Document:

TERM ROYALTY AGREEMENT

     This Term Royalty Agreement (the "Agreement") is made and entered into this
17th  day  of  May,  2005,  by and between Energy Corporation of America, a West
Virginia  corporation  ("ECA"),  and Eastern American Energy Corporation, a West
Virginia  corporation ("Eastern" or "Seller"), and Black Stone Minerals Company,
L.P., a Delaware limited partnership, or its designees ("Buyer").

                                   BACKGROUND
                                   ----------

     WHEREAS,  Seller  desires  to  sell to Buyer, and Buyer desires to purchase
from  Seller,  the  Term  Royalty  Interest  in  accordance  with  the terms and
conditions  set  forth  herein.

     NOW  THEREFORE,  in  consideration of the premises and mutual covenants and
conditions  contained  herein, the parties hereto, intending to be legally bound
hereby,  agree  as  follows:

                             ARTICLE I. DEFINITIONS.

     1.     This Section 1 defines certain capitalized words, terms, and phrases
used  in  this  Agreement.  Certain  other capitalized words, terms, and phrases
used in this Agreement may be defined elsewhere in this Agreement.

     "Additional  Lease"  is  defined  in  Section  12.01  of  the  Term Royalty
      -----------------
Conveyance.

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

                                1 x .85 = .85

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

     "Affiliate"  means, for any specified Person, another Person that controls,
      ---------
is  controlled  by,  or  is  under  common  control  with, the specified Person.
"Control,"  in  the  preceding sentence, refers to the possession by one Person,
directly  or  indirectly, of the right or power to direct or cause the direction
of  the management and policies of another Person, whether through the ownership
of  voting  securities,  by  contract,  or  otherwise.

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

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

     "Business  Day"  means  any  day  that is not a Saturday, Sunday, a holiday
      -------------
determined by the New York Stock Exchange, Inc. as "affecting 'ex' dates" or any
other  day  on  which  national  banking  institutions in New York, New York are
closed  as  authorized  or  required  by  law.

     "Buyer"  means  Black  Stone  Minerals  Company,  L. P., a Delaware limited
      -----
partnership  or  its  permitted  designees.

     "Closing Date" shall have the meaning assigned in Section 10(a).
      ------------

     "Completed  Development  Well"  means  the Wellbore of any Development Well
      ----------------------------
that  is  completed pursuant to Section 2.02 of the Development Agreement in the
Big  Lime  formation  or  deeper  formations.

     "Deed  of  Trust"  means the Credit Line Deed of Trust from Seller to Buyer
      ---------------
referenced  in  Section  12(b),  substantially  in  the  form attached hereto as
Exhibit  "C".

     "Development  Agreement"  means  that certain Development Agreement between
      ----------------------
Seller  and  the  Buyer referenced in Section 12(a) herein, substantially in the
form  attached  hereto  as  Exhibit  "D".

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

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

     "Effective Time" is defined in Section 2 hereof.
      --------------

     "Encumbrance"  means any mortgage, lien, security interest, pledge, charge,
      -----------
encumbrance,  limitation, preferential right to purchase, consent to assignment,
irregularity,  burden,  or  defect.

     "Existing  Gas  Purchase  Contract"  means  that  certain Natural Gas Sales
      ---------------------------------
Agreement dated March 16, 1993 by and between Mountaineer Gas Services, Inc. and
Mountaineer  Gas Company as heretofore and may hereafter be amended, modified or
restated.

     "Farmout  Agreements" means any farmout agreement, participation agreement,
      -------------------
exploration agreement, development agreement or any similar agreement.

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

                                        2
<PAGE>
     "Governmental  Authority"  means  the  United States of America, any state,
      -----------------------
commonwealth, territory, or possession thereof, and any political subdivision of
any  of  the  foregoing,  including  courts,  departments,  commissions, boards,
bureaus,  agencies,  and  other  instrumentalities.

     "Kentucky  Conveyance"  means the Term Royalty Conveyance (Kentucky) by and
      --------------------
between  Seller  and  Buyer  contemplated  by Section 2 herein, in substantially
similar  form  as  the  Term  Royalty  Conveyance.

     "Legal Requirement" means any law, statute, ordinance, decree, requirement,
      -----------------
order,  judgment,  rule, or regulation of, including the terms of any license or
permit  issued  by,  any  Governmental  Authority.

     "Mcf"  means thousand cubic feet of Gas and "MMcf" means million cubic feet
      ---                                         ----
of  Gas,  measured and expressed in each case at the same temperature, pressure,
and  other  conditions  of  measurement  (a)  provided  in  any contract for the
purchase  of  Gas from the Subject Interests or, (b) if no such contract exists,
provided  by  applicable  state  law  for  purposes  of  reporting production to
Governmental  Authorities.

     "Net  Revenue  Interest" means, the interest, stated as a decimal fraction,
      ----------------------
in  Subject  Gas  production  from  a  Well that Seller is entitled to take with
respect  to  Seller's  Subject Interests in that Well and the associated Subject
Lands,  subject  only  to  the  Permitted  Production  Burdens.

     "Non-Affiliate"  means,  for any specified Person, any other Person that is
      -------------
not an Affiliate of the specified Person.

     "Party," when capitalized, refers to Seller or Buyer.
      -----

     "Parties," when capitalized, refers to Seller and Buyer.
      -------

     "Pennsylvania  Conveyance" means the Term Royalty Conveyance (Pennsylvania)
      ------------------------
by  and  between  Seller  and  Buyer  contemplated  by  Section  2  herein,  in
substantially  similar  form  as  the  Term  Royalty  Conveyance.

     "Permitted  Encumbrances"  means:
      -----------------------

          (a)  the  Permitted  Production  Burdens;

          (b)  the  Existing  Gas  Purchase  Contract;

          (c)  Encumbrances  that  arise  under  operating  agreements,  Farmout
     Agreements,  leases,  assignments,  and other instruments and agreements to
     secure  payments of amounts not yet delinquent and that are of the type and
     nature  customary  in  the  oil  and  gas  industry,  as  conducted  in the
     Appalachian  Basin;

          (d)  Encumbrances  that  arise  as a result of pooling and unitization
     agreements,  declarations,  orders, or Legal Requirements to secure payment
     of  amounts  not  yet  delinquent;

                                        3
<PAGE>
          (e)  Encumbrances  securing  payments to mechanics and materialmen and
     Encumbrances  securing  payment of Taxes or assessments that are, in either
     case,  not  yet  delinquent  or, if delinquent, are being contested in good
     faith  in  the  normal  course  of  business;

          (f)  conventional  rights  of  reassignment  that  obligate  Seller to
     reassign  all  or  part of any Subject Interest to a Third Person if Seller
     intends  to  release  or abandon such interest before the expiration of the
     primary  term  or  other  termination  of  such  interest;

          (g)  easements,  rights-of-way,  servitudes,  permits, surface leases,
     surface  use restrictions, and other surface uses and impediments on, over,
     or  in  respect  of the Subject Interests that are not such as to interfere
     materially  with  the  operation,  value,  or use of the Subject Interests;

          (h)  covenants,  conditions,  and  other terms subject to which Seller
     acquired  the  Subject  Interests;

          (i)  rights  reserved  to  or  vested in any Governmental Authority to
     control or regulate any Subject Interests in any manner, and all applicable
     Legal  Requirements;

          (j)  the  terms  of the instruments creating the Subject Interests and
     Subject  Lands;

          (k)  any  Prior  Reversionary Interests disclosed in writing to Seller
     prior to the execution of this Agreement that affect the Subject Interests;

          (l)  other Encumbrances that affect any Subject Interests that do not,
     alone  or  in the aggregate, materially and adversely affect the operation,
     value  or  use  of  the  Subject  Interests;  and

          (m)  mortgages,  deeds  of trust or other security interests burdening
     Seller's  interest  in  the Subject Interests or any extensions or renewals
     thereof  and Subject Lands, including without limitation the Deed of Trust;
     provided however that any such mortgage, deed of trust or security interest
     shall  not  affect  and shall be made expressly subject to the Term Royalty
     Conveyance;

     all  to the extent, and for so long as, such Permitted Encumbrances are (i)
     otherwise  valid  and  enforceable  against  the Subject Interests, without
     recognizing,  expressly  or  by implication, any rights or interests in any
     Third  Person  or  Governmental  Authority  that  such  Third  Person  or
     Governmental Authority does not otherwise lawfully possess, or (ii) they do
     not  cause  Seller's Net Revenue Interests in any Producing Well to be less
     than  the Net Revenue Interest for that Producing Well as stated in Exhibit
     "A-1".

                                        4
<PAGE>
     "Permitted  Production  Burdens"  means  (a)  all  Production  Burdens that
      ------------------------------
affected  the  Subject  Interests  when they were acquired by Seller and (b) all
Production  Burdens that were created by Seller, to the extent they do not cause
Seller's  Net Revenue Interest in any (i) Producing Well to be less than the Net
Revenue  Interest  for  that  Producing Well reflected in Exhibit "A-1", or (ii)
Completed  Development  Well  to  be less than 87.5% (proportionately reduced to
Seller's Working Interest in such Completed Development Well).  It is understood
and  agreed  that  with respect to Completed Development Wells, the Term Royalty
Interest  will  be calculated on the basis that Seller's Working Interest in the
Subject  Development  Lands  is  not  burdened by Production Burdens that exceed
12.5%.  In  the  event  that  Seller's  Working Interest in any of the Completed
Development  Wells  is  subject  to  Production Burdens in excess of 12.5%, such
excess  burdens  will  be  the  sole  responsibility  of  Seller and paid out of
Seller's  fifty percent (50%) interest in the Subject Development Lands retained
by  Seller  hereunder.

     "Person" means any natural person, corporation, partnership, trust, estate,
      ------
or  other  entity,  organization,  or  association.

     "Prior  Reversionary  Interest"  means  any  contract,  agreement,  Farmout
      -----------------------------
Agreement,  lease,  deed, conveyance or operating agreement disclosed in writing
to  Buyer  prior  to  the  execution  of  this  Agreement  that exists as of the
Effective  Time  or  that burdens the Subject Interests at the time such Subject
Interests  are acquired, that by the terms thereof requires a Person to convey a
part  of  the  Subject  Interest  to  another  Person,  including  any operating
agreements,  oil  and  gas  leases, coal leases, and other similar agreements or
instruments  affecting  the  Subject  Interests.

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

     "Production  Burdens"  means,  with  respect  to any Subject Lands, Subject
      -------------------
Interests,  or Subject Gas, all royalty interests, overriding royalty interests,
production  payments,  net  profits  interests, Prior Reversionary Interests and
other  similar  interests  that  constitute a burden on, are measured by, or are
payable  out  of the production of Gas or the proceeds realized from the sale or
other  disposition  thereof.

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

     "Seller" is defined in the Introduction to this Agreement and also includes
      ------
all  permitted  successors  and  assigns  of  Seller.

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

     "Side  Letter"  means the side letter between ECA and Buyer regarding Prior
      ------------
Reversionary Interests substantially in the form attached hereto as Exhibit "E".

                                        5
<PAGE>
     "Subject  Development  Lands"  means the lands subject to or covered by the
      ---------------------------
oil  and  gas  leases  described  in  Exhibit  "A-2", subject to the exceptions,
exclusions and reservations set forth on such Exhibit "A-2", as such Exhibit may
be  modified  pursuant  to  the  Term  Royalty  Conveyance.

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

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

               (i)  lost  in  accordance  with  the  Reasonably Prudent Operator
          Standard in the production, gathering, or marketing of Gas, or that is
          liquefied  and  removed  from  the  gas stream in the normal course of
          Seller's  operation,  consistent  with  prior practice, via any method
          other  than  processing  as  contemplated  in Section 4.04 of the Term
          Royalty  Conveyance;

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

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

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

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

                                        6
<PAGE>
     "Subject Interests" means Seller's undivided interests in the Subject Lands
      -----------------
as lessee under Gas leases covering and affecting the Subject Lands, as an owner
of  the  Subject Gas (or the right to extract such Gas), or otherwise, by virtue
of  which  undivided  interests  Seller  has  the  right to conduct exploration,
drilling, development, and Gas production operations on the Subject Lands, or to
cause  such  operations to be conducted, or to participate in such operations by
paying  and bearing all or any part of the costs, risks, and liabilities of such
operations,  to  drill,  test,  complete,  equip,  operate, and produce Wells to
exploit  the Gas.  Any oil and gas lease or other similar instrument that covers
Gas produced from the Subject Lands shall be considered a "Gas lease" hereunder,
even  if  it  also  covers  other  substances.  "Subject Interests" includes all
extensions  and  renewals of Gas leases covering and affecting the Subject Lands
acquired  within  six (6) months after the expiration or termination of any such
lease,  and  all  new  Gas  leases  covering  the  Subject Lands (or any portion
thereof) obtained by Seller, or any Affiliate thereof until the termination date
of  the  Development Agreement.  "Subject Interests" do not include (a) Seller's
rights to substances other than Gas; (b) Seller's rights under contracts for the
purchase,  sale,  transportation,  storage,  processing,  or  other  handling or
disposition  of  Gas;  (c)  Seller's  interests  in,  or rights with respect to,
pipelines,  gathering  systems,  storage  facilities,  processing facilities, or
other  equipment  or facilities, other than the Wells; or (d) subject to Section
1.04(c)  of  the  Term  Royalty  Conveyance,  any after-acquired, additional, or
enlarged  interests  in  the  Wells,  Subject Lands or Subject Gas, except those
reflected  in Exhibit "A-1" or Exhibit "A-2" or any Additional Lease as provided
for  in  the  Term Royalty Conveyance, or extensions and renewals covered by the
preceding  sentence.  "Subject  Interests"  may  be owned by Seller by virtue of
grants  or reservations in deeds, Gas leases, or other instruments, or by virtue
of  operating  agreements, pooling or unitization agreements or orders, or other
kinds  of instruments, agreements, or documents, legal or equitable, recorded or
unrecorded.  The  Subject  Interests  are subject to the Permitted Encumbrances.

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

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

     "Taxes"  is  defined  in  Section  3.02(b). of the Term Royalty Conveyance.
      -----

     "Term"  is  defined  in  Section  2(b).
      ----

     "Term  Royalty Conveyance" means collectively, the Kentucky Conveyance, the
      ------------------------
Pennsylvania  Conveyance and the West Virginia Conveyance, each substantially in
the  form  attached  as  Exhibit  "F".

     "Term  Royalty  Gas"  means, for any month, that percentage of Gas to which
      ------------------
the  Buyer  is  entitled, calculated in accordance with Section 3.01 of the Term
Royalty  Conveyance.

                                        7
<PAGE>
     "Term Royalty Interest" means the variable undivided interest in and to the
      ---------------------
Subject  Interests,  to the extent that the Subject Interests pertain to Gas in,
under  and  that  may be produced from the Wellbores of the Wells, sufficient to
cause  Buyer  to  receive  a  volume  of  Term  Royalty  Gas  and  the  revenues
attributable  thereto  calculated  and  paid in money in accordance with Section
3.01  of  the  Term  Royalty  Conveyance.

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

     "Termination  Date"  is  defined  in  Section  2(b).
      -----------------

     "Third  Person"  means  a  Person other than ECA, Seller or Buyer, or their
      -------------
respective  Affiliates.

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

     "Total  Subject  Gas"  means  the total of all Subject Gas from each of the
      -------------------
applicable  Term  Royalty  Conveyance.

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

     "Wellbore" means the wellbore of any Well from the surface of the ground to
      --------
the total depth drilled of such Well.

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

     "West  Virginia  Conveyance"  means  the  Term  Royalty  Conveyance  (West
      --------------------------
Virginia)  by  and between Seller and Buyer contemplated by Section 2 herein, in
substantially  similar  form  as  the  Term  Royalty  Conveyance.

     "Working  Interest"  means with respect to any Well, the interest in and to
      -----------------
such  Well  that  is  burdened  with  the  obligation  to bear and pay costs and
expenses  of  maintenance,  development  and operations on or in connection with
such  Well.

                                        8
<PAGE>
                      ARTICLE II.  TERM ROYALTY CONVEYANCE.

     2.     a.     CONVEYANCE.  On the Closing Date (as defined in Section 10(a)
                   ----------
hereof),  but  effective  as of 7:00 a.m. Eastern Daylight Time, January 1, 2005
(the  "Effective  Time"), Seller shall sell, assign, convey and deliver to Buyer
for  the Term, and Buyer shall purchase and acquire from Seller the Term Royalty
Interest,  pursuant  to  the Term Royalty Conveyance among ECA, Seller and Buyer
substantially  in  the  form  attached  hereto  as  Exhibit  "F".

            b.     TERM. The Term of the Term Royalty Interest shall begin as of
                   ----
the  Effective  Time and end at January 1, 2025 (the "Termination Date"). At the
end  of  the  Term  all  of Buyer's interest in and to the Term Royalty Interest
shall  automatically  terminate  and  revert  to  Seller.

                           ARTICLE III.  CONSIDERATION

     3.     The  total consideration for Seller's conveyance of the Term Royalty
Interest  to  Buyer  shall  be  One  Hundred  Fifty-five  Million  Dollars
($155,000,000.00)  payable  in  cash  (the  "Consideration"),  subject  to  any
applicable  adjustments  as  hereinafter  provided.

            a.    ADJUSTMENTS  TO  CONSIDERATION.  The  Consideration  shall  be
                  ------------------------------
adjusted  downward:

          i.  so  that Buyer will receive a credit for all Term Royalty Proceeds
          received  by  Seller  in  respect  of  the  Term  Royalty  Interest
          attributable  to  the  period after the Effective Time. For accounting
          purposes, the Effective Time for each Producing Well will be the chart
          change  date  closest  to  January  1,  2005 (either before or after).
          Seller  shall be entitled to Term Royalty Proceeds with respect to the
          Term  Royalty  Interest  attributable  to  the  period  prior  to  the
          Effective Time (regardless of whether such proceeds are received prior
          to  or  after  the  Effective  Time).

          ii.  by  an  amount equal to the reduction in the Net Revenue Interest
          for  Seller  in  each  of  the  Producing  Wells  from the Net Revenue
          Interest  therein  shown  for  Seller  in Exhibit "A-1". The amount of
          decrease  due  shall  be determined by multiplying the allocated value
          for  Seller's  Net Revenue Interest in the Producing Well in question,
          as reflected in Schedule 3(a)(ii) hereto, by a fraction, the numerator
          of  which  shall  be  the  decimal  decrease  in such interest and the
          denominator  of  which  shall  be  the  Net Revenue Interest shown for
          Seller  in  such  Producing  Well  on  Exhibit  "A-1".

                                        9
<PAGE>
             ARTICLE IV.  REPRESENTATIONS AND WARRANTIES OF SELLER.

     4.     Seller  represents  and  warrants  to  Buyer  as  follows:

            a.   ORGANIZATION.  Each  of  ECA  and  Seller is a corporation duly
                 ------------
organized,  validly existing and in good standing under the laws of the State of
West  Virginia  and  is  qualified  or  registered  as  a foreign entity in each
jurisdiction where it is required to be so qualified and registered except where
the  failure  to  so  qualify  would  not have a material adverse effect on such
entity's ownership, operation or value of the Producing Wells, the Subject Lands
and/or  the  Subject  Interests.

            b.   AUTHORITY.  Each of ECA and Seller has full power and authority
                 ---------
and  has  taken  all requisite action, corporate or otherwise, to authorize each
such  entity  to  carry  on  its  business  as  presently  conducted, to own the
Producing  Wells,  the Subject Lands and/or the Subject Interests, to enter into
this Agreement and to perform its obligations under this Agreement.  Neither the
execution  and delivery of this Agreement nor the performance by each of ECA and
Seller  of  its  respective obligations hereunder will (i) violate such entity's
Articles  of  Incorporation  or  Bylaws or, (ii) violate or constitute a default
under  any  law,  regulation,  contract,  agreement, consent, decree or judicial
order  by  which  Seller  or  any of its officers, directors or shareholders are
bound.

            c.   ENFORCEABILITY.  This  Agreement  has  been  duly  executed and
                 --------------
delivered  on  behalf of each of ECA and Seller and constitutes the legal, valid
and  binding obligation of such entity enforceable in accordance with its terms,
except as limited by bankruptcy or other laws applicable generally to creditor's
rights  and  as  limited  by  general equitable principles.  At the Closing, all
documents  required  hereunder  to  be executed and delivered by each of ECA and
Seller  shall  be  duly  authorized, executed and delivered and shall constitute
legal,  valid  and  binding obligations of Seller enforceable in accordance with
their respective terms, except as limited by bankruptcy or other laws applicable
generally  to  creditors' rights and as limited by general equitable principles.

            d.   PREFERENTIAL  PURCHASE RIGHTS/CONSENTS.  Exhibit "G" sets forth
                 --------------------------------------
all  consents, approvals, waivers and authorizations (collectively, "Consents"),
and  all preferential purchase rights required to be obtained in connection with
the  sale  of  the  Term  Royalty  Interest  to  Buyer.

            e.   LITIGATION  AND  CLAIMS.  No  claim,  demand,  filing, cause of
                 -----------------------
action, administrative proceeding, lawsuit or other litigation is pending or, to
the  knowledge  of  Seller,  threatened  with respect to Seller or the Producing
Wells,  the  Subject  Lands  and/or  the  Subject  Interests  that  could now or
hereafter  materially  adversely affect the ownership, operation or value of the
Term  Royalty  Interest.

                                       10
<PAGE>
            f.   COMPLIANCE  WITH  LAWS.  Neither  ECA  nor  Seller  has  actual
                 ----------------------
knowledge,  nor  has  received  any  notice from any federal, state or municipal
authority  that  the  Producing  Wells,  the  Subject  Lands  and/or the Subject
Interests  or  Seller's  use  thereof  in  its  business,  are  not  in material
compliance with all laws, rules, regulations and permits relating thereto except
for  such non-compliance and violations which, individually or in the aggregate,
would not have a material adverse effect on the ownership, operation or value of
the  Term  Royalty  Interest.  Seller will promptly notify Buyer upon receipt of
any  such  notice.

            g.   TITLE.  Except  for  the  various  liens  of record in favor of
                 -----
Wells  Fargo  Foothill, Inc., Seller owns the Producing Wells, the Subject Lands
and/or  the  Subject  Interests  free  and clear of all free of all Encumbrances
created  by,  through,  or  under  Seller,  but  not  otherwise,  except for the
Permitted  Encumbrances,  and  that  Seller's  title  to the (i) Producing Wells
entitles  Seller  to  a Net Revenue Interest in each such Producing Well no less
than  the  Net  Revenue Interest for that Producing Well as set forth in Exhibit
"A-1", and (ii) as to the Subject Development Lands is sufficient to allow it to
satisfy the Total Drilling Commitment by the Drilling Obligation Completion Date
in  accordance  with  the Development Agreement.  Upon execution and delivery of
the  Term  Royalty  Conveyance,  there  shall  be  no  unreleased deed of trust,
mortgage  or  security  interest  burdening  the  Term  Royalty  Interest.

            h.   CONTRACTS.  To  the  best  of  Seller's knowledge, the material
                 ---------
terms  of  all leases, operating agreements, production sales contracts, farmout
agreements and other contracts or agreements respecting the Producing Wells, the
Subject Lands and/or the Subject Interests (the "Contracts") can be found either
of record in the county in which same are located or are reflected or referenced
in  Seller's  files.

            i.   CONTRACTS  AUTHORIZED.  With  respect to all material Contracts
                 ---------------------
that  will  survive  Closing,  (i)  each  has been duly authorized, executed and
delivered by Seller, (ii) each is in full force and effect, (iii) neither Seller
nor,  to  the knowledge of Seller, any other party to such contracts (aa) is, or
as  a  result  of  the  transaction contemplated herein will be, in breach of or
default, or with the lapse of time or the giving of notice, or both, would be in
breach or default, with respect to any of its obligations thereunder or (bb) has
given  or  threatened  to  give  notice of any default under or inquiry into any
possible  default  under,  or  action  to alter, terminate, rescind or procure a
judicial  reformation  of any such contract, and (iv) Seller does not anticipate
that  any other party to any such contract will be in breach of or default under
or  repudiate  any  of  its  obligations  thereunder.

            j.   COMPLIANCE.  The  Producing Wells, the Subject Lands and/or the
                 ----------
Subject  Interests  have  been  operated  in  material compliance with all laws,
orders,  regulations,  rules  and  ordinances  issued  or  promulgated  by  all
governmental  authorities  having  jurisdiction with respect thereto, including,
but  not limited to, the Natural Gas Act of 1938, as amended, if applicable, the
Natural  Gas  Policy  Act  of  1978,  if  applicable,  and laws, regulations and
ordinances  relating  to  environmental  protection,  health and safety; and all
necessary  governmental  certificates,  consents,  permits,  licenses  or  other
authorizations with regard to the ownership or operation of the Producing Wells,
the Subject Lands and/or the Subject Interests have been obtained and Seller has
received  no  notices  of  violations  in  respect  of such licenses, permits or
authorizations.

                                       11
<PAGE>
            k.   RENTALS AND ROYALTIES PAID.  All rentals, royalties, overriding
                 --------------------------
royalty  interests, taxes, expenses and other payments due under or with respect
to  production  from  the  Producing Wells, the Subject Lands and/or the Subject
Interests have been properly and timely paid, or accepted, or suspended, and all
leases  are  in  full  force  and  effect.  All of the proceeds from the sale of
production  are  being  properly  and timely paid to Seller by the purchasers of
production  without  suspense.

            l.   IMBALANCES.  None  of the purchasers under any production sales
                 ----------
contract  or  transporters  are  entitled  to  "make-up"  or  otherwise  receive
deliveries  of  production  attributable  to  Seller's interest in the Producing
Wells,  the  Subject  Lands  and/or  the Subject Interests at any time after the
Effective Time without paying at such time the full contract price therefore and
there  are  no Imbalances which allow any other party to "make-up" production at
any  time  after the Effective Time under any operating agreement, gas balancing
and  storage agreement, gas transportation or exchange agreement, gas processing
or  dehydration agreement, or other similar agreements relating to the Producing
Wells,  the  Subject  Lands  and/or  the  Subject  Interests.

            m.   TAX  PARTNERSHIPS.  Seller's  interest  in and to the Producing
                 -----------------
Wells,  the Subject Lands and/or the Subject Interests is not subject to any tax
partnership or to any obligation requiring a partnership income tax return to be
filed  under the Internal Revenue Code of 1986, as amended, or any similar state
statute.

            n.   DISCLAIMER.  EXCEPT  FOR  THE  (i)  WARRANTY  OF TITLE GIVEN IN
                 ----------
SECTION  4(g)  ABOVE,  AND (ii) THE REPRESENTATIONS MADE IN THIS SECTION, SELLER
SHALL CONVEY THE TERM ROYALTY INTEREST WITHOUT RECOURSE, COVENANT OR WARRANTY OF
TITLE  OF  ANY  KIND, EXPRESS, IMPLIED OR STATUTORY. EXCEPT FOR SUCH WARRANTY OF
TITLE  AND REPRESENTATIONS, ANY OTHER COVENANTS OR WARRANTIES IMPLIED BY STATUTE
OR  LAW  BY  THE  USE  OF THE WORDS "GRANT", "CONVEY" OR OTHER SIMILAR WORDS ARE
HEREBY EXPRESSLY DISCLAIMED, WAIVED AND NEGATED. WITHOUT LIMITING THE GENERALITY
OF THE TWO PRECEDING SENTENCES, BUYER ACKNOWLEDGES THAT SELLER HAS NOT MADE, AND
SELLER  HEREBY  EXPRESSLY  DISCLAIMS AND NEGATES, AND THE BUYER HEREBY EXPRESSLY
WAIVES,  ANY  REPRESENTATION  OR  WARRANTY,  EXPRESS, IMPLIED, AT COMMON LAW, BY
STATUTE  OR  OTHERWISE  RELATING  TO  (A)  PRODUCTION  RATES,  RECOMPLETION
OPPORTUNITIES,  DECLINE RATES OR THE QUALITY, QUANTITY OR VOLUME OF THE RESERVES
OF  HYDROCARBONS,  IF  ANY,  ATTRIBUTABLE  TO THE TERM ROYALTY INTEREST, (B) ANY
IMPLIED  OR  EXPRESS  WARRANTY  OF  MERCHANTABILITY,  (C) ANY IMPLIED OR EXPRESS
WARRANTY  OF  FITNESS  FOR  A  PARTICULAR  PURPOSE,  (D)  ANY IMPLIED OR EXPRESS
WARRANTY  OF  CONFORMITY  TO  MODELS  OR  SAMPLES  OF MATERIALS, AND ANY AND ALL
IMPLIED WARRANTIES EXISTING UNDER ANY APPLICABLE LEGAL REQUIREMENT; IT BEING THE
EXPRESS  INTENTION OF BOTH THE BUYER AND SELLER THAT, SUBJECT TO THE WARRANTY OF
TITLE AND REPRESENTATIONS SET FORTH IN THIS SECTION 4, THE TERM ROYALTY INTEREST
WILL  BE  CONVEYED  ON AN "AS IS" AND "WHERE IS" BASIS WITH ALL FAULTS, AND THAT
THE  BUYER  HAS  MADE  OR  CAUSED  TO  BE  MADE  SUCH

                                       12
<PAGE>
INSPECTIONS AS THE BUYER DEEMS APPROPRIATE.  SELLER AND THE BUYER AGREE THAT, TO
THE  EXTENT  REQUIRED  BY  APPLICABLE  LEGAL  REQUIREMENTS  TO BE EFFECTIVE, THE
DISCLAIMERS  OF  CERTAIN  WARRANTIES CONTAINED IN THIS SECTION ARE "CONSPICUOUS"
DISCLAIMERS  FOR  THE  PURPOSES  OF  ANY  APPLICABLE  LEGAL  REQUIREMENT.

               ARTICLE V. REPRESENTATIONS AND WARRANTIES OF BUYER.

     5.     Buyer  represents  and  warrants  to  Seller  as  follows:

            a.   ORGANIZATION.  Buyer  is  a  Delaware  limited partnership duly
                 ------------
organized,  validly existing and in good standing under the laws of the state of
its  organization  and  is  qualified  or registered as a foreign entity in each
jurisdiction where it is required to be so qualified and registered except where
the  failure  to  so qualify would not have a material adverse effect on Buyer's
business.

            b.   AUTHORITY.  Buyer  has  full  power and authority and has taken
                 ---------
all  requisite  action,  corporate  or otherwise, to authorize Buyer to carry on
Buyer's  business  as  presently  conducted,  to  enter  into this Agreement, to
purchase  the Term Royalty Interest on the terms described in this Agreement and
to  perform  its  obligations  under  this Agreement.  Neither the execution and
delivery  of  this  Agreement  nor  the  performance by Buyer of its obligations
hereunder will (i) violate Buyer's Articles of Limited Partnership, (ii) violate
Buyer's  Agreement  of  Limited  Partnership,  or  (iii) violate or constitute a
default  under  any  law,  regulation,  contract,  agreement, consent, decree or
judicial  order  by  which  Buyer  or any of its partners or officers are bound.

            c.   ENFORCEABILITY.  This  Agreement  has  been  duly  executed and
                 --------------
delivered  on  behalf  of  Buyer  and  constitutes  the legal, valid and binding
obligation  of  Buyer enforceable in accordance with its terms except as limited
by  bankruptcy  or  other  laws applicable generally to creditor's rights and as
limited by general equitable principles.  At the Closing, all documents required
hereunder  to  be  executed  and  delivered  by  Buyer shall be duly authorized,
executed and delivered and shall constitute legal, valid and binding obligations
of  Buyer  enforceable  in  accordance  with  their  respective terms, except as
limited  by  bankruptcy  or other laws applicable generally to creditor's rights
and  as  limited  by  general  equitable  principles.

                                       13
<PAGE>
            d.   STATUS  OF  BUYER.  Buyer  represents  that  by  reason  of its
                 -----------------
knowledge  and  experience  in the evaluation, acquisition, and operation of oil
and  gas  properties, Buyer has performed, or will perform before Closing, a due
diligence  review  of the  Producing Wells, the Subject Lands and/or the Subject
Interests  and  will  have evaluated the merits and risks of purchasing the Term
Royalty  Interest from Seller and formed an opinion as to the value and purchase
of  the  Term Royalty Interest based on Buyer's knowledge and experience and the
representations  or  warranty  of title by Seller in Section 4(g) above, but not
otherwise.  Buyer  certifies  and represents that it is an "accredited investor"
as  defined  in Rule 501 of Regulation D promulgated under the Securities Act of
1933,  as  amended (the "Securities Act"), and was not organized for the purpose
of  acquiring  the  Term  Royalty Interest.  Buyer's financial condition is such
that  it is able to bear the risk of holding the Term Royalty Interest until the
Termination  Date  and  the  risk  of  loss  of  its  entire  investment.

            e.   DISCLOSURE  OF INFORMATION.  Buyer acknowledges it has, or will
                 --------------------------
before  Closing have, (i) received all the information it considers necessary or
appropriate for deciding whether to purchase the Term Royalty Interest, and (ii)
had  an  opportunity  to ask questions and receive answers from Seller regarding
the  terms  and conditions of the Term Royalty Interest and the Producing Wells,
the  Subject  Lands and/or the Subject Interests.  Buyer acknowledges that it is
aware  of Form S-1 (Registration No. 333 123834) filed with the U. S. Securities
and  Exchange  Commission  on  April  4, 2005 by ECA and Appalachian Gas Royalty
Trust, as Co-Registrants ("Form S-1"), but no term or provision thereof shall be
binding upon Buyer nor have any effect whatsoever on the terms and conditions of
this  Agreement.

            f.   SECURITIES  NOT  REGISTERED.  Buyer  understands  that the Term
                 ---------------------------
Royalty  Interest  has not been registered under the Securities Act and that the
Term  Royalty  Interest  must  continue  to be held by Buyer unless a subsequent
disposition  thereof  is  registered  under the Securities Act or is exempt from
such registration.  Buyer represents and warrants that the Term Royalty Interest
will  be  acquired solely for the account of Buyer, for investment purposes only
and  not  with  a view to the resale or distribution thereof, provided, however,
that the foregoing shall not prevent Buyer from transferring all or a portion of
the  Term  Royalty Interest in a transaction registered under the Securities Act
or  exempt  from  registration  thereunder, subject to the provisions of Section
13(f) hereof.  Buyer understands that no federal or state agency has passed upon
or  made  any recommendation or endorsement of an investment in the Term Royalty
Interest.

                                       14
<PAGE>
                         ARTICLE VI. COVENANTS OF SELLER

     6.   CONDUCT  OF  BUSINESS.  Seller  covenants that, prior to the Closing
          ---------------------
Date,  except  as  provided herein, or as required by any obligation, agreement,
lease,  contract,  or  instrument  referred  to  on  any  Exhibit  hereof:

          a.   Seller  will:

               (i)      Not (aa) act in any manner with respect to the Producing
               Wells,  the Subject Lands and/or the Subject Interests other than
               in  accordance  with the Reasonably Prudent Operator Standard and
               in  the normal, usual and customary manner, consistent with prior
               practice;  or (bb) waive, compromise or settle any material right
               or  claim with respect to any of the Producing Wells, the Subject
               Lands  and/or  the Subject Interests except such rights or claims
               as  would not adversely affect, in any material respect, the Term
               Royalty  Interest;  and

               (ii)       Notify  Buyer  of  the  discovery  by  Seller that any
               material  representation  or warranty of Seller contained in this
               Agreement  is  or becomes untrue or will be untrue on the Closing
               Date.

          b.   ACCESS.       Seller shall afford to Buyer, and/or its designated
               ------
representatives,  reasonable  access, during normal business hours from the date
hereof  until  the  Closing Date, to Seller's financial, accounting, tax, title,
contract,  corporate  and  legal  materials  and  information  relating  to  the
Producing  Wells,  the  Subject  Lands  and/or  the  Subject  Interests.

          c.   NO  NEGOTIATIONS.       During  the  period beginning on the date
               ----------------
hereof  and  ending  on  the  earlier  of  Closing  or  the  termination of this
Agreement,  Seller  will  not sell, transfer or otherwise dispose of or offer to
sell  or subject to any mortgage, lien or security interest any of the Producing
Wells,  the Subject Lands and/or the Subject Interests, except that the existing
mortgages,  deeds  of  trust and security interests may remain in full force and
effect solely with regard to Seller's retained interests in the Producing Wells.

          d.   CLOSING  CONDITIONS.       Seller  shall  cause  all  the
               -------------------
representations  and warranties of Seller contained in this Agreement to be true
and  correct  in  all  material  respects on and as of the Closing Date.  To the
extent  the  conditions  precedent  to  the  obligations of Buyer are within the
control  of  Seller,  Seller  shall  cause such conditions to be satisfied on or
prior  to  the  Closing  Date and, to the extent the conditions precedent to the
obligations  of Buyer are not within the control of Seller, Seller shall use its
best efforts to cause such conditions to be satisfied on or prior to the Closing
Date.

          e.   FORM  S-1  WITHDRAWAL.    On  or  before the Closing Date, Seller
               ---------------------
shall  withdraw  or  cause  to  be  withdrawn  Form  S-1.

                                       15
<PAGE>
                        ARTICLE VII.  COVENANTS OF BUYER.

     7.   CLOSING  CONDITIONS.  Buyer  shall cause all the representations and
          -------------------
warranties of Buyer contained in this Agreement to be true and correct on and as
of  the Closing Date.  To the extent the conditions precedent to the obligations
of  Seller are within the control of Buyer, Buyer shall cause such conditions to
be  satisfied  on or prior to the Closing Date and, to the extent the conditions
precedent  to  the  obligations  of  Seller are not within the control of Buyer,
Buyer  shall use its best efforts to cause such conditions to be satisfied on or
prior  to  the  Closing  Date.

        ARTICLE VIII.  CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER.

     8.   The obligations of Seller to be performed  at the Closing  are subject
to  the  fulfillment  (or waiver by Seller in its sole discretion), before or at
the  Closing,  of  each  of  the  following  conditions:

          a.     REPRESENTATIONS  AND  WARRANTIES.  The  representations  and
                 --------------------------------
warranties by Buyer set forth in this Agreement shall be true and correct in all
material  respects  at  and  as  of  the Closing as though made at and as of the
Closing  and  Buyer shall have delivered a certificate to such effect to Seller;
and  Buyer  shall  have performed and complied with in all material respects all
covenants  and  agreements  required  to  be performed and satisfied by it at or
prior  to  Closing.

          b.     NO  LITIGATION.  There  shall  be  no  suits,  actions or other
                 --------------
proceedings pending or threatened to enjoin the consummation of the transactions
contemplated  by this Agreement or seeking substantial damages against Seller or
Buyer  in  connection  therewith.

          c.     CONSIDERATION.  Buyer shall have delivered the Consideration to
                 -------------
Seller  in  immediately  available  funds  by  wire  transfer,  pursuant  to the
following  instructions:

     Account Name:     Energy Corporation of America

     Account Number:   4121083588

     Bank Name:        Wells Fargo, San Francisco, CA

     ABA Number:       121-000-248

                                       16
<PAGE>
         ARTICLE IX.  CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER.
         --------------------------------------------------------------

     9.   The  obligations of Buyer to be performed at the Closing are subject
to the fulfillment (or waiver by Buyer in its sole discretion), before or at the
Closing,  of  each  of  the  following  conditions:

          a.     REPRESENTATIONS  AND  WARRANTIES.  The  representations  and
                 --------------------------------
warranties  by  Seller  set forth in this Agreement shall be true and correct in
all  material  respects at and as of the Closing as though made at and as of the
Closing  and  Seller shall have delivered a certificate to such effect to Buyer;
and  Seller  shall have performed and complied with in all material respects all
covenants  and  agreements  required  to  be performed and satisfied by it at or
prior  to  Closing.

          b.     NO  MATERIAL ADVERSE CHANGES. Since the date of this Agreement,
                 ----------------------------
there shall have been no material adverse changes in the condition of any of the
Producing  Wells,  the Subject Lands and/or the Subject Interests, except normal
production,  depreciation  of equipment through ordinary wear and tear and other
transactions  approved  in  writing  by  Buyer  on  the  Closing  Date.

          c.     CONSENTS  AND  APPROVALS.  All  material consents and approvals
                 ------------------------
required to be obtained for the conveyance of the Term Royalty Interest to Buyer
shall  have been obtained, and all material preferential purchase rights arising
in connection with such conveyance shall have been waived or shall have expired.

          d.     DEFENSIBLE  TITLE.  Seller shall convey to Buyer at the Closing
                 -----------------
Defensible  Title  to  the  Term  Royalty  Interest.  As  used  herein, the term
"Defensible  Title"  shall mean such title to the Term Royalty Interest, and the
Producing  Wells,  the  Subject Lands and/or the Subject Interests which is free
and  clear  of  all  Encumbrances  created by, through, or under Seller, but not
otherwise,  except  for  the  Permitted  Encumbrances,  and  that  Seller (i) is
entitled  to  a Net Revenue Interest in each Producing Well no less than the Net
Revenue Interest for that Producing Well as set forth in Exhibit "A-1", and (ii)
presently  owns  undeveloped Subject Development Lands sufficient to allow it to
satisfy the Total Drilling Commitment by the Drilling Obligation Completion Date
in  accordance  with  the  Development  Agreement.

          e.     NO  LITIGATION.  There  shall  be  no  suits,  actions or other
                 --------------
proceedings pending or threatened to enjoin the consummation of the transactions
contemplated  by this Agreement or seeking substantial damages against Seller or
Buyer  in  connection  therewith.

                                       17
<PAGE>
          f.     TITLE  ADJUSTMENT.  There  shall  not  exist at the Closing any
                 -----------------
uncured  Title  Defects  with respect to the Producing Wells, unless adjustments
therefore  have  been  made  pursuant  to the further terms hereof.  Buyer shall
notify  Seller in writing of any Title Defects not less than ten (10) days prior
to  Closing.  Seller may elect to cure or remove any Title Defect(s) at Seller's
expense.  In  the  event  Seller  elects  to  cure  or  remove one or more Title
Defects,  Seller  shall  have  until Closing within which to cure or remove such
Title  Defect.  In the event Seller is unable to cure or remove one or more such
Title  Defects,  Buyer  shall  have  the  option with respect to each such Title
Defect  to  (i)  require  that  the  Consideration be adjusted by reason of such
defect  in  the manner provided for in Section 3(a) above, or (ii) to remove the
Producing  Well  affected by the Title Defect from the effects of this Agreement
and to require the allocated value for such Producing Well to be subtracted from
the  Consideration.  If  Buyer  elects  to  remove affected Producing Wells with
allocated  values  aggregating  more than Fifteen Million Dollars ($15,000,000),
then  either  Buyer or Seller shall have the option to terminate this Agreement.
The  term  "Title  Defect",  as  used  herein, shall mean any encumbrance, lien,
mortgage, production payment, pledge, claim, charge, call on production, defect,
error,  omission,  unleased  mineral  interest,  preferential  purchase right or
requirement  for  consent  to  assignment  that  results  in  Seller  not having
defensible  title  to  any  of  the  Producing  Wells.

          g.     PREFERENTIAL  PURCHASE  RIGHTSAND  CONSENTS  TO ASSIGN.  Seller
                 ------------------------------------------------------
shall  make  a good faith effort to insure that all preferential purchase rights
and  consents  to  assign  arising in connection with the conveyance of the Term
Royalty Interest to Buyer shall have been waived or shall have expired before or
by  the  time  of  Closing; provided, however, that if notice of the transaction
contemplated  herein  has  been  given  to  a  party  or  parties  entitled to a
preferential  purchase right with respect thereto, but the time during which any
such  party or parties has to exercise such right has not expired, such shall be
considered as a Title Defect and subject to the remedies provided for in Section
9(f)  above.

          h.     RELEASE.  Seller  shall have secured the release by Wells Fargo
                 -------
Foothill Inc. of the liens relating to the Term Royalty Interest with respect to
the  Producing  Wells  and  the  restrictive  covenants  affecting  the  Subject
Development  Lands,  in  form  reasonably  satisfactory  to  Buyer ("Releases").

          i.     OPINION  OF  SELLER'S  COUNSEL.  Seller shall have delivered to
                 ------------------------------
Buyer  an  Opinion  of Seller's Counsel substantially in the form of Exhibit "H"
attached  hereto  and  made  a  part  hereof  ("Opinion").

          j.     DEED  OF  TRUST.  Seller shall have delivered to Buyer the Deed
                 ---------------
of  Trust.

          k.     DUE  DILIGENCE.  Buyer shall have been given until the deadline
                 ---------------
for  submitting  its  Title  Defects  notice  pursuant  to Section 9(f) above to
complete  its due diligence review of the Producing Wells and the Subject Lands.

                                       18
<PAGE>
          l.     AFFILIATE  ASSIGNMENTS.   Prior  to or at Closing, Seller shall
                 ----------------------
have  caused  to  be executed and delivered to Seller assignments, in recordable
form  reasonably  acceptable  to  Buyer,  as  follows:

               i.       from  Allegheny  &  Western Energy Corporation to Seller
               with  respect  to  all interests in the Producing Wells currently
               held  by  Allegheny  &  Western  Energy  Corporation;  and

               ii.       from  employees,  members of the board of directors and
               other  individuals  participating  in  Seller's  annual  drilling
               programs,  with  respect  to all interests in the Producing Wells
               currently  held  by  such  persons.

Seller  shall  record  the  Affiliate  Assignments  prior  to recording the Term
Royalty  Conveyance.

          m.     ASSIGNMENT  OF  PK-299  WELL.  Seller  shall  have executed and
                 ----------------------------
delivered to Buyer an assignment, in form reasonably satisfactory to Buyer, of a
term  royalty  interest,  for a period of twenty (20) years, consistent with the
terms  and conditions of the Term Royalty Conveyance applicable to the Completed
Development Wells with respect to the PK-299 well, API No. 16-159-97116, located
in  Martin  County,  Kentucky.

          n.     ASSIGNMENT  OF  INTEREST IN FLOOR CONTRACTS.  Seller shall have
                 -------------------------------------------
executed and delivered to Buyer an assignment of that portion of the natural gas
floor  contracts listed on Exhibit "I" attached hereto sufficient to cause Buyer
to  be  entitled  to receive the price and the volumes set forth on Exhibit "I".

          o.     ASSIGNMENT  OF  INTEREST  IN  SWAP  CONTRACTS.  Seller  has
                 ---------------------------------------------
heretofore  entered  into  the  swap  contract(s) listed on Exhibit "J" attached
hereto.  At  Closing, Seller shall attempt to cause to be assigned to Buyer that
portion  of  such  swap  contract(s) sufficient to cause Buyer to be entitled to
receive  the  price  for  the  volumes  set  forth on such Exhibit "J"; provided
however,  in  the event that any counterparty in any of such swap contracts will
not  consent  as required to such assignment, then the Parties shall account for
the  economic  effect  attributable  to  Buyer  as  an adjustment to the Monthly
Distribution  Amount  to  be  paid  to Buyer in accordance with the Term Royalty
Conveyance.

                              ARTICLE X - CLOSING.

     10.  a.        CLOSING  DATE.  The  conveyance of the Term Royalty Interest
                    -------------
and  the  delivery  of the Closing Documents pursuant to this Agreement shall be
consummated ("Closing") at the Charleston office of Seller on or before June 10,
2005  (the  "Closing  Date"),  but  effective  as  of  the  Effective  Time.

                                       19
<PAGE>
          b.     CLOSING  STATEMENT.  Seller  shall  deliver  to Buyer, no later
                 ------------------
than  five  (5)  days  prior  to the Closing Date, a statement (the "Statement")
which  Seller  has prepared in accordance with this Agreement setting forth each
adjustment to the Consideration necessary in accordance herewith and showing the
calculation  of such adjustments in accordance with Section 3(a) hereof.  By one
day  prior  to the Closing Date, Buyer shall provide written notice to Seller of
any  objections  of  Buyer to any item on the Statement showing the calculations
resulting  in  such objections.  Buyer and Seller shall attempt in good faith to
resolve  their  differences.  If they are unable to do so, Closing will be based
on  the Statement and any disagreements registered by Buyer will be reserved for
the  Final  Settlement  Statement.

          c.     CLOSING  DOCUMENTS.  Seller  shall  deliver to Buyer at Closing
                 ------------------
fully  executed  originals  of:

               (i)    the Term Royalty Conveyance;

               (ii)   the Development Agreement;

               (iii)  the Deed of Trust;

               (iv)   the Opinion;

               (v)    the Side Letter;

               (vi)   the Releases;

               (vii)  evidence  that  the  Affiliate  Assignments  have  been
                      executed and delivered to Seller;

               (viii) the PK-299 Well Assignment;

               (ix)   the Floor Contracts Assignment; and

               (x)    the Swap Contracts Assignment, if applicable

                                       20
<PAGE>
          d.     FINAL  SETTLEMENT  STATEMENT.  After  the  Closing Date, Seller
                 ----------------------------
shall  prepare,  in  accordance  with  this  Agreement,  a statement (the "Final
Settlement Statement"), a copy of which shall be delivered by Seller to Buyer no
later  than  one hundred twenty (120) days after the Closing Date, setting forth
each  adjustment  to  the  Consideration  necessary  in  accordance herewith and
showing  the  calculation  of  such  adjustments in accordance with Section 3.a.
hereof.  Buyer  shall  have  forty-five  (45)  days  after  receipt of the Final
Settlement  Statement  to review such statement and to provide written notice to
Seller  of Buyer's objection to any item on the statement.  Buyer's notice shall
clearly  identify  the  item(s)  objected to and the reasons and support for the
objection(s).  If  Buyer does not provide written objection(s) within the 45-day
period,  the Final Settlement Statement shall be deemed correct and shall not be
subject  to  further  adjustment.  If Buyer provides written objection(s) within
the  45-day period, the Final Settlement Statement shall be deemed correct as to
the items with respect to which no objections were made.  Buyer and Seller shall
meet to negotiate and resolve the objections within fifteen (15) days of Buyer's
receipt of Seller's objections. Any items not agreed to at the end of the 15-day
period  may,  at  either  party's  request,  be  resolved  by  arbitration.

          If  Seller and Buyer cannot agree upon the Final Settlement Statement,
a  nationally  recognized accounting firm which does not perform work for either
Seller or Buyer shall act as an arbitrator and decide all points of disagreement
with  respect  to the Final Settlement Statement.   The decision of such firm on
all  such  points  shall be binding upon the parties.  The costs and expenses of
such  firm shall be borne by the Party against whom the decision is rendered, or
in  the  event  the  decision  is rendered favorably in part to each Party, on a
proportional  basis.

          e.     PAYMENT  OF FINAL CONSIDERATION.  Any amounts owing from Seller
                 -------------------------------
to  Buyer  or  Buyer  to  Seller as determined by the Final Settlement Statement
shall  be  paid  in immediately available funds within five (5) days of the date
the  Final  Settlement  Statement  is  agreed  upon.

          f.     SURVIVAL.  All  representations,  warranties,  covenants  and
                 --------
agreements  of or by the Parties under this Agreement shall survive the Closing.

                     ARTICLE XI.  TERMINATION AND REMEDIES.

     11.  TERMINATION.      If  the Closing has not occurred on or prior to June
          -----------
10, 2005 on account of any failure of Buyer to perform its obligations hereunder
and  Seller  has fully complied and performed pursuant to the provisions of this
Agreement,  Seller  may  terminate  this  Agreement  and  pursue all other legal
remedies.  If  the  Closing  has  not  occurred  on or prior to June 10, 2005 on
account  of any failure of Seller to perform its obligations hereunder and Buyer
has  fully  complied and performed pursuant to the provisions of this Agreement,
Buyer may terminate this Agreement and pursue all other legal remedies.

                                       21
<PAGE>
                         ARTICLE XII.  DRILLING PROGRAM.

     12.     a.     DRILLING  OBLIGATION.  ECA  and  Seller  shall  execute  and
                    --------------------
deliver  to  Buyer  at  Closing  the  Development  Agreement.  The  Development
Agreement  will require that Seller drill Completed Development Wells sufficient
to  achieve  the  Total Drilling Commitment on or before the Drilling Obligation
Completion  Date,  in  accordance with the terms and conditions set forth in the
Development  Agreement.

             b.  DEED  OF  TRUST.  Seller  also shall grant to Buyer the Deed of
                 ---------------
Trust  to secure Seller's obligation to satisfy the Total Drilling Commitment by
the  Drilling  Obligation  Completion  Date  (plus  the  90 day grace period) as
provided  in the Development Agreement.  The Deed of Trust shall secure Seller's
interest  in  that  portion  of  the  AMI Areas depicted on Exhibit "B" attached
hereto  as  the  Yawkey  Freeman AMI, subject to exceptions and reservations set
forth  therein.

                              ARTICLE XIII.  OTHER.

     13.     a.  FURTHER  ASSURANCES.  After  the  Closing,  Seller and Buyer
                 -------------------
shall execute, acknowledge and deliver or cause to be executed, acknowledged and
delivered  such  instruments  and  take such other action as may be necessary or
advisable  to  carry  out  their  obligations under this Agreement and under any
exhibit,  document,  certificate  or other instrument delivered pursuant hereto.

             b.  NOTICES.  All  notices  required  or  permitted  under  this
                 -------
Agreement  shall be in writing and shall be delivered personally or by certified
mail,  postage prepaid and return receipt requested or by telecopier as follows:

            ECA:   John Mork, President and CEO
                   Energy Corporation of America
                   4643 South Ulster Street, Suite 1100
                   Denver, CO  80237

                         Telephone:   303-694-2667
                         Telecopier: 303-694-2763

            With copies to:

                   Thomas R. Goodwin, Esquire
                   Tammy J. Owen, Esquire
                   Goodwin & Goodwin, LLP
                   300 Summers Street, Suite 1500
                   Charleston, WV  25301

                         Telephone:   304-346-7000
                         Telecopier:  304-344-9692

                                       22
<PAGE>
            Buyer: Black Stone Minerals Company, L.P.
                   Thomas L. Carter, Jr.
                   1001 Fannin, Suite 2020
                   Houston, Texas 77002

                         Telephone:  713-658-0647
                         Telecopier: 713-658-0943

            With copies to:

                   David Patton, Esquire
                   Locke Liddell & Sapp, LLP
                   2400 Chase Tower
                   600 Travis Street
                   Houston TX  77002-3095

or  to  such other place within the United States of America as either party may
designate  as  to  itself  by written notice to the other.  All notices given by
personal  delivery  or  mail shall be effective on the date of actual receipt at
the  appropriate  address.  Notices  given by telecopier shall be effective upon
actual  receipt  if  received during recipient's normal business hours or at the
beginning  of  the  next  business  day  after  receipt  if  received  after the
recipient's normal business hours.  All notices by telecopier shall be confirmed
in  writing  on  the  day  of  transmission by either mailing by postage prepaid
certified  mail  with  return  receipt  requested,  or  by  personal  delivery.

          c.     SUBSTITUTION OF WARRANTY.  The Term Royalty Conveyance shall be
                 ------------------------
made with full substitution and subrogation of the Buyer in and to all covenants
of  warranty by Third Persons (other than Affiliates of Seller) heretofore given
or  made with respect to the Wells and the Subject Interests or any part thereof
or  interest  therein.

          d.     SPECIAL  TAX  PROVISIONS.  The  Parties  intend  that  the
                 ------------------------
transaction contemplated hereby shall qualify as a carved-out production payment
under  Section  636  of  the  Internal  Revenue Code of 1986, as amended and the
regulations  thereunder,  and  shall be treated as a debt instrument for federal
income  tax  purposes.  Proceeds  payable  to  the  Buyer  from  the sale of the
production  from  the  Term  Royalty  Interest  will  be  treated as payments of
principal  and interest on the debt instrument issued by the Seller.  The amount
of  principal  and  interest  of  each  payment will be determined based upon an
amortization  schedule established by the Seller as of the Effective Time.  This
amortization  schedule  will  be  made  available to the Buyer no later than one
hundred  twenty  (120)  days  after  the  Closing  Date.

                                       23
<PAGE>
          The  amortization schedule will be determined using the "noncontingent
bond  method"  under the original issue discount rules, which require the Seller
to  construct  the  amortization schedule after taking into account a comparable
yield  for  which the Seller could offer a fixed-rate debt instrument with terms
similar  to  the Term Royalty Interest.  Any difference between the amounts that
are  received  by  the  Buyer  and  the  amounts  that  were  estimated when the
amortization  schedule  was prepared will result in adjustments to the amount of
interest  initially  estimated.

          e.     GOVERNING  LAW.  This  Agreement  shall  be  governed  by  and
                 --------------
construed in accordance with the laws of the State of West Virginia.

          f.     ASSIGNMENT.  This  Agreement  shall  be  binding upon and shall
                 ----------
inure  to  the  benefit  of  the  Parties  hereto and their respective permitted
successors  and  assigns.  The  Parties  shall  not  assign  or  transfer  their
respective  rights under this Agreement without the prior written consent of the
other  Party,  provided, however, that (i) Buyer may assign or transfer all or a
portion  of  its  rights  under this Agreement prior to Closing to not more than
three  (3)  "accredited  investors" as defined in the Securities Act without the
prior  written  consent of Seller and, Buyer may not transfer all or any portion
of  the  Term  Royalty  Interest  except  in  a transaction registered under the
Securities  Act  or  exempt  from  registration  thereunder,  as evidenced by an
opinion  of counsel from a nationally recognized law firm, in form and substance
reasonably  satisfactory  to  Seller,  to the effect that such transaction is so
exempt,  and  such  accredited  investors shall have made the representations to
Seller in substantially the form of Sections 5(d), 5(e) and 5(f) above, and (ii)
notwithstanding  the  foregoing, for a period of two (2) years after the Closing
Date,  Buyer  may  not  transfer all or any portion of the Term Royalty Interest
except  in  a  transaction  registered  under  the Securities Act or exempt from
registration thereunder, as evidenced by an opinion of counsel from a nationally
recognized law firm, in form and substance reasonably satisfactory to Seller, to
the  effect  that  such  transaction is so exempt, and the transferee shall have
made  the  representations  to Seller in substantially the form of Sections 5(d)
and 5(f) above.  Notwithstanding the foregoing, if Buyer assigns any interest in
this  Agreement,  Buyer  shall  continue  to  be  primarily  obligated  for  the
performance  of  any  representations,  warranties,  covenants  and  agreements
hereunder  that  survive  the  Closing.

          g.     ENTIRE  AGREEMENT;  AMENDMENTS; WAIVERS.  Except as provided in
                 ---------------------------------------
Section  13(q)  below,  this  Agreement,  together  with  the  exhibits  hereto,
constitutes the entire Agreement between the Parties with respect to the subject
matter  hereof,  superseding all prior negotiations, discussions, agreements and
understandings,  whether oral or written, relating to such subject matter.  This
Agreement  may  not be amended and no rights hereunder may be waived except by a
written  document  signed  by  the  Party  to  be charged with such amendment or
waiver.  No  waiver of any of the provisions of the Agreement shall be deemed or
shall  constitute  a  waiver  of  any  other  provisions  hereof (whether or not
similar)  nor  shall such waiver constitute a continuing waiver unless otherwise
expressly  provided.

          h.     SEVERABILITY.  If  a court of competent jurisdiction determines
                 ------------
that  any  clause  or  provision  of  this  Agreement  is  void,  illegal,  or
unenforceable, the other clauses and provisions of the Agreement shall remain in
full  force and effect and the clauses and provisions which are determined to be
void,  illegal,  or  unenforceable shall be limited so that they shall remain in
effect  to  the  extent  permissible  by  law.

                                       24
<PAGE>
          i.     PRESS RELEASES.  Seller and Buyer shall consult with each other
                 --------------
prior  to  the  issuance  of  any  press  releases or other public announcements
concerning  this  transaction, except as may be required in order to comply with
any  securities  laws  or  requirements.

          j.     HEADINGS.  The  headings  of the Sections of this Agreement are
                 --------
for  guidance and convenience of reference only and shall not limit or otherwise
affect  any  of  the  terms  or  provisions  of  this  Agreement.

          k.     COUNTERPARTS.  This  Agreement  may  be  executed  by Buyer and
                 ------------
Seller  in any number of counterparts, each of which shall be deemed an original
instrument,  but  all  of  which  together shall constitute but one and the same
instrument.  This Agreement will be binding upon the Parties who do sign whether
or  not  all  Parties  sign  the  Agreement.

          l.     EXPENSES, FEES AND TAXES.  Each of the Parties hereto shall pay
                 ------------------------
its  own  fees  and expenses incident to the negotiation and preparation of this
Agreement  and  consummation  of the transactions contemplated hereby, including
broker  fees.  Buyer  shall  be  responsible  for  the  cost of all fees for the
recording  of  transfer  documents.  All other costs shall be borne by the Party
incurring  them.  Notwithstanding  anything  to  the  contrary  herein,  it  is
acknowledged  and  agreed by and between Seller and Buyer that the Consideration
excludes  any sales taxes or other taxes in connection with the sale of property
pursuant to this Agreement.  If a determination is ever made that a sales tax or
other  transfer  tax  applies, Buyer shall be liable for such tax as well as any
applicable  conveyance,  transfer  and  recording fees, and real estate transfer
stamps  or taxes imposed on any transfer of property pursuant to this Agreement.
Buyer  shall  indemnify  and hold Seller harmless with respect to the payment of
any  of  such  taxes, including any interest or penalties assessed thereon.  The
indemnity and hold harmless obligation contained in the preceding sentence shall
survive  the  Closing.

          m.     CONSTRUCTION  OF  AGREEMENT.  In construing this Agreement, the
                 ---------------------------
following  principles  shall  be  followed:

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

               ii.  no  consideration  shall be given to the fact or presumption
          that  one  Party  had  a  greater  or  lesser  hand  in  drafting this
          Agreement;

               iii.  the  word  "includes"  and  its  syntactical  variants mean
          "includes,  but  is  not  limited  to"  and  corresponding syntactical
          variant expressions;

               iv.  a  defined  term  has  its  defined  meaning throughout this
          Agreement,  regardless of whether it appears before or after the place
          in this Agreement where it is defined; and

               v.  the  plural shall be deemed to include the singular, and vice
          versa.

                                       25
<PAGE>
          n.     RELATIONSHIP  OF  PARTIES.  This  Agreement  does  not create a
                 -------------------------
partnership,  mining  partnership,  joint  venture,  or relationship of trust or
agency,  except  with  respect  to  Seller's agency relationship with respect to
those  matters  set  forth  herein  and  in  the Term Royalty Conveyance and the
Development  Agreement.

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

          p.     PRESENT  AND  ABSOLUTE CONVEYANCE.  It is the express intention
                 ---------------------------------
of  Seller  and  Buyer that the conveyance of the Term Royalty Interest shall be
construed  for  all purposes as a present, fully-vested and absolute conveyance.

          q.     OTHER  AGREEMENTS.  This  Agreement is subject to the terms and
                 -----------------
conditions  of the Term Royalty Conveyance and the Development Agreement, and in
the  event  of  a conflict in the terms and conditions of this Agreement and the
terms  and  conditions  of  the  Term  Royalty  Conveyance  or  the  Development
Agreement,  the  terms  and  conditions  of  the Term Royalty Conveyance and the
Development  Agreement,  as  applicable,  shall  control.

          r.     EXECUTION BY ECA.  ECA joins in the execution of this Agreement
                 ----------------
for the sole and limited purpose of joining in the warranty set forth in Section
4(g)  and  of committing to the drilling obligations set forth in Section 12(a),
but  for  no  other  purpose.

          s.     INCENTIVE  PAYMENTS.  As  provided  in Section 5.05 of the Term
                 -------------------
Royalty  Conveyance,  Seller  is  entitled  to  receive  a  quarterly  incentive
distribution  equal  to  the amount, if any, by which the quarterly aggregate of
the  Monthly  Distribution  Amount  (as  defined  in Section 5.01(a) of the Term
Royalty  Conveyance),  exceeds  the  Distribution Targets as defined in the Term
Royalty Conveyance specified for each quarter on the schedule attached hereto as
Exhibit  "K"  for  such  quarter,  as  further  provided  in  the  Term  Royalty
Conveyance.

     IN  WITNESS  WHEREOF,  the  parties  hereto  have caused their duly elected
officers to execute this Agreement on the date first above written.

                                      ENERGY CORPORATION OF AMERICA

                                      By:    /S/ JOHN MORK
                                         ---------------------------------------
                                             John Mork
                                             CEO - President

                                       26
<PAGE>
                                      EASTERN AMERICAN ENERGY
                                      CORPORATION

                                      By:    /S/ DONALD C. SUPCOE
                                         ---------------------------------------
                                             Donald C. Supcoe
                                             President

                                      BLACK STONE MINERALS COMPANY, L.P.

                                      By:    /S/ THOMAS L. CARTER
                                         ---------------------------------------
                                             Thomas L. Carter
                                             President

                                       27EXHIBIT "F"

ATTACHED TO AND MADE A PART OF THAT CERTAIN TERM ROYALTY AGREEMENT DATED MAY 17,
2005 BY AND BETWEEN ENERGY CORPORATION OF AMERICA ET AL., AS SELLERS, AND BLACK
         STONE MINERALS COMPANY, L. P. [AND/OR ITS DESIGNEES], AS BUYER

                             TERM ROYALTY CONVEYANCE
                                 (WEST VIRGINIA)

                                  INTRODUCTION

     THIS TERM ROYALTY CONVEYANCE (this "Conveyance") from ENERGY CORPORATION OF
AMERICA,  a West Virginia corporation, with offices at 4643 South Ulster Street,
Suite  100,  Denver,  Colorado  80237-2867  ("ECA"), and EASTERN AMERICAN ENERGY
CORPORATION,  a  West  Virginia  corporation,  with  offices at 501 56th Street,
Charleston,  West  Virginia  25304  ("Eastern"  or  "Assignor"),  to Black Stone
Minerals  Company,  L.P.,  a  Delaware  limited  partnership,  or  its permitted
designees  ("Assignee")  is  delivered  to be effective as of 7:00 a.m., Eastern
Time,  January  1,  2005  (the  "Effective  Time").  All  capitalized  terms not
otherwise  defined  herein  shall  have  the  meanings ascribed to such terms in
Article  II  below.

                                    ARTICLE I
                                   CONVEYANCE

     SECTION  1.01     THE GRANT.  For and in consideration of good and valuable
consideration paid by Assignee to Assignor, the receipt and sufficiency of which
are  hereby acknowledged, Assignor has, subject to the terms of this Conveyance,
BARGAINED,  SOLD,  GRANTED,  CONVEYED,  TRANSFERRED,  ASSIGNED,  SET  OVER,  and
DELIVERED,  and  by  these  presents  does  hereby BARGAIN, SELL, GRANT, CONVEY,
TRANSFER,  ASSIGN,  SET  OVER, and DELIVER unto Assignee, for the Term, the Term
Royalty  Interest.

     SECTION  1.02     TERM.  The term of the Term Royalty Interest (the "Term")
shall  begin  at the Effective Time and end at 7:00 A.M. on January 1, 2025 (the
"Termination  Date").  At the end of the Term, all of the Assignee's interest in
and  to  the Term Royalty Interest shall automatically terminate and immediately
revert  to  and  revest  in  Assignor.

     SECTION  1.03     HABENDUM  CLAUSE.  TO  HAVE  AND TO HOLD the Term Royalty
Interest, together with all and singular the rights and appurtenances thereto in
anywise  belonging,  unto  Assignee,  its  successors and assigns, for the Term,
subject  to  terms  and  provisions  of  this  Conveyance.

     SECTION  1.04     WARRANTY.

          (a)  THE  WARRANTY.  ECA  and  Assignor  warrant  to the Assignee, its
successors  and assigns, that the Subject Interests are free of all Encumbrances
created  by,  through,  or  under  Assignor,  but  not otherwise, except for the
Permitted  Encumbrances,  and  that  Assignor's title to (i) the Producing Wells
entitles  Assignor to a Net Revenue Interest in each such Producing Well no less
than  the  Net  Revenue  Interest  for  that  Producing  Well  as  set  forth in

<PAGE>
Exhibit A-1, and (ii) as to the Subject Development Lands is sufficient to allow
------------------------------------------------------------
it  to  satisfy  the  Total  Drilling  Commitment  by  the  Drilling  Obligation
Completion  Date  in  accordance  with  the  Development  Agreement.

          (b)  SOLE  REMEDY.  In  the  event  of  a  post-Closing  breach of the
foregoing  warranty for any Subject Interest (pre-Closing breaches thereof being
remedied  pursuant  to  Section  2(a)(ii)  of  the  Term Royalty Agreement), the
Assignee's sole remedy shall be to receive payment for each applicable month, as
damages,  subject  to offset as provided below and without interest (except such
interest payable under this Conveyance on payments made after the applicable due
date  as  described in Section 5.02 below), of an amount equal to the difference
between  (i)  Term  Royalty Gas (or the proceeds from the sale thereof) that the
Assignee  would  have received with respect to a Well in the applicable month if
the  warranty  had  not been breached and (ii) Term Royalty Gas (or the proceeds
from  the  sale  thereof)  that the Assignee actually received during that month
with  respect to that Well, to the extent such difference is attributable to the
breach  of  the  warranty,  but  not  to  the  extent  that  such  difference is
attributable  to  any  other  cause.

          (c)  RIGHT  OF  OFFSET. If any Subject Interest owned by Assignor ever
proves  to be larger than the Subject Interest reflected in the exhibits to this
Conveyance  and  if, as a result, the Assignee receives a greater amount of Term
Royalty Gas (or the proceeds from the sale thereof) with respect to that Subject
Interest than the Assignee would otherwise have received if the Subject Interest
had  been  the size warranted, then such increased amounts, whenever received by
the  Assignee,  may  be  treated  by  Assignor  as  a  credit or offset (without
interest)  against  any  amounts  payable to the Assignee under Section 1.04(b).

          (d)  DISCLAIMER.  EXCEPT  FOR THE WARRANTIES OF TITLE GIVEN IN SECTION
1.04(a)  AND  THE REPRESENTATIONS MADE IN ANY AGREEMENT TO WHICH THIS CONVEYANCE
IS SUBJECT, ASSIGNOR MAKES THIS CONVEYANCE AND ASSIGNS THE TERM ROYALTY INTEREST
WITHOUT RECOURSE, COVENANT OR WARRANTY OF TITLE OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY. EXCEPT AS OTHERWISE PROVIDED HEREIN OR IN ANY AGREEMENT TO WHICH THIS
CONVEYANCE  IS SUBJECT, ANY COVENANTS OR WARRANTIES IMPLIED BY STATUTE OR LAW BY
THE  USE HEREIN OF THE WORDS "GRANT", "CONVEY" OR OTHER SIMILAR WORDS ARE HEREBY
EXPRESSLY DISCLAIMED, WAIVED AND NEGATED. WITHOUT LIMITING THE GENERALITY OF THE
TWO  PRECEDING  SENTENCES, ASSIGNEE ACKNOWLEDGES THAT ASSIGNOR HAS NOT MADE, AND
ASSIGNOR  HEREBY  EXPRESSLY  DISCLAIMS  AND  NEGATES,  AND  THE  ASSIGNEE HEREBY
EXPRESSLY  WAIVES,  ANY  REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT COMMON
LAW,  BY  STATUTE  OR  OTHERWISE  RELATING TO (i) PRODUCTION RATES, RECOMPLETION
OPPORTUNITIES,  DECLINE RATES OR THE QUALITY, QUANTITY OR VOLUME OF THE RESERVES
OF HYDROCARBONS, IF ANY, ATTRIBUTABLE TO THE SUBJECT INTERESTS, (ii) ANY IMPLIED
OR EXPRESS WARRANTY OF MERCHANTABILITY, (iii) ANY IMPLIED OR EXPRESS WARRANTY OF
FITNESS  FOR  A  PARTICULAR  PURPOSE,  (iv)  ANY  IMPLIED OR EXPRESS WARRANTY OF
CONFORMITY  TO  MODELS  OR  SAMPLES  OF  MATERIALS,  AND (v) ANY AND ALL IMPLIED
WARRANTIES EXISTING UNDER ANY APPLICABLE LEGAL REQUIREMENT; IT BEING THE EXPRESS
INTENTION  OF  BOTH  THE  ASSIGNEE  AND

                                        2
<PAGE>
ASSIGNOR THAT, EXCEPT AS OTHERWISE PROVIDED, THE TERM ROYALTY INTEREST IS HEREBY
ASSIGNED TO THE ASSIGNEE ON AN "AS IS" AND "WHERE IS" BASIS WITH ALL FAULTS, AND
THAT THE ASSIGNEE HAS MADE OR CAUSED TO BE MADE SUCH INSPECTIONS AS THE ASSIGNEE
DEEMS  APPROPRIATE.  ASSIGNOR AND ASSIGNEE AGREE THAT, TO THE EXTENT REQUIRED BY
APPLICABLE  LEGAL  REQUIREMENTS  TO  BE  EFFECTIVE,  THE  DISCLAIMERS OF CERTAIN
WARRANTIES  CONTAINED  IN  THIS  SECTION  ARE  "CONSPICUOUS" DISCLAIMERS FOR THE
PURPOSES  OF  ANY  APPLICABLE  LEGAL  REQUIREMENT.

          (e)  SUBSTITUTION  OF  WARRANTY.  This  Conveyance  is  made with full
substitution and subrogation of the Assignee in and to all covenants of warranty
by  Third  Persons  (other than Affiliates of Assignor) heretofore given or made
with  respect  to  the  Wells  and  the Subject Interests or any part thereof or
interest  therein.

     SECTION 1.05      RELEASE OF EXCESS ACREAGE. After the drilling obligations
in  Section  2.01(a)  of the Development Agreement have been satisfied, Assignee
shall,  on  request,  execute, acknowledge, and deliver to Assignor a recordable
instrument  (reasonably  acceptable  to  Assignor)  that  (a)  releases the Term
Royalty  Interest  with respect to all Subject Development Lands and (b) assigns
such  Subject  Development  Lands  to Assignor, except such portion thereof that
covers  and  pertains to all Term Royalty Gas in, under and that may be produced
from  the  Wellbores  of  any Completed Development Well.  In addition, upon the
completion  of  any  Development  Well  or  Completed Development Well, Assignee
shall,  on  request,  execute, acknowledge, and deliver to Assignor a recordable
instrument (reasonably acceptable to Assignor) that (i) releases all of the Term
Royalty  Interest with respect to each Development Well that does not constitute
a  Completed  Development Well, and (ii) each Completed Development Well, except
such portion of each such Completed Development Well that covers and pertains to
all  Term  Royalty  Gas in, under and that may be produced from the Wellbores of
any  such  Completed Development Well.  Any such release and assignment shall be
made  subject  to  the  provisions  of  Section  12.02  below.

                                   ARTICLE II
                                   DEFINITIONS

     This  Article II defines certain capitalized words, terms, and phrases used
in this Conveyance.  Certain other capitalized words, terms, and phrases used in
this  Conveyance  are  defined  elsewhere  in  this  Conveyance.

     "Additional Lease" is defined in Section 12.01.
      ----------------

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

                                        3
<PAGE>
                                  1 x .85 = .85

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

     "Affiliate"  means, for any specified Person, another Person that controls,
      ---------
is  controlled  by,  or  is  under  common  control  with, the specified Person.
"Control,"  in  the  preceding sentence, refers to the possession by one Person,
directly  or  indirectly, of the right or power to direct or cause the direction
of  the management and policies of another Person, whether through the ownership
of  voting  securities,  by  contract,  or  otherwise.

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

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

     "Assignee"  means  Black  Stone Minerals Company, L. P., a Delaware limited
      --------
partnership  or  its  permitted  designees.

     "Assignor"  is  defined  in  the  Introduction  to this Conveyance and also
      --------
includes  all  permitted  successors  and  assigns  of  Assignor.

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

     "Business  Day"  means  any  day  that is not a Saturday, Sunday, a holiday
      -------------
determined by the New York Stock Exchange, Inc. as "affecting 'ex' dates" or any
other  day  on  which  national  banking  institutions in New York, New York are
closed  as  authorized  or  required  by  law.

     "Chargeable  Costs"  is  defined  in  Section  3.02(a).
      -----------------

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

      "Conveyance" is defined in the Introduction to this Conveyance.
       ----------

     "Development  Agreement"  means  that certain Development Agreement between
      ----------------------
Assignor  and  the  Assignee  dated  as  of  even  date  herewith.

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

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

     "Effective  Time"  is  defined  in  the  Introduction to this Conveyance as
      ---------------
January  1,  2005.

                                        4
<PAGE>
     "Encumbrance"  means any mortgage, lien, security interest, pledge, charge,
      -----------
encumbrance,  limitation, preferential right to purchase, consent to assignment,
irregularity,  burden,  or  defect.

     "Excess Costs" means the excess of Chargeable Costs from a prior month that
      ------------
are  actually paid or are deemed to have been paid by Assignor during that month
and  not  included  in  any  such  prior  month's  Chargeable  Costs.

     "Existing  Gas  Purchase  Contract"  means  that  certain Natural Gas Sales
      ---------------------------------
Agreement dated March 16, 1993 by and between Mountaineer Gas Services, Inc. and
Mountaineer  Gas Company as heretofore and may hereafter be amended, modified or
restated.

     "Fair  Value"  means,  with  respect  to  any  portion  of the Term Royalty
      -----------
Interest  to be released pursuant to Section 11.02 or 11.03 in connection with a
sale or release of any Well or Subject Interest, an amount of net proceeds which
could reasonably be expected to be obtained from the sale of such portion of the
Term  Royalty  Interest  to  a  party  which  is  not an Affiliate of either the
Assignor or the Assignee on an arms'length negotiated basis, taking into account
relevant market conditions and factors existing at the time of any such proposed
sale  or release, such net proceeds to be determined by deducting the Assignee's
proportionate  share  of  sales  costs,  commissions and brokerage fees, if any,
actually  paid.

     "Farmout  Agreements" means any farmout agreement, participation agreement,
      -------------------
exploration  agreement,  development  agreement  or  any  similar  agreement.

      "Force Majeure" is defined in Section 13.02.
       -------------

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

     "Governmental  Authority"  means  the  United States of America, any state,
      -----------------------
commonwealth, territory, or possession thereof, and any political subdivision of
any  of  the  foregoing,  including  courts,  departments,  commissions, boards,
bureaus,  agencies,  and  other  instrumentalities.

     "Kentucky  Conveyance"  means the Term Royalty Conveyance (Kentucky) by and
      --------------------
between Assignor and Assignee dated as of even date herewith and effective as of
the Effective Time.  The Kentucky Conveyance shall be identical in terms to this
Conveyance  except  where  modified  as  appropriate.

     "Legal Requirement" means any law, statute, ordinance, decree, requirement,
      -----------------
order,  judgment,  rule, or regulation of, including the terms of any license or
permit  issued  by,  any  Governmental  Authority.

     "Mcf"  means thousand cubic feet of Gas and "MMcf" means million cubic feet
      ---
of  Gas,  measured and expressed in each case at the same temperature, pressure,
and  other  conditions  of  measurement  (a)  provided  in  any contract for the
purchase  of  Gas  from the Subject Interest or, (b) if no such contract exists,
provided  by  applicable  state  law  for  purposes  of  reporting production to
Governmental  Authorities.

                                        5
<PAGE>
     "Monthly  Distribution  Amount"  is  defined  in  Section  5.01(a).
      -----------------------------

     "Net  Revenue  Interest" means, the interest, stated as a decimal fraction,
      ----------------------
in  Subject  Gas  production  from a Well that Assignor is entitled to take with
respect  to  Assignor's Subject Interest in that Well and the associated Subject
Lands,  subject  only  to  the  Permitted  Production  Burdens.

     "Non-Affiliate"  means,  for any specified Person, any other Person that is
      -------------
not  an  Affiliate  of  the  specified  Person.

     "Notice"  is  defined  in  Section  14.01.
      ------

     "Party,"  when  capitalized,  refers  to  Assignor  or  Assignee.
      -----

     "Parties,"  when  capitalized,  refers  to  Assignor  and  Assignee.
      -------

     "Pennsylvania  Conveyance" means the Term Royalty Conveyance (Pennsylvania)
      ------------------------
by  and  between  Assignor  and  Assignee  dated  as  of  even date herewith and
effective  as  of  the  Effective  Time.  The  Pennsylvania  Conveyance shall be
identical  in  terms  to  this  Conveyance except where modified as appropriate.

     "Permitted  Encumbrances"  means:
      -----------------------

          (a)     the  Permitted  Production  Burdens;

          (b)     the  Existing  Gas  Purchase  Contract;

          (c)     Encumbrances  that  arise  under operating agreements, Farmout
     Agreements,  leases,  assignments,  and  other  instruments  and agreements
     to  secure  payments of amounts not yet delinquent and that are of the type
     and  nature  customary  in  the  oil  and gas industry, as conducted in the
     Appalachian Basin;

          (d)     Encumbrances that arise as a result of pooling and unitization
     agreements,  declarations,  orders,  or  Legal  Requirements  to  secure
     payment of amounts not yet delinquent;

          (e)     Encumbrances  securing  payments  to mechanics and materialmen
     and  Encumbrances  securing  payment  of  Taxes or assessments that are, in
     either  case,  not yet delinquent or, if delinquent, are being contested in
     good faith in the normal course of business;

          (f)     conventional  rights of reassignment that obligate Assignor to
     reassign  all  or  part  of  any  Subject  Interest  to  a  Third Person if
     Assignor  intends to release or abandon such interest before the expiration
     of the primary term or other termination of such interest;

          (g)     easements, rights-of-way, servitudes, permits, surface leases,
     surface  use  restrictions,  and  other  surface  uses  and impediments on,
     over, or in respect of the Subject

                                        6
<PAGE>
     Interests  that are not such as to interfere materially with the operation,
     value,  or  use  of  the  Subject  Interests;

          (h)     covenants,  conditions,  and  other  terms  subject  to  which
     Assignor acquired the Subject Interests;

          (i)     rights  reserved to or vested in any Governmental Authority to
     control or regulate any Subject Interests in any manner, and all applicable
     Legal  Requirements;

          (j)     the  terms  of  the instruments creating the Subject Interests
     and Subject Lands;

          (k)     any  Prior  Reversionary  Interests  disclosed  in  writing to
     Assignee  prior  to  the  execution  of  the  Term  Royalty  Agreement that
     affect the Subject Interests;

          (l)     other  Encumbrances  that  affect any Subject Interest that do
     not,  alone  or  in  the  aggregate,  materially  and  adversely affect the
     operation, value, or use of the Subject Interests; and

          (m)     mortgages,  deeds  of  trust  or  other  security  interests
     burdening Assignor's interest in the Subject Interests or any extensions or
     renewals thereof and Subject Lands, including, without limitation, the Deed
     of  Trust;  provided  however  that  any  such  mortgage,  deed of trust or
     security  interest  shall not affect and shall be made expressly subject to
     the  Term  Royalty  Conveyance;

          all to the extent, and for so long as, such Permitted Encumbrances are
          (i)  otherwise  valid  and  enforceable against the Subject Interests,
          without  recognizing,  expressly  or  by  implication,  any  rights or
          interests  in  any  Third  Person  or Governmental Authority that such
          Third  Person  or  Governmental  Authority does not otherwise lawfully
          possess, or (ii) they do not cause Assignor's Net Revenue Interests in
          any  Producing  Well to be less than the Net Revenue Interest for that
          Producing  Well  as  stated  in  Exhibit  A-1.
                                                               -------------

     "Permitted  Production  Burdens"  means  (a)  all  Production  Burdens that
      ------------------------------
affected  the  Subject Interests when they were acquired by Assignor and (b) all
Production  Burdens  that  were  created  by Assignor, to the extent they do not
cause  Assignor's Net Revenue Interest in any (i) Producing Well to be less than
the  Net  Revenue  Interest for that Producing Well reflected in Exhibit A-1, or
(ii)  Completed  Development Well to be less than 87.5% (proportionately reduced
to  Assignor's  Working  Interest  in  such  Completed Development Well).  It is
understood and agreed that with respect to Completed Development Wells, the Term
Royalty  Interest  will  be  calculated  on  the  basis  that Assignor's Working
Interest  in the Subject Development Lands is not burdened by Production Burdens
that  exceed 12.5%.  In the event that Assignor's Working Interest in any of the
Completed Development Wells is subject to Production Burdens in excess of 12.5%,
such  excess burdens will be the sole responsibility of Assignor and paid out of
Assignor's  fifty  percent  (50%)  interest  in  the  Subject  Development Lands
retained  by  Assignor  hereunder.

     "Person" means any natural person, corporation, partnership, trust, estate,
      ------
or  other  entity,  organization,  or  association.

                                        7
<PAGE>
     "Producing  Well"  means  the  Wellbore  of each Gas well more particularly
      ---------------
described in Exhibit A-1, subject to the exceptions, exclusions and reservations
set  forth  on  such  Exhibit  A-1.

     "Post  Production  Cost  Charge"  is  defined  in  Section  3.02(c).
      ------------------------------

     "Prime  Interest  Rate"  is  defined  in  Section  5.02(b).
      ---------------------

     "Prior  Reversionary  Interest"  means  any  contract,  agreement,  Farmout
      -----------------------------
Agreement,  lease,  deed, conveyance or operating agreement disclosed in writing
to  Assignee prior to the execution of the Term Royalty Agreement that exists as
of  the  Effective  Time  or that burdens the Subject Interests at the time such
Subject  Interests  are acquired, that by the terms thereof requires a Person to
convey  any  part  of  the  Subject  Interests  to another Person, including any
operating  agreements,  oil  and  gas  leases,  coal  leases,  and other similar
agreements  or  instruments  affecting  the  Subject  Interests.

     "Production  Burdens"  means,  with  respect  to any Subject Lands, Subject
      -------------------
Interests,  or Subject Gas, all royalty interests, overriding royalty interests,
production  payments,  net  profits  interests, Prior Reversionary Interests and
other  similar  interests  that  constitute a burden on, are measured by, or are
payable  out  of the production of Gas or the proceeds realized from the sale or
other  disposition  thereof.

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

     "Reserved Amounts" means those amounts set aside from Term Royalty Proceeds
      ----------------
by  Assignor  in  accordance  with  the  provisions  of  Section  5.04  below.

     "Sales  Price"  means,  for any month, the sales price received by Assignor
     -------------
per  Mcf  for  Term  Royalty  Gas  determined  in  accordance with the following
provisions:

               (a)     "sale"  refers  to  any sale or other disposition of Term
          Royalty  Gas  for  value,  the  value  of  such  Gas  that  is sold or
          otherwise  disposed  of  for  valuable  consideration  being  (i) with
          respect to any Gas not sold under the Existing Gas Contract, the sales
          price that Assignor receives for any such Gas sold pursuant to Section
          4.01  for any such Gas, or (ii) with respect to any Gas sold under the
          Existing  Gas Contract, notwithstanding the provisions of the Existing
          Gas  Contract,  the  Sales  Price for any Gas sold thereunder shall be
          deemed  to  be,  for  each  month  during the term of the Existing Gas
          Contract, the Platt's Inside FERC Gas Market Report first of the month
          posted  Columbia  Gas  Transmission Corporation Appalachia Index price
          for Spot Gas Delivered to Pipelines for that month.

               (b)     amounts  of  money  not  paid to Assignor when due by any
          purchaser  of  Term  Royalty  Gas  (for  example,  Taxes  or  other
          amounts  withheld  or  deducted  by  any  such purchaser) shall not be
          included within the Monthly

                                        8
<PAGE>
          Distribution  Amount  until  actually  received  by,  or  credited  to
          the account of, Assignor;

               (c)     advance  payments  and  prepayments for future deliveries
          of  Term  Royalty  Gas  shall  be  included  within  the  Monthly
          Distribution Amount, without interest, when received by Assignor; and

               (d)     if  a  controversy  or,  in  the  reasonable  opinion  of
          Assignor's  counsel,  a  possible  controversy  exists,  whether  by
          reason  of  any statute, order, decree, rule, regulation, contract, or
          otherwise,  between  Assignor and any purchaser of Term Royalty Gas or
          any  other  Person,  about the correct Sales Price of any Term Royalty
          Gas,  about deductions from the Sales Price, about Assignor's right to
          receive  the  proceeds  of  any sale of Term Royalty Gas, or about any
          other  matter  relating thereto, then monies withheld by the purchaser
          or  deposited  by such Purchaser or, after receipt, by Assignor with a
          Third Party escrow agent as a result of such controversy, shall not be
          included  within  the Monthly Distribution Amount until received by or
          returned  to  Assignor, as applicable. In addition, to the extent that
          Assignor  receives  interest  on  such  payment, Assignor shall pay to
          Assignee its proportionate share of such interest.

     "Subject  Development  Lands"  means the lands subject to or covered by the
      ---------------------------
oil  and  gas  leases  described  in  Exhibit  A-2,  subject  to the exceptions,
exclusions  and  reservations set forth on such Exhibit A-2, as such Exhibit may
be  modified  pursuant  to  Section  1.05  and  Section  12.01.

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

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

                            (i)     lost  in  accordance  with  the  Reasonably
                    Prudent  Operator  Standard  in  the  production, gathering,
                    or  marketing  of Gas, or that is liquefied and removed from
                    the gas stream in the normal course of Assignor's operation,
                    consistent  with  prior  practice, via any method other than
                    processing as contemplated in Section 4.04;

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

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

                            (iv)    in  excess of the percentage attributable to
                    Assignor's  Net  Share  of  Gas  taken  by  Assignor  to
                    recover costs, or some multiple of

                                        9
<PAGE>
                    costs,  paid  or  incurred  by  Assignor under any operating
                    agreement,  unit agreement, or other agreement in connection
                    with nonconsent operations conducted (or participated in) by
                    Assignor.

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

     "Subject  Interests"  means  Assignor's  undivided interests in the Subject
      ------------------
Lands as lessee under Gas leases covering and affecting the Subject Lands, as an
owner  of  the  Subject Gas (or the right to extract such Gas), or otherwise, by
virtue  of  which  undivided  interests  Assignor  has  the  right  to  conduct
exploration, drilling, development, and Gas production operations on the Subject
Lands,  or  to  cause such operations to be conducted, or to participate in such
operations  by  paying  and  bearing  all  or  any part of the costs, risks, and
liabilities  of  such  operations, to drill, test, complete, equip, operate, and
produce  Wells  to  exploit  the  Gas.  Any  oil  and gas lease or other similar
instrument that covers Gas produced from the Subject Lands shall be considered a
"Gas  lease"  hereunder,  even  if  it  also  covers other substances.  "Subject
Interests"  includes  all  extensions  and  renewals  of Gas leases covering and
affecting  the Subject Lands acquired within six (6) months after the expiration
or  termination  of  any such lease, and all new Gas leases covering the Subject
Lands  (or  any  portion thereof) obtained by Assignor, or any Affiliate thereof
prior  to  the termination of the Development Agreement.  "Subject Interests" do
not  include  (a) Assignor's rights to substances other than Gas; (b) Assignor's
rights  under  contracts  for  the  purchase,  sale,  transportation,  storage,
processing,  or  other  handling or disposition of Gas; (c) Assignor's interests
in, or rights with respect to, pipelines, gathering systems, storage facilities,
processing  facilities,  or other equipment or facilities, other than the Wells;
or  (d)  subject to Section 1.04(c), any after-acquired, additional, or enlarged
interests  in the Wells, Subject Lands or Subject Gas, except those reflected in
Exhibit  A-1  or  Exhibit A-2 or any Additional Lease as provided for in Section
------------      -----------
12.01,  or  extensions and renewals covered by the preceding sentence.  "Subject
Interests"  may  be  owned  by  Assignor  by virtue of grants or reservations in
deeds,  Gas  leases, or other instruments, or by virtue of operating agreements,
pooling  or  unitization  agreements  or  orders, or other kinds of instruments,
agreements,  or  documents,  legal  or  equitable,  recorded or unrecorded.  The
Subject  Interests  are  subject  to  the  Permitted  Encumbrances.

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

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

     "Taxes" is defined in Section 3.02(b).
      -----

     "Term" is defined in Section 1.02.
      ----

     "Term  Royalty Agreement" means that certain Term Royalty Agreement between
      -----------------------
Assignor  and  the  Assignee  dated  as  of  May  17,  2005.

                                       10
<PAGE>
     "Term  Royalty  Conveyances"  means  collectively,  this  Conveyance,  the
      --------------------------
Kentucky  Conveyance  and  the  Pennsylvania  Conveyance.

     "Term  Royalty  Gas"  means, for any month, that percentage of Gas to which
      ------------------
the Assignee is entitled, calculated in accordance with Section 3.01.

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

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

     "Termination  Date"  is  defined  in  Section  1.02.
     ------------------

     "Third  Person"  means  a  Person other than Assignor or Assignee, or their
      -------------
respective  Affiliates.

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

     "Total  Subject  Gas"  means  the total of all Subject Gas from each of the
      -------------------
applicable  Term  Royalty  Conveyances.

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

     "Wellbore" means the wellbore of any Well from the surface of the ground to
      --------
the  total  depth  of  such  Well.

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

     "Working  Interest"  means with respect to any Well, the interest in and to
      -----------------
such  Well  that  is  burdened  with  the  obligation  to bear and pay costs and
expenses  of  maintenance,  development  and operations on or in connection with
such  Well.

                                       11
<PAGE>
                                   ARTICLE III
                         CALCULATION OF TERM ROYALTY GAS

     SECTION 3.01     CALCULATION.  Term  Royalty  Gas  shall  be  calculated in
accordance  with  the  following  formula:

          With respect to any Producing Well:

          NINETY  PERCENT  (90%)  X  (ASSIGNOR'S  NET  SHARE  OF  GAS  PRODUCED
          DURING THAT MONTH).

          With respect to any Completed Development Well:

          FIFTY  PERCENT  (50%)  X  (ASSIGNOR'S  NET  SHARE  OF  GAS  PRODUCED
          DURING THAT MONTH).

It  is  understood  and agreed that with respect to Completed Development Wells,
the  Term  Royalty  Interest  will  be  calculated  on the basis that Assignor's
Working  Interest in the Subject Development Lands is not burdened by Production
Burdens that exceed 12.5%.  In the event that Assignor's Working Interest in any
of the Completed Development Wells is subject to Production Burdens in excess of
12.5%,  such excess burdens will be the sole responsibility of Assignor and paid
out  of Assignor's fifty percent (50%) interest in the Subject Development Lands
retained  by  Seller  hereunder.

     SECTION  3.02     CHARGEABLE  COSTS.

          (a)     DEFINITION.  Subject  to  Section 5.04 hereof, for each month,
"Chargeable  Costs"  means  the  sum of (i) Taxes, (ii) the Post Production Cost
 -----------------
Charge  and  (iii)  any  Excess  Costs.  All  other  costs,  including,  without
limitation,  those  costs associated with or paid or incurred in connection with
the  drilling,  testing,  completing,  equipping  for  production, operating and
plugging and abandoning of the Wells shall be borne solely by Assignor and shall
not  be  included  as  Chargeable  Costs.

          (b)     TAXES.  "Taxes"  means  general  property,  ad  valorem,
                           -----
production,  severance,  sales,  gathering,  windfall  profit, excise, and other
taxes,  except  income  and  franchise  taxes,  assessed  or levied (i) on or in
connection  with  the  Subject  Interests,  the  Term  Royalty  Interest,  this
Conveyance,  production of Subject Gas, Assignor's Net Share of Gas, or the Term
Royalty Gas (or the proceeds from the sale thereof), or (ii) against Assignor as
owner  of  the  Subject  Interests  or  Assignee  as  owner  of the Term Royalty
Interest.

          (c)     POST  PRODUCTION  COST  CHARGE.  (i)  "Post  Production  Cost
                                                         ----------------------
Charge"  means  those  costs  incurred  by  Assignor  (including,  internal post
production  costs  and Third Person post production costs) to gather, transport,
compress,  process,  treat,  dehydrate and market the Subject Gas, including any
costs as may be required to make merchantable and to deliver such Gas to market;
provided, any internal post production costs of Assignor and its Affiliates that
are  part  of  the  Post  Production  Cost  Charge shall not exceed the weighted
average  post  production  costs  of

                                       12
<PAGE>
all  Third  Parties  in  the  area  where  the Subject Gas is being produced for
similar  services;  and  further  shall not exceed, on a weighted average basis,
such  internal  costs as are deducted by Assignor from its payments of royalties
to the owners of the royalty interests in the Subject Gas and provided, further,
with  respect  to  marketing  costs, only Non-Affiliate marketing costs shall be
included, and marketing costs of Assignor and its Affiliates with respect to any
Subject  Gas will be specifically excluded from the Post Production Cost Charge.
Any  costs,  fees or expenses that are properly charged or allocated to the Term
Royalty  Gas  pursuant  to  another  provision of this Conveyance (including, as
provided  for in the definition of Subject Gas) shall not be included as part of
the Post Production Cost Charge.  (ii) Notwithstanding the provisions of Section
3.02(c)(i)  above,  for  the  period  from  June  10,  2005 until June 10, 2006,
Assignor's  internal  post production costs relating to Assignor's facilities in
existence  as  of  June  10,  2005 shall not exceed the amounts being charged by
Assignor  as  of June 10, 2005, and for the period from June 10, 2006 until June
10,  2010  such  Post  Production  Cost  Charge  may  be  increased  annually by
multiplying  such  internal  post  production  costs  currently  in  use  by the
percentage  increase recommended by the All Urban Consumers (CPI-U) - U. S. City
Average  CPI,  or  a  comparable  index.

     SECTION 3.03    CALCULATION OF TERM ROYALTY PROCEEDS. Term Royalty Proceeds
shall  be  calculated  by  multiplying the volume of Term Royalty Gas (on an mcf
basis)  for  the  applicable  month by the Sales Price less the Chargeable Costs
associated  with  such  Term  Royalty  Gas  for  the  applicable  month.

                                   ARTICLE IV
                          MARKETING OF TERM ROYALTY GAS

     SECTION 4.01     RIGHTS AND DUTIES REGARDING MARKETING OF TERM ROYALTY GAS.
Assignor  shall market or shall cause to be marketed Assignor's Net Share of Gas
(including the Term Royalty Gas) in good faith in accordance with the Reasonably
Prudent  Operator Standard and Section 4.02(d).  Assignor shall use commercially
reasonable  efforts  in  connection with any sale of Assignor's Net Share of Gas
(including  the  Term Royalty Gas) to (a) obtain the best available market price
in  the  area for such Gas and (b) to obtain, as soon as reasonably practicable,
full  payment  for such Gas; provided, however that it shall not be considered a
breach  of  Assignor's marketing duty or standard of conduct (i) for Assignor to
market  such  Gas  to an Affiliate of Assignor, so long as Assignor receives the
applicable  Sales  Price therefor, which in any event shall not be less than the
volume  weighted  average price upon which Assignor pays royalties to the owners
of  the  royalty  interests  in  the  Subject  Gas,  or (ii) for Assignor or its
Affiliates  to  receive  the  Post  Production  Cost  Charge.

     SECTION 4.02     ASSIGNEE'S  AGENT  AND  REPRESENTATIVE.

          (a)     APPOINTMENT.  Assignee  appoints  Assignor  as  the Assignee's
agent  and  representative  to  market  and  deliver or cause to be marketed and
delivered all Term Royalty Gas and to collect and receive all payments therefrom
under  any  gas  purchase agreement or contract without deduction (except to the
extent Chargeable Costs are deducted for any month). The appointment of Assignor
as  the  Assignee's agent and representative for such purpose is also a material
item  of  consideration  to  the  Parties  in  connection with the execution and
delivery of this Conveyance. Assignee may not remove Assignor from office as the
Assignee's  agent  and

                                       13
<PAGE>
representative,  except  for  cause  upon  a  material breach by Assignor of its
duties  to  the  Assignee  under  this  Conveyance.

          (b)     DUTIES  AND  POWERS.  As  the  Assignee's  agent  and
representative,  Assignor  shall  receive  all payments for the sale of the Term
Royalty  Gas  and  account to Assignee, receive and make all communications with
the  purchaser  of  such  Gas,  and  otherwise act and speak for the Assignee in
connection  with  the  sale  of  the  Term  Royalty Gas.  Third Persons may rely
conclusively  on  the  authority of Assignor to market the Term Royalty Gas, and
with  respect  to Third Persons, the Assignee shall be conclusively bound by the
acts  of Assignor in connection with the sale of Term Royalty Gas.  It shall not
be  necessary  for  Assignee  to  join Assignor in the execution of any division
order,  transfer  order, or other instrument, agreement, or document relating to
the  sale  of  the  Term  Royalty  Gas.  Third  Persons may pay all Term Royalty
Proceeds for the sale of such Gas directly to Assignor, without the necessity of
any joinder by or consent of Assignee or any inquiry into the use or disposition
of  such  proceeds  by  Assignor.

          (c)     PROHIBITED  ACTS.  Assignor  may  not  act  or  speak  for the
Assignee  on  any  matter,  except  as  otherwise  specifically provided in this
Conveyance,  the  Term  Royalty  Agreement  or  the  Development  Agreement.

          (d)     STANDARD  OF CONDUCT.  In exercising its powers and performing
its  duties  as  the  Assignee's agent and representative, Assignor shall act in
good  faith  and  in  accordance  with the Reasonably Prudent Operator Standard,
consistent with Assignor's prior practices.  It shall not be a violation of such
standard  of conduct for Assignor (i) to sell Assignor's Net Share of Gas or the
Term  Royalty  Gas  to  an  Affiliate  pursuant to any gas purchase agreement or
contract, or (ii) to delegate some or all of Assignor's duties as the Assignee's
agent  and  representative to its Affiliates so long as in either of such events
such  Affiliates  perform  in  good  faith and in accordance with the Reasonably
Prudent  Operator  Standard,  with Assignor remaining liable to the Assignee for
the  performance  of  such  Affiliates.

          (e)     TERMINATION  OF  AUTHORITY.  Assignor  may  not  resign as the
Assignee's  agent  and  representative  without the prior written consent of the
Assignee,  except  that  Assignor  may  resign  as  the  Assignee's  agent  and
representative  without  such  consent  with  respect  to  any Subject Interests
Transferred  by  Assignor  in  accordance with the terms of this Conveyance.  If
such  Transfer is in connection with Subject Interests which are burdened by the
Term Royalty Interest, Assignor must cause the purchaser to assume the duties of
the  Assignee's  agent and representative with respect to such Subject Interests
acquired by that purchaser and to be bound by the provisions of this Article IV.

     SECTION 4.03     SALE AND DELIVERY OF SUBJECT GAS.  Assignor (while serving
as  the  Assignee's  agent  and  representative)  shall sell or cause to be sold
Assignor's  Net  Share  of Gas (including Term Royalty Gas) and shall deliver or
cause  to  be delivered Assignor's Net Share of Gas (including Term Royalty Gas)
to  the  purchasers thereof into the pipelines to which the Wells producing such
Gas  are  connected.

     SECTION  4.04     PROCESSING.  Assignor may process Assignor's Net Share of
Gas  (including  Term Royalty Gas) to remove liquid and liquefiable hydrocarbons
and may commit any of the Subject Interests (including the Term Royalty Interest
attributable  thereto)  to  an

                                       14
<PAGE>
agreement  for  processing  minerals  (pursuant to which, for example, the plant
owner  or  operator  receives  a  portion  of  the Subject Gas or plant products
therefrom  or  proceeds of the sale thereof as a fee for processing), so long as
Assignor  enters  into  such  processing  arrangements  in  good  faith  and  in
accordance  with  the  Reasonably  Prudent Operator Standard and consistent with
Assignor's  prior practice.  Assignee shall be bound by such arrangements, shall
permit  Assignor's  Net  Share  of  Gas  (including  the Term Royalty Gas) to be
processed  by  Assignor or its contractor, but shall have no right to any liquid
or  liquefiable hydrocarbons obtained by such processing or to the proceeds from
the sale thereof, except, to the extent Assignor receives any such proceeds from
the  sale  of  any  liquid  or  liquefiable  hydrocarbons, Assignor shall pay to
Assignee its proportionate share of such proceeds.  Assignee shall not, however,
be  personally  liable  for  any  costs or risks associated with such processing
operations.  Assignee  shall  not suffer, either directly or indirectly, any Btu
reduction  or  volume  reductions  associated with any such internal processing;
provided however, that any Btu reduction or volume reduction resulting from such
processing  by  a Third Party, if any, shall be passed through on a proportional
basis  to  Assignee.

                                    ARTICLE V
                                     PAYMENT

     SECTION  5.01     OBLIGATION  TO  PAY.

          (a)     MONTHLY  DISTRIBUTION  AMOUNT.  On  or  before the last day of
each month, Assignor shall pay by wire transfer to the Assignee the Term Royalty
Proceeds for which payment has been received by Assignor by the 15th day of such
month,  and  for  which Assignee has not been previously paid, such amount to be
increased  by  the  amount  of any damages payable to the Assignee under Section
1.04(b)  above  (subject  to  the right of set off in Section 1.04(c) above) and
decreased  by  any  Reserved  Amounts  as provided for in Section 5.04 below and
further  decreased  by  any  quarterly  incentive  distribution  due to Assignor
pursuant  to  Section  5.05  below  ("Monthly  Distribution  Amount").
                                      -----------------------------

          (b)     FINAL  MONTHLY DISTRIBUTION AMOUNT.  On or before the last day
of  the  final  month  in  which  Assignee  is due a Monthly Distribution Amount
hereunder, Assignor shall pay to the Assignee, in addition to such final Monthly
Distribution Amount, all unexpended Reserved Amounts, except for such amounts as
may  be  required  to  pay any outstanding but unpaid liabilities related to the
Term Royalty Interest as provided for under the terms of this Agreement.

          (c)     NO  SEGREGATED ACCOUNT.  All amounts received by Assignor from
the sale of Assignor's Net Share of Gas and the Term Royalty Gas, as applicable,
for  any month shall be held by Assignor in one of its general bank accounts and
Assignor  will  not be required to maintain a segregated account for such funds.

          (d)     DISPUTED  PROCEEDS.  If Assignor receives any amounts of money
from  the  sale  of  Term  Royalty Gas that is subject to controversy or, in the
reasonable opinion of counsel for Assignor, possible controversy, Assignor shall
promptly  deposit  the  money  with  a Third Person escrow agent in a segregated
interest-bearing account.  Such amount shall not be treated as a portion of Term
Royalty  Proceeds  so  long  as  it remains with such escrow agent, but shall be

                                       15
<PAGE>
treated  as  a  portion  of  the  Term  Royalty Proceeds, along with the accrued
interest,  when  received  by  Assignor  from such escrow agent and paid over by
Assignor  to  Assignee.

     SECTION 5.02     INTEREST  ON  PAST  DUE  PAYMENTS.

          (a)     OVERPAYMENTS.  If  Assignor  ever  pays Assignee more than the
amount  of  money  then  due  and payable to the Assignee under this Conveyance,
Assignee  shall  not be obligated to return the overpayment, but Assignor may at
any  time  thereafter  deduct  from Term Royalty Proceeds and retain for its own
account  an amount equal to the overpayment, plus interest at the Prime Interest
Rate  on  such  amount,  commencing on the sixth (6th) day after the date of the
overpayment  and  ending  on  the date such amount is recovered by Assignor from
Term  Royalty  Proceeds;  provided  however,  that  in  the  event  of  any such
overpayment, Assignor shall promptly provide Assignee with written notice of the
amount of the overpayment and Assignee may, at its election, remit the amount of
the  overpayment  to  Assignor.

          (b)     REFUNDS.  If  Assignor  is  ever  legally obligated to pay any
Third Person, including any gas purchaser or Governmental Authority, any refund,
interest,  penalty,  [Need  to  discuss]  or  other amount of money, because any
payment  of  Term  Royalty  Proceeds  received  by  Assignor  for the account of
Assignee  exceeded the amount due or lawful under any applicable contract, Legal
Requirement,  or  other  obligation,  Assignor  may  thereafter deduct from Term
Royalty Proceeds and retain for its own account an amount equal to such payment,
plus  interest  at  the Prime Interest Rate on such amount, from the date of the
sixth  (6th)  day  after  such  payment  to the date such amount is recovered by
Assignor  from Term Royalty Proceeds; provided however, that in the event of any
such refund, Assignor shall promptly provide Assignee with written notice of the
amount  of the refund and Assignee may, at its election, remit the amount of the
refund  to  Assignor.

     SECTION 5.04     RESERVED AMOUNTS.  At any time and from time to time under
this  Conveyance,  Assignor  may  set  aside  from  Term Royalty Proceeds ninety
percent  (90%)  with  respect to Subject Producing Lands and fifty percent (50%)
with  respect  to  Subject  Development  Lands of the amounts determined in good
faith  and  in  accordance  with  the

                                       16
<PAGE>
Reasonably  Prudent  Operator  Standard  necessary  to  pay,  when due, known or
anticipated  costs  or  liabilities  which may be incurred in future months with
respect to Taxes assessed or levied with respect to a time period in excess of a
month (the "Reserved Amounts").  As Reserved Amounts are expended by Assignor to
            ----------------
cover  applicable  Taxes  in  a month, Chargeable Costs shall be reduced in such
month by an amount equal to the Reserved Amounts so expended.  In the event that
Assignor overestimates the cost of any Taxes for which it has set aside Reserved
Amounts,  the  excess amount shall be applied against any other Chargeable Costs
(which  shall  be  reduced by an amount equal to such excess Reserved Amounts so
expended),  or paid as Term Royalty Proceeds in the month following the month in
which it is determined that Assignor has set aside excess Reserved Amounts.

     SECTION  5.05     INCENTIVE  PAYMENTS  TO  ASSIGNOR.  In  the  event  the
quarterly  aggregate  of  Monthly  Distribution  Amounts  exceeds  the specified
thresholds  for  each  quarter  as  set forth in the Term Royalty Agreement (the
"Distribution  Targets"),  Assignor  will  be  entitled  to  receive a quarterly
incentive  distribution  equal to thirty percent (30%) of the amount, if any, by
which  the  quarterly  aggregate of the Monthly Distribution Amounts exceeds the
Distribution  Target  for  such quarter.  Any such incentive distribution may be
offset  against  the Monthly Distribution Amount due Assignee for the last month
for  the  quarter  in  question.

                                   ARTICLE VI
                               RECORDS AND REPORTS

     SECTION 6.01     BOOKS,  RECORDS,  AND  ACCOUNTS.

          (a)     OBLIGATION  TO  MAINTAIN.  Assignor  shall  maintain  true and
correct  books,  records,  and  accounts  of  (i)  all  transactions required or
permitted  by  this  Conveyance  and (ii) the financial information necessary to
effect  such  transactions,  including  the  financial  information  needed  to
calculate  each  Monthly  Distribution  Amount.

          (b)     RIGHT  OF  INSPECTION.  Assignee or its representative, at the
Assignee's  expense,  may  inspect and copy such books, records, and accounts in
the offices of Assignor during normal business hours and upon reasonable notice.

     SECTION  6.02     STATEMENTS.

          (a)     MONTHLY  STATEMENTS.  Together  with  the Monthly Distribution
Amount,  Assignor  shall deliver to Assignee a statement showing the computation
of  Term  Royalty  Gas  and  Term  Royalty  Proceeds.

          (b)     CONTENTS  OF  STATEMENTS.  Each Monthly Statement delivered by
Assignor  to Assignee pursuant to this Section 6.02 shall state on a Well basis,
(i)  the Well identification number, (ii) the product type, (iii) the applicable
production  month, (iv) the total volume on an Mcf basis distributed to the Well
and  net  to the Term Royalty Interest, (v) the applicable Sales Price on an Mcf
basis,  (vi)  the  applicable  Btu  factor  utilized at the pay meter or average
thereof if there are multiple pay meters, (vii) the gross revenue distributed to
the  Well and the net Term Royalty Proceeds, (viii) the net severance taxes, and
(ix)  the  net  Post Production Cost Charges and Excess Costs to the extent such
deductions  are  separately  identified  in  the  Assignor's  Price  Waterhouse
Accounting  System  ("EGOS")  or  comparable  system which has been installed by

                                       17
<PAGE>
Assignor  to  replace  the  EGOS accounting system, (x) the Monthly Distribution
Amount.  Such statement shall further set forth the detail on an aggregate basis
as  to the manner in which any incentive distribution referenced in Section 5.05
is  calculated.  Notwithstanding  the  foregoing,  Assignee  and  Assignor  may
mutually  agree upon subsequent modifications to the Monthly Statement, it being
the  intent  of  the  Parties  that  Assignor  provide  Assignee with reasonably
adequate  information to calculate the Monthly Distribution amount to the extent
available  electronically  on  Assignor's  EGOS  accounting system or comparable
system  which  has  been  installed  by  Assignor to replace the EGOS accounting
system.

     SECTION  6.03     ASSIGNEE'S EXCEPTIONS TO MONTHLY STATEMENTS.  All Monthly
Statements  rendered  to  Assignee  by  Assignor  during any calendar year shall
conclusively  be  presumed  to be true and correct after twenty-four (24) months
following  the  end  of  any such calendar year, unless within the said 24-month
period  Assignee takes written exception thereto and makes claim on Assignor for
an  adjustment.  No  adjustment favorable to Assignor shall be made unless it is
made  within  the  same  24-month  period.  Any  such  Notice  must set forth in
reasonable  detail  the specific charges complained of and to which exception is
taken or the specific credits which should have been made and allowed.  Assignor
and  Assignee  shall meet to negotiate and resolve any exceptions within fifteen
(15)  days  of  Assignor's  receipt  of Assignee's Notice thereof. Any items not
agreed  to  at  the  end of the 15-day period may, at either party's request, be
resolved by arbitration, with a nationally recognized accounting firm which does
not  perform work for either Assignee or Assignor acting as arbitrator to decide
all  points  of  disagreement  with  respect to such Monthly Statement(s).   The
decision of such firm on all such points shall be binding upon the parties.  The
costs  and  expenses  of  such firm shall be borne by the Party against whom the
decision is rendered, or in the event the decision is rendered favorably in part
to  each  Party,  on  a  proportional  basis.

     SECTION  6.04     OTHER  INFORMATION.

          (a)     DISCLOSURE.  At  Assignee's  request,  subject  to  applicable
restrictions  on  disclosure  and  transfer  of information, Assignor shall give
Assignee  and  its  designated  representatives  reasonable access in Assignor's
office during normal business hours to all geological, Well, and production data
in  Assignor's  possession  or  Assignor's  Affiliates'  possession, relating to
operations  on  the  Subject  Lands.

          (b)     DISCLAIMER  OF  WARRANTIES  AND  LIABILITY.  Assignor makes no
representations  or  warranties  about  the accuracy or completeness of any such
data,  reports, or studies and shall have no liability to Assignee, the Assignee
or any other Person resulting from such data, studies, or reports.

          (c)     NO  ATTRIBUTION.  Assignee  shall not attribute to Assignor or
such  consulting engineers any reports or studies or the contents thereof in any
securities filings or reports to owners or holders of interests in the Assignee.

          (d)     CONFIDENTIALITY.  All  information  furnished to the Assignee,
its  designated  representatives  and investors pursuant to this Section 6.04 is
confidential and for the sole benefit of such parties and shall not be disclosed
by  Assignee,  its  designated  representatives  or  its  investors to any other
Person,  except  to  the  extent  that  such  information (i) is required in any

                                       18
<PAGE>
report, statement or testimony submitted to any Governmental Authority having or
claiming to have jurisdiction over Assignee, (ii) is required in response to any
summons  or  subpoena or in connection with any litigation, (iii) is believed to
be  required  in  order  to  comply with any applicable Legal Requirement to the
Assignee, (iv) was publicly available or otherwise known to the recipient at the
time  of  disclosure  or  (v) subsequently becomes publicly available other than
through any act or omission of the recipient; provided, however, with respect to
the  disclosures  with respect to items (i), (ii) and (iii) above, Assignee will
notify  Assignor  prior  to  any such disclosure in order to provide Assignor an
opportunity  to  seek  to  limit  any  such  required  disclosure.

                                   ARTICLE VII
                          NO LIABILITY OF THE ASSIGNEE

     SECTION  7.01     ASSIGNEE NOT LIABLE.     Assignee shall not be personally
liable  or  responsible  under this Conveyance for any cost, risk, liability, or
obligation  associated in any way with the ownership or operation of the Subject
Lands, the Subject Interests, the Wells, or the Subject Gas, or the plugging and
abandoning of any Wells, and Assignor shall hold harmless and indemnify Assignee
from  and  against  any  and  all  such  cost,  risk,  liability  or  obligation
(including, without limitation, court costs and reasonable attorneys' fees) that
are attributable thereto, including, but not limited to, any liability resulting
from  the  condition  thereof  under  any  federal,  state,  or  local  statute,
regulation,  rule,  ordinance or order relating to the environment or health and
safety).  The  foregoing  sentence  does  not  restrict the right of Assignor to
deduct  Chargeable  Costs  in calculating the volumes of the Term Royalty Gas or
Term  Royalty  Proceeds.

                                  ARTICLE VIII
                                   OPERATIONS

     SECTION  8.01     STANDARDS  OF  CONDUCT.  Except as otherwise specifically
provided in this Conveyance, Assignor shall (a) operate and maintain the Subject
Interests  and  Wells  and  (b)  make  elections  under  each  applicable lease,
operating agreement, unit agreement, contract for development, and other similar
instrument  or agreement (including elections concerning abandonment of any Well
or  release  of  any  Subject Interest) in good faith and in accordance with the
Reasonably  Prudent  Operator  Standard  and  consistent  with  Assignor's prior
practice.  Such standard shall be interpreted for purposes of this Conveyance to
impose  a duty upon Assignor to continuously produce all Wells which are capable
of  producing  in  paying  quantities, except (a) where a temporary cessation of
production  is  necessary  in  connection with routine maintenance or for safety
reasons,  or (b) in the event of the occurrence of an event of Force Majeure, in
which  instance  the  provisions  of  Article  XIII  below  shall  control.

     SECTION  8.02     ABANDONMENT  OF  PROPERTIES.  Nothing in this Conveyance,
other  than the Reasonably Prudent Operator Standard, shall obligate Assignor to
continue  to  operate  any Well or to operate or maintain in force or attempt to
maintain in force any Subject Interest when such Well or Subject Interest ceases
to produce, or Assignor determines, in good faith and in accordance with Section
8.01  above,  that such Well or Subject Interest is not capable of producing Gas
in  paying  quantities.  The expiration of a Subject Interest in accordance with
the  terms  and  conditions  applicable  thereto shall not be considered to be a
voluntary  surrender  or

                                       19
<PAGE>
abandonment  thereof.  Any Well abandoned by Assignor hereunder shall be plugged
and  abandoned,  at  Assignor's  sole  risk  and expense, in accordance with all
applicable  federal,  state  and/or local laws, statutes, rules and regulations.

     SECTION  8.03     INSURANCE.  Assignor  may,  but  is  not required by this
Conveyance  to, carry insurance on any Subject Interest or Well, or covering any
risk  with  respect  thereto.  Assignor shall never be liable to the Assignee on
account  of  any  injury  or  loss to the Subject Interests or any Well, whether
insurable or uninsurable, not covered by insurance.  If Assignor elects to carry
insurance,  the premiums shall not be included in Chargeable Costs, and Assignor
shall  retain  all  proceeds  of  such  insurance.

                                   ARTICLE IX
                             POOLING AND UNITIZATION

     SECTION  9.01     POOLING  OF SUBJECT INTERESTS.  Certain Subject Interests
have  been  heretofore  pooled  and  unitized  for  the production of Gas.  Such
Subject  Interests  are  and shall be subject to the terms and provisions of the
applicable  pooling and unitization agreements, and the Term Royalty Interest in
each  pooled or unitized Subject Interest shall apply to and affect only the Gas
produced  from  such  units  that  accrues to such Subject Interest under and by
virtue  of  the  applicable  pooling  and  unitization  agreements.

     SECTION  9.02     POOLING  AND  UNITIZATION.

          (a)     RIGHT TO POOL.  Assignor has the exclusive right and power (as
between  Assignor and the Assignee), exercisable only during the period provided
in  Section  9.03, to pool or unitize any Subject Interest and to alter, change,
amend,  or  terminate  any  pooling  or  unitization  agreements  heretofore  or
hereafter  entered  into,  as to all or any part of the Subject Lands, as to any
one  or  more  of the formations or horizons, and as to any Gas, upon such terms
and  provisions  as  Assignor shall in its sole discretion deem appropriate.  No
pooling  or  unitizing  of  the Subject Interests pursuant hereto shall have the
effect of reducing Assignor's Net Revenue Interest in any Producing Well to less
than  the Net Revenue Interest for that Producing Well reflected in Exhibit A-1,
and,  in  the  event  Assignor's  Net  Revenue Interest in any Producing Well is
reduced  by  virtue  of any such pooling or unitizing to less than the indicated
interests,  such reduction shall be deemed a breach of the warranty provided for
in  Section 1.04(a) and Assignee shall be entitled to the remedy provided for in
Section  1.04(b).

          (b)     EFFECT OF POOLING.  Subject to the limitations on reduction of
Net  Revenue  Interest  set  forth  in  Sections  9.01 and 9.02(a) above, if and
whenever  through the exercise of such right and power, or pursuant to any Legal
Requirement  now  existing  or  hereafter  enacted  or  promulgated, any Subject
Interest is pooled or unitized in any manner, the Term Royalty Interest, insofar
as  it  affects  such  Subject  Interest, shall also be pooled and unitized.  It
shall not be necessary for the Assignee to agree to, consent to, ratify, confirm
or  adopt  any  exercise  of  pooling  or unitization of any Subject Interest by
Assignor.

     SECTION  9.03     APPLICABLE  PERIOD.  Assignor's  powers  and  rights  in
Section 9.02 shall be exercisable only during the period of the life of the last
survivor  of  the  descendants of the signers of the Declaration of Independence
living  on  the  date  of  execution  hereof,  plus  twenty-

                                       20
<PAGE>
one  (21)  years  after  the  death  of  such last survivor, or the Term of this
Conveyance,  whichever  period  shall  first  expire.

                                    ARTICLE X
                              GOVERNMENT REGULATION

     SECTION  10.01     LEGAL  REQUIREMENTS.  All  obligations of Assignor under
this  Conveyance are, and shall be, subject to all applicable Legal Requirements
and  the  instruments, documents, and agreements creating the Subject Interests.

     SECTION 10.02     FILINGS.  Assignor shall use its reasonable discretion in
making  filings  for  itself and on behalf of the Assignee with any Governmental
Authority  having  jurisdiction  with  respect  to matters affecting the Subject
Interests,  the  Subject  Lands,  the  Wells  or  the  Subject  Gas.

                                   ARTICLE XI
                    ASSIGNMENT AND SALE OF SUBJECT INTERESTS

     SECTION 11.01     ASSIGNMENT BY ASSIGNOR SUBJECT TO TERM ROYALTY INTEREST.

          (a)     RIGHT  TO  SELL.  Assignor  may  not  sell  any Subject Lands,
Subject Interests and/or Wells prior to the time that Assignor has fulfilled its
drilling  obligations  under  Section  2.01  of  the  Development  Agreement.
Thereafter,  subject  to  the limitations set forth in this Article XI, Assignor
may  from  time  to  time  Transfer,  mortgage, or pledge the Wells, the Subject
Interests,  or  any  part  thereof or undivided interest therein, subject to the
Term  Royalty  Interest  and this Conveyance. Assignor shall cause the assignee,
purchaser,  transferee, or grantee, of any such transaction to take the affected
Subject  Interests subject to the Term Royalty Interest and this Conveyance and,
from  and  after  the actual date of any such Transfer, to (i) assume Assignor's
obligations under this Conveyance with respect to such Term Royalty Interest, or
(ii)  in  the  case of a mortgage or pledge, to make any such mortgage or pledge
expressly  subject  to  the  Term  Royalty  Interest.

          (b)     EFFECT  OF  SALE.  In  the event any such assignee, purchaser,
transferee, or grantee, has assumed Assignor's obligations under this Conveyance
with  respect  to  such Term Royalty Interest, from and after the actual date of
any  such  Transfer  by Assignor, Assignor shall be relieved of all obligations,
requirements, and responsibilities arising under this Conveyance with respect to
the  Subject  Interests Transferred, except for those that accrued prior to such
date.

          (c)     ALLOCATION  OF  CONSIDERATION.  Assignee  is  not  entitled to
receive  any share of the sales proceeds received by Assignor in any transaction
permitted  by  this  Section  11.01.

          (d)     SEPARATE  INTEREST.  Effective  on  the  effective date of any
Transfer of any Subject Interest subject to this Section 11.01, Term Royalty Gas
and  Term  Royalty Proceeds shall thereafter be computed separately with respect
to  such  Subject  Interests, and the assignee, buyer, transferee, or grantee of
such  Subject  Interests  shall  thereafter  serve  as  the Assignee's agent and
representative under Article IV with respect to such interests and shall pay all
corresponding  Term  Royalty  Proceeds  directly  to  Assignee.

                                       21
<PAGE>
     SECTION  11.02     SALE  AND  RELEASE  OF  PROPERTIES.

          (a)     TRANSFER.  With  Assignee's  express  prior  written  consent,
Assignor  may  from  time to time, Transfer the Wells, the Subject Interests, or
any  part  thereof  or  undivided  interest therein, along with the Term Royalty
Interest.  In  such  event,  this  Conveyance  shall  no  longer  apply  to such
interests.

          (B)     MORTGAGE  OR  PLEDGE.  Notwithstanding  the  restrictions  on
Transfer  otherwise  imposed  herein,  Assignor  may  mortgage  or  pledge  any
Development  Well  that  is not a Completed Development Well and its interest in
any  Well  to a Third Person without Assignee's consent so long as such mortgage
or  pledge  does  not  affect  and is made expressly subject to the Term Royalty
Conveyance.

     SECTION  11.03     RELEASE  OF  OTHER  PROPERTIES

          (a)     PRIOR  REVERSIONARY  INTERESTS.  In  the event that any Person
notifies  Assignor  that pursuant to a Prior Reversionary Interest that Assignor
is  required to convey any of the Subject Interests to such Person, Assignor may
provide  such  conveyance  with  respect  to  such  Subject  Interest.

          (b)     PAYMENTS.  In  the  event  that Assignor receives compensation
pursuant  to  any Prior Reversionary Interest in connection with any conveyance,
Assignor  shall remit to the Assignee an amount equal to the product of (i) such
amount  actually received by Assignor with respect to such reconveyance and (ii)
a fraction the numerator of which is (aa) the Fair Value of the Royalty Interest
released  and  the  denominator  of  which is (bb) the Fair Value of the Subject
Interest  that  is  being  released.  Assignor  shall  make  such payment to the
Assignee  on  the last day of the month in which Assignor receives such payment.

          (c)     RELEASE  FOR PRIOR REVERSIONARY INTERESTS.  In connection with
any  conveyance  provided  for  in  Section  11.03(a)  above, Assignee shall, on
request,  execute,  acknowledge, and deliver to Assignor a recordable instrument
(reasonably  acceptable to Assignor) that releases the Term Royalty Interest and
this  Conveyance  with  respect  to  any  such  Well  or  Subject  Interests.

     SECTION  11.04  EFFECT  OF  PRIOR  REVERSIONARY  INTERESTS.  From and after
     the  actual  date  of  any  conveyance  provided  for  in Section 11.03(a),
     Assignor and any assignee, purchaser, transferee or grantee of such Subject
     Interest  shall  be  relieved  of  all  obligations,  requirements,  and
     responsibilities arising under the Term Royalty Interest or this Conveyance
     with  respect  to  the Subject Interests Transferred, except for those that
     accrued prior to such date.

     SECTION  11.05  FARMOUT.  Except  with  Assignee's  prior  written consent,
     which  shall  not  be  unreasonably  withheld,  Assignor may not enter into
     Farmout Agreements with Third Persons with respect to the Subject Interests
     in  the  Subject  Development  Lands  prior  to  Assignor's  satisfying the
     drilling  obligations  under Section 2.01 of the Development Agreement, and
     then  only  if  such Farmout Agreement does not have the effect of reducing
     Assignor's  Net Revenue Interest in any Producing Well to less than the Net
     Revenue  Interest  for that Producing Well reflected in Exhibit A-1. In the
     event

                                       22
<PAGE>
     Assignor's  Net  Revenue  Interest  in  any  Producing  Well  is reduced by
     virtue  of any such Farmout Agreement to less than the indicated interests,
     such  reduction  shall  be  deemed a breach of the warranty provided for in
     Section  1.04(a)  and Assignee shall be entitled to the remedy provided for
     in Section 1.04(b).

     SECTION  11.06  TRANSFER  OF  SUBJECT  DEVELOPMENT LANDS. Assignor will not
     Transfer  any  Producing  Well  or  Subject  Producing  Lands, or Completed
     Development  Well  or any of the Subject Interests comprising a part of the
     Subject  Development  Lands,  pursuant to Sections 11.01 and 11.02 prior to
     Assignor  satisfying  the  drilling  obligations  under Section 2.01 of the
     Development Agreement.

     SECTION 11.07 CHANGE IN OWNERSHIP.

          (b)     OBLIGATION  TO  GIVE NOTICE.  No change of ownership or of the
right  to  receive payment of the Term Royalty Interest, or of any part thereof,
however  accomplished,  shall bind Assignor until notice thereof is furnished to
Assignor  by the Person claiming the benefit thereof, and then only with respect
to  payments  made  after  such  Notice  is  furnished.

          (c)     NOTICE  OF  SALE.  Notice  of  Transfer  shall  consist  of  a
certified copy of the recorded instrument accomplishing the same.

          (d)     NOTICE  OF  OTHER  CHANGES  OF OWNERSHIP.  Notice of change of
ownership  or  of  the right to receive payment accomplished in any other manner
(e.g.,  by  dissolution  of  the  Assignee) shall consist of certified copies of
recorded  documents  and  complete proceedings legally binding and conclusive of
the  rights  of  all  Persons.

          (e)     EFFECT  OF  LACK  OF NOTICE.  Until such Notice accompanied by
such  documentation  is  furnished  to  Assignor  in  the manner provided above,
Assignor  may,  at Assignor's election, either (i) continue to pay or tender all
sums  payable  on  the Term Royalty Interest in the same manner provided in this
Conveyance,  precisely as if no such change in interest or ownership or right to
receive  payment  had  occurred or (ii) suspend payment of Term Royalty Proceeds
without  interest  until  such  documentation  is  furnished.

          (f)     EFFECT OF NONCONFORMING NOTICES.  The kinds of Notice provided
by  this Section 11.0 7(d) shall be exclusive, and no other kind, whether actual
or  constructive,  shall  bind  Assignor.

     SECTION  11.08  PAYEES.  Assignor  shall  never  be  obligated  to  pay the
     Monthly Distribution Amount to more than five Persons, and then only in the
     percentage  proportions designated by Buyer as of the date hereof, and only
     on  an  aggregate  basis.  If  more  than five Persons are ever entitled to
     receive  payment  of  any  part  of the Term Royalty Proceeds, Assignor may
     suspend  payments  of all Term Royalty Proceeds until the concurrent owners
     or  claimants  of the Term Royalty Interest or the right to receive payment
     of  Term  Royalty  Proceeds appoint no more than five Persons in writing to
     receive all payments of Term Royalty Proceeds on their behalf. Assignor may
     thereafter conclusively rely upon the authority of those Persons to receive
     payments  of  Term  Royalty  Proceeds and shall be under no further duty to
     inquire into the authority or performance of such Persons.

                                       23
<PAGE>
     SECTION  11.09  RIGHTS  OF  MORTGAGEE.  If  Assignee executes a mortgage or
     deed  of  trust  covering  all  or  part  of the Term Royalty Interest, the
     mortgagees  or  trustees  therein  named  or  the holders of any obligation
     secured thereby shall be entitled, to the extent that such mortgage or deed
     of  trust  so  provides,  to  exercise  the  rights,  remedies, powers, and
     privileges  conferred  upon  Assignee  by  this  Conveyance  and to give or
     withhold  all  consents required to be obtained from Assignee. This Section
     11.09  shall  not  be  deemed  or  construed  to  impose  upon Assignor any
     obligation  or  liability undertaken by the Assignee under such mortgage or
     deed of trust or under the obligation secured thereby.

                                   ARTICLE XII
                                    AMI AREAS

     SECTION  12.01     ADDITIONAL  LEASES.  In the event that Assignor acquires
any  additional  lease  ("Additional Lease") other than the Subject Interests in
                          ----------------
the  AMI  Areas  prior  to  Assignor's  satisfaction  of  Assignor's  drilling
requirements in Section 2.01 of the Development Agreement, Assignor and Assignee
shall  execute,  acknowledge,  and  deliver  an  instrument  that  amends  this
Conveyance  so  that  such  Additional Lease will be subject to the Term Royalty
Interest  and  be  part  of  the  Subject Interests and Subject Lands hereunder.

     SECTION  12.02     NO DRAINAGE.  At no time during the Term, shall Assignor
or  any  of  its  Affiliates drill, or permit any other person to drill, any Gas
well within one thousand two hundred fifty feet (1,250') of any Wells where such
Gas  well  would  produce oil or gas from the same formations or horizons as any
Well  situated  within  said  distance.

                                  ARTICLE XIII
                                  FORCE MAJEURE

     SECTION  13.01     NONPERFORMANCE.  (a)  Except  as  provided  in  Section
13.01(b)  below,  Assignor  shall not be responsible to Assignee for any loss or
damage  to Assignee resulting from any delay in performing or failure to perform
any  obligation under this Conveyance, (other than Assignor's obligation to make
payments  of  Term  Royalty Proceeds to Assignee), to the extent such failure or
delay  is  caused  by  Force  Majeure.

                              (b)  Notwithstanding  the  provisions  of  Section
13.01(a)  above,  during  the  period from and after January 1, 2023 through the
remainder  of  the Term, should Assignor be prevented from complying with any of
its  obligations,  express  or  implied,  under the terms of this Conveyance, by
reason of Force Majeure or any other reason, then while so prevented, Assignor's
obligation  to  comply  therewith  shall  be suspended and Assignor shall not be
liable  for damages for failure to so comply; provided, however, this Conveyance
shall  be  extended,  only  with  respect  to the Well(s) affected by such Force
Majeure,  while  and  so  long  as  Assignor is prevented by any such cause from
complying  with  such  obligations,  and the time while Assignor is so prevented
shall  be  added  to the Term, only with respect to the Well(s) affected by such
Force  Majeure.

     SECTION 13.02 FORCE MAJEURE. "Force Majeure" means any of the following, to
                                   -------------
the  extent  they are not caused solely by the breach by Assignor of its duty to
perform  certain

                                       24
<PAGE>
obligations  under  this  Conveyance  in  accordance with the Reasonably Prudent
Operator Standard:

          (a)     act  of  God,  fire,  lightning, landslide, earthquake, storm,
hurricane,  hurricane  warning,  flood,  high  water,  washout,  tidal  wave, or
explosion;

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

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

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

          (e)     interruption  and/or  curtailment  of  transportation  and/or
gathering;

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

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

     SECTION  13.03     FORCE  MAJEURE  NOTICE.  Assignor  will  give Assignee a
Notice  of  each  Force  Majeure  as  soon  as  reasonably practicable after the
occurrence  of  the  Force  Majeure.

     SECTION  13.04 REMEDY. Assignor will use commercially reasonable efforts to
remedy  each  Force Majeure and resume full performance under this Conveyance as
soon as reasonably practicable, except that the settlement of strikes, lockouts,
or  other  labor  disputes  shall be entirely within the discretion of Assignor.

                                   ARTICLE XIV
                                     NOTICE

     SECTION  14.01     DEFINITION.  "Notice" means any notice, advice, invoice,
                                      ------
demand,  or  other  communication  required  or  permitted  by  this Conveyance.

     SECTION  14.02     WRITTEN  NOTICE.  Except  as  otherwise provided by this
Conveyance,  each  Notice  shall  be  in  writing.

     SECTION  14.03     METHODS  OF  GIVING  NOTICE.  Notice may be given by any
reasonable  means,  including  telecopier, hand delivery, overnight courier, and
United  States  mail.

                                       25
<PAGE>
     SECTION  14.04     CHARGES.  All Notices shall be properly addressed to the
recipient,  with  all  postage  and other charges being paid by the Party giving
Notice.

     SECTION  14.05     EFFECTIVE DATE.  Notice shall be effective when actually
received  by  the  Party  being  notified.

     SECTION  14.06     ADDRESSES.  The addresses of the Parties for purposes of
Notice are the addresses in the Introduction to this Conveyance.

     SECTION  14.07     CHANGE  OF ADDRESS.  Either Party may change its address
to another address within the continental United States by giving ten (10) days'
Notice  to  the  other  Party.

                                   ARTICLE XV
                                OTHER PROVISIONS

     SECTION  15.01     SUCCESSORS  AND  ASSIGNS.  Subject to the limitation and
restrictions  on the assignment or delegation by the Parties of their rights and
interests under this Conveyance, this Conveyance binds and inures to the benefit
of  Assignor,  Assignee  and  their  respective  successors,  assigns, and legal
representatives.

     SECTION  15.02     GOVERNING  LAW.  Insofar  as  permitted  by  otherwise
applicable  Legal  Requirements,  this  Conveyance  shall be construed under and
governed  by the laws of the State of West Virginia (excluding choice of law and
conflict  of law rules); provided, however, that, with respect to any portion of
the Subject Interests located outside of the State of West Virginia, the laws of
the  place  in  which  such  Subject  Interests  are located, shall apply to the
creation  of  the  Term  Royalty  Interest.

     SECTION  15.03   CONSTRUCTION OF CONVEYANCE. In construing this Conveyance,
the  following  principles  shall  be  followed:

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

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

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

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

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

          (f)     each exhibit, attachment, and schedule to this Conveyance is a
part  of  this Conveyance, but if there is any conflict or inconsistency between
the  main  body  of  this

                                       26
<PAGE>
Conveyance  and any exhibit, attachment, or schedule, the provisions of the main
body of this Conveyance shall prevail.

     SECTION  15.04     WAIVER.  Failure  of either Party to require performance
of  any  provision  of  this Conveyance shall not affect either Party's right to
require  full  performance  thereof  at  any  time thereafter, and the waiver by
either  Party  of a breach of any provision hereof shall not constitute a waiver
of  a  similar  breach  in  the  future  or  of  any other breach or nullify the
effectiveness  of  such  provision.

     SECTION 15.05     RELATIONSHIP OF PARTIES.  This Conveyance does not create
a  partnership,  mining  partnership, joint venture, or relationship of trust or
agency  (except  with  respect to Assignor's agency relationship with respect to
those  matters  set  forth  in  Articles  IV  and  V above) between the Parties.

     SECTION  15.06     PROPORTIONATE  REDUCTION.  In  the  event  of failure or
deficiency  in title to any Well or Subject Interest, the portion of the Subject
Gas production attributable thereto shall be reduced in the same proportion that
such  Well  or  Subject Interest is reduced by such failure or deficiency.  Such
proportionate  reduction of the Term Royalty Interest shall not limit Assignee's
right to recover damages with respect to such reduction under the warranty given
by  Assignor  in  Section  1.04(a).  In  the  event  the Working Interest in any
Completed  Development  Well  is  proportionately  reduced by reason of any such
failure  or  deficiency  in title, the Adjusted Completed Development Well Value
for  any  such  Well  shall  be  recalculated using such proportionately reduced
Working  Interest;  provided  however,  that  in  instances  where  there is not
corresponding  downward  adjustment  to  the  Net  Revenue  Interest,  no  such
adjustment  shall  be  made.

     SECTION  15.07     FURTHER  ASSURANCES.  Each  Party  shall  execute,
acknowledge, and deliver to the other Party all additional instruments and other
documents  reasonably  required  to  describe  more  specifically  any interests
subject  hereto,  to  vest  more  fully  in  Assignee  the Term Royalty Interest
conveyed  (or  intended  to  be  conveyed) by this Conveyance, or to evidence or
effect  any  transaction  contemplated  by this Conveyance.  Assignor shall also
execute  and  deliver  all additional instruments and other documents reasonably
required  to  Transfer interests in state, federal, or Indian lease interests in
compliance with applicable Legal Requirements or agreements.  Upon expiration of
the  Term,  the  Assignee shall, on request, execute, acknowledge and deliver to
Assignor  sufficient  numbers  of  recordable  instruments  releasing all of the
Subject  Lands  from  this  Conveyance.

     SECTION  15.08     THE  7:00 A.M. CONVENTION.  Except as otherwise provided
in  this Conveyance, each calendar day, month, quarter, and year shall be deemed
to  begin at 7:00 a.m. Eastern Time on the stated day or on the first day of the
stated month, quarter, or year, and to end at 7:00 a.m. Eastern Time on the next
day  or  on  first  day  of  the  next  month,  quarter,  or year, respectively.

          (a)     MULTIPLE  COUNTERPARTS.  Multiple  counterparts  of  the
Conveyance  have  been  recorded  in  the  counties  where the Subject Lands are
located.  The  counterparts  are

                                       27
<PAGE>
identical  except,  to  facilitate recordation, the counterpart recorded in each
county  may  contain  property  descriptions  relating only to the Subject Lands
located  in that county. A counterpart of the Conveyance containing all property
descriptions  of  Subject Lands will be filed for record in Kanawha County, West
Virginia.

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

     SECTION  15.10     PRESENT  AND  ABSOLUTE  CONVEYANCE.  It  is  the express
intention  of  Assignor  and  Assignee  that  the conveyance of the Term Royalty
Interest  under the terms hereof is, and shall be construed for all purposes as,
a  present,  fully-vested  and  absolute  conveyance.

     SECTION  15.11     OTHER AGREEMENTS.  This Term Royalty Conveyance is being
executed  pursuant to the terms and conditions of the Term Royalty Agreement and
in  connection with the Development Agreement, and in the event of a conflict in
the  terms  and  conditions  of  this  Term Royalty Conveyance and the terms and
conditions  of  the  Term  Royalty  Agreement , the terms and conditions of this
Conveyance,  shall  control.  In  the  event  of  a  conflict  in  the terms and
conditions  of  this Term Royalty Conveyance and the terms and conditions of the
Development  Agreement, the terms and conditions of this Term Royalty Conveyance
shall  control.

     SECTION  15.12     SECTION  15.12  EXECUTION  BY  ECA.   ECA  joins  in the
execution  of this Conveyance for the sole and limited purpose of joining in the
warranty  set  forth  in  Section  1.04(a)  but  for  no  other  purpose.

                  [Remainder of page intentionally left blank.]

                                       28
<PAGE>
     IN WITNESS WHEREOF, each Party has caused this Conveyance to be executed in
its  name  and  behalf  and  delivered  on  the  date  or  dates  stated  in the
acknowledgment  certificates  appended to this Conveyance, to be effective as of
the Effective Time.

ATTEST:                                 ENERGY CORPORATION OFAMERICA

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

ATTEST:                                 EASTERN AMERICAN ENERGY
                                        CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

ATTEST:                                 BLACK STONE MINERALS COMPANY, L. P.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       29
<PAGE>
THE  STATE  OF  _____________     S
     S
COUNTY  OF  ______________     S

     On  this,  the  ______  day  of  _________, 2005, before me ____________, a
Notary  public,  personally  appeared  ___________________________,  as  the
__________________  of  Energy  Corporation  of  America,  a  West  Virginia
corporation,  and  executed  the  foregoing  instrument  on  behalf  of  said
corporation.

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

[SEAL]
                                       ----------------------------------------

My  Commission  Expires:_________________

THE  STATE  OF  _____________     S
                         S
COUNTY  OF  ______________     S

     On  this, the ______ day of _________, 2005, before me ___________________,
a  Notary  public,  personally  appeared  ____________________,  as  the
___________________  of  Eastern  American  Energy  Corporation, a West Virginia
corporation,  and  executed  the  foregoing  instrument  on  behalf  of  said
corporation.

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

[SEAL]
                                        ----------------------------------------

My  Commission  Expires:_________________

                                       30
<PAGE>
THE  STATE  OF  _____________     S
     S
COUNTY  OF  ______________     S

     On  this,  the  _____  day  of  _____________,  2005,  before  me
___________________,  a  Notary  public,  personally  appeared
________________________, as the _______________________ of Black Stone Minerals
Company,  L.  P.,  a  Delaware  limited  partnership, and executed the foregoing
instrument on behalf of said limited partnership.

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

[SEAL]
                                        ----------------------------------------

My  Commission  Expires:_________________

Prepared  by:

     TAMMY J. OWEN, ESQUIRE
     GOODWIN & GOODWIN, LLP
     P. O. BOX 2107
     CHARLESTON, WV 25328-2107

     WV STATE BAR NO. 5552
                      ----

                                       31
<PAGE>
                            CERTIFICATE OF RESIDENCE

     The  ___________________,  as Assignee hereunder, hereby certifies that its
precise  address  is:

     _________________________

     _________________________

     _________________________

     _________________________

     Attention:  _____________

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