  has  entered  into,  and  may  enter  into  additional,
     third-party  Residue Gas sales agreements pursuant to which Buyer/Processor
     shall  utilize  commercially  reasonable  efforts  to  sell the Residue Gas
     resulting  from the processing of Producer/Seller's Gas, as defined herein.

<PAGE>
6.   Buyer/Processor  has  entered  into,  and  may  enter into additional Plant
     Products  sales  agreements pursuant to which Buyer/Processor shall utilize
     commercially  reasonable  efforts to sell the Plant Products resulting from
     the  processing  of  Producer/Seller's  Gas,  as  defined  herein.

NOW  THEREFORE,  in  consideration of the mutual agreements herein contained and
other good and valuable consideration, the parties hereto agree as follows:

                                    ARTICLE I
                                    ---------
                       REPRESENTATIONS OF PRODUCER/SELLER
                       ----------------------------------

1.1  Producer/Seller  represents and warrants to Buyer/Processor, its successors
and  assigns,  that  Producer/Seller  owns  an  interest in, or has the right to
market  one hundred percent (100%) of the Gas produced and saved from the Leases
("Producer/Seller's  Gas")  and that Producer/Seller has constructed, intends to
construct,  or  shall cause to be constructed, the facilities necessary, if any,
to enable Producer/Seller to sell and deliver to Buyer/Processor for sale at the
Point(s)  of Delivery, as hereinafter set forth, all of Producer/Seller's Gas in
accordance  with  the  terms  and  provisions  of  this  Agreement.

                                   ARTICLE II
                                   ----------
                       COMMITMENT OF PRODUCER/SELLER'S GAS
                       -----------------------------------

2.1 Subject to the terms and conditions contained herein, Producer/Seller hereby
commits  to  the  performance  of  this  Agreement  all of Producer/Seller's Gas
produced  and  saved  from the Leases, and to ensure the faithful performance of
the  provisions of this Agreement, Producer/Seller covenants to sell and deliver
the  same  to Buyer/Processor at the Point(s) of Delivery listed on Exhibit "A",
as  may  be  amended  from time to time, attached hereto and by reference made a
part  hereof  without  other  disposition  except  as herein otherwise provided.

                                   ARTICLE III
                                   -----------
                    CONSTRUCTION OF PIPELINE GATHERING SYSTEM
                    -----------------------------------------

3.1  Producer/Seller  agrees  to construct or has already constructed facilities
necessary  to  deliver  Producer/Seller's Gas produced to Buyer/Processor at the
Point(s)  of  Delivery  listed on Exhibit "A". Buyer/Processor shall install the
facilities  required to gather and measure Producer/Seller's Gas received at the
Point(s) of Delivery listed on Exhibit "A" (the "Facilities").

3.2  Buyer/Processor  shall have the option to make connections on its Gathering
System  for  new  Gas  developed  and produced and saved by Seller on the Leases
described  in  Exhibit  "A-l". However, Buyer/Processor, in its sole discretion,
shall  not be required to construct any new facilities that it deems uneconomic.
Throughout the term of this Agreement, immediately upon receipt of notice of the
completion  of  a  new  Well  or CDP by Seller on the Lease(s) listed on Exhibit
"A-l",  Buyer/Processor  shall provide Producer/Seller a written proposal of the
estimated  cost  to  install  the  facilities  required  to  gather  and measure
Producer/Seller's  Gas  (the  "Facilities")  produced  from the new Well or CDP.
Producer/Seller  shall  thereupon  have  fifteen (15) days to elect to accept or
decline  such proposal. As part of Producer/Seller's acceptance, Producer/Seller
shall  include  payment  for  one  hundred  percent  (100%) of Buyer/Processor's
estimated  cost  to  install  the  facilities.

                                        3
<PAGE>
3.3  Upon  receipt  of  Seller's payment of the estimated cost and acceptance of
Buyer/Processor's  written proposal, Buyer/Processor will immediately proceed to
acquire  the  right  of  way  and  diligently  proceed with the construction and
installation  of  the  Facilities.  Upon completion of the Facilities referenced
herein, Buyer/Processor shall adjust the estimated cost to reflect actual costs;
however, Producer/Seller will not be responsible for costs exceeding one hundred
ten percent of the estimated cost. Amounts due Buyer/Processor shall be invoiced
by  Buyer/Processor  and  such  invoice  shall  be payable within ten days after
receipt.  Any  adjusted  amounts  due  Producer/Seller  shall  be paid under the
Payment  terms  of  this  Agreement.  Buyer/Processor  shall  hold  title to the
Facilities.

3.4  Should  Producer/Seller  decline  the  proposal  as  set  forth  above,
Buyer/Processor  shall  not  be  obligated  to  make  any  such  connection, and
Producer/Seller  may  require  Buyer/Processor  to release such Well(s) from the
Agreement.

                                   ARTICLE IV
                                   ----------
                                    QUANTITY
                                    --------

4.1  Subject to the terms and conditions contained herein, Producer/Seller shall
deliver  and  sell  to  Buyer/Processor,  and  Buyer/Processor shall receive and
purchase Producer/Seller's Gas on a commercially reasonable basis.

4.2  Producer/Seller  acknowledges  and  understands  that  Buyer/Processor will
receive  and  purchase Producer/Seller's Gas utilizing the Facilities which also
receive, transmit and process Gas delivered to Buyer/Processor by other parties.

                                    ARTICLE V
                                    ---------
                          GENERAL TERMS AND CONDITIONS
                          ----------------------------

5.1  The  General Terms and Conditions set forth in the Appendix attached hereto
as  Exhibit "B" (the "Appendix") are the general terms and conditions applicable
to  this  Agreement, which Appendix is by reference hereby incorporated into and
made  an  integral  part of this Agreement. In the event of any conflict between
the  terms  as  set  out  in the body of this Agreement and those set out in the
Appendix, the terms in the body of this Agreement shall control.

                                   ARTICLE VI
                                   ----------
                   PRICE, REVENUE DISTRIBUTION, MARKET OPTION
                   ------------------------------------------
                         RESIDUE GAS AND PLANT PRODUCTS
                         ------------------------------

6.1  A.  Effective  the  date of first deliveries of Producer/Seller's Gas under
this  Agreement,  Producer/Seller  shall  receive  a  price  for all Residue Gas
attributable  to  Producer/Seller's  Gas  purchased by Buyer/Processor hereunder
equal  to  eighty  percent  (80%)  of the Residue Gas Revenues, allocated as set
forth in Section 9 of the Appendix. It is provided, however, that in lieu of the
foregoing,  Producer/Seller  shall have the right on the terms set forth herein,
exercisable  for  annual  periods,  to receive a volume of Residue Gas thermally
equivalent  to  eighty  percent  (80%)  of  the  Residue  Gas  attributable  to
Producer/Seller's  Gas  delivered  to  Buyer/Processor hereunder, in which event

                                        4
<PAGE>
Producer/Seller  shall  be  responsible  for  providing a market, transportation
and/or storage therefor at and downstream of the Point(s) of Redelivery ("Annual
Market  Option").

     B.  In addition to the foregoing, effective the date of first deliveries of
Producer/Seller's  Gas  under  this  Agreement,  Producer/Seller shall receive a
price  for  all of Producer/Seller's Plant Products purchased by Buyer/Processor
hereunder  equal  to  eighty  percent  (80%)  of the Plant Products Revenues and
Sulfur Revenues attributable to Producer/Seller's Gas, allocated as set forth in
Section  9  of  the  Appendix.

6.2  ANNUAL MARKET OPTION, NOMINATION, SCHEDULING AND DELIVERY

     A.  Producer/Seller shall have the right pursuant to Section 6.1 A above to
receive  a  volume of Residue Gas thermally equivalent to 80% of the Residue Gas
attributable  to  Producer/Seller's  Gas delivered to Buyer/Processor hereunder.
Such  option  shall  be  exercisable  by  Producer/Seller  for minimum of annual
periods  upon  providing Buyer/Processor written notice of its election at least
ninety (90) days prior to December 31 of any Contract Year, whereupon, beginning
with  the  Accounting Period beginning the next January 1, and for the following
twelve  (12)  Accounting  Periods, Producer/Seller shall either begin (or cease)
for  annual  periods  thereafter,  to  receive a volume of Residue Gas thermally
equivalent  to  80%  of  the  Residue  Gas attributable to Producer/Seller's Gas
delivered to Buyer/Processor hereunder ("Producer/Seller's Market Quantity"), to
be redelivered to Producer/Seller or its designee at the Point(s) of Redelivery.
The  option  shall  be exercised, or not exercised, for annual periods beginning
each  January  1,  and  an  election, once made, shall continue until changed in
accordance with the foregoing._During periods when Producer/Seller exercises its
Annual  Market  Option,  Buyer/Processor  will  deliver Producer/Seller's Market
Quantity  to  either  or  both  of  the  following" Point(s) of Redelivery" on a
capacity  available  basis:  (i)  the  interconnection between Buyer/Processor's
facilities and Williston Basin Interstate Pipeline Company's ("WBI") facilities,
or  (ii)  for an additional fee of $0.20 / MMBtu (dry), to the inlet of Northern
Natural  Gas  Company's  compressors  at  the  Ft.  Buford  terminus  of
Buyer/Processor's  Ft.  Buford  Line  ("Ft.  Buford").  In  the  event  that
Buyer/Processor's  Ft.  Buford  Line  is  or becomes insufficient in capacity to
deliver  or  handle  all  the  Residue  Gas,  then capacity will be allocated to
Producer/Seller  on  an  equal  pro-rata  basis,  based  on that Gas Day's total
nominations  to  that  point.

     B.  Nominations.  During  periods when Producer/Seller exercises its Annual
         -----------
Market  Option,  Producer/Seller  will  submit in writing to Buyer/Processor, by
facsimile or electronically in the form and according to procedures requested by
Buyer/Processor  from  time  to time, a schedule for the succeeding Month of its
total  estimated  quantities  of  Gas  in  Mcf  per  Day  to  be  delivered  to
Buyer/Processor  at  the  Point(s) of Delivery, and volumes of Producer/Seller's
Market Quantity to be delivered to Producer/Seller or Producer/Seller's designee
at  each  of  the Point(s) of Redelivery. In addition, if there is any change in
the  aforesaid  Monthly schedule and nominations, Producer/Seller will submit in
writing  to  Buyer/Processor,  by  facsimile  or  electronically in the form and
according  to  procedures  requested  by  Buyer/Processor  from  time to time, a
schedule  for  the  succeeding  Day  (and, if applicable, for the balance of the
Month)  of  its total estimated quantities of Gas in Mcf per Day to be delivered
to Buyer/Processor at the Point(s) of Delivery, and volumes of Producer/Seller's
Market Quantity to be delivered to Producer/Seller or Producer/Seller's designee
at  each  of  the  Point(s)  of  Redelivery.  All  the  aforesaid

                                        5
<PAGE>
notices shall be provided to Buyer/Processor by 10:00 A.M. C.T. at least one (1)
day  prior  to the delivery date or the date required by the transporter of such
Residue  Gas,  whichever  is  earlier.

     C.   Additionally:

          1.  Such  schedule,  projected  for the Month, shall be based upon the
          prior  Month's deliveries, adjusted as necessary, in Buyer/Processor's
          reasonable  judgment,  for  imbalance,  or  anticipated  increases  or
          declines  in  production  volumes.

          2.  On  Buyer/Processor's  Predetermined  Allocation  ("PDA"),
          Producer/Seller  shall  be  designated  as  a  swing  shipper.  Such
          designation  may  be  changed  or  modified  if  necessary  in
          Buyer/Processor's  discretion.

          3. If Buyer/Processor's field measurement indicates flow differentials
          of  plus  or  minus  five  percent  (  5%) from the first of the Month
          estimates,  or  if  otherwise in Buyer/Processor's reasonable judgment
          Producer/Seller's  nominations  require  adjustment,  Buyer/Processor
          reserves  the  right  to  require Producer/Seller to adjust its market
          nominations  accordingly.

          4.  Producer/Seller  shall indemnify and hold Buyer/Processor harmless
          from  any and all imbalance penalties and fees imposed by transporters
          which  are  applicable  to  Producer/Seller's  Residue  Gas.

          5. The Parties recognize and acknowledge that there will be variations
          from time to time between the Btu quantity of Producer/Seller's Market
          Quantity  that  the  Producer/Seller  is  entitled  to  each  month
          (determined  pursuant  to  the terms and conditions of this Agreement)
          and  the  Btu  quantity  that  Producer/Seller  has  nominated.
          Buyer/Processor  reserves  the  right  to  adjust  and  eliminate such
          variations  by  methods  which may include, but not be limited to, (i)
          the  adjustment  of  Producer/Seller's  nominations,  and/or  (ii)  a
          proration  of  actual  production  to  nominations,  and/or  (iii)
          contemporaneously  with  the transporters' "cash out", a "cash out" of
          any  imbalances  at  the  price  specified  in  the  proration  of the
          transporters'  tariff covering such "cash outs" at the tailgate of the
          Plant  if  said  "cash  out"  is  a direct result of Producer/Seller's
          failure to settle unbalances with the transporter. Producer/Seller and
          Buyer/Processor  agree  to  communicate  as  to  variations  in
          Producer/Seller's  Market  Quantity_available.

          6.  Producer/Seller  and/or  Buyer/Processor  may  each  designate, in
          writing,  other  parties  to  nominate,  schedule,  and manage the Gas
          control  activities  from  time  to  time.

     D.  Should Producer/Seller lose all or any portion of its market, or if the
designated  recipient of Producer/Seller's Market Quantity fails to accept same,
and  Producer/Seller  does  not  adjust  its  nominations  accordingly,
Buyer/Processor,  at  its  option,  may (i) elect to purchase all or part of the
corresponding  Residue  Gas  at  a  price  equal to ninety-five percent (95%) of
Residue  Gas  Revenues  attributable  to  Producer/Seller's Gas according to the
applicable  terms  of  this  Agreement,  or  (ii)

                                        6
<PAGE>
Buyer/Processor  may cease accepting same until notified by Producer/Seller that
a  third  party  market  exists  therefor.

     As  to  Producer/Seller's  Market  Quantity,  Buyer/Processor shall process
Producer/Seller's  Gas  and  purchase the Plant Products attributable thereto in
accordance  with  the  provisions  of  this  Agreement  regardless  of  whether
Producer/Seller exercises its Annual Market Option as herein set forth.

6.3  BALANCING  DURING  PERIODS WHEN PRODUCER/SELLER EXERCISES ITS ANNUAL MARKET
OPTION

     A.  Producer/Seller's Obligation to Maintain Balance. Producer/Seller shall
manage  daily receipts and deliveries of Gas and, if necessary, make adjustments
to  maintain  a balance of receipts and deliveries. Producer/Seller shall manage
daily  receipts  and deliveries so that the Imbalance shall be kept as near zero
as  practicable.  "Imbalance"  shall  be  defined  as  the  difference  between
Producer/Seller's Market Quantity and the total MMBTU's of Residue Gas nominated
for  delivery  at the Point(s) of Redelivery by Producer/Seller. Producer/Seller
and Buyer/Processor agree to communicate as to variations in Shrinkage, fuel use
and lost and unaccounted-for Gas attributable to Producer/Seller's Gas.

     B.  Processor's  Right  to  Minimize  Variances  and  to  Balance.  Monthly
balancing  Producer/Seller's  Market Quantity and Point(s) of Redelivery volumes
shall  be managed by Buyer/Processor so that any Imbalance or tolerance shall be
kept  as  near  to  zero  as  practicable.  Unless  agreed  to  between parties,
Buyer/Processor  will  not  be  required  to  receive  corresponding  allowable
quantities  from  Producer/Seller in excess of the quantities Producer/Seller or
Producer/Seller's  designee  will  accept  at  the  Point(s)  of Redelivery on a
concurrent  basis  and  Buyer/Processor  shall not be required to deliver at the
Point(s)  of  Redelivery  quantities  in  excess of the Producer/Seller's Market
Quantity.

6.4  Producer/Seller shall be responsible for distribution of revenues to owners
of  interest  in  the  Gas  purchased  by  Buyer/Processor hereunder, as further
described in Section 12, PAYMENT of the Appendix.
                         -------

                                   ARTICLE VII
                                   -----------
                                      FEES
                                      ----

7.1  In  conjunction  with  the  gathering,  treating  and  processing  of
Producer/Seller's  Gas,  Buyer/Processor  shall also charge and receive the fees
set  forth  below,  which fees shall be deducted each Accounting Period from the
aggregate  proceeds  due  Producer/Seller  pursuant  to  Article  VI  above.

                                        7
<PAGE>
     A.  An  alternative  power/fuel  source  fee,  in  the  event  any  of
Producer/Seller's  Gas  flows through a field compression facility or facilities
powered  by  electrical  power, or any fuel or power source other than Gas being
gathered into Buyer/Processor's Facilities, equal to Producer/Seller's allocable
portion  of  the  power  or  alternative  fuel  costs  necessary to operate such
facility  or facilities. Such costs shall be allocated to each Point of Delivery
by  multiplying the total power and fuel cost of each field compression facility
for  an  Accounting  Period  by  a fraction, the numerator of which shall be the
volume  of  Gas  flowing  through  the  facility  attributable to the particular
Point(s)  of  Delivery and the denominator of which shall be the total volume of
Gas  flowing  through  such compression facilities. Buyer/Processor shall charge
Producer/Seller,  on  a  monthly  basis,  the  resultant  product.

     B.  A  treating fee per Mcf of Producer/Seller's Gas delivered hereunder at
the Point'(s) of Delivery equal to the result of the following formula:

     ($0.025 per Mcf)(A) = treating fee,

where  A  is  the  molecular  percent  of  Acid Gas, expressed as the next whole
number,  contained  in  Producer/Seller's Gas delivered hereunder. "Acid Gas" is
defined  to  be  equal  to  the  molar  concentration  of  CO2  plus  the  molar
concentration  of  H2S.

     C.  The  marketing,  fractionation,  butane  splitter  and  butane splitter
facilities  operating  and  maintenance fees provided in Appendix Section l.(14)
Market  Price  -  Plant Products, and the Ft. Buford pipeline transportation fee
provided  in  Appendix Section l.(15) Market Price - Residue Gas, as applicable.

                                  ARTICLE VIII
                                  ------------
                                     NOTICES
                                     -------

8.1  All  notices  and communications required or permitted under this Agreement
shall  be in writing and any communication or delivery hereunder shall be deemed
to  have  been  duly  made  when delivered personally or three (3) business days
following  deposit  in  the  United  States mail, certified mail, return receipt
requested,  or  one  (1) business day following delivery to recognized overnight
courier  service, or upon transmittal by facsimile, in each such case postage or
charges  prepaid  and  addressed  as  follows:

          TO:    PRODUCER/SELLER'S  REPRESENTATIVE:

                 Petrosearch Operating Company, LLC
                 4925 Greenville Avenue Suite 125
                 Dallas, TX 75206

                 ATTN: Wayne Beninger
                 Phone:214-373-9442
                 Fax: 214-373-9963

                                        8
<PAGE>
          TO:    BUYER/PROCESSOR:

                 BEAR PAW ENERGY, LLC
                 1400 16th Street, Suite 310
                 Denver, Colorado 80202

                 ATTN:  Gas Supply
                 Phone: 720-946-3605
                 Fax:   720-946-3640

                                   ARTICLE IX
                                   ----------
                                      TERM
                                      ----

9.1  This  Agreement  shall be in full force and effect as of the Effective Date
and  shall  remain  in  full  force  and  effect  for  the  economic  life  of
Buyer/Processor's  Facilities.

                                    ARTICLE X
                        (None- Intentionally Left Blank)
                        --------------------------------

                                        9
<PAGE>
                                   ARTICLE XI
                                   ----------
                                  MISCELLANEOUS
                                  -------------

11.1 Respecting certain rights of the Parties hereto:

     A.  This  Agreement  shall  be binding upon and inure to the benefit of the
Parties  hereto,  their  successors,  assigns,  heirs,  administrators  and/or
executors  and shall constitute a real right and covenant running with the lands
and  leasehold  interests  covered  hereby.  Either  Party may assign his or its
right,  title,  and interest in, to and under this Agreement, including, without
limitation,  any  and  all  renewals, extensions, amendments, and/or supplements
hereto;  provided,  however, that no such assignment shall in any way operate to
enlarge,  alter, or change any right or obligation of the other Party or Parties
hereto.  No  assignment  shall  be effective or binding until a copy of same has
been  furnished  to  the  other  Party.

     B.  Further,  this  Agreement,  including,  without limitation, any and all
renewals, extensions, amendments and/or supplements hereto shall be binding upon
any  purchaser  of  Buyer/Processor's  Facilities  and  upon  any  purchaser  of
Producer/Seller's  Leases,  or  any  part  thereof or interest therein which are
subject  to  this  Agreement.  It  is  agreed  that no sale of Producer/Seller's
Leases,  or any part thereof or interest therein, or of all or substantially all
of  Buyer/Processor's  Facilities,  shall  be  made unless the purchaser thereof
shall  assume  and agree to be bound by this Agreement insofar as the same shall
affect and relate to the Leases, Facilities or interests so sold or conveyed. It
is  further  agreed,  however,  that  nothing  herein contained shall in any way
prevent  either Party hereto from pledging or mortgaging all or any part of such
Party's  Leases  or Facilities as security under any mortgage, deed of trust, or
other  similar  lien,  or  from pledging this Agreement or any benefits accruing
hereunder  to the Party making the pledge, without the assumption of obligations
hereunder  by  the mortgagee, pledgee or other grantee under such an instrument.

     C.  Nothing  in this Agreement, expressed or implied, confers any rights or
remedies  on  any  person or entity not a party hereto other than successors and
assigns,  or  heirs,  administrators  or  executors  of the Parties hereto. 11.2
Producer/Seller  expressly  does  not  by  the  terms  of  this Agreement, sell,
transfer  or assign unto Buyer/Processor any title or interest whatsoever in the
Leases or any pipe, meters, lines or other equipment of any nature owned or used
by  Producer/Seller  in the operation of Producer/Seller's Wells and the Leases.

11.3  This  Agreement constitutes the entire agreement and understanding between
the  Parties  hereto  and supersedes and renders null and void and of no further
force  and  effect  any prior understandings, negotiations or agreements between
the Parties relating to the subject matter hereof, and all amendments and letter
agreements  in any way relating thereto. Except as provided for in Section 11.4,
no  provision  of  this Agreement may be changed, modified, waived or discharged
orally,  and  no change, modification, waiver or amendment of any provision will
be  effective  except  by  written instrument to be executed and approved by the
Parties  hereto.

                                       10
<PAGE>
11.4  The  Gas  Industry Standards Board ("GISB") has and will continue to issue
standards  to  which  interstate  pipelines  must  comply.  To the extent that a
standard affects the operation of this Agreement, Buyer/Processor shall have the
right,  upon  notice  to  Producer/Seller, to modify the terms and conditions of
this  Agreement  to  conform  this  Agreement  to  such GISB standard; provided,
however,  that  no  change  to  any  commercial  term of this Agreement shall be
effective  without  Producer/Seller's  consent.

11.5  Memorandum  of  Agreement:  Upon  execution of this Agreement, the Parties
      -------------------------
agree  to  execute  a Memorandum of this Agreement to which shall be attached an
exhibit  containing  a legal description of the Leases, recites that the Parties
have  entered  into  this  Agreement  and  that  this Agreement provides for the
dedication  by Producer/Seller of the Gas produced and saved from the Leases and
the  purchase,  gathering and processing of such Gas by Buyer/Processor pursuant
to  the terms and conditions set forth in this Agreement, which Memorandum shall
be  placed  of  record  in  each  County  in  which  the  Leases  are  located.

11.6  Confidentiality  Agreement: Upon thirty (30) Days prior written notice and
      --------------------------
upon  execution  of  a  confidentiality  agreement,  a form of which is attached
hereto  as  Exhibit C, Producer/Seller shall have the right, at reasonable times
during  business  hours, but no more frequently than once each calendar year, at
its  own  expense,  to  examine  the books and records of Buyer/Processor to the
extent  necessary  to audit and verify the accuracy of any statement, charge, or
computation  made  under  or pursuant to this Agreement. The scope of such audit
shall be limited to the twenty-four (24) Month period after payment is made. All
statements,  allocations,  measurement, and payments made in any period prior to
the  twenty-four  (24)  Months preceding such Month shall be conclusively deemed
true and correct. The Party conducting the audit shall have six (6) Months after
commencement  of  the  audit in which to submit a written claim, with supporting
detail,  for  adjustments.

11.7  THIS  AGREEMENT  SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS  OF  THE STATE OF NORTH DAKOTA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

     THE  PARTIES  HERETO  have  executed  this Agreement as of the day and year
first  above  written.

                                       BUYER/PROCESSOR:

WITNESS:                               BEAR PAW ENERGY, LLC

BY:  /s/ illegible                     By:  /s/ Pierce H. Norton
   --------------------------------       -------------------------------------
                                                Pierce H. Norton
                                                President

                                       11
<PAGE>
                                       PRODUCER/SELLER:

WITNESS:                               PETROSEARCH OPERATING COMPANY, LLC

BY:  /s/ Joyce W. Denton               By:  /s/ Dan Denton
   --------------------------------       -------------------------------------
                                       Name:  Dan Denton
                                            -----------------------------------
                                       Title: President
                                             ----------------------------------

                                       12
<PAGE>
                                    EXHIBIT A
                                    ---------

                  ATTACHED TO AND MADE A PART OF THAT CERTAIN
           GAS PURCHASE, GATHERING, TREATING AND PROCESSING AGREEMENT
            BY AND BETWEEN BEAR PAW ENERGY, LLC AS "BUYER/PROCESSOR"
          AND PETROSEARCH OPERATING COMPANY, LLC, AS "PRODUCER/SELLER"

                            THE POINT(S) OF DELIVERY
                            ------------------------

At Gruman 1 Well located in the SE/4 of Section 18, T. 139 N., R. 96 W.

                                   THE LEASES
                                   ----------

All  interest  in  the  following  lands which are now or hereafter owned and/or
controlled  by  Producer/Seller:

Township 139 North. Range 96 West
---------------------------------

Section 18: SE/4 (upon which the Gruman 1 Well is located)

Stark County, North Dakota

                                       13
<PAGE>
                                   EXHIBIT A-1
                                   -----------

                  ATTACHED TO AND MADE A PART OF THAT CERTAIN
          GAS PURCHASE, GATHERING, TREATING, AND PROCESSING AGREEMENT
            BY AND BETWEEN BEAR PAW ENERGY, LLC AS "BUYER/PROCESSOR"
          AND PETROSEARCH OPERATING COMPANY, LLC, AS "PRODUCER/SELLER"

                               ACREAGE DEDICATION
                               ------------------

All interest in the following lands which are now or hereafter owned and/or
controlled by Producer/Seller:

          Section 16: NE1/4                         T138N  R95W
          -----------------                         -----  ----
          Section 16: SE1/4                         T138N  R95W
          -----------------                         -----  ----
          Section 10: SE1/4                         T138N  R96W
          -----------------                         -----  ----
          Section 22: NW1/4                         T138N  R96W
          -----------------                         -----  ----
          Section 22: SE1/4                         T138N  R96W
          -----------------                         -----  ----
          Section 22: SW1/4                         T138N  R96W
          -----------------                         -----  ----
          Section 24: SE1/4                         T138N  R96W
          -----------------                         -----  ----
          Section 26: SE1/4                         T138N  R96W
          -----------------                         -----  ----
          Section 26: SW1/4                         T138N  R96W
          -----------------                         -----  ----
          Section 36: NW1/4                         T138N  R96W
          -----------------                         -----  ----
          Section 28: NW1/4                         T139N  R95W
          -----------------                         -----  ----
          Section 18: NE1/4, N1/2SE1/4, SE1/4SE1/4  T139N  R96W
          ----------------------------------------  -----  ----
          Section 17: N1/4                          T139N  R96W
          ----------------                          -----  ----
          Section 16: SE1/4                         T139N  R96W
          -----------------                         -----  ----
          Section 28: E1/2                          T139N  R96W
          ----------------                          -----  ----
          Section 23: NW1/4                         T139N  R96W
          -----------------                         -----  ----
          Section 23: SW1/4                         T139N  R96W
          -----------------                         -----  ----
          Section 26: NE1/4                         T139N  R97W
          -----------------                         -----  ----
          Section 26: SE1/4                         T139N  R97W
          -----------------                         -----  ----
          Section 6: Lots 1, 2, S1/2NE1/4           T139N  R97W
          -------------------------------           -----  ----
          Section 26: NW1/4                         T139N  R97W
          -----------------                         -----  ----
          Section 16: S1/2                          T139N  R97W
          ----------------                          -----  ----
          Section 36: NE1/4                         T139N  R97W
          -----------------                         -----  ----
          Section 36: NW1/4                         T139N  R97W
          -----------------                         -----  ----
          Section 36: SW1/4                         T139N  R97W
          -----------------                         -----  ----
          Section 10: SW1/4                         T140N  R96W
          -----------------                         -----  ----
          Section 2: NW1/4                          T140N  R96W
          ----------------                          -----  ----
          Section 8: NW1/4                          T140N  R96W
          ----------------                          -----  ----
          Section 10: SE1/4                         T140N  R97W
          -----------------                         -----  ----
          Section 4: SE1/4                          T140N  R97W
          ----------------                          -----  ----
          Section 12: NW1/4                         T140N  R97W
          -----------------                         -----  ----
          Section 4: NE1/4                          T140N  R97W
          ----------------                          -----  ----
          Section 4: NW1/4                          T140N  R97W
          ----------------                          -----  ----
          Section 2: Lots 1, 2, 7, 8, 9, 10         T140N  R98W
          ---------------------------------         -----  ----

Stark County, North Dakota

                                       14
<PAGE>
                                    EXHIBIT B
                                    ---------

                   ATTACHED TO AND MADE A PART OF THAT CERTAIN
           GAS PURCHASE, GATHERING, TREATING AND PROCESSING AGREEMENT
            BY AND BETWEEN BEAR PAW ENERGY, LLC AS "BUYER/PROCESSOR"
          AND PETROSEARCH OPERATING COMPANY, LLC, AS "PRODUCER/SELLER"

                                    APPENDIX
                                    --------
                                       TO
                                       --
           GAS PURCHASE, GATHERING, TREATING AND PROCESSING AGREEMENT
           ----------------------------------------------------------
                          GENERAL TERMS AND CONDITIONS
                          ----------------------------

1.   DEFINITIONS
     -----------

     A. For the purposes of the Gas Purchase, Gathering, Treating and Processing
Agreement  (the  "Agreement")  to  which  this  Appendix is attached, unless the
context of the Agreement requires otherwise, the following terms and expressions
used therein and in this Appendix shall be defined as follows:

          1)   "Accounting  Period",  except  the  initial  "Accounting Period",
               shall  mean  a  period  of one calendar month, commencing at 9:00
               a.m.  Central  Clock  Time  on  the  first day of each month, and
               ending  at  9:00  a.m. Central Clock Time on the first day of the
               succeeding  calendar month. The initial "Accounting Period" shall
               commence  at  9:00 a.m. Central Clock Time on the date of initial
               deliveries  of  Gas  hereunder,  continuing  for  a  period  of
               consecutive  calendar  days until 9:00 a.m. Central Clock Time on
               the  first  day  of  the  succeeding  calendar  month.

          2)   "Btu"  (British  Thermal  Unit)  shall  mean  the  amount of heat
               required to raise the temperature of one (1) avoirdupois pound of
               pure  water  from  fifty-eight  and  five- tenths degrees (58.5 )
               Fahrenheit  to  fifty-nine  and  five-tenths  degrees  (59.5  )
               Fahrenheit  at  14.73  Psia.

          3)   "Buyer/Processor's  Gathering  System"  shall  mean the pipelines
               (including  field  compression)  and appurtenances constructed or
               acquired by Buyer/Processor for the purpose of accepting delivery
               and  transmitting  Producer/Seller's  Gas  from  the  Point(s) of
               Delivery  to  the  Gas  Plant.

          4)   "CDP  or  Central  Delivery Point" shall mean a point or location
               where  Producer/Seller  has  production  facilities to handle the
               production  from  one  or  several  Wells.

          5)   "Contract  Year"  shall  mean with relation to the first Contract
               Year,  that  period  of  time  commencing  on  the  date  of
               Producer/Seller's  initial  delivery  of  Gas  hereunder,  and
               extending  for  the next twelve (12) consecutive calendar Months,
               to

                                       15
<PAGE>
               but  not  including,  the  first of the following calendar Month,
               which  date  shall  constitute  the  anniversary  date  of  this
               Agreement.  Thereafter,  each subsequent Contract Year shall mean
               that  period  of time commencing with an anniversary date of this
               Agreement  and  extending for a period of twelve (12) consecutive
               calendar  Months to, but not including, the following anniversary
               date.

          6)   "Cubic Foot of Gas" shall mean the amount of Gas required to fill
               a cubic foot of space when the Gas is at a base pressure of 14.73
               Psia  and  at  a  base  temperature  of  sixty  degrees  (60  ).
               Fahrenheit.

          7)   "Day"  shall mean the 24-hour period beginning and ending at 9:00
               a.m.  Central  Clock  Time.

          8)   "Facilities"  shall have meaning ascribed by the first Recital of
               the  Agreement.

          9)   "Gas"  shall  mean the effluent vapor stream including all of the
               constituents  thereof, entrained liquids as produced from a well,
               whether  a  gas  well  or  an  oil  well,  and delivered into the
               Facilities  by  Producer/Seller  and  other  producers  at  their
               respective  Point(s)  of  Delivery.

          10)  "Gas  Plant"  shall mean Buyer/Processor's natural gas processing
               plant  located in McKenzie County, North Dakota and/or such other
               natural  gas processing facility(ies) utilized by Buyer/Processor
               for  processing  and  treating  Producer/Seller's  Gas.

          11)  "Gross  Heating  Value"  shall  mean  the  total  or  gross Btu's
               obtained by the use of a recording calorimeter, chromatograph, or
               other  method  mutually agreed upon between the parties, produced
               by  the  complete combustion, at constant pressure, of the amount
               of  Gas  which would occupy a volume of one (1.0) cubic foot at a
               temperature  of  sixty  degrees  (60 F) Fahrenheit saturated with
               water  vapor  and  under a pressure of 14.73 Psia with air of the
               same  temperature  and  pressure as the Gas, when the products of
               combustion  are  cooled to the initial temperature of the Gas and
               air  and  when the water formed by combustion is condensed to the
               liquid  state.

          12)  "MCF"  shall  mean  one  thousand  (1,000) cubic feet of Gas at a
               temperature  of  sixty  degrees  (60  F)  Fahrenheit  and under a
               pressure  of  14.73  Psia.

          13)  "MMBtu"  shall  mean  one  million  (1,000,000)  Btu's.

          14)  "Market  Price  -  Plant  Products"  shall be defined as (i) with
               respect  to  Plant  Products  (excluding  butane),  the  weighted
               average sales price per gallon received by Buyer/Processor at the
               tailgate  of  the  Gas  Plant  from  the  sale  of Plant Products
               attributable  to  Producer/Seller's  Gas  to  markets at the best
               price  then  obtainable  in  Buyer/Processor's  sole judgment and
               discretion,  less  a  $0.035  per  gallon

                                       16
<PAGE>
               marketing and fractionation fee and less actual costs incurred to
               transport  the  Plant  Products (excluding butane), and (ii) with
               respect  to  butane,  the weighted average sales price per gallon
               received  by Buyer/Processor at the tailgate of Buyer/Processor's
               butane splitter from the sale of volumes of butane and iso-butane
               attributable  to  Producer/Seller's  Gas  to  markets at the best
               price  then  obtainable  in  Buyer/Processor's  sole judgment and
               discretion,  less  actual costs incurred to transport the butane;
               less  a  $0.035  per  gallon marketing and fractionation fee; and
               less  a  butane splitter facilities operating and maintenance fee
               of  $0.005  per  gallon  of  butane  sold  (both normal and iso).

          15)  "Market  Price  -  Residue  Gas" shall be defined as the weighted
               average commodity price per MMBtu received by Buyer/Processor for
               the  amounts  of  Residue sold to Residue Gas markets at the best
               price  then  obtainable  in  Buyer/Processor's  sole judgment and
               discretion,  less  (i)  actual transportation charges incurred by
               Buyer/Processor, and (ii) a fee of $0.20 per MMBtu (dry) for each
               MMBtu  of Residue Gas moved from the Gas Plant via the Ft. Buford
               line  connecting  to  Northern  Border  Pipeline  Company.

          16)  "Month"  shall  mean  the  period  beginning at 9:00 a.m. Central
               Clock  Time  on  the  first day of a calendar month and ending at
               9:00  a.m.  Central  Clock  Time  on  the  first  day of the next
               succeeding  calendar  month.

          17)  "Party" or "Parties" shall mean one or both, respectively, of the
               signatories  to  this  Agreement.

          18)  "Plant  Products"  shall  mean  all  liquefiable  hydrocarbons
               including,  without  limitation,  incidental  methane and ethane,
               propane,  butane,  and  natural  gasoline,  individually  or as a
               mixture,  as  determined  by  the  latest  GPA  Publication  2145
               extracted  and  saved  at  the  Gas  Plant  from  all  of the Gas
               delivered  to  and  processed  by Buyer/Processor. Plant Products
               shall  be  deemed  to  include  liquids  or  drip  (condensed
               hydrocarbons)  which  have  collected  in  and  are  removed from
               Buyer/Processor's  Gathering System upstream of the inlets to the
               Gas  Plant.

          19)  "Plant  Products Revenues " shall have the meaning ascribed to it
               by  Section  9.A  of  this  Appendix.

          20)  "Point(s)  of  Delivery" shall have the meaning ascribed to it by
               Section  2  of  this  Appendix.

          21)  "Psia " shall mean pounds per square inch absolute.

          22)  "Psig" shall mean pounds per square inch gauge.

          23)  "Residue  Gas" shall mean that portion of all Gas, as measured at
               the  tailgate  of  the  Gas Plant, remaining after the extraction
               therefrom  of  Plant  Products,  Gas

                                       17
<PAGE>
               Plant and field fuel requirements, and Gas Plant and field losses
               or  uses  of  Gas  at  the  Gas  Plant.

          24)  "Residue  Gas  Revenues" shall have the meaning ascribed to it by
               Section  9.B.  of  this  Appendix.

          25)  "Producer/Seller's Gas Reserves" shall mean the total quantity of
               Producer/Seller's  Gas  attributable to Producer/Seller's present
               or future interest in, and/or which Producer/Seller has the right
               to  market  from  the  Leases.

          26)  "Shrinkage"  shall  mean  the  thermal reduction in the Gas which
               results  from  Facilities fuel gas consumption and the extraction
               of  Plant  Products.

2.   POINT(S) OF DELIVERY. PRESSURE AND OWNERSHIP
     --------------------------------------------

     A.  The Point(s) of Delivery of all Gas delivered under the Agreement shall
be  at  the  inlet  of  Buyer/Processor's  metering  facilities  located  at
Producer/Seller's  lease  separation  facilities  or  at  such other Point(s) of
Delivery  as  may be mutually agreed upon in writing by the Parties from time to
time,  and title to said Gas (including such hydrocarbons from the Gas that have
not  been  or  cannot  be  recovered  through the use of conventional mechanical
wellhead  gas-oil separators) shall pass from Producer/Seller to Buyer/Processor
at  said  Point(s)  of Delivery with respect to all amounts of Producer/Seller's
Gas  sold  to  Buyer/Processor  hereunder.

     B.  The  Point(s)  of  Redelivery  of  all  Residue  Gas  redelivered  to
Producer/Seller  pursuant  to Article VI of the Agreement shall be at the outlet
of  Buyer/Processor's  metering  facilities located at such locations (or at the
inlet  of  the  third-party  transporter's  facilities  at  such  location(s) if
Buyer/Processor  does  not  have  a  meter there), and title to said Residue Gas
shall  pass  from  Buyer/Processor  to  Producer/Seller  at  said  Point(s)  of
Redelivery  with  respect  to  all  amounts  of  Producer/Seller's  for  which
Producer/Seller  has  exercised  its  Annual  Market  Option  hereunder.

     C.  Producer/Seller,  at its own expense, shall equip, maintain and operate
all  facilities  to  deliver  Producer/Seller's  Gas  to  Buyer/Processor at the
Point(s)  of  Delivery,  including,  but  not  limited  to,  installation  and
maintenance  of Producer/Seller's gathering facilities and mechanical separation
equipment.

     D. Buyer/Processor shall construct, maintain, own and operate all necessary
facilities  to accept Producer/Seller's Gas from Producer/Seller at the Point(s)
of  Delivery.

     E.  Producer/Seller  will  deliver  Gas  at  the  Point(s) of Delivery at a
pressure  sufficient  to  enter  Buyer/Processor's  Gathering System, but not to
exceed  the  maximum  allowable  operating pressure ("maop") of the pipe. In the
event  Producer/Seller  determines that such working pressure excessively limits
the production of Producer/Seller's Wells, Producer/Seller shall provide written
notice thereof to Buyer/Processor. Upon receipt of such notice, Buyer/Processor,
as  soon  as  practicable,  shall  present to Producer/Seller a written proposal
pursuant  to  which  Buyer/Processor  shall  construct,  own  and  operate

                                       18
<PAGE>
such field compression facilities as may be necessary to reduce such pressure to
a  mutually  acceptable  level  and  shall  disclose  the charges to be assessed
Producer/Seller  therefor,  together  with  a  schedule  of  payment.  Once such
proposal  has been accepted by Producer/Seller in writing, Buyer/Processor shall
utilize  commercially reasonable efforts to construct or cause to be constructed
and  placed in operation the required field compression facilities within ninety
(90)  days  of  receipt of such written acceptance. Should Producer/Seller elect
not  to  accept  such  proposal, Producer/Seller shall have the right to install
compression facilities at its sole cost and expense subject to Buyer/Processor's
reasonable  construction  and  design  standards  and  requirements.

     F.  As  between  the  Parties,  Producer/Seller  shall be in possession and
control  of  the  Gas  deliverable  under  the Agreement and responsible for any
injury  or  damage  caused  thereby  until the same shall have been delivered to
Buyer/Processor,  after  which delivery Buyer/Processor shall be deemed to be in
exclusive  possession  and  control  thereof  and  responsible for any injury or
damage caused thereby, provided that if Producer/Seller is exercising its Annual
Market  Option  hereunder, upon redelivery to Producer/Seller or its designee at
the Point(s) of Redelivery of Producer/Seller's Market Quantity, Producer/Seller
shall  be  deemed  to  be  in  exclusive  possession  and  control  thereof  and
responsible  for  any  injury  or  damage  caused  thereby.

3.   RESERVATIONS  AND  COVENANTS  OF  PRODUCER/SELLER
     -------------------------------------------------

     A.  Producer/Seller, as a reasonable and prudent operator, hereby expressly
reserves the following rights with respect to Producer/Seller's Gas Reserves and
the  Leases  subject  hereto:

          1)   The  right  to  use  the  Gas  produced  from the Leases prior to
               delivery  to  Buyer/Processor  for  the  following  purposes:

               a)   For fuel in the development and operation of the Leases from
                    which  the  Gas  is produced, excluding, however, the use of
                    such Gas for secondary or tertiary recovery projects such as
                    miscible  flood  and  fire  flood  projects;

               b)   For delivery to the lessors of the Leases of the Gas if such
                    lessors  are  entitled to use or take such Gas in kind under
                    the  terms  of  the  Leases;

               c)   For  fuel  in  the  operation  of  the  facilities  which
                    Producer/Seller  may  install  in  order  to  deliver  Gas
                    hereunder  in  accordance  with  the  terms  hereof.

          2)   The  right to pool or unitize the Leases (or any portion thereof)
               with  other  lands  and  leases  so  long as such action does not
               reduce  Producer/Seller's  Gas Reserves. In the event of any such
               pooling  or  unitization,  the  Agreement  will  cover
               Producer/Seller's  interest  in  the  pool  or  unit  and the Gas
               attributable  thereto to the extent that such interest is derived
               from  Producer/Seller's  Gas  Reserves.

     B.  Producer/Seller  shall  provide  to  Buyer/Processor  all  necessary
information whereby Buyer/Processor can make the proper allocation herein called
for  or  required  by  Buyer/Processor's

                                       19
<PAGE>
normal  and  customary  accounting  practices  or  required by Buyer/Processor's
normal  and  customary  contract  administration  practices.

     C.  Producer/Seller  shall  operate  the  Leases  free  of  any  control by
Buyer/Processor, including without limitation, the right to make farmouts of any
lease subject to this Agreement, and to abandon any well and surrender any lease
when  Producer/Seller  deems  the  same  no  longer  capable of producing Gas in
commercial  quantities  under normal methods of operation. Producer/Seller shall
not  be  required  to  produce any well or wells in any manner which in its sole
judgment  and discretion would not constitute good operating practice, nor shall
Producer/Seller  be  obligated to drill additional wells or to deepen, repair or
rework  any  existing  wells.

     D. In conjunction with Section 2.A. above, Producer/Seller shall retain all
liquid  hydrocarbons  separated  from  Producer/Seller's  Gas  by  the  use  of
mechanical  separators  at  the  Point(s)  of  Delivery;  provided however, that
Producer/Seller  shall not be permitted to remove or recover liquid hydrocarbons
from  Producer/Seller's Gas other than such as can be removed through the use of
conventional  non-refrigerated  type  wellhead  separators.

4.   QUANTITY RESTRICTIONS
     ---------------------

     A.  Buyer/Processor's obligation to receive Producer/Seller's Gas under the
Agreement is subject to the limitations and conditions set forth below:

          1)   If  Buyer/Processor  is  unable to receive and purchase the total
               amounts of Producer/Seller's Gas tendered to Buyer/Processor from
               Producer/Seller's  Wells  due  to market restrictions or capacity
               restrictions on the Facilities, Buyer/Processor shall receive and
               purchase only that portion of Producer/Seller's Gas available for
               delivery  to  the  Gas  Plant which is ratable on a thermal basis
               with  the  heating value of all Gas available for delivery to the
               Gas  Plant,  based  upon  the  most  recent  Accounting Period of
               production  during  which  no  delivery restrictions were imposed
               and/or  no  events  of  force  majeure  were  in  effect.

          2)   The terms of any third party Residue Gas sales agreements then in
               force.

5.   PRODUCER/SELLER'S WARRANTIES
     ----------------------------

     A.  Producer/Seller  hereby  warrants  title  to the Gas sold and delivered
hereunder and the right of Producer/Seller to sell the same; and Producer/Seller
warrants  that all such Gas is owned by Producer/Seller, or that Producer/Seller
has  the  right  to  market  said  Gas  free  from all liens and adverse claims,
including  liens  to  secure  payments of production taxes, severance taxes, and
other  taxes.  Producer/Seller  agrees  to indemnify Buyer/Processor and save it
harmless  from  all  suits, actions, debts, accounts, damages, costs, losses and
expenses  arising  from or out of adverse claims, whether meritorious or not, of
any  and  all  persons,  firms,  or  corporations  to  said Gas or to royalties,
overriding  royalties,  taxes,  license fees, or charges thereon, resulting from
actions  of,  by,  through  or  under  Producer/Seller. Buyer/Processor shall be
entitled  to  recover  all costs and attorneys' fees incurred as a result of its

                                       20
<PAGE>
involvement  in  any  action  or claim described herein. Buyer/Processor, at any
time thereafter, when it shall appear to Buyer/Processor by reason of receipt of
written notice of claim or dispute that the ownership or title to all or part of
the  Leases,  or  the Gas produced therefrom, may be in a party or parties other
than  Producer/Seller,  or  upon  learning  of  any  other claims, liens, taxes,
royalties,  fees,  expenses  or  other  adverse  claims,  may  suspend  payments
hereunder without payment of interest, unless otherwise required by statute, and
retain  as  security  for  the performance of Producer/Seller's obligations with
respect  thereto, the entire purchase price of the Gas until Buyer/Processor has
been  satisfied  as  to  the  amount  of  such  claim  or ownership claimed, and
thereafter  up  to  the  amount of such ownership interest or claim until it has
been  finally  determined  and  satisfied,  or  until Producer/Seller shall have
furnished  a bond to Buyer/Processor in an amount and with sureties satisfactory
to  Buyer/Processor,  conditioned  upon  the  protection of Buyer/Processor with
respect  to  such  ownership  or  claim.

6.   EASEMENTS
     ---------

     A.  To  the  extent  that  it may contractually or lawfully do so under its
leasehold  interest  without  impairing  its  own similar right, Producer/Seller
hereby  assigns  and  transfers  to  Buyer/Processor  any  easement  across  the
Producer/Seller's  Leases,  and  across  any  adjoining  lands  in  which
Producer/Seller  may  have  an  interest, for the purposes of installing, using,
inspecting,  repairing,  operating, replacing, and/or removing Buyer/Processor's
pipe,  meters,  lines,  and other equipment used or useful in the performance of
the  Agreement. It is intended that any property of Buyer/Processor placed in or
upon  any  of  such  land shall remain the personal property of Buyer/Processor,
subject to removal by it upon the expiration or termination of the Agreement for
any reason. Buyer/Processor shall have a reasonable time after the expiration or
termination of the Agreement to remove same. Buyer/Processor shall indemnify and
hold Producer/Seller harmless of and from any and all claims and damages for all
injuries  to  persons,  including death, or damage to property arising out of or
incident to Buyer/Processor's use of the easement hereunder transferred, only in
the  event  said  claim  or  damage  shall  be  the result of negligence legally
imputable  to  Buyer/Processor,  its  employees,  agents,  and  representatives.

7.   SHRINKAGE
     ---------

     A.  Buyer/Processor  agrees  to  use  ordinary  care  in  gathering
Producer/Seller's  Gas from the Point(s) of Delivery to the Gas Plant, and after
processing  Producer/Seller's  Gas,  delivering the resultant Residue Gas to its
purchaser  at the tailgate of the Gas Plant. However, the Parties understand and
agree that certain losses in the Gas will occur and shall be shared by and among
Producer/Seller  and  other  third  parties  whose gas is transported to the Gas
Plant,  in  the  proportion  that each party delivers gas into Buyer/Processor's
Gathering  System  at  their  respective  Point(s)  of  Delivery.

8.   GAS  MEASUREMENT  AND  QUALITY
     ------------------------------

     A.  Buyer/Processor,  at  its  expense, shall furnish, install, operate and
maintain a suitable orifice meter at the Point(s) of Delivery of the Gas covered
hereby.  Each  meter installed by Buyer/Processor shall be a meter acceptable in
the  industry  and  each  meter  shall  be  installed  and

                                       21
<PAGE>
operated  in  accordance  with  the  requirements  of  applicable  provisions in
ANSI/API  2530,  "Orifice Metering of Natural Gas" (American Gas Association Gas
Measurement  Committee  Report  No.  3)  of  the  Natural  Gas Department of the
American  Gas  Association, as amended from time to time, or by any other method
commonly  used in the industry and mutually acceptable to the Parties. Any meter
installed  hereunder  shall  be  open  to  inspection  by Producer/Seller at all
reasonable  times.  The  charts  and records pertaining to measurement hereunder
shall  be  kept on file by Buyer/Processor for a period of two (2) years for the
mutual  use  of the Parties. In the event any question arises as to the accuracy
of  the  measurement,  the  meter  or  meters shall be tested upon the demand of
either  Party.  The expense of any such special test shall be borne by the Party
demanding  same  if  the  meter  registration  is  found  to  be correct, and by
Buyer/Processor  if  found  to  be  incorrect.

     B.  Producer/Seller  may, at its option and sole expense, install, maintain
and  operate check meters and other equipment to check Buyer/Processor's meters;
provided, however, that such check meters and other equipment shall be installed
by  Producer/Seller  so  as  not  to  interfere with the operation of any of the
Facilities.  Buyer/Processor  and  Producer/Seller  shall  have  access  to each
other's measuring equipment at all times during business hours, but the reading,
calibrating and adjustment thereof and the changing of charts shall be done only
by the employees or agents of Buyer/Processor and Producer/Seller, respectively,
as  to  meters  or  check  meters  so  installed  hereunder.

     C.  At  least  semi-annually,  unless  otherwise  required  by  statute,
Buyer/Processor  shall  verify the calibration of all meters installed hereunder
and  make  adjustments  as  necessary.  Should  Producer/Seller  so  desire,
Buyer/Processor  shall  give  notice  to  Producer/Seller  of  the  time of such
calibrations  sufficiently  in  advance  of  holding  same  in  order  that
Producer/Seller  may  have  its representative present. With respect to any test
made  hereunder,  a  registration  within  two  percent (2%) of correct shall be
considered  correct.  However,  the meter or meters, when found to be incorrect,
shall  be  adjusted  to one hundred percent (100%) accuracy as soon as possible.
Settlement  for  any period during which the meter registration deviates by more
than  two  percent  (2%) of correct shall be corrected at the rate of inaccuracy
for  any  period  of inaccuracy which is definitely known or agreed upon; but in
case the period is not definitely known or agreed upon, then either for a period
of  fifteen (15) days prior to the date of said test, or for a period calculated
from  the  beginning  of  the Accounting Period in which the test was conducted,
whichever  is  longer.  The rate of the inaccuracy shall be estimated and agreed
upon  by  the  Parties hereto on the basis of the best available data, using the
first  of  the  following  methods  which  is  feasible:

          1)   By  using  the  registration  of  any  check  meter  or meters if
               installed and accurately registering; or, in the absence thereof,

          2)   By calibration, test, or mathematical calculation; or

          3)   By  estimation  based on comparison of the quantity of deliveries
               with deliveries during preceding periods under similar conditions
               when  the  meter  was  registering  accurately.

     D. All fundamental constants, observations, records and procedures involved
in  the  determination  and/or  verification  of  the  quantity  and  other
characteristics  of  Gas  measured  hereunder,

                                       22
<PAGE>
unless  otherwise  specified  herein, shall be in accordance with the applicable
provisions  in  ANSI/API  2530,  "Orifice Metering of Natural Gas" (American Gas
Association  Gas  Measurement  Committee  Report  No.  3)  of  the  Natural  Gas
Department  of the American Gas Association, as amended from time to time, or by
any  other  method  commonly used in the industry and mutually acceptable to the
Parties.  The  average  local  atmospheric  pressure shall be assumed to be 13.2
Psia. The temperature of Gas flowing through each meter shall be determined by a
recording thermometer, installed by Buyer/Processor at its sole cost and expense
to  properly  record  the  temperature  of the flowing Gas, and the arithmetical
average  of  the temperature recorded while the Gas is flowing during each meter
chart  interval  shall  be  used  in correcting amounts delivered hereunder to a
temperature  base  of  sixty degrees Fahrenheit (60 degrees F) and to a pressure
base  of  14.73  pounds  Psia.  Should  the  recording  thermometer malfunction,
Buyer/Processor  shall  assume  a  reasonable  temperature  for  the  period  in
question.

     E.  Producer/Seller  agrees that all Gas delivered to Buyer/Processor under
the  Agreement  shall:

          1)   Contain  not  more  than  two  percent  (2%)  by volume of carbon
               dioxide,  nor  more  than  ten  percent  (10%) by volume of total
               inerts,  nor  more than one-thousandth of one percent (0.001%) by
               volume  of  oxygen, nor more than one and one-half percent (1.5%)
               by  volume  of  hydrogen  sulfide;

          2)   Not  have  a  maximum temperature greater than one hundred twenty
               degrees Fahrenheit (120 degrees F), or a minimum temperature less
               than  fifteen  degrees  Fahrenheit  (15  degrees  F);

          3)   Be  commercially free of all objectionable dust or other solid or
               liquid  or  gaseous  matters  which  might  interfere  with  its
               merchantability  or  cause  injury to or interference with proper
               operations  of any of the Facilities through which the Gas flows;
               and

          4)   Contain  a  Gross  Heating Value of at least twelve hundred fifty
               (1,250)  Btu  per  cubic  foot.

     F.  Buyer/Processor  may test Producer/Seller's Gas delivered hereunder for
adherence  to  the  specifications  above  set  forth,  such  testing  to  be in
accordance with generally accepted industry standards and procedures. If the Gas
so  delivered  by  Producer/Seller  does  not  meet the specifications set forth
above, Buyer/Processor, at its option, may refuse to accept delivery of said Gas
into  its  Facilities.  If  Producer/Seller shall deliver Gas to Buyer/Processor
which  exceeds the maximum pressure specifications, or fails to meet the quality
specifications  above-referenced,  Producer/Seller  shall be responsible for any
damages  caused  to Buyer/Processor's Facilities and any other damages resulting
from  Producer/Seller's  delivery  of  such  non-conforming  Gas. In such event,
Producer/Seller  shall  have  the  right to conform Producer/Seller's Gas to the
above  specifications. Should Producer/Seller fail to do so, Buyer/Processor, at
its  option,  may elect to accept such non-conforming Gas, condition the same to
conform  to  the  above  specifications  and  charge  Producer/Seller a mutually
acceptable  conditioning  fee.  If  neither Party elects to condition the Gas to
conform  to  the  above specifications, then Producer/Seller, at its option, and
upon  sixty  (60)  days  prior written notice to Buyer/Processor, shall have the
right  to

                                       23
<PAGE>
obtain the release of such non-conforming Gas from the Agreement, but only as to
the  formation  from  which  said  Gas  is  produced.  Notwithstanding  anything
hereinabove  to the contrary, should Buyer/Processor elect to accept and pay for
non-conforming  Gas,  Buyer/Processor  shall not be deemed to have waived any of
its  rights  hereunder  and shall nevertheless be entitled, at any time and from
time  to  time,  to  enforce  the quality provisions hereof and refuse to accept
delivery  of  any  volumes  of  non-conforming  Gas  from  Producer/Seller.

     G.  At  least  semi-annually,  unless  otherwise  required  by  statute,
Buyer/Processor  shall  take samples from each of Producer/Seller's Wells at the
Point(s) of Delivery and have such samples analyzed by chromatograph analysis to
determine  the  liquids content by component and the Gross Heating Value of such
Gas.  Buyer/Processor shall have the right to take and analyze a spot Gas sample
prior  to the regularly scheduled sampling. Additionally, upon Producer/Seller's
written  request to Buyer/Processor and at Producer/Seller's sole cost, risk and
expense, Buyer/Processor shall take and analyze Gas samples more frequently. All
Gas  samples  taken  hereunder  shall be taken at such times that are reasonably
mutually  agreeable  so  that  the  sample  will  be  representative  of the Gas
produced,  shall  be analyzed using the most current Gas Processor's Association
Publications  and  Producer/Seller  shall  be  permitted  to be present for such
sampling  and  permitted  to  take  a  split  sample.  The test samples shall be
analyzed  through  the  use  of  a calorimeter (acceptable to both Parties) that
employs  the  Thomas  Principle of Calorimetry described in Research Paper #519,
published by the U.S. Department of Commerce or by the use of gas chromatography
equipment.  The Gross Heating Value calculation will use the Btu values assigned
to  the various hydrocarbon components as adjusted and updated from time to time
by  Buyer/Processor  using  as a base those values set forth in the most current
GPA  Publication  2145 in effect at the time the Gross Heating Value calculation
is  derived  under  the  provisions  of  the  Agreement.  Measurement  shall  be
determined  as  delivered  on  a  saturated  basis  or consistent with the basis
applied to all producers delivering gas to the Gas Plant. The percentages of the
individual  components  through  normal  pentane  shall  be reported and heavier
components  shall  be reported as hexanes plus. The components shall be reported
in  mol  percent  and  propane  and heavier components shall also be reported in
gallons per Mcf. Buyer/Processor shall furnish Producer/Seller advance notice of
the  sampling  and analysis of the Gas in order that Producer/Seller may witness
same.  If Producer/Seller's representative is not present, Buyer/Processor shall
proceed  with the taking and analysis of samples. All gas which may be delivered
by  third parties to the Processing Plant for processing shall be tested and the
hydrocarbon  content  thereof  determined  or  caused  to  be  determined  by
Buyer/Processor,  using  the  same  sampling  and  test  methods.

     H.  The  shrinkage  of  the Gas occasioned by the extraction of liquefiable
hydrocarbons,  including but not limited to, propane, butanes and pentanes plus,
will  be  calculated  using  the  MMBtu  per  gallon factors assigned to various
hydrocarbon  components  as  set  forth  in  the current GPA Publication 2145 in
effect  at the time the Shrinkage calculation is derived under the provisions of
the  Agreement,  using as a base the following MMBtu per gallon factors: propane
(0.090902),  normal  butane  (0.102925),  iso  butane (0.098934), normal pentane
(0.110092),  iso  pentane  (0.108787),  and  hexanes  and  heavier  (0.110092).
Measurement  and  component  determination  of  the  extracted  liquefiable
hydrocarbons  will  be accomplished by suitable meters and sampling equipment at
the  tailgate  of  the  Processing  Plant  by  the  purchaser  or  purchaser's
representative  of  said  liquid products. Buyer/Processor will perform periodic
analysis  and  sampling  to  insure  purchaser's or purchaser's representative's
compliance  with  standard  industry  practices in the measurement and component
determination.

                                       24
<PAGE>
     I.  Measurement  of the Residue Gas will be accomplished by suitable meters
installed,  maintained  and  operated  by  the  third-party  receiving  pipeline
company(ies).  Buyer/Processor  will  perform  periodic analysis and joint meter
tests  semi-annually,  unless  otherwise  required  by  statute,  to  insure the
third-party receiving pipeline company's(ies') compliance with standard industry
practices.

9.   ALLOCATION OF RESIDUE GAS, PLANT PRODUCTS AND SULFUR REVENUES
     -------------------------------------------------------------

     A.  Plant  Products  Revenues  from the sale of Producer/Seller's allocated
Plant  Products  shall  be  the  amount determined for each Accounting Period by
aggregating  the  products  obtained by multiplying the volume of each component
Plant  Product  recovered  during  such  Accounting Period by the then-effective
Market Price - Plant Products received by Buyer/Processor during such Accounting
Period  for  each  such  component  Plant  Product.  Each  Accounting Period the
quantity  (in  gallons)  of  a  particular component Plant Product recovered and
attributable  to  a  particular  Point  of  Delivery  shall  be  determined  by
multiplying  the actual net component Plant Product recovered by a fraction, the
numerator  of  which is the theoretical test gallons of the particular component
Plant  Product contained in Producer/Seller's Gas attributable to the particular
Point  of  Delivery  and  the  denominator  of  which  is  the total quantity of
theoretical  test gallons of the particular component Plant Product contained in
Producer/Seller's  Gas  attributable  to  all  points  of  delivery  on
Buyer/Processor's  Gathering  System.

     B.  Residue  Gas  Revenues  from  the  sale  of Producer/Seller's allocated
Residue  Gas  shall be calculated each Accounting Period as the product obtained
by multiplying the quantity of Residue Gas (in MMBtu) delivered hereunder during
such  Accounting  Period  attributable  to Producer/Seller by the then effective
Market  Price  -  Residue  Gas per MMBtu received by Buyer/Processor during such
Accounting  Period.

          1)   Residue  Gas  volumes  attributable  to  a  particular  Point  of
               Delivery  shall  be  determined  by  multiplying  the total Gross
               Heating  Value  of  the  Residue  Gas (in MMBtu) available at the
               outlet  of  the  Gas  Plant by a fraction, the numerator of which
               shall  be  the  total Gross Heating Value of the processed volume
               (in  MMBtu),  less theoretical Plant Product Shrinkage (in MMBtu)
               attributable  to  the  particular  Point(s)  of  Delivery and the
               denominator of which shall be the aggregate of such determination
               for all points of delivery on Buyer/Processor's Gathering System.
               To  determine the total Gross Heating Value, the processed volume
               (in  Mcf) attributable to a particular Point of Delivery shall be
               multiplied by the Gross Heating Value (in Btu per cubic foot) for
               that  particular  Point  of  Delivery  as  determined pursuant to
               paragraph  G  of  Section 8, hereof and the result divided by one
               thousand  (1,000)  yielding  the  total  Gross  Heating  Value in
               millions  of  Btu  (MMBtu).

          2)   Theoretical  Plant Product Shrinkage attributable to a particular
               Point of Delivery shall be determined by conversion of the actual
               volume of each component Plant Product attributed to a particular
               Point  of  Delivery to its respective heat content equivalent (in
               MMBtu) by multiplying the gallons thereof by the MMBtu per gallon
               factor  determined  in  paragraph  H  of  Section  8.

                                       25
<PAGE>
10.  PRICING INFORMATION AND REFUNDS
     -------------------------------

     A.  Producer/Seller  agrees  that  it  will  supply data and information at
Buyer/Processor's  reasonable  request,  and  otherwise  cooperate  with
Buyer/Processor  in  any  regulatory  proceeding  wherein  the  price  or  other
provisions set forth herein may be the subject of review.

     B.  The Parties acknowledge that Buyer/Processor has not reviewed the terms
of Producer/Seller's Leases pertaining to Producer/Seller's Gas and that, to the
extent  it  is  responsible for doing so, Buyer/Processor shall account and make
payment  to royalty, overriding royalty, and other interest owners and to taxing
authorities based on the price paid by Buyer/Processor for Producer/Seller's Gas
as set forth in the Agreement, and that so long as Buyer/Processor makes payment
as  aforesaid, Buyer/Processor shall not be responsible for any other deficiency
or  overpayment.

11.  TAXES
     -----

     A.  Buyer/Processor  and  Producer/Seller  shall  bear  separately  and  be
individually  responsible for any and all taxes imposed upon and/or attributable
to  each  Party's  properties  and/or  operations  hereunder except as otherwise
explicitly  provided  for  in paragraph B. of this Section 11. These taxes shall
include,  but  not  be  limited to, all state severance taxes, ad valorem taxes,
franchise taxes, sales and use taxes and state and federal income taxes.

     B.  Producer/Seller agrees to pay, or cause to be paid, when due, the taxes
lawfully  levied  on  Producer/Seller's  Gas  prior  to  its  delivery  to
Buyer/Processor,  as  well  as  its proportionate share of taxes, if any, levied
upon the Plant Products to be marketed by Buyer/Processor hereunder and not paid
by  the  purchaser. To the extent required of Buyer/Processor by law or statute,
Buyer/Processor shall withhold and pay to the appropriate taxing authority those
taxes  due  under  this  paragraph.

12.  PAYMENT
     -------

     A.  After  delivery of Producer/Seller's Gas has commenced, Buyer/Processor
shall  mail  a statement to Producer/Seller on or before the twenty-fifth Day of
the  Month  following each Accounting Period showing for such Accounting Period:

          1)   The  total  volume  (Mcf  and  MMBtu)  and  gallons  per  Mcf  of
               Producer/Seller's  Gas  measured  at  the  Point(s)  of Delivery.

          2)   The  allocated  volume  of Producer/Seller's Gas at each Point of
               Delivery  delivered  to  the  Gas  Plant.

                                       26
<PAGE>
          3)   The  Plant  Products attributable to Producer/Seller's Gas at the
               Point(s)  of  Delivery.

          4)   The volume of Residue Gas (Mcf) attributable to Producer/Seller's
               Gas  at  the  Point(s)  of  Delivery.

          5)   Producer/Seller's  Plant  Product  pricing,  Residue Gas pricing,
               sulfur  pricing,  and fees charged pursuant to ARTICLE VI - PRICE
                                                                           -----
               AND  REVENUE DISTRIBUTION and ARTICLE VII - FEES of the Agreement
               -------------------------                   ----
               and  Sections  l.(14),  l.(15)  and  9.H  of  this  Appendix.

     Where  Producer/Seller  is  responsible  for  revenue  distribution,
Buyer/Processor  shall  remit  the  amount  due  for  all  Gas  purchased  to
Producer/Seller,  and  it  shall  be  the obligation of Producer/Seller to cause
proper settlement and accounting to be made and to make distribution of proceeds
to  all  owners  of  interest  in the proceeds from the sale of Gas delivered to
Buyer/Processor hereunder. The Party responsible for distribution of revenues to
owners of interest in the Gas hereby indemnifies and holds the other harmless of
and  from any and all claims, demands, actions, causes of action, costs, damages
and  expenses  related  to,  arising  out  of  or  in any way stemming from such
obligation.

     B.  Should  Producer/Seller  wish  Buyer/Processor to provide an allocation
statement  for  Producer/Seller's  Wells  or  lease(s)  behind  the  CDPs,
Producer/Seller  shall  furnish  to  Buyer/Processor  on or before the fifteenth
(15th)  Day  of  the  Month  following  the  applicable Accounting Period a Well
test/allocation  statement  setting  forth  allocation  percentages  for
Producer/Seller/s  Gas  at  each  Point  of  Delivery  specified  herein.
Buyer/Processor  shall  be  entitled  to  rely conclusively on Producer/Seller's
Well(s) test/allocation statement and shall have a complete defense to any claim
by  Producer/Seller  for  any  sums  due  for  Producer/Seller's  Gas  delivered
hereunder  at  the  Point(s)  of  Delivery specified herein during any period by
showing  that  Buyer/Processor  has made payment to Producer/Seller pursuant tot
Producer/Seller's  Well  test/allocation  statement.

     C.  Buyer/Processor shall at all times have the right to deduct, retain and
withhold from those amounts due Producer/Seller hereunder any and all undisputed
amounts  due  Buyer/Processor  from  Producer/Seller  for  fees  and/or expenses
provided  for  under  the  terms  of  the Agreement, In the event the amount due
Buyer/Processor  exceeds  the  amount due Producer/Seller, Buyer/Processor shall
invoice  Producer/Seller  for  such  sums  due and Producer/Seller shall pay the
invoice  in full within fifteen (15) days from date of invoice. Past due amounts
shall  accrue  interest  from the due date until paid in full at the rate of two
percent  (2%)  over  the  prime  rate charged by Bank Boston, as the same may be
amended  from  time  to  time.

     D.  Buyer/Processor  shall  send  payment  by  first  class regular mail to
Producer/Seller on or before the last Day of each Month (or on the next business
day  if  such day is a weekend or holiday) for sums accrued during the preceding
Accounting  Period, or ten (10) days after receipt by Buyer/Processor of payment
from  the  purchasers  of  the  Residue  Gas,  Plant  Products  and  sulfur from
Buyer/Processor,  whichever  is  later.

                                       27
<PAGE>
13.  PRODUCER/SELLER'S  REPRESENTATIVE
     ---------------------------------

     A.  The  party  set  forth  in  ARTICLE VIII, NOTICES, of the Agreement, is
                                                   -------
designated as Producer/Seller's representative with respect to all matters under
the  Agreement,  including  but  not  limited  to  the  following:

          1)   To give and receive all notices;

          2)   To make and witness any tests to be made of Producer/Seller's Gas
               and  measuring  equipment  and  adjustments  to  such  equipment;

          3)   To  deliver  the  quantities of Producer/Seller's Gas deliverable
               hereunder;

          4)   To  obtain,  execute and deliver to Buyer/Processor such division
               order  title  opinions  and division orders as may be required by
               Buyer/Processor  hereunder;  and

          5)   To  comply  with  the  requirements, rules and regulations of any
               duly  constituted  authority  having  jurisdiction.

          6)   If  Producer/Seller  is responsible for distribution of revenues,
               to receive payment hereunder and, where provided herein, to cause
               proper settlement and accounting to be made and make distribution
               of  proceeds  to  all owners of interest in the proceeds from the
               sale  of  Gas  delivered  to  Buyer/Processor  hereunder.

     B.  Buyer/Processor  may  act,  and  shall be fully protected in acting, in
reliance  upon  any  and all acts and things done and performed by or agreements
made  with  respect  to  all matters dealt with herein by said Representative on
behalf  of  Producer/Seller  as  fully  and  with  the  same  effect  as  though
Producer/Seller  had  done,  performed,  made  or  executed  the  same.

     C.  Producer/Seller  may  change  its  Representative  designated above, or
designate  a  new Representative from time to time by delivery of written notice
of  change  and  designation  of  Representative  to  Buyer/Processor.  The
Representative so designated shall have and may exercise all power and authority
therein  granted  with like effect as though named as such Representative herein
in  the  first  instance.

14.  REGULATORY  BODIES
     ------------------

     A. The Agreement is subject to all present and future valid laws and lawful
orders  of  all  regulatory  bodies  now or hereafter having jurisdiction of the
Parties,  or  either of them; and should either of the Parties, by force of such
law  or  regulation  imposed  at  any  time during the term of the Agreement, be
ordered  or  required  to  do  any  act  inconsistent with the provisions of the
Agreement,  the  Agreement  shall  continue  nevertheless  and  shall  be deemed
modified  to  conform  with  the  requirements  of  such  law

                                       28
<PAGE>
or  regulation for that period only during which the requirements of such law or
regulation  are  applicable.  Nothing  in  the  Agreement or this Appendix shall
prohibit either Party from obtaining or seeking to obtain modification or repeal
of  such  law  or regulation or restrict either Party's right to legally contest
the  validity  of  such  law or regulation, and each Party reserves the right to
file  with  such regulatory bodies any material necessary to implement the terms
of  the  Agreement  and this Appendix as they existed prior to the modification.

15.  FORCE  MAJEURE
     --------------

     A.  Except  for  Buyer/Processor's  and  Producer/Seller's  respective
obligations  to  make proper settlement, accounting and distribution of proceeds
to  all  interest owners as provided above for Gas delivered to and purchased by
Buyer/Processor  under  the  Agreement,  in  the event either Buyer/Processor or
Producer/Seller  is  rendered unable, by reason of an event of force majeure, to
perform,  wholly  or  in  part,  any  obligation  or commitment set forth in the
Agreement,  then  upon  such Party giving notice and full particulars (including
all  supporting  documentation)  of  such event as soon as practicable after the
occurrence  thereof,  the  obligations of both Parties shall be suspended to the
extent and for the period of such force majeure provided that the Party claiming
an  event of force majeure shall make all reasonable attempts to remedy the same
with  all  reasonable  dispatch.

     B.  The  term  "force  majeure",  as  used  herein, shall mean acts of God,
strikes,  lockouts  or  industrial disputes or disturbances, civil disturbances,
arrest  and  restraint of rulers or people, interruptions by government or court
orders,  necessity  for  compliance  with any present and future valid orders of
court,  or  any  law,  statute,  ordinance  or  regulation  promulgated  by  any
governmental  or  regulatory  authority  having proper jurisdiction, acts of the
public  enemy,  wars,  riots,  blockades,  insurrections, including inability to
secure materials by reason of allocations promulgated by authorized governmental
agencies,  epidemics, landslides, lightning, earthquakes, fires, storms, floods,
washouts,  inclement  weather  which  necessitates  extraordinary  measures  and
expense  to construct facilities and/or maintain operations, explosions, partial
or  entire  failure of Gas supply, breakage or accident to machinery or lines of
pipe, freezing of wells or pipelines, inability to obtain or delays in obtaining
easements  or  rights-of-way,  the  shutting  in of facilities for the making of
repairs,  alterations  or  maintenance  to  wells,  pipelines  or  plants,  the
interruption  or  suspension  of  the  receipt  of  Gas  deliveries hereunder by
Buyer/Processor  due  to  the  declaration  of  force  majeure  by  third-party
transporters,  or  any  other  cause  whether  of  the kind herein enumerated or
otherwise,  not  reasonably  within  the  control  of  the Party claiming "force
majeure".

     C. Neither Party shall be entitled to the benefit of the provisions of this
Section 15 under either or both of the following circumstances:

          1)   To  the  extent that the failure was caused by the Party claiming
               suspension  having  failed  to remedy the condition by taking all
               reasonable  acts,  short  of  litigation, if such remedy requires
               litigation,  and  having  failed  to  resume  performance of such
               commitments  or  obligations  with  reasonable  dispatch;  or,

                                       29
<PAGE>
          2)   If  the  failure  was caused by lack of funds, or with respect to
               the  payment  of  any  amount  or  amounts  then  due  hereunder.

     D.  Settlement  of  strikes  and  lockouts  shall  be  entirely  within the
discretion  of  the Party affected, and the duty that any event of force majeure
shall  be remedied with all reasonable dispatch shall not require the settlement
of  strikes  and  lockouts by acceding to the demands of the Parties directly or
indirectly  involved in such strikes or lockouts when such course is inadvisable
in  the  discretion  of  the  Party  having  such  difficulty.

16.  DEFAULTS
     --------

     A.  It  is covenanted and agreed that if either Party shall fail to perform
any  of  the covenants or obligations imposed upon it under and by virtue of the
Agreement  or  this  Appendix, in addition to its other rights and remedies, the
other Party may terminate the Agreement by proceeding as follows:

          1)   The  Party  not  in  default  shall  cause a written notice to be
               served  on  the  other Party in default, stating specifically the
               cause  for  terminating the Agreement, and declaring it to be the
               intention  of  the  Party  giving  notice  to terminate the same;
               thereupon, the Party in default shall have thirty (30) days after
               the  service of the aforesaid notice in which to remedy or remove
               the  cause  or  causes  stated  in the notice for terminating the
               Agreement.  If  within said thirty (30) days the Party in default
               does  so  remove  and  remedy  said  cause  or  causes,  or fully
               indemnifies the Party not in default for any and all consequences
               of  such  breach,  then  such  notice  shall be withdrawn and the
               Agreement  shall  continue  in  full  force  and  effect.

          2)   In case the Party in default does not remedy and remove the cause
               or  causes, or does not indemnify the Party giving the notice for
               any  and  all  consequences of such breach, within said period of
               thirty  (30)  days, then the Agreement shall become null and void
               from  and  after  the  expiration  of  said  period.

          3)   Any  cancellation  of the Agreement pursuant to the provisions of
               this  Section  shall  be  without  prejudice to the obligation of
               Buyer/Processor  to  make  proper  settlement,  accounting  and
               distribution  of  proceeds  to  all  owners  of  interest  in the
               proceeds received for Gas delivered to Buyer/Processor thereunder
               to  the time of cancellation, and without waiver of any remedy to
               which  the Party not in default may be entitled for violations of
               the  Agreement.

     B. No waiver by either Producer/Seller or Buyer/Processor of any default of
the  other  under the Agreement shall operate as a waiver of any future default,
whether  of  like  or  different  character  or nature, nor shall any failure to
exercise  any  right  hereunder  be  considered as a waiver of such right in the
future.

                                       30
<PAGE>
17.  UNECONOMIC WELL CONNECTIONS
     ---------------------------

     A.  In  the event Producer/Seller desires Buyer/Processor to connect a well
to  Buyer/Processor's  Gathering  System  which  well, in Buyer/Processor's sole
opinion,  would  not constitute an economic connection, Buyer/Processor shall be
under  no  obligation  to connect any such well, or to accept any Gas therefrom.
Nevertheless,  Buyer/Processor,  upon  Producer/Seller's request, may accept Gas
from any such well if Producer/Seller shall acquire and assign without charge to
Buyer/Processor a measuring station site on Buyer/Processor's existing Gathering
System  at  a  mutually  agreeable  point, together with all necessary rights of
ingress and egress thereto, and bear the cost of the construction, operation and
maintenance  of  all  facilities  necessary  to  deliver Gas from such well into
Buyer/Processor's  Gathering  System  at  said  mutually agreeable point. Should
Producer/Seller  elect  not  to  deliver  Gas to Buyer/Processor from such well,
Buyer/Processor  shall  release  such  well  and the acreage attributable to the
drilling  and  spacing  unit  thereof  from  the  Agreement,  but only as to the
formation  in  which  such  well  is  then  completed.

     B.  In  the  event  Gas  volumes  available  for  delivery  from  any  of
Producer/Seller's  Wells  hereunder  become uneconomic to Buyer/Processor in the
exercise  of  Buyer/Processor's  reasonable  judgment, Buyer/Processor agrees to
release  from dedication to this Agreement the affected Well(s) and the Lease(s)
to  the extent of the drilling and spacing unit(s) corresponding to such Well(s)
and/or  Lease(s).

18.  UNECONOMIC OPERATION OF GAS PLANT OR BUYER/PROCESSOR'S GATHERING SYSTEM
     -----------------------------------------------------------------------

     A.  If, in the opinion of Buyer/Processor, any of the Gas Plant or any part
of Buyer/Processor's Gathering System is or becomes uneconomic to operate due to
its  volume,  quality,  Plant  Products  content, governmental regulation or any
other cause, Buyer/Processor may either modify or suspend operations thereof, in
which  case  Buyer/Processor  shall not be obligated to take delivery of, or may
cease  processing all or any portion of the Gas from Producer/Seller's Wells, so
long  as  such condition exists. For the purposes hereof, "uneconomic operation"
shall  be  defined  as  circumstances under which Buyer/Processor's share of net
operating  revenues  (the  sum  of  Buyer/Processor's  percentage  of  revenues
attributable  to  sales of Plant Products, Residue Gas and sulfur) of any of the
Gas  Plant  or any part of Buyer/Processor's Gathering System is insufficient to
offset  actual  operating  costs  thereof  together  with  reasonable  return.

     B.  During  periods  of uneconomic operation of any of the Gas Plant or any
part  of  Buyer/Processor's  Gathering  System and/or suspension of operation of
portions  thereof, Buyer/Processor, at the request of the Producer/Seller, shall
place  back  in  service and operate such suspended portions of the affected Gas
Plant  or  Buyer/Processor's  Gathering System as may be necessary to accept and
process  all  or any portion of Producer/Seller's Gas. In consideration thereof,
Producer/Seller  agrees  to reimburse Buyer/Processor, in the same proportion as
the  ratio  of the Gas volumes supplied by Producer/Seller bear to the total Gas
volumes supplied to the affected Gas Plant or Buyer/Processor's Gathering System
by  other  third-party  Producer/Sellers,  for  any  losses  (costs  of

                                       31
<PAGE>
operations  of  the  affected Gas Plant or Buyer/Processor's Gathering System in
excess  of  revenues  attributable  to  operations  of the affected Gas Plant or
Buyer/Processor's  Gathering System after deducting payments to all contributing
producers  for  Gas  delivered  to  and  processed  by the affected Gas Plant or
Buyer/Processor's  Gathering  System)  incurred  by  Buyer/Processor during such
continued  uneconomic  operations.  Buyer/Processor may, at its option, elect to
sell  the  affected  Gas Plant or any part of Buyer/Processor's Gathering System
rather  than  operate  the  same  under  the  terms  of  this  Section.

19.  LITIGATION - ATTORNEYS' FEES
     ----------------------------

     A.  In  the  event  litigation  arising  out  of  the  Agreement (excluding
litigation  or  actions  indemnified  pursuant  to  Section 5, PRODUCER/SELLER'S
                                                               -----------------
WARRANTIES, or Sections 2.F or 21.A of this Appendix) should be initiated by any
----------
Party  hereto,  the  prevailing Party, after the entry of a final non-appealable
order,  shall  be  entitled  to  recover from the other Party, as a part of said
judgment,  all  court  costs,  fees  and  expenses of such litigation, including
reasonable  attorneys'  fees.

20.  DAMAGES, ARBITRATION
     --------------------

     A. Whether or not occasioned by a default or other breach of the Agreement,
neither  Party  shall  be  liable  to  the  other  for  special,  exemplary,  or
consequential  damages.

     B.  Any  claim, demand, cause of action, dispute or controversy exclusively
between  the  parties  relating to the subject matter of this Agreement, whether
sounding  in  contract,  tort  or otherwise, at law or in equity, for damages or
other  relief  ("Dispute")  shall  be  resolved by binding arbitration if senior
management  of  each  of  the Parties cannot resolve the Dispute within ten (10)
days  of  a  notice of arbitration ("Notice") being served by one party upon the
other.  Within  twenty (20) days following service of the Notice (if the Dispute
remains  unresolved by senior management), the parties shall either agree upon a
single  arbitrator,  or  if  they  have not done so, each party shall select one
arbitrator,  who  shall  together  select  a  third.  The  third  or  the single
arbitrator  shall  have more than 8 years professional experience in the natural
gas  gathering  industry,  be  neutral,  and  have  not  worked  for  a party or
affiliate.  The  arbitration  shall  be  conducted according to the rules of the
Federal Arbitration Act, and to the extent an issue is not addressed thereby, by
the  Commercial  Arbitration  Rules of the American Arbitration Association. The
arbitration shall be conducted in Denver, Colorado. Each party shall be entitled
to  a reasonable amount of preheating discovery as allowed by the arbitrator(s),
provided the discovery period shall not exceed thirty (30) days; the parties and
the  arbitrators  shall  endeavor  to hold the arbitration hearing within thirty
(30)  days  thereafter and to render the decision within ten (10) days following
the  hearing. Each party shall bear its own costs of arbitration. Interpretation
of  this  agreement  to  arbitrate  and  procedures  shall  be  decided  by  the
arbitrators,  provided  the  award  shall be consistent with this Agreement. The
arbitration and the award shall be final, binding and confidential.

21.  GENERAL
     -------

     A.  The  Parties  hereto  assume  full responsibility and liability for the
maintenance  and operation of their respective properties and agree to indemnify
and  save  harmless  the  other  Party  from  all

                                       32
<PAGE>
liability  and expense on account of any damages, claims or actions arising from
any  act  or accident in connection with the installation, presence, maintenance
or operation of the property or equipment of the indemnifying Party.

     B. Producer/Seller agrees that Buyer/Processor, its successors and assigns,
shall  have  the  right,  but  not  the  obligation,  at  any tune to redeem for
Producer/Seller, its successors and assigns, or other interest owners by payment
of  any  taxes, deeds of trust, judgments or other liens on the Leases described
in  Exhibit  "A"  hereto,  on  Producer/Seller's  Gas Reserves or the production
therefrom,  in  the  event  of  default  of  payment by Producer/Seller or other
interest  owners,  and  be  subrogated  to  the  rights of the holder or holders
thereof.  Producer/Seller further agrees that any such redemption and payment by
Buyer/Processor  for  the  account  of  Producer/Seller or other interest owners
shall  be  applied  by  way  of  a  set-off  against  the  purchase  price which
Buyer/Processor  would  otherwise  pay  to Producer/Seller or the other interest
owners under Section 9 of the Appendix attached hereto, such set-off to continue
until  all  payments by Buyer/Processor under the Agreement, plus interest, have
been  fully  recouped  by  Buyer/Processor.

     C.  Upon  consent  of  Buyer/Processor,  the  Agreement may be ratified and
adopted  by any owner of an interest in the Leases subject hereto, or any leases
with which the Leases subject hereto may be pooled or unitized, by execution and
delivery  to  Buyer/Processor  of  a  separate  written instrument ratifying and
adopting  the  Agreement  insofar  as said owner's interest in any such lands or
leases  is  concerned,  all  the  terms and provisions of the Agreement shall be
binding  upon  such interest owner. In addition, upon Buyer/Processor's request,
Producer/Seller  shall  cause  each  interest owner in the Leases to execute and
deliver  to  Buyer/Processor  a  ratification  of  the  Agreement.

     D.  Each  Producer/Seller  executing  or  ratifying the Agreement makes and
enters into the Agreement severally and not jointly with other Producer/Sellers,
and  they  are  not acting as partners, joint venturers, or otherwise jointly in
this  transaction,  and  nothing  herein  contained or provided shall operate to
create,  or  be  construed  as  creating, any such relationship. It is expressly
provided  that  there  shall  never  be  any joint liability against the Parties
designated  herein  as  Producer/Seller and that no single party Producer/Seller
shall  be  liable  for  the  acts  or  omissions  of  any  other  single  party
Producer/Seller.

     E.  The  Parties agree that they will maintain the Agreement, and all parts
and  contents  thereof,  in  strict  confidence, and that they will not cause or
permit disclosure of same to any third Party without the express written consent
of the other Party; provided however, that disclosure by a Parry is permitted in
the  event  and  to  the  extent:

          1)   disclosing  Party  is  required  by  a court or agency exercising
               jurisdiction  over  the  subject  matter  thereof, by order or by
               regulation or law, to disclose; provided that in the event either
               Party  becomes  aware  of a judicial or administrative proceeding
               that  has  resulted  or  may  result  in  such an order requiring
               disclosure,  it  shall  (i) so notify the other Party immediately
               (ii) utilize all reasonably available means to limit the scope of
               the  order or regulation requiring disclosure, and (iii) take all
               actions  reasonably necessary to prevent disclosure to the public
               as  a  result  of disclosure to the court or administrative body,

          2)   disclosure is required in the course of routine audit procedures.

                                       33
<PAGE>
Any such disclosure shall be made upon the condition that the recipient shall in
turn  hold  such  information  confidential  from  further  disclosure.

     F.  The  Equal Employment Opportunity Clause required under Executive Order
No.  11246, the affirmative action commitment for disabled veterans and veterans
of  the Vietnam Era, set forth in 41 CFR 60-250.4, the affirmative action clause
for handicapped workers, set forth in CFR 650-741.4, and the related regulations
of  the  Secretary of Labor, 41 CFR Chapter 60, are incorporated by reference in
the  Agreement.  By  accepting  the Agreement, Producer/Seller certifies that it
complies  with  the  authorities  cited  above  and  that  it  does not maintain
segregated  facilities  or permit its employees to perform services at locations
where segregated facilities are maintained, as required by 41 CFR 60.1.8.

                      END OF GENERAL TERMS AND CONDITIONS
                      -----------------------------------

                                       34
<PAGE>
                                    EXHIBIT C
                   ATTACHED TO AND MADE A PART OF THAT CERTAIN
           GAS PURCHASE, GATHERING, TREATING AND PROCESSING AGREEMENT
              BETWEEN BEAR PAW ENERGY, LLC AS "BUYER/PROCESSOR" AND
            PETROSEARCH OPERATING COMPANY, LLC, AS "PRODUCER/SELLER"

                                THIRD PARTY AUDIT
                            CONFIDENTIALITY AGREEMENT

THIS CONFIDENTIALITY AGREEMENT (the "Agreement") made and entered into this 11th
                                                                            ----
day of February, 2004, by and between Petrosearch Operating Company, LLC ("POC")
       --------    --
and BEAR PAW ENERGY, LLC ("BPE").

WHEREAS,  POC  and  BPE have previously entered into Gas Purchase and Processing
Agreement(s) set forth on Exhibit "A" attached hereto and incorporated herein by
reference  (the "Contracts"), pursuant to which POC has certain rights to review
the  accounting books and records of BPE relating to payments made by BPE to POC
for  gas  purchases  by  BPE  under  the  Contracts;  and

WHEREAS,  in  order  to  conduct  said  records  review, POC must have access to
certain  books,  documents  and records of BPE which contain certain proprietary
information  pertaining  to  such gas purchases and the accounting therefor, all
such  information hereinafter collectively referred to as the "Review Material";
and

WHEREAS,  all  such  Review  Material  provided  by  BPE  to POC, its employees,
advisors,  consultants,  accounting  firms  or  other  agents or representatives
(collectively  the "Representatives") and all other information furnished by BPE
or  made  available  to  POC  by  BPE,  in  the  course of the records review is
considered  to  be  confidential  and  proprietary;  and

WHEREAS,  POC  has  provided  information  to  BPE regarding certain acreage and
leaseholding,  collectively  referred  to as the "Leases", that are dedicated to
the  Contracts  set  forth  as Exhibit "A & Al" attached hereto and incorporated
herein  by  reference;  and

WHEREAS, the parties desire that all such information shall remain confidential,
shall  not  be disclosed or utilized for purposes other than with respect to the
records  review  above  referenced  and  shall  be  held  in  total  confidence.

NOW  THEREFORE,  in  consideration of the mutual covenants and conditions herein
contained,  it  is  agreed  as  follows:

1.   POC  is  acting  on  its  own  behalf  and not on behalf of any undisclosed
     principal or principals and that BPE is acting on its own behalf and not on
     behalf  of  any  undisclosed  principal  or  principals.

2.   POC  agrees that the Review Material received from BPE will not be used for
     any  purpose other than to perform the records review permitted pursuant to
     the  Contracts  relating  to  the  payment

                                        2
<PAGE>
     obligations of BPE thereunder, such Review Material to be kept confidential
     by  and  its  Representatives.

3.   BPE  shall  make  copies of the Review Material available for inspection by
     POC  and  its  Representatives  at  BPE's  Denver,  Colorado  offices.

4.   All of the Review Material supplied by BPE to POC hereunder shall be deemed
     confidential  and  proprietary information, excluding that which is, or may
     become,  a matter of public record; that which may be so widely known as to
     be  regarded  as public information; or that which has been provided to POC
     by unrelated third parties not subject to a Confidentiality Agreement. Such
     Review  Material  shall  remain  strictly  confidential  and  POC shall not
     divulge  all  or  any  part  thereof  to any other individual or entity, or
     publicly in any form or manner whatsoever without the express prior written
     consent  of  BPE.

5.   All  of  the  Review Material provided to and/or disclosed to POC hereunder
     shall  be  identified  in  writing  and  set  forth  in  an  instrument  or
     instruments  from  time  to  time  to  be  signed  by  both  parties.

6.   The  obligation  of  POC  and  its  Representatives under this Agreement to
     preserve  the  confidentiality of the Review Material shall terminate three
     (3)  years  after  the  date  of  this  Agreement.

7.   In  the event POC or its Representatives are requested or required (by oral
     questions,  interrogatories,  requests  for  information  or  documents,
     subpoena, civil investigative demand or similar process from a governmental
     authority,  agency  or  tribunal)  to  disclose  any Review Material, it is
     agreed  that  POC  will  provide  BPE with prompt notice of such request in
     order  that  BPE  may  seek  an  appropriate  protective order and/or waive
     compliance  with  the  provisions  of this Agreement. Further, it is agreed
     that if, failing the entry of a protective order or the receipt of a waiver
     hereunder,  POC  or  its  Representatives  are,  in the opinion of counsel,
     compelled  to disclose Review Material under pain of liability for contempt
     or  other  censure  or  penalty,  such  information may be disclosed to the
     governmental  authority,  agency  or  tribunal without liability hereunder;
     however,  POC  also  will  exercise its best efforts to obtain a protective
     order  in  regard  to  any  such  disclosure,  or  to obtain other reliable
     assurance  that  confidential treatment will be accorded to any such Review
     Material  which  is  disclosed.

8.   At  the  conclusion  of  the  records  review, all Review Material (and all
     copies,  summaries  and  notes  of the contents or parts thereof), shall be
     returned  by  POC  to  BPE.

9.   In  event  of  a  dispute  regarding  payments made by BPE to POC under the
     Contracts  or  if  a  claim  is initiated by POC based on its review of the
     Review  Material,  POC agrees to provide BPE with a copy of all work papers
     and  related  documentation, including all underlying assumptions prepared,
     compiled  and/or  relied  upon  by  POC  or  its  Representatives.

10.  POC  shall  be  responsible  for  and  indemnify BPE for any breach of this
     Agreement  by  or  its  Representatives,  including  reimbursement  of  all
     reasonable  attorneys'  fees  and  other  costs  and

                                        3
<PAGE>
     Agreement,  or  the application of said provision hereof shall be valid and
     shall be enforced to the fullest extent permitted by law.

17.  This  Agreement  shall  be construed in accordance with and governed by the
     laws  of the State of Colorado without regard to principles of conflicts of
     law.

IN  WITNESS  WHEREOF, the parties have executed this Agreement as of the day and
year  first  above  written.

                                       BEAR PAW ENERGY, LLC

                                       By:  /s/ Pierce H. Norton
--------------------------------          --------------------------------
                                            Pierce H. Norton
                                            President

                                       PETROSEARCH OPERATING COMPANY, LLC

                        02/11/04       By:  /s/ Dan Denton
--------------------------------          --------------------------------
                                       Name:  Dan Denton
                                            ------------------------------
                                       Title: President
                                             -----------------------------

                                        4PLAINS
                                     ------
                                 MARKETING, L.P

                           CRUDE OIL PURCHASE CONTRACT

CONTRACT NO.6114-1001                                           January 25, 2005

This contract by and between ANADARKO PETROSEARCH, L.L.C. ("ANADARKO"), with an
address of 4801 Woodway Dr., Suite 300E, Houston, TX 77056 and PLAINS MARKETING,
L.P., ("PMLP"), covering the sale and delivery by Anadarko and the purchase and
receipt by PMLP of the hereinafter specified oil is entered into in accordance
with the following terms and conditions:

     1.   TERM:          The  primary  term  shall  be a period of 6 months from
                         February 01,  2005  to  August  01,  2005.

                         The term shall be automatically extended for a
                         Secondary Term month to month thereafter unless notice
                         of non-renewal is given by either party hereto upon not
                         less than thirty (30) days advance written notice to
                         the other party.

     2.   QUALITY        Oklahoma Sweet crude oil.
          AND
          CRUDE TYPE:

     3.   QUANTITY:      An amount equal to actual lease receipts from lease (s)
                         indicated on Exhibit "A" attached hereto and made a
                         part hereof. (Approximately 50 barrels per day)

     4.   DELIVERY:      Shall be made at the well tankage into PMLP's
                         designated transportation facilities.

     5.   PRICE:         For the crude oil sold and delivered hereunder, PMLP
                         agrees to pay a price per barrel equal to PMLP's
                         Oklahoma Sweet Central Crude Oil Posting, deemed 40.0
                         API gravity. Plus an additional $ 2.0000 premium as
                         indicated on Exhibit "A" attached hereto and made a
                         part hereof. For pricing purpose, deliveries will be
                         calculated on equal daily quantities.

     6.   PAYMENT:       Payment  shall  be  made  by  check  on  or  about
                         the twentieth (20th) day of the month following the
                         month of delivery.

PMLP's General Provisions dated February 01, 2001 are incorporated herein by
reference and made a part hereof. To the extent of any conflict between the
provisions herein and the General Provisions, the provisions herein shall
govern.

If Division Orders have been issued to ANADARKO by PMLP and executed by ANADARKO
covering the wells on Exhibit A, the Division Orders are incorporated herein and
made a part hereof. The provisions of this Agreement, including but not limited
to those relating to term, rights of termination, price and otherwise, shall be
applicable and govern, notwithstanding any provision in the Division Orders to
the contrary.

All invoices and notices given pursuant to this agreement shall be in writing,
telex or faxed and shall be deemed delivered when received by the other party at
the address specified below:

                    Plains Marketing GP Inc., General Partner
   12700 Hillcrest Road, Suite 158 - Dallas, Texas 75230 - 972-991-7544 - Fax
                                  972-991-7547

<PAGE>
Notices and all other correspondence to PMLP shall be mailed or faxed as
follows:

                         Plains Marketing, L.P.
                         12700 Hillcrest Road, Suite 158
                         Dallas, Texas 75230
                         Phone: (972) 991-7544
                         Fax: (972) 991-7547

Invoices shall be mailed or faxed to PMLP as follows:

                         Plains Marketing, L.P.
                         333 Clay Street Suite 1600
                         Houston, Texas 77002
                         Phone: (713) 646-4100
                         Fax: (713) 646-4114

Notices and all other correspondence to ANADARKO shall be mailed or faxed as
Follows:

                         Anadarko Petrosearch, L.L.C.
                         4801 Woodway Dr., Suite 300E
                         E Houston, TX 77056
                         Phone:(214)373-9442
                         Fax: (   ) -

BUYER                                       SELLER

Plains Marketing, L.P.
By Plains Marketing GP Inc.                 Anadarko Petrosearch, L.L.C.
Its General Partner

Agreed to and accepted this 29 of day Agreed to and accepted         this day of
                            --                               -------
of     Jan    , 05.                                          ,      .
  ------------  --                          -----------------  -----

By:  /s/ Keith D. Halloran                  By: /s/ David J. Collins
    ----------------------                      -------------------------

Name: Keith D. Halloran                     Name:  David J. Collins
                                                 -----------------------
       Director, East Texas and North       Title:  CFO
Title: Louisiana Region and                       ----------------------
       Attorney in Fact

                    Plains Marketing GP Inc., General Partner
   12700 Hillcrest Road, Suite 158 - Dallas, Texas 75230 - 972-991-7544 - Fax
                                  972-991-7547

<PAGE>
<TABLE>
<CAPTION>
                                                            EXHIBIT "A"

PLAINS MARKETING L.P.                                                                                                 Jan 25, 2005

Plains contract:   6114-1001     Effective: 02-01-2005                                       Partner Contract:         Page 1 or 1

                                                                                 APPLICABLE
                                                                                   REMIUM
  PM                                                                   PRICE         OR                                     STATE
LEASE   LEASE          OPERATOR    COUNTY/PARISH  STATE  PRICE CODE*  METHOD**    (DEDUCT)     PERCENT        GRAVITY       LEASE
------  ------------  -----------  -------------  -----  -----------  --------  ------------  ----------  ----------------  ------
<S>     <C>           <C>          <C>            <C>    <C>          <C>       <C>           <C>         <C>               <C>
122987  GORDON 1-18   PETROSEARCH       WOODWARD     OK     S2074        EDQ      $  2.0000   100.00000%   Deemed 40.0 API  000000
                      OPERATING CO LP
                                                                     (*)S2074 PLAINS MARKETING LP-OKLAHOMA SWEET CENTRAL
                                                                     (**)EQUAL DAILY QUANTITIES
</TABLE>

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